The Marketing Management Process consists of analyzing market opportunities, researching and Selecting target markets, developing marketing strategies, planning marketing tactics, and implementing and controlling the marketing effort.
Analyzing Market Structure and Behavior
Researching and Selecting Market Opportunities
Developing Market Strategies
Planning Marketing Tactics
Implementing and Controlling the Marketing Effort
1) ANALYZING MARKET STRUCTURE AND BEHAVIOUR
A company’s marketing environment consists of the actors and factors external to the marketing management function of the organization that impinge on the marketing management’s ability to develop and maintain successful transactions with its target customers.
MICRO-ENVIRONMENT (Immediate Environment)
Organization – Top management, finance, Manufacturing, Accounting
A public is a distinct group of people and / or organizations that have an actual or a potential interest and / or impact on an organization.
Types of Publics:
Input Publics (Support, Supplier & Regulatory),
Consuming Publics (Consumer, customer, influencer &
Publics also referred to as stakeholders.
Consumer – the one who actually consumes product or service
Customer – the one who pays for product or service
Influencer – the one who influences the decision making process of customer and/or consumer
MACRO-ENVIRONMENT (Large Societal Forces)
Demographic Population Growth, Migration, Birth Rate, Aging, Marriage age, No. of children / family, Divorce Rate, Working Women, Non-family households, Education, Inflation, Consumer Savings & Debt, Consumer Expenditure Patterns Physical Shortages of certain raw materials, Cost of Energy, Pollution
Political / Legal
Social / Cultural
2) RESEARCHING AND SELECTING TARGET MARKETS
Moving beyond general terms to specifics and carrying out an analysis of Market Structure.
First Step – Define the Market
Define the general boundary conditions of the market. Determine all the actual and potential members of the market.
Are we in the health service market or smokers’ clinic or maternity home or children’s nursing home?
Are we a technology institute or a general educational institute (problem facing IIT’s)?
Second Step – Market Segmentation
Consists of dividing the market into fairly homogenous parts where any part may conceivably be selected as a market target to be reached with a distinct marketing mix.
Segmentation may be on the basis of any segmentation variable(s) that one may choose. Typical segmentation variables are as follows:
Geographic – Region, State, Country, Rural / Urban, Climate
Demographic – Age, Sex, Family size, Family life cycle, Income, Occupation, Education, Religion,Caste, Race, Nationality, Social Class
Psychographic – Life style, Personality, Benefits sought, User status, Usage rate, Loyalty status, Readiness stage
Third Step – Market Targeting
Market Segmentation reveals the market segment opportunities facing the organization. Now it has to evaluate the various segments and decide how many to serve.
a) Evaluating the Market Segments
b) Decide a Market Coverage Strategy – Undifferentiated marketing, Differentiated marketing, Concentrated or Niche marketing
Fourth Step – Positioning
Positioning is the act of designing the organization’s product and marketing mix to fit a given place in the consumer’s mind.
Glamour – fashion products, perfumes, cosmetics
Premium – better and superior value (Jet Airlines vs. Indian Airlines)
Value for money – better and superior value at affordable price (Maruti 800)
3) DEVELOPING MARKET STRATEGIES
Marketing Strategy is the marketing logic by which the business unit expects to achieve its marketing objectives. Marketing strategy consists of making decisions on the business’s marketing expenditures, marketing mix, and marketing allocations in relation to expected environmental and competitive conditions.
Marketing Mix is the mixture of controllable marketing variables that the organization uses to pursue the sought level of sales in the target market.
Marketing Mix Variables – 4 P’s
Product – Product Variety, Quality, Features, Options, Style, Brand Name, Packaging, Sizes,
Services, Warranties, Returns
Price – List Price, Discounts, Allowances, Payment Period, Credit Terms, Mode of Payment
Place – Channels, Coverage, Locations, Inventory, Transport
Promotion – Advertising, Personal Selling, Sales Promotion, Public Relations, Direct Marketing
4) PLANNING MARKET TACTICS
Strategy is broad direction. Tactics is detailing.
5) IMPLEMENTING AND CONTROLLING THE MARKETING EFFORT
Getting down to execution; collecting feedback and getting back to planning.