Marketing Process

• To understand Marketing Process  First know the Business Process

• Basic definition of Business: To deliver Value to the Customer at Profit.

• Two views of the Business value-delivery process:

1. Selling view/concept : First make then sell.
2. Marketing view/concept : First identify/know the market then make and
then sell.
Marketing Process
 Marketing Process

Based on the above Business value-delivery process, various step in the Marketing
process:
1. Analyzing marketing opportunities
2. Researching and selecting target markets
3. Developing marketing strategies
4. Planning marketing programs
5. Organizing, implementing, and controlling market effort
Marketing Process
Case study : Company Zeus with SBU Atlas
 Analyzing marketing opportunities

Overview:
• Atlas should think “big” in terms of the market need in the business of “Office
productivity” equipment & Systems.  cannot depend upon old product electric
typewriter !
• Huge opportunity in business of “Office productivity” equipment & Systems like –
Scanners, Printers, Communication equipment, Presentation Projectors, Video
conference facility etc.
• Atlas will have to LEARN new technology  start with atleast one new Product Offer
and then expand.
• Advantage: Same set of Customers & Distribution channel !!
• Till then  upgrade the product to electronic or Smart typewriter  further to Voice
recognition for dictation  then enable long distance dictation in multiple languages !!!
• Competitors already active – IBM, Xerox, Canon, Olivetti, Sharp, etc.
 Analyzing marketing opportunities

Stepwise approach:
1. Market Information System & Market Research
• Formal analysis of existing data
• Further data collection formal / informal
• Professional Market Research firm for Customer needs/wants, technology,
Future trends, competition, etc

2. Analyze the Marketing Environment

• Macroenvironment factors like – suppliers, customers, channels, competitors,
consumers, etc.
• Microenvironment factors like – National, Global, Society, Demographic,
Technological, Political/Legal, etc.
 Analyzing marketing opportunities

3. Analyze Consumer market & buying behaviour

• Who are the customers? What application?
• Age group? Income? Urban?
• From where buy? Outlet?
• What features important?
• What price?

4. Analyze the business market & their buying behaviour

• Who are the customers? Govt? Private? Large Corp.?
• What application? What features important?
• What price?
• What other items they require?
 Analyzing marketing opportunities

5. Analyze Competitors’ activity

• Who are the competitors? Their range of Products?
• Which category of items they active?
• From where buy? Outlet?
• What features their product has?
• What price?
• What technology? Any tie-ups / JVs?
• Customer perception?
 Researching and selecting target markets

1. Demand Forecasting
• All Marketing plan depends upon Forecasting !!!
• Study various techniques used to forecast the demand & apply suitably
• Estimate future Market size, growth, Profitability, RISK !

2. Segmentation & Targeting

• Study the various methods to segment the market.
• Select appropriate method.
• Divide the market into various segments.
• Evaluate  Select  TARGET
Researching and selecting target markets
 Designing Marketing Strategies

1. Differentiation & Positioning

• What features shall differentiate Atlas upgraded Smart typewriter?
• Product-Position map : compare along with competitors on Price-Quality
matrix.
• Positioning should be such that it generates good sales in long-term with
reasonable margins.
• Avoid direct competition with an existing player  futile to bleed during the
start of the game.
• Advantage Atlas: knows the Customers & the Distribution channels
• Should Position for High Quality & Medium Price !!!
Designing Marketing Strategies
 Designing Marketing Strategies

2. New Product development, testing, and Launching.

3. Product Life-cycle: Introduction  Growth  Maturity  Decline

4. Select suitable strategy for aiming to be – Market Leader, Challenger,

Follower, or Nicher.

5. Then Atlas should also look into changing Global opportunities, Technology &
Challenges ahead.
 Planning marketing programs

Overview:
• All strategy should be transformed into actions or programs !!!
• Basic decisions on :
1. Marketing Expenditure
2. Marketing Mix
3. Marketing Allocation

Marketing Expenditure:
• Usually a % of Budget/Sales for a particular segment.
• Atlas will have to spend more being a new entrant !
• To be reviewed each year corresponding to the growth in the market share.
 Planning marketing programs

Marketing Mix:
• It’s a set of marketing tools that the firm uses to pursue its marketing objectives
in the target market. By Neil Borden
• Most popular method by Edmund McCarthy 4-P’s: Product, Price, Promotion &
Place.
• Represented as for Time ‘t’ : (P1, P2, P3, P4)t
• Atlas may choose : (1.2; $1,000; $30,000; $20,000)t
Product = 1.2 = 20% better than average Quality
Price = $1,000 per no.
Place = $30,000 per month
Promotion = $20,000 per month
Planning marketing programs
Planning marketing programs
 Planning marketing programs

Marketing Mix:
• Many combinations possible  to be selected optimally
• To be separately worked out for : Distribution channel & Customers
• Offer mix : Products, Services, Prices.
• Promotion mix : sales promotion, advertising, salesforce, public relations, direct
mail, telemarketing, etc.
• Short term changes : price, salesforce size, advertising budget.
• Long term changes : New/Upgrade product, distribution channel.
 Planning marketing programs

Marketing Allocation:
• Represented as for Time ‘t’ : (P1, P2, P3, P4)i,j,k,t
• Further breakup of fund allotted to:
Product type: i
Customer type : j
Area : k
Time period : t
• Advantage: This breakup is used to check out precision sales-responses !!!
 Planning marketing programs

Stepwise approach:
1. Atlas to decide the Product quality, design, features, branding, packaging.
2. Atlas to finalize services like – delivery, repair, training, financing & leasing.
3. To confirm Price for Customer, Wholesale, Retail etc. and also discounts,
allowances, credit terms.  should be commensurate with the perceived Value !
4. Decide, appoint and manage Distribution channels & also direct delivery modes
to the customers.
5. Decide and finalise the communication & promotion mix to target market – hire
and manage sales force, advertising, sales promotion programs, direct marketing
and handle public relations.
Organizing, Implementing, and Controlling the Marketing Effort

Stepwise approach:
1. Atlas’ head of marketing should:
• coordinate among various dept like – Sales, Advertising, Distribution, Research.
• coordinate with other dept heads like Production, Design, Logistics, Finance.

2. Atlas team should checkout the feedback and decide corrective action every year :
• Sales figures, market share, etc. are as planned ?
• Profitability analysis ?
• Strategy : what changes required ?
Marketing Plan
Marketing Plan

Report format:
1. Executive summary
2. Current market situation
3. Opportunity & Issue analysis
4. Objectives
5. Marketing strategy
6. Action programs
7. Projected Profit/Loss Statement
8. Controls