Marketing Process

1:Marketing planning Marketing planning is a process by which marketing objectives are identified and decided upon. Marketing objectives are the goals that a business wants to achieve through it’s marketing. It’s important that the goals set are “SMART”. S = specific, M= measurable, A = attainable, R = realistic, T = Time bound

2:Marketing plan A detailed account of the company’s marketing at present, what it wants it to be in future and how it intends to change it. Or Marketing plan is concerned with the following questions:  Where is the business at present?  Where does the business wish to be in future?  How will a business achieve its objectives?

Where is the business at present? This involves “marketing audit” which is the analysis of the internal and external factors affecting a business’s performance. Use of SWOT analysis. The purpose of SWOT analysis is “to conduct a general and quick examination of a business’s current position so that it can identify preferred and likely directions in future.”

S = strengths ( the strong points of the business) W = weaknesses (the problems a business has at present) O = opportunities ( prospects that may arise in future) T = threats ( risks that may arise & should be avoided/ prevented if possible)

Where does the business wish to be in future? This involves the setting of marketing objectives that are to be achieved. Marketing objectives could be:  to increase market share  Launch a new product  Expanding into new market etc.

How will a business achieve its objectives? This involves selecting strategies to reach the marketing objectives. A marketing strategy is a broad arrangement, usually over a long period of time, designed to achieve marketing objectives.

Factors influencing the marketing plan Internal factors: ( inside the organization)  Human resource (People):skills and abilities of the employees determine whether targets can be met.  Finance: no funds, no goals achievement.  Production processes: make sure you have the manufacturing capacity, or the required tools and equipments.

External factors:  Political: increasing amount of legislation and regulation e.g. restrictions on price changes, controls on the ingredients etc.  Technological: technology can help you in new products. May also lead to greater obsolescence.

 Economic: e.g. optimistic economy leads to increase in demand. Growing unemployment may lead to fall in the demand.  Social: e.g. changing role of women, ageing of population etc.

3:Marketing budget Marketing budget specifies and sets out clearly the financial elements of the marketing plan. Ways to construct a marketing budget:  The affordable budget: the budget for marketing expenditure is based on whatever is left over after more important expenses have been met.

 Historical budgeting: marketing expenditure is based upon what has been spent on marketing activities in previous years.  As a percentage of past sales: the marketing budget is based upon previous sales of a product.  Competitor based budgeting: involves setting marketing budgets in relation to competitor’s spending.

 Objective and task budgeting: involves setting marketing expenditure in relation to marketing objectives.

4:Marketing strategy Factors influencing a business’s marketing strategy:  Objectives of the business:  Strategies of competitor businesses:  Structure of the market: influenced by level of competition and degree of change.

5:Environmental scanning Also called environmental monitoring. It is the process of:  Gathering information regarding a company’s external environment,  Analyzing it &  Forecasting the impact of whatever trends the analysis suggest.

There are two levels of external forces: Macro influences: (so called because they affect all firms). Micro influences: (so called because they affect a particular firm)

Macro influences: External macro environmental forces include:  Demographics: refer to the characteristics of populations such size, distribution and growth.  Economic conditions: involves analysis of a variety of economic factors affecting a business. E.g. inflation, consumer spending, fiscal and monetary policy, unemployment etc.

 Competition: 3 types a.Brand competition: comes from marketers of directly similar products. b.Substitute products: products that satisfy the same need. c.Every company is a rival for the customer limited buying power.

Social and cultural forces: e.g. concern about natural environment, changing gender roles, physical fitness and health etc. Political and legal forces: e.g. tax legislation, subsidies, tariffs, legislation related specifically to marketing etc. Technology: technological breakthroughs affecting markets by starting entirely new markets, radically altering existing industries etc.