01A Lesson Proper for Week 1

Definition of Marketing
Have you ever tried convincing your family to buy something like a pair of shoes or a newly
released iPhone model? Have you managed to persuade your friends to eat at your favourite
restaurant or do something you want like watching movies together? Or did you purchase a product
just because your favourite celebrity advertised it? You have already done and/or experienced
marketing if you responded yes to any of these questions. Marketing occurs in our personal lives as
well as in businesses on a daily basis. It is an integral part of what makes us human.

What exactly is marketing in the business context? The American Marketing Association
provides the following definition: “Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.” This definition emphasized marketing as a process rather than an
outcome, and even included the different methods, goal concepts, and stakeholders involved. The
customers’ and society’s values are also indicated as of equal importance with the firm’s goals.

Dr. Philip Kotler and Dr. Gary Armstrong define marketing as “The process by which companies
engage customers, build strong customer relationships, and create customer value in order to capture
value from customers in return.” Customers are emphasized in Kotler and Armstrong's definition, as
they play a significant part in the marketing process and are acknowledged as the driving force behind
all marketing efforts.

Needs, Wants, and Demands

One of the core concepts of marketing is to identify and address the needs, wants and demands
of your target market in order to deliver maximal customer satisfaction. According to Kotler, needs
are comprised of physiological necessities which includes food, clothing, warmth, and safety; social
needs such as belonging and affection; and personal needs such as knowledge and self-expression.
These requirements are biogenic in nature and are inherent components of the human existence
which were not created by marketers.

Wants are forms of human needs which are products of consumer’s culture and individual
personality traits. These are influenced by the society in which one lives and are described in terms of
products that will satisfy needs. Wants turn into demands when they are backed by the consumer's
purchasing power. People demand products and services that provide the optimum value and
satisfaction, considering their wants and resources.

Goals of Marketing
Like any other business function, marketing has its intended goals and objectives. It is primarily
concerned with generating revenues and delivering customer satisfaction in order to establish long
customer relationships which encourage brand loyalty and engagement with the company's products
and services. The following are the main goals of marketing:

a. Customer Satisfaction: The primary objective of a company is to address and satisfy the
needs and wants of its intended target market through its product and service offerings.
b. Create Demand: It is responsible for developing customer demand for products and services.
c. Increase Sales Volume: It is a process of boosting the sale of a product or service to generate
revenue is a tough procedure.
d. Ensure Profitability: One of a company’s overall goals is to ensure that the business is gaining
profit through its operations which must also be supported by its marketing team.
e. Enhance Product Quality: Marketing collects customer feedbacks and comments in attempt
to employ them and improve the products or services it offers.
f. Create a Time and Place Utility: This ensures that the product or service is accessible to
customers when and where they need it.
g. Creating Corporate Goodwill: It projects a positive and favorable image of both the company
and the products offered to the public especially its intended audience.
Marketing Concepts
The marketing concept is a business strategy that drives companies to analyze consumer needs
and wants, formulate decisions and produce products and/or services based on those preferences in
order to generate income, provide the highest level of customer satisfaction possible, and gain
competitive advantages. There are five marketing concepts that businesses adopt and practice
namely (1) production, (2) product, (3) selling, (4) marketing, and (5) societal marketing.

Production Concept: The idea of production concept is that consumers will favor products that are
available to and highly affordable for them. Thus, the company will attempt to cut production costs by
improving the efficiency of the production process. Furthermore, it will aim to expand its distribution
as much as possible in order for its products to be widely known to its target market. Vivo, a Chinese
smartphone manufacturer, provides the best example of the production concept as their phones can
be purchased in nearly every Asian market available.

Product Concept: According to the product concept, consumers will seek products with the highest
quality, performance, and unique features. Thus, the company focuses its marketing strategies on
continuous product upgrades and improvements to gain competitive advantages. Logitech, for an
instance, is a company that successfully adopts this marketing approach. It manufactures high-quality
computer peripherals like keyboards, mouse, and webcams. These products are priced higher, yet
people continue to purchase these as they value the high quality features they provide.

Selling Concept: This concept states that unless the company engages in a large-scale selling and
promotion efforts, customers will not buy enough of its products. The objective of this approach is to
sell what the company makes rather than producing what the market really wants. It puts emphasis
on creating sales transactions rather than establishing long-term, profitable customer relationships.

Marketing Concept: In this approach, customer focus and value are what drive the company towards
the achievement of desired sales and profits. It claims that attaining organizational goals requires
understanding the needs and wants of the target market, as well as providing customer satisfaction
better than the firm's competitors.

Societal Marketing Concept: It promotes for sustainable, as well as environmentally and socially
responsible marketing, that satisfies current consumer and business needs at the same time
protecting or improving future generations’ capacities to meet their own. The business provides value
to customers in such a way that preserves or promotes the well-being of both the consumers and
society.

Traditional Marketing
Traditional marketing is a form of marketing approach that involves a variety of activities aimed
at raising brand awareness and transferring ownership of goods from producers to end-users. It
pertains to the basic notion of marketing of selling goods and services after manufacture and focuses
on offline methods such as print ads, billboards, broadcasting, and television advertisements. The
traditional approach is viewed as production/sales oriented since it prioritizes the selling of goods and
services while placing inadequate emphasis on delivering maximal customer satisfaction.

AIDA Model
The AIDA model, which stands for Attention, Interest, Desire, and Action, is one of the
traditional marketing approaches. It is an advertising strategy model that analyzes the cognitive
phases that a consumer goes through when purchasing goods or services. It is a marketing, and selling
methodology that aims to deliver insights into the customer's minds as well as describe the process
that the business must undergo in order to reach out to prospective consumers and to generate sales.
Product/Market Expansion Grid
The Product/Market Expansion Grid, also known as the Ansoff Matrix, is a conventional
framework adopted by organizations to evaluate and develop strategies in launching new products
and services which aims towards company’s overall growth. It enables managers to quickly evaluate
prospective growth initiatives and relate them to its corresponding costs and risk.

It implies that a company's efforts to expand are based on whether it launches new or current
products in new or existing markets. The matrix depicts four techniques in boosting company's
growth, as well as assessing the risks linked with each strategy. The notion is that risk increases as the
firm advances into a new quadrant (horizontally or vertically).

4 Strategies of Product/Market Expansion Grid:

Market Penetration : Concerned with boosting sales of existing products to an existing market.
Product development : Launching new products to a market which already exists.
Market Development: The objective of this technique is to enter into a new market with existing
products.
Diversification: Aims to enter into a new market offering new products.

Contemporary Marketing
The term "contemporary marketing" refers to approaches that emphasize consumer orientation
over traditional market orientation. It goes beyond simply attracting new customers. These are
techniques that provide stronger support for the company's customer base when adopted, through
offering a product range that varies based on the target market's demands and preferences.

Contemporary marketing methods also include establishing consumer engagement and brand
loyalty, leading to a more sustainable business structure rather than the one that the business aspires.
This modern approach of viewing at product or service marketing transforms how a business
functions when it comes to reaching out to a broader target market. Some of the contemporary
marketing strategies include search engine optimization (SEO), social media marketing, product
placement, brand marketing, email marketing, etc.

Co-Creation
Co-creation is a contemporary marketing approach in which a firm promotes active participation
and involves third-party experts and/or stakeholders such as customers, suppliers, and retailers in the
production of on-demand and made-to-order products through gamification. A common application
of this approach would be engaging customers with social media content that is relevant to the user
or by publishing informative article blog posts.

Co-creation is a strategy that Lego has adopted. Users recommend ideas for new Lego playsets
on the toy company's Lego Ideas website. They can vote for their preferred ideas and provide
feedback on them.

Shared Value
Shared value is a marketing strategy for financially resolving social concerns. This is
accomplished by utilizing the private sector's resources and innovation to develop new solutions to
some of society's most urgent problems. As a result, it generates a more advantageous operating
environment, which enables the businesses to be more stable and resilient. A company's business
approach must be reformed then into a self-resourcing value creation model, in which the firm is
structured to address social issues through its own operations.
Customer Value

According to Dr. Philip Kotler and Dr. Gary Armstrong, Customers build expectations about the
value and satisfaction that various market products will provide and purchase in accordance with
those expectations. Customers that are satisfied with their purchases will buy again and tell others
about their positive experiences.

However, those who are dissatisfied usually switch to competitors and criticize the product to
others. This greatly affects the relationship between the business and its consumers. Thus, it is
essential to dive into the concept of customer value which is one of the foundations for building and
maintaining customer relationships.

Customer value is the level of satisfaction a customer experiences after purchasing goods or
services relative to what he or she has to give up in order to acquire them. A consumer evaluates
value not only in form of finance, but also in terms of the time and effort it takes to purchase a
product and interactions with customer service staff.

Measuring Customer Value

Cost is a significant factor in customer value since it is the parameter by which a customer may
assess similar companies. Customers evaluate identical products with the same perceived value
differently depending on the price they're charge for.

There are two methods for calculating customer value: desired value and perceived value. The
difference between desired and perceived value is that desired value is what the customer expects
before buying the products, while perceived value takes cost into account. The simplest equation in
measuring customer value is: Perceived Value = Tangible Benefits ÷ Costs Paid

The Drivers of Value

A customer's perception of value is influenced by a range of factors. Some are under the
company's control, while others are not. Consumers have varying levels of priorities. Some people
love brands, some customers only purchase items that are inexpensive, while personal relationships
are important to others. The following are the said drivers of customer value:
Quality
Service
Product function
Marketing
Price
Points of differentiation
Branding
Existing relationships or experience
Personal bias from experience and upbringing

Importance of Customer Value

Customer value is essential both for the customer and manufacturer. It is a criterion that may
be employed to develop superior product and service offerings. A positive customer value will keep
the product in demand resulting in repeat sales and also spread word of mouth that will cut off
marketing costs and lead to market success.

However, if the customer is unable to derive a tangible (or intangible) benefit from the product
or service after paying the price, the product will not be sold again and might even receive criticisms
from the public, affecting the relationships between the customers and the business negatively. One
of the strategies a company may employ in order to effectively deliver customer value is through
relationship marketing, which will be discussed below.

Relationship Marketing WEEK-2

 Relationship marketing, also known as customer relationship marketing, is a long-term
approach used by businesses to deliver customer value and satisfaction, improve their customers'
product experiences and establish close relationships with them in order to secure customer loyalty
and long-term involvement.

The purpose of relationship marketing is to develop deep and emotional, customer bonds with
a brand, which can lead to repetition of purchase and free word-of-mouth advertising by the
consumers. It is also mostly focused on improving internal operations since many customers leave the
business because they are dissatisfied with the customer service, not because they dislike the product
it offers.

However, most businesses continue to utilize and concentrate on transactional marketing,

which is more engaged in increasing boosting individual sales rather than building long-term
connections with existing customers. It focuses mainly on short-term communications, with minimal
interactions between the company and its customers which do not extend beyond the deal.

The following table shows the summary of differences between relationship marketing and
transactional marketing in regards to focus, orientation, time, and customer service, commitment and
contact:

TRANSACTIONAL MARKETING

RELATIONSHIP MARKETING

FOCUS

Focus on the single scale

Focus on customer retention

ORIENTATION

Orientation on product features

Orientation on product benefits

TIME

Short time-scales

Long term-scales

CUSTOMER SERVICE

Little emphasis on customer service

High emphasis on customer service

CUSTOMER COMMITMENT

Limited customer commitment

High customer commitment

CUSTOMER CONTACT
Moderate customer contact

High customer contact

Benefits of Relationship Marketing

Numerous benefits can be acquired by the company that employs relationship marketing as
one of their approaches towards the attainment of organizational goals.

Higher customer lifetime value (CLV): Customers stay loyal as a result of relationship marketing, which
leads to repeat purchases and a higher CLV. Furthermore, engaged customers are more likely to
become brand ambassadors, promoting products and services to friends, family, and colleagues.

Reduction of marketing expenditures: As mentioned previously, the marketing costs of acquiring new
customers are more than retaining them. Relationship marketing also drives customers to engage in
marketing for the brand which is called buzz marketing. Customers disseminate information about a
company's products and services and encourage other people to purchase and do the same, which
results to increased sales. Companies with effective relationship marketing approaches spend little to
no effort on marketing and advertising.

Five Levels of Relationship Marketing

There are five levels of relationship marketing that an organization can employ. These levels
depend on the company’s objectives as well as its investments such as time and marketing resources
in establishing relationships with its consumers.

Basic Marketing: Also known as direct sales, it's when a salesperson or marketer simply sells a product
without following up with its final customers. As a result, no effort is made to form relationships with
them.

Reactive Marketing: After the sale transaction, the marketer encourages the customer to provide
feedback, inquire about the goods, and even file complaints. There's an attempt to form relationships
with them here. At this stage, the sellers are ready to solve difficulties for the buyers.

Accountable Marketing: This is similar to reactive marketing, but in a higher level. The salesperson
follows up with clients after a short period of time to check if the product is performing as expected
and if there are any problems when it comes to the product’s quality.

Proactive Marketing: This is when companies constantly seek to enhance their products and services
in order to deliver their customers with superior product experience. After selling the product, the
marketer remains in contact with the consumer on a regular basis to offer suggestions on how to use
it effectively, as well as for service and repair solutions. The marketer also informs the consumer
about new products as well as enhanced quality and services offered by the company. In this case, the
salesperson is putting in extra effort in attempt to improve the level of relationship between the
company and the customer.

Partnership Marketing: In partnership marketing, the marketer collaborates with its consumers and
other stakeholders on a constant basis for mutual gain. Here, the marketer works with the customer
to discover ways to improve the client's performance, save money, and boost satisfaction. It may also
entail working with other firms in order to improve consumer satisfaction and experience. As a result,
partnership marketing is deemed to be the highest level of relationship marketing.

Starbucks

Starbucks has succeeded in establishing its brand identity to the public that when people think
of coffee, what comes into their minds immediately is the said company's logo. Starbucks continues
to be well-known due to the different facilities they provide to customers, such as comfort and
tranquillity in their cafes. They also offer Starbucks Rewards Loyalty Program cards, which are
effective since they grant incentives for every purchase, encouraging customers to return.

Starbucks sends out regular emails to its customers, keeping them up to date on special deals
and new product announcements. They also post customer content on their official social media sites.
Aside from that, they also established partnerships with a variety of businesses, non-profit groups,
and other organizations that could help them bring a certain set of diverse skills and expertise.
 01A Lesson Proper for Week 3

Relationship Development Strategies

A variety of factors provide the basis for various measures used by businesses to retain their
existing customers and affect the development of strong customer relationships. These factors
include the customer's overall assessment of the firm's core service provision, the relationships
formed by the firm with its customers, and the difficulties that consumers face in terminating the
relationship with the business.

A. Core Service Provision

A company's flagship product or service is its core offering or provision, and it is what it seeks to
be recognized for. It is generally where the majority of revenue is generated, and it can be
determined by different external variables such as competition, as well as internal factors such as a
poor marketing scheme or poor customer relations.

Every company should strive to remain profitable and relevant in a highly competitive industry.
To do so, they'll need to develop strategies to fine-tune their main product and service offerings. All
of these strategies start with a strong foundation of service quality and customer satisfaction. The
company does not have to be the best, but it must remain competitive, if not superior, all of the time.

Customer Satisfaction

The primary goal of any business should be to satisfy its clients. Customer satisfaction is a
measurement that evaluates how satisfied customers are with a business's products, services, and
capabilities. Information on customer satisfaction, such as surveys and ratings, can assist a firm in
determining how to develop or adjust its products and services.

Satisfaction is the consumer’s fulfilment response. It is a determination that a feature of a

product or service, or the product or service itself, supplied (or continues to offer) a desirable level of
consumption-related satisfaction, including levels of under- or over-fulfilment.

According to Dr. Philip Kotler and Dr. Gary Armstrong, customer satisfaction is determined by
how well a product performs in comparison to the buyer's expectations. The consumer feels
unsatisfied if the product fails to meet their expectations. The customer is satisfied if the performance
matches their expectations. The customer is exceedingly satisfied or delighted if the performance
exceeds expectations.

This holds true for manufacturing enterprises, retail and wholesale businesses, government
agencies, service businesses, nonprofit organizations, and every subgroup within a company.

Customer Perceived Value

It might be challenging to attract and maintain customers. Customers are frequently confronted
with an overwhelming range of products and services from which to purchase. A customer purchases
from the company that provides the best customer-perceived value which is the customer's
assessment of the difference between all of a market offering's benefits and expenses in comparison
to those of similar brands.

Customer perceived value is the assessed value a customer believes they will receive from
purchasing a product. It is measured in terms of how well a product or service can meet the needs of
a potential customer. Only if the buyer believes he is getting any value from the product will he
purchase it again. As a result, marketers' mantra becomes delivering this value.
 Customer perceived value is a notion that is widely practiced in marketing and branding. It is
the concept that a product's or service's success is mainly determined by whether customers believe
it can meet their goals and needs.

Simply put, customers ultimately determine how to comprehend and respond to marketing
signals when a firm creates its brand and promotes its products. Companies commit a considerable
amount of time to market research in order to understand how customers think and feel.

Perceived Service Quality

Consumers' perceptions of a company's overall differentiation or dominance are characterized
as perceived service quality. It is defined as the magnitude and direction of the gap between
consumer perceptions and expectations.

The customer's perception of a service's quality is based on a comparison of the customer's

expectations and his or her real-life experiences. The "overall perceived quality" is favorable if
"experienced quality" exceeds "anticipated quality." The perceived quality is low if expectations are
not reached by the performance or the actual experience.

B. Switching Barriers
Customers change service providers on occasion, but most of the time they are constrained by
switching barriers. In reality, this helps in customer retention, and businesses should aim to take
advantage of it.

Customer Inertia
Consumer inertia refers to a customer's inclination to buy or keep buying a product despite the
availability of better alternatives. This is simply idleness in ending a relationship, because switching
requires some effort. This is one of the reasons why some disgruntled customers continue to
patronize the company.

Customers must restructure or reorganize their lifestyles when they end a relationship. That is,
new habits, new surroundings, new clothes, and so on must be formed. In other words, people are
averse to changing their habits and behavior.

Organizations may attempt raising the perceived effort required by customers to move firms in
order to retain clients. If a consumer recognizes that switching firms will take a lot of effort, he or she
is more inclined to stay with the same company.

If, on the other side, a business tries to entice a competitor's consumer, it may make the
process of switching as simple as possible for the customer. Credit card issuers, for example, offer
cheaper interest rates on a transferring customer's existing loans.

Switching Costs

Switching costs are the expenses incurred by a consumer when switching brands, suppliers, or
products. Although monetary switching costs are the most common, psychological, effort-based, and
time-based switching costs also occur.

Switching costs are the foundations of a company's competitive advantage and pricing power.
Firms seek to make switching costs as high as possible for their consumers, allowing them to hold
customers in and increase prices year after year without risk of their customers searching better
alternatives with identical attributes or at matching price ranges.

To keep customers, businesses must raise the perception of switching costs to the point that
clients would lose great amount of money if they leave. In turn, corporations must attempt to reduce
these expenses for the competitor's consumers in order to entice them to approach the business and
give it a try.
Financial Switching Costs: A loss of financially measurable assets is referred to as a financial switching
cost. It is the most apparent expense when consumers shift from one product to another, which is the
difference between the price they spend for the new product and the price they lose when they halt
using the old one.

When you use the Starbucks app, you earn points that you may use to get a discount on your
next coffee. If you shift from Starbucks to Costa Coffee, you will not be able to redeem your Starbucks
points at Costa. You will instantly lose all of your Starbucks points, reducing the likelihood that you
will decide to transfer.

Procedural Switching Costs: These are the immediate switching costs that a consumer incurs while
switching products, services, or suppliers, and are also known as direct switching costs. When it
comes to switching products, procedural switching costs are less evident but far more tangible to the
user.

Let's take the example of a firm that wants to change the provider that maintains its IT network
to illustrate this cost. It would take time and effort to find a new source, not to mention the
uncertainty of what type of service the new supplier would deliver. Set-up costs and learning costs are
included in the procedural switching costs.

Relational Switching Cost: The relationships you lose when you switch from one product to another,
and the identity shift you must undertake when you associate yourself with a different brand, are the
two types of relational switching costs. This switching cost refers to the psychological discomfort
induced by the loss of identity and the breaking of ties with the existing supplier.

When you shift products, you're altering your identity as well. This change in identity causes
emotional distress and tension. Brand loyalty and brand strength are also linked to identity costs, with
Pepsi vs. Coca-Cola, or McDonald's vs. Burger King as examples.

Relationship Bonds
Switching barriers are typically used to prevent customers from shifting because they "have to"
or as being forced. However, there are ways that businesses can employ to persuade customers to
stay in a relationship because they "want to" or that they acting willingly.

Each strategy levels bring the customer closer to the company. Moreover, with each stage, the
potential for a long-term competitive edge develops. They are organized into four categories namely
Financial, Social, Customization, and Structural Bonds as given below.

Level 1 - Financial Bonds: Consumers are generally attached to the company at this stage by monetary
incentives, such as lower prices for higher volume purchases or cheaper prices for customers who
have been with the company for a long time.

However, financial incentives do not usually grant a firm with long-term benefits since, unless
integrated with another relationship approach, it does not differentiate the company from its
competitors over a long period of time.

These programs are also frequently imitated. As a result, any increase in customer usage or
loyalty may be fleeting. Second, these techniques are unlikely to succeed unless they are organized in
such a way that they genuinely lead to recurring or greater usage rather than only attracting potential
clients and consequently generating continuous switching among competitors.

Volume and Frequency Rewards: For larger volumes or more frequent purchases of the company's
services, lower prices are offered. As stated earlier, unless complemented with another relationship
strategy, financial incentives do not usually deliver long-term benefits because they do not separate
them from their competitors, who may typically match the offering.
Stable Pricing: In certain circumstances, businesses aim to keep their clients by merely offering them
steady prices. Or, if it can't be prevented, a very minor rise in comparison to new customers. By doing
so, businesses are able to pass on some cost savings to their loyal clients, which they have accrued as
a result of their long-term relationship.

Bundling and Cross Selling: Bundling (attaching services from the same firm) and cross selling
(attaching services from another firm) of products and services are the two more types of retention
strategies that rely on financial incentives. For example, a certain airline's frequent passengers may be
granted cab service, hotel accommodations, and even free tour tickets.

Level 2 - Social Bonds: At this point, methods utilize more than just financial incentives to attach
customers to the company. Despite the fact that price is still thought to be significant, level 2
retention marketers develop long-term relationships through social and interpersonal as well as
financial ties. Customers are referred to as "clients" rather than "nameless faces," and they are
treated as persons with specific wants and needs that the company attempts to understand and cater.

Sometimes, relationships are created with the organization as a result of social bonds that
emerge among customers rather than between clients and the service provider. This is common in
health clubs, country clubs, educational institutions, and other service settings where clients socialize
with each other.

Although social relationships alone may not permanently bind a client to a company, they are
far more difficult for competitors to imitate than financial incentives. In the absence of compelling
reasons to switch operators, interpersonal relationships can persuade clients to stay with their
current provider. Social bonding approaches can be particularly effective when matched with financial
incentives.

Level 3 – Customization Bonds: At this stage, techniques are more than just social links and financial
incentives, while parts of level 1 and level 2 strategies are frequently incorporated into customization
strategies, and vice versa.

Mass communication and customer intimacy are two terms that are usually used to define the
customization bonding strategy.

Customer Intimacy: This strategy proposes that customer loyalty can be bolstered by developing a
deep understanding of individual consumers and developing “one-to-one” solutions tailored to their
specific demands.

Mass Customisation: This notion is explained as “the use of flexible processes and organisational
structures to generate diversified and individually personalized products and services at the price of
standardized, mass produced alternatives”. This doesn’t mean that the service provider would try
harder to deliver endless varieties of alternatives to satisfy each and every customer.

Anticipation / Innovation: Technology and innovation play a vital part in offering tailored services to a
large number of clients in each of these strategies.

Level 4 – Structural Bonds: This is the most advanced level, as well as the most difficult to imitate. This
includes both structural and customized, as well as social and financial relations between customers
and the company. Structural bonds are formed by supplying customers with value-added services that
are typically included right into the customer's service design system. Usually, structural bonds are
formed by providing tailored services to the customers that are technology-based in a suitable
infrastructure and make the customer more productive.
 01A Lesson Proper for Week 4

Strategic Planning

Strategic planning includes assessing competitive opportunities and threats, as well as the
organization's strengths and weaknesses, and determining how to best position the company in order
to thrive effectively in its environment.

Strategic processing is generally conducted over a long period of time, such as three years or
more. The entire organization is involved in strategic planning, which includes the creation of
objectives. The mission of an organization, which is its primary reason for being, is frequently the
basis for strategic planning.

A mission statement is a statement of an organization's purpose or what it intends to achieve

in the business environment. A precise mission statement serves as a "invisible hand" throughout the
business, guiding employees in the right direction. Strategic planning is usually undertaken by the top
management of a company.

The strategic planning process results in a strategic plan, a document that outlines both the
decisions made concerning the organization's goals and the means by which those goals will be
fulfilled. The strategic plan is designed to assist the organization's leaders make better decisions in the
future.

Strategic Objectives
Strategic objectives are purpose statements that serve as a link between the company’s vision
and annual plan or goal. Strategic objectives are often referred to as "mini vision statements" since
they should complement the overarching vision of success while also breaking it down into achievable
and actionable focus areas.

Strategic objectives define the parameters within which your organization's efforts must be
directed. They form the top layer of your strategic plan's structure, stating what you'll emphasize on
in order to attain your objectives.

Types of Strategic Objectives

To achieve multiple goals, businesses frequently classify strategic objectives into categories.
Companies create strategic objectives centered on their industry or brand strategy, with each goal
falling under a broader scope. They usually set strategic goals in the following areas:

Financial strategic objectives: Financial strategic objectives are designed to assist businesses in
forecasting profits, forming budgets, and calculating expenditures. They allow a firm to concentrate
on its financial needs by taking precise efforts to increase or decrease costs, re-evaluate spending,
assess revenue trends, and prepare for future financial growth.
Examples include:
Increase internal revenue over the next four years
Increase market share
Generate more sales
Increase investment portfolio

Growth strategic objectives: Strategic growth goals are used by businesses to make actionable
statements about expanding and improving their product differentiation, as well as building new
internal processes. Strategic growth targets can assist a company in planning for the future of the
company, including precise actions for achieving those long-term objectives.
Examples include:
Enter three new international markets in the next three years
Increase national sales
Obtain more regional market shares by the end of the year

Training or Learning strategic objectives: Companies set strategic learning objectives by laying out a
plan to improve employee knowledge and capacities through specified actions. Strategic training
objectives are ways for a company to plan to invest in its people in order to meet overall
organizational objectives.
Examples are:
Increase the number of professional development opportunities available to employees.
Organize a leadership conference.
Conduct a safety training course
Implement leadership training.

Business processes or operations strategic objectives: The emphasis of strategic objectives for
business processes and operations is to change or restructure the way a company operates. A
business may opt to alter and assess how they manufacture a product with the purpose of developing
a more efficient process in order to effectively set production objectives.
Examples:
Restructure the manufacturing process
Implement a new framework for internal communication.
Reduce energy consumption in all facilities.
Establish new research and development structures

Customer strategic objectives: Some companies want their strategic goals to be oriented around the
customer experience. A company may seek to focus on providing value to its customers based on the
price of a product or service. Alternatively, a business might want to develop goals for excellent
customer service, with specific targets to help them attain their objectives.
Examples are:
Initiate customer satisfaction surveys
Shorten delivery time
Develop a customer retention initiative
Boost customer service quality

Strategic Planning Process

The strategic planning process necessitates a lot of careful preparation from a company's
executive management. Executives may explore a variety of possibilities before deciding on a course
of action and selecting how to strategically execute it.

Ultimately, a company's management must adopt a strategy that is most likely to create
excellent results (typically defined as increasing the company's bottom line) and that can be
implemented in a cost-effective manner with a high probability of success while minimizing potential
and unnecessary financial risk.

Strategic planning is often considered to be undertaken in three steps: formulation,

implementation, and evaluation.

Strategy Formulation

A business will first evaluate its current status by conducting an internal and external audit
before formulating a strategy. This will aid in the identification of the organization's strengths and
weaknesses, as well as opportunities and threats (SWOT Analysis).

Managers employ the results of the research to decide which strategies or markets to pursue
or abandon, how to effectively use the company's resources, and whether to take measures like
forming a joint venture or merging operations.
 Strategic plans have a long-term impact on the performance of a firm. Upper management
executives are usually the only ones who have the authority to allocate the resources required for
their execution.

Strategy Implementation

Following the formulation of a strategy, the business must set specific targets or goals for
bringing the strategy into action, as well as assign resources to the strategy's implementation.

The effectiveness of the implementation stage is significantly influenced by how successful the
upper management communicates the chosen strategy throughout the organization and gets all of
the company's employees to be involved into the commitment to put the strategy into action.

Establishing a firm structure, or framework for executing the strategy, maximizing the use of
available resources, and refocusing marketing initiatives in line with the strategy's aims and objectives
are all part of effective strategy implementation.

Strategy Evaluation

Any experienced businessperson understands that today's accomplishment does not guarantee
future success. As a result, it is critical for managers to assess the effectiveness of a chosen strategy
after it has been implemented.

Reviewing the internal and external variables influencing the strategy's implementation,
monitoring performance, and taking remedial action to make the strategy more effective are all
important aspects of strategy evaluation.

For example, a firm may realize that, in order to achieve the necessary changes in customer
relations, it needs to introduce a new customer relationship management (CRM) software package
after implementing a plan to boost customer service.

All three steps in strategic planning occur within three hierarchical levels: upper management,
middle management, and operational levels. As a result, encouraging communication and interaction
among employees and managers at all levels is critical for the company to work as a more functioning
and productive team.

Benefits of Strategic Planning

The uncertainty of the business environment induces many businesses to incorporate reactive
strategies rather than proactive ones. Reactive approaches, on the other hand, are often only viable
in the short term, despite the fact that they may demand a large investment of funds and time to
implement.

Strategic planning enables businesses to plan ahead of time and solve difficulties in a more
long-term manner. They allow a business to exert influence rather than simply reacting to events. The
following are some of the most important advantages of strategic planning:

It aids in the formulation of superior tactics using a logical, methodical approach: This is generally the
most significant advantage. According to some research, regardless of the effectiveness of a given
strategy, the strategic planning process itself contributes significantly to enhancing a company's
overall performance.

It improves employer-employee communication: Communication is critical to the strategic planning

process's success. It begins with engagement and communication between management and
employees, demonstrating their commitment to attaining organizational objectives.
 Employees and managers can demonstrate dedication to the organization's goals by using
strategic planning. This is because they are aware of the company's activities and the grounds for
them. Employees can better comprehend the relationship between their performance, the company's
success, and compensation due to strategic planning. Thus, both employees and management
become more inventive and creative, enabling the company's continuous growth.
It equips employees working in the firm: Employees' sense of effectiveness and importance in the
company's overall performance is bolstered by enhanced interaction and communication at all stages
of the process. As a result, decentralizing the strategic planning process by incorporating lower-level
managers and people throughout the business is critical.

Marketing Planning
The company determines what it intends to do with each business segment through strategic
planning. Marketing planning include deciding on marketing tactics that will assist the organization in
achieving its long-term strategic goals. For each firm, product, or brand, a comprehensive marketing
plan is required.

The plan begins with an executive summary that summarizes the primary assessments, goals,
and recommendations in a concise manner. The plan's main section includes a detailed SWOT analysis
of the existing marketing position, as well as risks and opportunities. Following that, the plan outlines
the brand's primary objectives as well as the specifics of a marketing strategy for attaining them.
Section

Purpose

Executive Summary

Provides a concise description of the plan's key objectives and recommendations for management
review, assisting top management in promptly locating the plan's core aspects.

Current marketing situation

Defines the target market and the company's position within it, including market data, performance
metrics, competitive landscape, and distribution. The following items are included in this section:

A market description that identifies the market and primary segments before delving into customer
needs and marketing environment factors that may influence consumer purchasing process.
A product review that displays the primary products in the product line's sales, pricing, and gross
margins.
A competitive analysis that identifies significant competitors and evaluates their competitive
advantages and product quality, pricing, distribution, and promotion tactics.
A distribution assessment that considers recent market trend and other changes in major distribution
channels.
Threats and opportunities analysis

Evaluates major threats and opportunities that the product might encounter, assisting management
in anticipating significant positive or negative developments that may affect the company and its
strategies.

Objectives and issues

The marketing objectives that the company intends to achieve during the plan's duration are listed,
together with the major challenges that will affect their achievement.

Marketing strategy

Outlines the broad marketing rationale the business unit seeks to use to reach consumers, generate
customer value, and establish customer relationships, as well as the specifics of target markets,
positioning, and marketing spending levels. This section also shows how each marketing mix element
responds to the risks, opportunities, and key issues mentioned previously in the strategy.

Action programs

Describes how marketing ideas will be translated into concrete action plans that address the
following issues: What is going to be done? When is it going to be finished? Who will be the one to
accomplish it? How much will it cost?

Budgets

A supporting marketing budget, which is essentially a forecasted profit-and-loss statement, is

described in detail. It displays estimated revenues as well as anticipated production, distribution, and
marketing costs. The estimated profit is the difference. Materials purchasing, production scheduling,
personnel planning, and marketing operations are all based on the budget.

Controls

Outlines the controls that will be used to track progress, allow management to evaluate
implementation outcomes, and identify products that aren't meeting their objectives. It offers metrics
for calculating the return on marketing investment.

Detailed proposals for target markets, positioning, the marketing mix, and marketing
expenditure levels comprise a marketing strategy. It specifies how the organization aims to engage
with and provide value for its target customers in order to receive value in return.

The planner outlines how each strategy reacts to the dangers, opportunities, and significant
challenges outlined earlier in the plan in this section. Additional components of the marketing plan
detail an action plan for putting the marketing strategy into action, as well as the details of a
marketing budget to support it. The final section specifies the controls that will be used to track
progress, calculate marketing ROI, and take corrective action.

Factors Affecting Marketing Planning

There are a variety of factors that influence an organization's marketing planning. These can be
classified into 3 groups named internal factors, industry factors and natural factors.
Internal Factors: Internal factors are those that emerge within the organization. It covers the
company's size, risk-taking capacity, financial resources, organizational structure, availability of
experienced marketing personnel, and distribution channels.

Industry Factors: Every business is a part of the larger industry. Any change in industry-related aspects
has an impact on the organization. Various industrial factors, such as technological advancements in
the industry, the intensity of competition in the industry, and the relationship between the
organization and the industry, influence an organization's marketing planning.

Natural Factors: Certain natural factors like population and its regional distribution; National income
and regional distribution; regional development in the country; State of national economy; industrial
policy in the country and trade policy of country etc. also effect the marketing planning of an
organization.

Marketing Objectives
The established aims of a brand are referred to as marketing objectives. They lay up the
marketing team's goals, convey precise instructions to team members, and provide information for
executives to examine and advise. A marketing strategy's marketing objectives are critical. A brand
will struggle to achieve its plans if its goals aren't stated because it won't know what it intends to do.
 Marketing objectives are made up of smaller, shorter-term activities that a marketing
representative or department must perform in order to achieve marketing's longer-term and
overarching aims. Using the SMART technique of goal-setting, one can establish marketing objectives.

This will guarantee that the objectives established provide direction to all involved in marketing,
offer unambiguous information when deciding on campaigns and the best approaches to reach target
audience, and define the marketing team's purpose. The following are examples of SMART objectives:
SPECIFIC: Specific marketing objectives enable for more effective planning.

MEASURABLE: You should be able to measure how far you've come toward your goal. If you can't
quantify how effective your method is in achieving your goal, you should probably rethink your aim or
set a more specific one.

ACHIEVABLE: Decide about goals that you and your team can reach in a reasonable amount of time. It
should be entirely reasonable to see this goal realized.

RELEVANT: It's also critical to ensure that the marketing objectives are suitable. They should integrate
the company's existing objectives and values, as well as explain the company's overall mission.

TIME-BASED: A time-based objective should have a set end date for when you intend to complete it.
Timeframes keep people motivated, and you'll be better able to comprehend why if you don't reach
your goals inside the timeframe.

Examples of marketing plan objectives

Increase brand awareness: Increased brand awareness is a common marketing goal because,
regardless of how big a firm is or how much brand loyalty it has, many people still perceive an
opportunity to spread the word about it and its products. More brand awareness usually translates to
more consumers, sales, and, in turn, more revenue for the company.

Increase sales or revenue: This goal would entail the marketing staff to concentrate solely on selling
the company's present products and services.

Generate leads: The number of potential new consumers you have coming in is referred to as lead
generation. The quantity of new leads or the percentage growth over past campaigns can be used to
determine this.

Improve return on investment (ROI): A fixed amount of money is frequently invested to attract new
customers or to maintain existing customers loyal to your brand. This sum of money is the investment
portion. When money is involved, it's critical to ensure that you're getting a reasonable return on
your investment.

Benefits of Marketing Planning

To Prepare Against Future Uncertainties: The future is never definite. It may impose problems for the
organization's marketing planning. Marketing strategy can help a firm manage these problems and
uncertainties more effectively. A thorough examination of the current condition and trend aids the
business in more accurately setting future objectives and goals.

Economy in Operation: Marketing planning also assists in acquiring maximum outcomes with the least
amount of work and the most efficient use of people and physical resources. As a result, it saves
money in different sectors of the business, such as production, sales, purchasing, and finance.

Consumer’s Satisfaction: Every business aims to please its clients in order to fulfill its goals. The actual
needs and demands of customers are thoroughly evaluated during marketing planning, and then
products are constructed. As a result, it aids in customer satisfaction by properly channelling
marketing initiatives.
Helps in Achieving Organizational Objectives: Setting standards and measuring performance as part of
marketing strategy improves organizational efficiency, which helps an organization achieve its goals.
 01A Lesson Proper for Week 6

Marketing Environment
According to Dr. Philip Kotler and Dr. Gary Armstrong, the actors and forces outside marketing
that impact marketing management's capability to establish and maintain effective relationships with
its target customers comprise the company's marketing environment.

To be successful, businesses must also keep track of the changing demands and wants of
target audiences as well as its changing marketing environment. Marketers may adjust their strategy
to meet new market problems and opportunities by analyzing the marketing environment.

The Microenvironment and Macro environment

The marketing environment is comprised of microenvironment and macro environment. The
microenvironment is mainly composed of close internal actors which have an impact on the
company's ability to interact and deliver product and services to its customers such as the company,
suppliers, marketing intermediaries, customer markets, competitors, and publics. Meanwhile, the
macro environment is made up of societal forces that have a great impact on the microenvironment
of the firm which include demographic, economic, natural, technological, political, and cultural forces.

Microenvironment
Creating ties with other company departments, distributors, marketing intermediaries,
competitors, different stakeholders, and customers is crucial for marketing success. These
relationships make up the company's value delivery network. The micro environment, which includes
all agents in an organization's immediate environment, affects the company's performance since they
have a direct impact on the firm's daily business activities.

A. The Company: Marketing management takes into account the other company groups when
formulating marketing plans. These include top management, finance, research and development
(R&D), purchasing, operations, human resources, and accounting. The internal environment is made
up of all of these interconnected groups. The company's mission, objectives, broad strategy, and
policies are established by top management. Marketing managers make decisions within the
framework of these said broader strategies and objectives, and they collaborate closely with other
company divisions as they all share responsibility for analyzing consumer demands and delivering
superior customer value.

B. Suppliers: Suppliers are an integral component of a company's total customer value delivery
network. They are the ones who supply raw materials, parts, cutting tools, and other equipment to
businesses. The quality and dependability of suppliers are vital for any organization's operation to
proceed successfully. Marketing managers must be able to regulate the availability and costs of their
providers. Any supply shortages or delays caused by natural disasters or other occurrences might
impact sales negatively in the short term and lead to consumer dissatisfaction in the long term.

C. Marketing Intermediaries: Marketing intermediates also play a crucial role in the total value
delivery network of a company. They are persons or businesses who assist the firm with product
promotion, sales, and distribution to its end users. These include middlemen, physical distribution
firms, and marketing service agencies.

Middlemen or resellers (agents or merchants) assist the company in finding customers. These are also
retailers and wholesalers. Physical distribution firms such as warehouses or transportation firms aid
the organization in stocking and transporting products from point of origin to point of destination.
Marketing service agencies such as marketing research firms, advertising agencies, media firms, and
marketing consultancy firms support a company in identifying and marketing its products to the
suitable target markets.
D. Customers: Customers are the major players in the microenvironment of a business. The entire
value delivery network's purpose is to engage and establish strong relationships with target
consumers. Any or all of the following types of consumer markets could be targeted by the company.

Consumer Markets – are individuals and households who purchase products and services for their
personal consumption.
Business Markets – acquire commodities and services to undergo further process or utilize in their
manufacturing operations.
Reseller Markets – purchase goods and services with the intention of reselling them for a profit.
Government markets – are made up of government entities that procure products and services in
order to generate public services or to sell them to others who demand them.
International markets – consist of these buyers from other nations, including consumers, producers,
resellers, and governments.
E. Competitors: Competitors are rivals who compete with the organization in the market and with the
resources as well. The marketing concept implies that to be successful, a company must deliver better
consumer value and satisfaction than its competitors. Marketers should act more than merely
responding to their target customers' needs and demands. They must also obtain a strategic
advantage by setting their products in favor of the consumers against those of competitors.

F. Publics: Any group that has an apparent or probable engagement in or effect on an organization's
capability to attain its goals and objectives is referred to as the public. There are seven different types
of publics in a company’s marketing environment which includes financial publics, media publics,
government publics, citizen-action publics, internal publics, local publics and general public.
Financial publics - this group has an impact on the company’s ability to obtain funds. Banks,
investment analysts, and stockholders are the major financial publics.
Media publics - covers a variety of information, including news, features, editorial opinions, and more.
It includes newspapers, television stations, magazines and other social media.
Government publics - Government developments must be taken into consideration by management.
On the matters of regulatory compliance, integrity in advertising, and other issues, marketers must
frequently consult the company's lawyers.
Citizen-action publics - Consumer groups, environmental groups, minority groups, and others may
raise a dispute on a company's marketing decisions. Its public relations staff can assist it in
maintaining contact with consumer and citizen organizations.
Internal publics - Workers, managers, volunteers, and the board of directors constitute this group.
Large businesses utilize newsletters and other methods to keep their internal audiences informed and
motivated. When employees have a positive opinion toward the companies they work for, it spreads
to the general public.
General publics – A business must be concerned about the public's opinion of its products and
operations. The public image of a corporation has an impact on its purchasing decisions.
Local publics – Residents and organizations from the local community are included in this group. The
majority of large businesses strive to become responsible members of and participate in sustainable
development in the communities which they operate.

Macro environment
The primary external and uncontrollable factors that affect an organization's decisions are
referred to as the macro environment. Others can be foreseen and dealt with excellent management.
Companies that recognize and adapt to their circumstances have a better chance of thriving. Those
that don't can anticipate facing difficulties. In its business environment, a business does not operate
in isolation, but rather within a broader context. It is made up of forces that bring opportunities while
also posing challenges to the firm.

A. Demographic Environment
According to Kotler and Armstrong, demography is the study of human populations in terms
of size, density, location, age, gender, race, occupation, and other statistics. Marketers are
particularly interested in the demographic environment because it is made up of people, and people
are the driving force behind market development.

For companies, the broad and diversified demographics offer both opportunities and
constraints. Changes in the global demographic environment have significant business implications.
Thus, marketers monitor demographic trends and developments in their markets. They examine at
shifting age and family structures, population shifts and rapid urbanization in different parts of the
country, educational profiles, and demographic diversity.

B. Economic Environment
The economic environment includes a range of factors that have dramatic effect on consumer
purchasing power and spending habits. For example, a business should not begin exporting its goods
to a country without first examining the residents' spending habits. GDP, GNI, Import Duty Rate,
Unemployment, Inflation, Spending Patterns, and Disposable Personal Income are all important
economic metrics.

C. Natural Environment
The natural environment involves the physical environment and the natural resources that are
needed as inputs by marketers or that are affected by marketing activities. At the most basic level,
unexpected happenings in the physical environment—anything from weather to natural disasters—
can affect companies and their marketing strategies.

Although such natural phenomena cannot be avoided, businesses should be prepared to deal
with them. Concerns about environmental sustainability have gradually increased over the last few
decades. Several natural-environment patterns should be taken into consideration by marketers.
Examples include air and water pollution, floods, droughts, etc.

An environmental sustainability movement has sprung up out of concern for the natural
environment. Enlightened businesses now go above and beyond what regulatory rules require.
They're working on methods and strategies to create a global economy that can last indefinitely.

D. Technological Environment
In the macro environment, technology has a significant impact. Before investing in any
marketing projects, a firm should conduct detailed study on the distribution and application of
technology. The organization must have a complete awareness of the region's technological
prevalence as well as user interface technologies in order to coordinate their communication and
campaigns effectively.

E. Political Environment
The political setting has a significant impact on marketing decisions. This includes laws,
government agencies, and pressure groups that have the power to control or restrain diverse persons
or organizations in a particular society.

F. Cultural Environment
The cultural environment is linked to factors that influence society's fundamental beliefs,
preferences, perceptions, and behavior. In order to create marketing decisions, businesses must first
understand the cultural attitudes and practices that are present in society. Failure of businesses to
appreciate foreign cultures might result in a series of cultural disasters.
 01A Lesson Proper for Week 7

Marketing Research

According to Dr. Philip Kotler and Dr. Gary Armstrong, “marketing research is the systematic
design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an
organization.” It provides marketers with information about consumer motivations, purchasing
patterns, and satisfaction. It can assist companies in assessing market potential and market share, as
well as evaluating the efficacy of pricing, product, distribution, and marketing tactics.

A marketing professional will have to manage an internal marketing research activity or

collaborate on a research study with an outside marketing research agency at some time. Managers
who are knowledgeable in the field of research can do a better job defining the problem and
evaluating the research specialists' proposals. They're also in a better position to assess their
conclusions and recommendations.

Some large corporations have their own research divisions that collaborate on marketing
research activities with marketing managers. Furthermore, like their smaller counterparts, large
organizations regularly employ external research specialists to assist management on certain
marketing situations and undertake marketing research studies. Some companies simply purchase
information gathered by outside entities to assist in their decision-making.

Objectives of Marketing Research

Generally, there are three types of objectives in a market research project. These are the
following:

Administrative: Assist the company or organization grow by effectively planning, organizing, and
controlling both people and physical assets, and thereby meeting all special market needs at the
accurate moment.

Economical: Evaluate the economic degree of success or failure a firm can experience while starting
to the market or otherwise launching new product or service offerings, granting assurance to all
actions to be undertaken.

Social: Deliver a necessary product or service to address and satisfy a customer's particular needs.
When a product or service is consumed, it should fulfill the requirement and preferences of the client.

Importance of Marketing Research

Conducting research studies is one of the most effective strategies to improve customer
satisfaction, reduce turnover, and develop your organization. Here are some of the grounds why
market research is crucial and should be addressed by any company:

Valuable Information: It gives vital information and opportunities regarding the value of existing and
future products, enabling companies to plan and strategize more effectively.

Competitive Advantage: To keep ahead of the competitors, market research is a critical instrument for
conducting comparative studies. Businesses can come up with business strategies to help them
remain competitive and on track.

Forecasts: Companies can anticipate their production and sales by analyzing their customers' needs.
Market research can also assist in identifying the optimal inventory goods to keep on hand.

Customer-centric: It aids in identifying what customers need and demand. Marketing focuses mainly
on the customers. Recognizing customers and their needs will help firms create products or services
that best serve them.
Marketing Research Process
Being knowledgeable in specific circumstances that emerge during the study will facilitate
efficiency and minimize complications for the researcher. Today's successful businesses employ
sophisticated market research survey software that allows them to perform extensive research on a
unified system and deliver valuable information much more swiftly and with minimal issues.

The following are the steps to conduct an effective market research.

A. Defining the Problem and Research Objectives

The first stage in any marketing research project is to precisely define and diagnose the
problem that needs to be solved. It starts by identifying the marketing or business problem that is
needed to be resolved and which requires extra information. After that, state the objectives of the
study: By the end of the research study, what do the marketers aim to have understood? What
specific information, guidance, or suggestions must arise from the study in order for it to be a
beneficial investment of time, money, and other resources for the organization?

To understand the problem and establish research objectives, marketing managers and
researchers must collaborate closely. The management has the best understanding of whatever
information is required, but the researcher has the expertise on marketing research and how to
acquire data needed. The most difficult part of the research process is usually defining the topic and
study objectives.

The executive and the researcher must establish the research objectives after the problem
has been clearly specified. One of three types of objectives can be included in a marketing research
project. The purpose of exploratory research is to obtain preliminary data that will aid in the
definition of the problem and the formulation of hypotheses.

The objective of descriptive research is to explain factors such as product's growth potential
or the demographics and attitudes of customers who buy it. The aim of causal research is to apply
theories regarding cause-and-effect relationships to the test. Would a 10% reduction in tuition at a
private college, for example, result in an increase in enrollment sufficient to cover the reduced price?

The entire research process is guided by the problem statement and research objectives. The
manager and the researcher should put the statement in detail to ensure that they are on the same
page about the research's objective and expected outcomes.

B. Developing the Research Plan

The next step is to create a research plan strategy once the organization has a problem
definition, research objectives, and a preliminary collection of research questions. Identifying the
required information to answer queries and attain goals is crucial to this process.

The research plan identifies current data sources and specifies the research framework,
contact methods, sample plans, and instruments that will be used to collect new data. A written
proposal should be used to present the research plan. When the research project is extensive and
complicated, or when it is carried out by an outside firm, a written proposal is highly essential. The
issues and challenges, research objectives, information to be acquired, and how the outcomes will
assist management decision-making should all be included in the proposal.

The research plan also outlines who will carry out the research activities, such as data
collecting, analysis, interpretation, and results reporting. The complete research effort is sometimes
overseen by a single marketing manager or research professional. A corporation may hire a marketing
research analyst or a consulting agency to undertake the research at other times.

Finally, the research plan specifies who will interpret the findings of the study and how they
will be published. This section of the research design should evaluate the research's internal
audience(s) and the best reporting format. Senior executives are frequently the major stakeholders,
and they expect marketing research to educate and support their decisions.

The research plan can involve acquiring secondary data, primary data, or both to address the
manager's information needs. Secondary research examines data that has previously been acquired
by a third party, such as a government agency, an industry group, or another business, for a different
reason. It is generally easier to collect and less expensive than primary data. Furthermore, secondary
sources can sometimes supply data that a single organization cannot obtain on its own—information
that is either not readily available or would be too expensive to obtain.

Other sorts of data must come from direct conversations with clients about research
questions. This is referred to as primary research, and it involves gathering primary data that has been
collected specifically for the firm's research questions. Research approaches for gathering primary
data include observation, surveys, and experiments.

Observational research – entails examining relevant individuals, behaviors, and circumstances in

order to collect primary data. Consumer behavior is frequently observed by researchers in order to
gain customer insights that cannot be obtained by just asking them questions.

Marketers pay attention not only to what customers do, but also to what they say. Consumer
discussions on blogs, social media, and websites are now frequently examined by marketers.
Observing such natural feedback can provide inputs that are impossible to obtain through more
structured and formal study methods.

Ethnographic research – involves putting observers into customers' "natural settings" to study and
engage with them. The observers could include anthropologists and psychologists with training, as
well as industry researchers and managers.

Survey research – strategy best suited for acquiring descriptive data and the most extensively used
method for collecting primary data. A business can often learn about people's expertise, opinions,
preferences, or purchasing habits by simply asking them.

Experimental research – most suited for collecting causal information. Experiments entail selecting
matched groups of participants, administering different treatments to them, controlling unrelated
variables, and comparing group responses. Experimental research aims to explain cause-and-effect
correlations in this manner.

Contact Methods
Mail surveys – a cost-effective way to collect large quantities of data from a small number of people.
Respondents may be more honest on a mail questionnaire than they would in a face-to-face or over-
the-phone interview with an unknown interviewer.

Telephone interviews – one of the most efficient ways to acquire information, and they offer more
flexibility than mail questionnaires. Interviewers can explain tough questions and, depending on the
responses, skip or investigate certain topics.

Focus group interviews – personal interviews in which a trained interviewer invites small groups of
people to assemble for a few hours to discuss a product, service, or organization. The interviewer
"directs" the group's discussion to pivotal topics.

C. Implementing the Research Plan

This is when the research plan formulated on the last step is put into action. The researchers
then collect, process, and analyze the information. The data collection process can be carried out by
the company’s marketing research staff or external firms. It is vital for the researchers to monitor and
make sure that the plan formulated is being implemented accurately. They must be skilled in
overcoming the different challenges and issues that may possibly arise regarding data collection
methods and technologies, as well as assuring the timeliness and quality of the data gathered.
 In order to classify essential information and insights, researchers must likewise process and
evaluate the obtained data. They must verify the accuracy and completeness of data before coding it
for analysis. The results are tabulated and statistical measures are computed by the researchers.

D. Interpreting and Reporting the Findings

The market researcher must now assess the data, develop conclusions, and submit a report to
upper management. The researcher should avoid using figures and complex statistical approaches to
overwhelm managers. Rather, the researcher should give key facts and insights that will aid
management in making vital decisions.

Analyzing market survey data entails translating primary and/or secondary data into valuable
information and insights that relate to the research objectives. This data is compressed into a format
for managers to use, which is generally a presentation or a thorough report.

Findings can be interpreted in a variety of ways and discussions between researchers and
managers will aid in determining the optimal interpretations. Thus, when evaluating research findings,
managers and researchers must collaborate closely, and both must share responsibility for the
research process and decisions that emerge.