Marketing refers to creating value for the consumers, delivering value to the consumer, communicating value to the consumers and capturing value in return in terms of profits. The marketing process has three stages. Situation Analysis, STP and marketing plan (Product, price, place, promotion, pack, and people). The figure below illustrates the complete marketing process.
The Marketing Process
SITUATION ANALYSIS Customer Need
Identifying Company Skills
SEGMENTATION
Product
Price
Partners Involved
TARGETING
Place
Promotion
Competitors
Environmental
POSITIONING
Pack
People
First stage is conducting a situation analysis. Situation analysis has five components.
Customer needs Identify Company skills Partners involved Competitors Environment
Customer need refers to identifying what the customer wants and analyzing the market. The company then identifies its core competency and skills. Situation analysis is all about seeing what the current environment is around and then The Marketing Process
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deciding where the company wants to target. Partners refer to your suppliers, wholesalers, retailers, employees and all other partners related to the company. Company then identifies their competitor both direct and indirect competitors. Direct competitors are the companies that make identical products and services which are competing in the same market. Environmental analysis includes both internal and external analysis. External analysis is analyzing all the factors that are not under the control of the company like political conditions, economic conditions, social conditions or any natural calamity. Internal analysis is about the internal factors of the organization.
The second stage after situational analysis is Segmentation, Targeting and Positioning (STP). Segmentation is looking for white spaces in the market and choosing a specific segment. Targeting is after segmentation, this is when companies focus its segmentation to one of the specific target. Positioning is how the consumer’s perceive company’s brand in their minds. This is a consumer perspective and how consumer values their brand in their mind. After STP, marketers apply tools available to the company in order to sell. This means making strategies about the four P’s i.e. product, price, place and promotion. Product involves the basic offering of the company. This has to be something that delivers value to the consumers. Price is the single most indicator of value positioning. This means that the consumer perceives more about the product by knowing its price. High price is associated with good quality and low price is associated with poor quality. Price is the only component of marketing mix that produces revenue. Place refers to the distribution strategy that involves the company’s supply chain strategy. Pack is the first consumer touch point. Pack refers to the physical packaging of the product. This has to be attractive and appealing. Promotion strategy is how the company communicates with its target market. It involves designing a communication mix and identifying which ones would best suit the organization for e.g. advertising, direct marketing, sales The Marketing Process
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promotion and public relations. People mean all the partners involved right from manufacturing the product till it reaches the final consumer. The marketing process is very complex and it must deliver value to the consumer. The product/service should be such that it delivers a benefit differentiating the company’s product from its competitors.
Reference http://www.researchomatic.com/marketing-planning-process-139804.html
The Marketing Process
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