8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 1/16

UNIT 2

THE MARKETING PROCESS

Book Code MB 0046Dr. Smita Choudhary

1

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 2/16

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 3/16

INTRODUCTION

In this chapter, we understand the components of

marketing, the marketing process and the marketing mix of

product, price, place and promotion.

3

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 4/16

LEARNING OBJECTIVES

 After studying this unit, you should be able to

Understand the marketing mix that exists in the company

Describe the company wide strategic planning

Discuss how to design marketing planning models Prepare marketing planning for the company

4

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 5/16

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 6/16

Price:  It is the value at which a

customer is prepared to buy aproduct. For e.g., BSNL recharge

coupons are available for Rs. 175,

335, 500, 1000, 2000 and 5000.

Place: It is the distribution of goodsfrom the factory to the consumer. It

consists of distributors, stockists and

retailers.

Promotion: It is to inform the

consumers about the features of the

product and its uses. For this,

companies use different media like

TV, radio and newspaper.

6

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 7/16

MODERN COMPONENTS OF THE MIX:

ADDITIONAL 3PS

Modern authors have added three more Ps to the traditional 4Ps. They are

People: People are the front office staff of an organization. For services sector,

people are the real competitive advantage that differentiate and organization

from others.

Processes: Processes show the work behind the end product.

Physical evidence: It is displaying photograph of a product on the displayboard.

7

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 8/16

DEVELOPING AN EFFECTIVE MARKETING MIX

SWOT means strengths, weaknesses, opportunities and

threats.

SWOT analysis helps the company to

Grow its strengths

Overcome its weaknesses

Utilize the opportunities

Reduce threats

8

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 9/16

Strengths:  A company should have the following

strengths:

Useful competencies

Important physical assets

Valuable human assets

Good organizational assets

Effective intangible assets Important competitive skills

Weakness: It is something that a firm does not have, does not do

it properly or a condition due to which a firm is at a disadvantage. A

company may have the followingweaknesses:

Lack of skills, expert knowledge or intelligence

Lack of physical and organizational assets

9

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 10/16

Opportunities: Opportunities are chances that a firm

can hold using its financial and organizational resources.

These chances when well utilized can generate profitsfor the firm in the long term and become strengths in

future.

Threats: Threats are external risks that a firm faces. A

company may have the following threats:

Improved technology

Improved products by competitors

Dumping of materials

Unfavorable political situation

Situation of a takeover

Change in the demography

10

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 11/16

MARKETING PLANNING, CONTROL AND

IMPLEMENTATION

Marketing planning Besides strategic plan, an organization should have functional

plans to coordinate activities of departments. Contents of a marketing plan

a) Analyzing the current market situation The following factors should be taken care of in this section

The proposed market and market segment The consumer buying behavior process for products. How favorable the market is to do the business?

Whether the company has the right marketing mix to satisfy theneeds of the target consumers?

The company must know its competitors and their marketingstrategies.

11

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 12/16

b) PEST analysis: It is the study of the external environment ofthe company to find opportunities and threats.

c) Objectives and issues: In this part of the marketing plan themarketing objectives of a company are discussed. The period for

achieving these objectives and the factors that may affect them arealso discussed.

d) Marketing strategy: This part of the marketing planfocuses on

1. Identifying the segmentation, target customer and positioning

strategy

2. 4P’s of marketing

3. Planned activities: The following factors are discusseda) The programs that a company wants to start

b) The person responsible for handling these programs

c) The time taken to complete the programsd) The cost of the program

4. The budget for marketing

5.  Audit to control the implemented program

12

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 13/16

Marketing implementation and controlMarketing implementation

It is the process in which marketing strategies and plans are

changed to actions to achieve the objectives. Marketing implementation depends on

Organization structure

Organization culture

Marketing control

It is the process of assessing the performance of marketingand taking suitable corrective actions.

Marketing control is divided into four steps. They are Set specific marketing goals

Measure the marketing performance Evaluate to check whether the marketing performance meets the

objectives or not.

Take corrective action if required.

13

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 14/16

Marketing control has two parts

Operation control: It is the assessment of the current activities

against annual plan and taking corrective actions.

Strategic control: It is used to assess whether existing strategic

plans of the company meets the opportunities exist for it.

  “Marketing  audit is comprehensive, systematic,

independent and periodic examination of a company’s 

environment, objectives, strategies and activities to

determine problem areas and opportunities and to

recommend a plan of action to improve the company’s 

marketing performance.” ---- Philip Kotler

14

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 15/16

Characteristics of marketing audit

1. Comprehensive

2. Systematic3. Independent

4. Periodic

Components of marketing audit

1. Marketing environment audit2. Marketing strategy audit

3. Marketing organization audit

4. Marketing systems audit

5. Marketing productivity audit

6. Marketing function audit

15

8/13/2019 Unit 2 the Marketing Process Changed

http://slidepdf.com/reader/full/unit-2-the-marketing-process-changed 16/16

16