POST-GRADUATE PROGRAMME IN

MANAGEMENT
Course: Marketing Planning (MP)

Summary of
Marketing Objectives and Strategy
Formulation
Chapter 5
Prepared By
Vivek Kumar Srivastava
This chapter delves into developing effective marketing strategies. The chapter emphasizes the
importance of understanding the target market and how it can be segmented, targeted, and positioned.
It also explores the four Ps of marketing - product, price, promotion, and place - and the extended
marketing mix that includes people, process, and physical evidence.

One of the key takeaways from the chapter is the importance of segmenting the market to identify
groups of customers with similar needs and preferences. Segmenting allows businesses to create
tailored marketing strategies for each group, resulting in more effective communication and increased
customer engagement. The authors explain that segmenting can be based on various factors such as
geographic location, demographics, psychographics, and behavioral patterns.

The authors also highlight the importance of targeting, which involves selecting which market segment
to focus on. Targeting is critical because businesses have limited resources, and not all market segments
may be equally profitable or relevant. The authors recommend using criteria such as market size, growth
potential, and profitability to determine which segments to target.

Another important concept discussed in the chapter is positioning, which refers to how a brand is
perceived by its target market relative to competitors. Positioning involves creating a unique value
proposition that differentiates a brand from its competitors. The authors explain that positioning can be
based on various factors such as price, quality, features, benefits, and emotions. They emphasize the
need for businesses to continually monitor their positioning and adjust it if necessary.

The chapter also explores the four Ps of marketing - product, price, promotion, and place. The authors
explain that the product refers to what a business offers to its customers, and it can include both
tangible and intangible elements such as features, design, packaging, and branding. Price refers to the
amount a customer pays for a product or service, and it can be based on various factors such as cost,
value, and competition. Promotion includes all communication and marketing activities that businesses
use to create awareness, interest, and desire for their products or services. Place refers to the channels
through which customers can access a product or service, such as online, brick-and-mortar stores, or
direct sales.

The chapter also introduces the extended marketing mix, which includes people, process, and physical
evidence. The authors explain that people refer to all employees who interact with customers, including
salespeople, customer service representatives, and support staff. Process refers to the steps and
procedures involved in delivering a product or service, including order processing, shipping, and returns.
Physical evidence includes all tangible elements that customers can experience, such as store layout,
product displays, and packaging.

The authors emphasize that the four Ps and the extended marketing mix should be aligned with the
overall marketing objectives and target market. They recommend using a marketing plan to document
and communicate the marketing strategy to all stakeholders.

Finally, the chapter discusses the importance of measuring and evaluating marketing strategies. The
authors recommend using key performance indicators (KPIs) to track the success of the marketing plan
and make adjustments as needed. They also suggest using marketing metrics and dashboards to provide
a visual representation of the marketing performance.