Marketing process

By Amina Khudadad
Steps:
1. Analysis of the opportunities in
the market
2. Selection of target market
3. Development of marketing mix
4. Management of marketing
efforts
Step 1: analysis of the opportunities in the
market
First step in marketing process is to analyze market in order to find out
opportunities which are related to find out needs and wants of customers
which are not properly satisfied by the competitors. Those opportunities
should be focused which are beneficial in long run. for this purpose a company
gets help from
 MIS ( marketing information system)
 Market research
These above sources tell him valuable and useful information about customers,
competitors, general trend and any extra ordinary change in market.
( MIS is a system in which marketing data is formally gathered, stored, analyzed
and distributed to managers in accordance with their informational needs on a
regular basis.)
( Market Research is the action or activity of gathering information about
consumers needs and preferences.)
Step 2: Selection of target market
This is the most important step of marketing process in which the target
customers are selected. In this regard certain steps are followed:
A) Market Segmentation
B) Market targeting
C) Market positioning
A) Market Segmentation
“A process of dividing total heterogeneous market into several groups,
each of which tends to be homogeneous in its all significant aspects”.
Heterogeneous Market ( people having different needs, wants or demand
characteristics)
Homogeneous Market( people having a similar needs, wants or demand
characteristic)
These segments are based on some factor like age group, gender,
geographic location, income, education, profession, etc.
B. Market Targeting
In this process the targeted segments are evaluated and one or two most
suitable and potential segments are selected. Those segments should
be selected which can create profit in long run. A firm can adopt one of
these three strategies:
I. Undifferentiated Marketing
II. Differentiated Marketing
III. Concentrated Marketing
Undifferentiated /Mass Marketing
A market coverage strategy in which a firm decides to ignore market
segment differences and go after the whole market with one offer
( product). For example: coca cola

Company Market
marketing mix
Differentiated Marketing
By using this strategy a firm decides to target several
market segments and design separate offer for each
segment. For example: Nike offers athletic shoes
for many different sports such as running, fencing,
exercise, bicycling, football etc.
Differentiated marketing
Concentrated Marketing/ Niches
In concentrated marketing strategy, a company concentrates its
marketing effort on one particular segment.
Segment 1

Company Segment 2

Segment 3
c. Market Positioning
Market position or product position is the image of the product that a
company projects in relation with competitor products or other products
marketed by the same company.
Example: Lux soap………...make skin soft and smooth
Lifebuoy soap……….germs protector
Rexona …….. anti perspiration
product positioning is grouped into the following:
a. Position by price and quality: For example:Nishat, Ideas, SK sports, Al-
NISA store( these all are well known for their high price and quality.
b. Position by product attribute: some products are positioned by their
attributes. Example: Head & shoulders anti dandruff shampoo
Ariel stain remover detergent
Market positioning
c. Position by product usage: Associating a product with a specific use by
its firm. Example: baking soda ( mostly using for baking purpose but
its sales increased a lot when it was repositioned as refrigerator odor
killing agent.
d. Position in relation to competitors: Making consumers think that a
company’s product is better than their competitors.
For example ; Pepsi Cola Vs. Coca Cola
Step 3: Development of marketing mix
Marketing Mix: It is a combination of marketing tools that a company
uses to satisfy their target customers and achieving organizational goals.
McCarthy classified all these marketing tools under four broad
categories:
Product
Price
Place: Distribution
Promotion
These four elements are basic components of a marketing plan and are
collectively called 4p’s of marketing.
o Product: design, technology, value, quality, style, brand, packaging,
label, services, warranties.
o Pricing: pricing strategies, discounts, allowances, payment period.
Step 3: Development of marketing mix
o Places: Retail, wholesale, mail order, internet.
o Promotion: Advertisement, personal selling, sales promotion,
publicity, public relation.

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Step 3: Development of marketing mix
1.Product: product means any offering( goods or services) to the market
by the company.
2.Price: it means the money paid by the customers to obtain the product.
3.Place: means the efforts which ensure the availability of the product in
the market to customers.
4.Promotion:It means all the efforts by the company that ensures the sales
of products to customers through better provision of information about
the advantages of the product. So while developing effective marketing
program , a suitable combination of marketing mix is developed to
provide greater customer value to achieve a company’s objectives.
( customer value is image of what is worth of a product to a customer.)
CV = B – C
Development of marketing mix
 CV stands for customer value
 B stands for benefits of a product.
 C stands for cost of a product
4p’s of marketing are 4 C’s ( for consumers)
1.Product…………. customer solution
2.Price………………customer cost
3.Place……………. convenience
4. Promotion…… communication
Step4: Management of marketing efforts
This is the action phase of developing marketing program in which a
suitable marketing mix is set for target market. Here management
perform the four functions:
a) Analysis of market: In which a company identifies the internal
strengths and weaknesses and then go for opportunities.
b) Marketing planning : Planning is a process of making plans for
something. Here management develops marketing plans and strategies.
c) Marketing implementation: Implementation is a process of putting a
decision or plan into effective execution.
d) Marketing control : Control is a process of monitoring the proposed
plans as they proceed and adjusting where necessary. Here
management check the result of their plans and strategies
implemented.