Book Code MB 0046

Dr. Smita Choudhary

UNIT 2 THE MARKETING PROCESS

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CONTENTS

Introduction Marketing mix the traditional 4 Ps Modern components of the mix additional 3Ps Developing an effective marketing mix Planning, control and implementation Marketing Planning, Implementation and Control

Marketing planning Marketing implementation and control

INTRODUCTION

In this chapter, we understand the components of marketing, the marketing process and the marketing mix of product, price, place and promotion.

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

MARKETING MIX THE TRADITIONAL 4PS

Marketing mix: It consists of the product, price, promotion and distribution in order to get a good response from the customers.
The marketing mix (also known as the 4 Ps) was first expressed in 1960 by E. J. McCarthy. The traditional 4 Ps of marketing mix comprise of:

It is also known as the 4Ps of marketing or marketing assortment. Product: It is a good, service, idea, place or person that is provided to a customer to satisfy his/her needs. The characteristics of a product are variety, quality, warranty, design, packaging and service. Companies offer products in various types and packaging to satisfy the needs of its customers.

Price: It is the value at which a customer is prepared to buy a product. For e.g., BSNL recharge coupons are available for Rs. 175, 335, 500, 1000, 2000 and 5000. Place: It is the distribution of goods from 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.

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 display board.

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

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 following weaknesses: Lack of skills, expert knowledge or intelligence Lack of physical and organizational assets

Opportunities: Opportunities are chances that a firm can hold using its financial and organizational resources. These chances when well utilized can generate profits for 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

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MARKETING PLANNING, CONTROL AND IMPLEMENTATION

a)

Marketing planning Besides strategic plan, an organization should have functional plans to coordinate activities of departments. Contents of a marketing plan 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 the needs of the target consumers? The company must know its competitors and their marketing strategies.

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b) c)

PEST analysis: It is the study of the external environment of

the company to find opportunities and threats.

Objectives and issues: In this part of the marketing plan the

marketing objectives of a company are discussed. The period for achieving these objectives and the factors that may affect them are also discussed.

d)

Marketing strategy: This part of the marketing plan focuses on

1. 2. 3.

Identifying the segmentation, target customer and positioning strategy 4Ps of marketing Planned activities: The following factors are discussed
a) b) c) d)

The programs that a company wants to start The person responsible for handling these programs The time taken to complete the programs The cost of the program

4. 5.

The budget for marketing Audit to control the implemented program

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Marketing implementation and control

Marketing 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 marketing and 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.

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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 companys environment, objectives, strategies and activities to determine problem areas and opportunities and to recommend a plan of action to improve the companys marketing performance. ---- Philip Kotler

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Characteristics of marketing audit

1. 2. 3.

4.

Comprehensive Systematic Independent Periodic Marketing environment audit Marketing strategy audit Marketing organization audit Marketing systems audit Marketing productivity audit Marketing function audit

Components of marketing audit

1. 2. 3. 4. 5. 6.

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