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Marketing process overview


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Discussed in Chapter 1

Marketing process overview

  2. 2. SITUATION ANALYSIS• Identifying opportunities to satisfy unfulfilled customer needs.• Before identifying customer needs, firms needs to understand its own capabilities in which its operating.• Firms need to analyze the external and internal environment.( macro & micro environment )• Situation analysis should include past, present and future aspects.• Framework that can be used to add structure to the situation analysis : 5C analysis – Company. Customers, competitors, climate. Company covers internal situation and the rest external situation PEST analysis – political, economic, social and technological SWOT analysis – Strength, weaknesses, opportunity and threat
  3. 3. MARKETING STRATEGY• Once you have identified the best opportunity to satisfied unfulfilled customer needs, a marketing strategy or a strategic plan cen be developed.• The marketing strategy involves : 1. Market Segmentation - Identification of the market that are different from one another - Market segment is important as customers have different needs and wants and its impossible to serve them all alike.Requirements of Market Segments :- Segmentation criteria should be evaluated against the following criteria : 1. Accessible – reachable through communication and distribution channel 2. Identifiable – must be measurable so that they can be identified 3. Substantial - segments should be large to justify resources required to target them.
  4. 4. BASES FOR SEGEMENTATION IN CONSUMER MARKETSA. GEOGRAPHIC SEGMENTATION- Variables include: Region : country,state Size of area : according to size population Population density : urban, surburban, rural Climate : according to weather patternsB. DEMOGRAPHIC SEGMENTATION- Variables include : Age Gender Occupation Family size Income Religion Social Class
  5. 5. BASES FOR SEGEMENTATION IN CONSUMER MARKETSC.) Psychographic Segmentation ( Group customers according to their lifestyle)- Variables include: Activities Interests Opinions Attitudes ValuesD.) Behavioralistic Segmentation ( Based on actual customer behaviour toward product)- Variables include: Benefits sought Usage rate Brand loyalty User status: first time, regular Readiness to buy Occasions: Holidays,events
  6. 6. Bases Segmentation for Industrial Market- Industrial Customers are fewer in numbers and purchase in larger quantities.- Example: Governments, Resellers, Institutions- Can be segmented on such characteristics such as : 1). Location – customer location may be important for products having a high bulk in ratio for shipping costs 2.) Company Type – can be classified as follows: - Company size - Industry - Decision making unit -Purchase criteria 3.) Behavioralistic Characteristics – Usage rate, Buying status ,purchase procedure
  7. 7. ATTRACTIVENESS OF A MARKET SEGMENTS• Aspects to consider when evaluating attractiveness of a market segment:- Size- Competition in the segment- Sales potential- Brand loyalty of existing customers in the segmentAnd to obtain these information can be done via market research and analysis.Take note : Target market will have more competitors and are not the most profitable market to target. It may be profitable to target smaller segments that have little competition.
  8. 8. 5 Target Market Strategies1.) Single-segment- Known as a concentrated strategy- For smaller companies with limited resources.- One Market segment is served with marketing mix.2.) Selective specialization- Known as differentiated strategy- Different marketing mixes are offered to different strategies.3.) Product specialization- Specializes in a particular product.4.) Market specialization- Firm specialize in a particular market segment and offers an array of different product5.) Full Market coverage- Serve the entire market and achieved via mass market.- Single undifferentiated marketing mix is offered to the entire market.
  9. 9. MARKETING MIX DECISIONSMarketing Mixdecisions falls into 4 controllable categories1. Product- Brand name, quality, styling, safety packaging2. Price – Pricing strategy, flexibility, discrimination3. Place- distribution channel, centres, members4. Promotion – Promotional campaign development, advertising, sales promotion.IMPLEMENTATION & CONTROL.• At this point we assume that the marketing plan has been developed and the product has been launched.• As the market changes, marketing mix can be adjusted to accommodate the changes either changing the advertising message or redesign the entire product entirely.• Implementation is needed to accommodate these changes and continual monitoring us needed to fulfill customer needs consistently.• Control makes sure that the marketing programmemoves in the direction set for it.