MARKETING PROCESS OVERVIEW

SITUATIONAL ANALYSIS

MARKETING STRATEGY

MARKETING MIX DECISION

IMPLEMENTATION & CONTROL

 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
 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.
 BASES FOR SEGEMENTATION IN CONSUMER MARKETS

A. GEOGRAPHIC SEGMENTATION
- Variables include:
 Region : country,state
 Size of area : according to size population
 Population density : urban, surburban, rural
 Climate : according to weather patterns

B. DEMOGRAPHIC SEGMENTATION
- Variables include :
 Age
 Gender
 Occupation
 Family size
 Income
 Religion
 Social Class
 BASES FOR SEGEMENTATION IN CONSUMER MARKETS

C.) Psychographic Segmentation ( Group customers according to their lifestyle)

- Variables include:
 Activities
 Interests
 Opinions
 Attitudes
 Values

D.) 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
 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
 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 segment
And 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.
 5 Target Market Strategies

1.) 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 product
5.) Full Market coverage
- Serve the entire market and achieved via mass market.
- Single undifferentiated marketing mix is offered to the entire market.
 MARKETING MIX DECISIONS
Marketing Mix
decisions falls into 4 controllable categories
1. Product- Brand name, quality, styling, safety packaging
2. Price – Pricing strategy, flexibility, discrimination
3. Place- distribution channel, centres, members
4. 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.