PRINCIPLES OF MARKETING

UNIT 3

THE MARKETING PROCESS

The marketing process is a series of steps that

allow organizations to
 identify customer problems,
 analyze market opportunities, and
 create marketing tools to reach the desired audience.
STEPS IN MARKETING PROCESS
 1. Situation Analysis

 Helps to identify and satisfy unfulfilled needs of

the customers
An analysis of the external environment and

internal environment is done.

Several techniques are used such as

 SWOT ANALYSIS,
 5C Analysis, and
 PEST Analysis
 2. MARKETING STRATEGY

Provide specific market information that will

permit the firm to

 select the target market segment and
 optimally position the offering within that segment.
MARKETING STRATEGY INVOLVES :

Market segmentation

Targeting (target market selection)

Positioning the product within the target market

Value proposition to the target market

 3. Marketing Mix Decisions

Marketing mix is a "set of marketing tools that the

firm uses to pursue its marketing objectives in the
target market".
It includes 4 P’s (created by Jerome McCarthy in
1960):
1. Product
2. Place
3. Price
4. Promotion
 4P vs 7P

4P 7P
PRODUCT PRODUCT
PLACE PLACE
PRICE PRICE
PROMOTION PROMOTION
PEOPLE
PROCESS
PHYSICAL EVIDENCE

relate to marketing goods and relate to marketing services.

services
 4. Implementation and Control

At this point in the process, the marketing plan has

been developed and the product has been launched.

Continuous monitoring and adaptation is needed to

fulfill customer needs consistently over the long

term.
 Nature and contents of marketing plan
 

A marketing plan is a written document that summarizes what the marketer

has learned about the market place.

• It indicates how the firms plan to reach its marketing objectives.

• The marketing plan contains tactical guidelines for the marketing

programs and financial allocations over the planning period.

• It is one of the most important outputs of the marketing process.

• Market plans are very important as they help the firm to respond
A marketing plan consists of:

1. Executive Summary
2. Current marketing situation
3. Analysis of opportunity and issues
4. Objectives of the organization
5. Marketing strategy
6. Action Programmes
7. Projected profit and loss (P&L) statement/Budget
8. Control measures to be taken
 MARKETING ENVIRONMENT

 The marketing environment refers to all internal

and external factors, which directly or indirectly
influence the organization's decisions related to
marketing activities.
 Internal Environment
• Within the control of the
company/organization.
• Includes the following :
– The value system ; vision, mission and objectives
– The organizational chart/hierarchy
– The organizational culture
– The management style
Components of External Marketing Environment
 PLEASE NOTE :

The company is included in Micro Environment because the

following elements of an organization can affect its
performance

• Owners − People who have a major shareholding in the

organization and have interests in the well-being of the
company.
• Board of Directors − The board of directors is elected by the
shareholders for overseeing the general management of the
business and ensuring that the shareholder’s interests are met.
• Employees − People who work in the organization are major
contributors to its success. It is important that all employees
embrace the organization’s goals and objectives.
Also, all other departments of the company such as
Purchasing department, R&D department, Finance
department are influenced by external factors and
this affects the marketing of the company.
DIFFERNCE BETWEEN INTERNAL & EXTERNAL
ENVIRONMENT
END OF UNIT 3