Marketing Process

Market Structure based on Consumption and Ownership Pattern Indian Market Very Rich, those who buy the most expensive consumer pdts Consuming class – those that buy bulk of consumer goods Marketed in the country. Climbers who own or purchase slightly more expensive consumer Goods like B/W TV, sewing m/s, mixers. Aspirants – those who purchase a few inexpensive consumer Goods like cycle, radio/transistor Destitutes - Consume very little of m/f goods

Market Structure based on SEC Classification SEC Urban Education – Illiterate, School upto 4 th, Literate but no formal Schooling, School 5 th – 9 th, SSC/HSC, Some College but not A graduate, Graduate/Post Graduate – General, Graduate / Post Graduate- Professional Occupation – Unskilled Workers, Skilled Workers, Petty traders, Shop Owners, Businessmen / Industrial with no of employees (a) 1-9 (b) 10+, Self Employed Professional, Clerical / Salesman, Supervisory Level, Officers / Executive Junior, Officers / Executives – Middle/Senior The eight socio-economic classes in the urban area – A1, A2, B1, B2, C, D, E1, E2

Market Structure based on SEC Classification SEC Rural Education – Illiterate, School upto 4 th, Literate but no formal Schooling, School 5 th – 9 th, SSC/HSC, Some College but not A graduate, Graduate/Post Graduate – General, Graduate / Post Graduate- Professional Type of House – Pucca, Semi Pucca, Kuchha The four socio-economic classes in the rural area are R1, R2, R3, R4

Marketing Management Process New Product Market Management Process Existing Product Market Management Process In many organizations the new product managers and existing product managers are separate. The new Product Market management process starts with need identification or idea generation and moves onto concept testing, Business analysis, test marketing, commercialization. Existing product managers using classical marketing principles to design, develop and monitor marketing Programs for a brand.

Marketing Management Process Analyze opportunities Opportunity identification Opp. Eval. Demand estimation Understand Customers / Buyers Analyze Competition Develop Marketing Strategies Select Target markets Position Plan Marketing Programs Transform Mktg Strategy into Marketing Programs. Decide on Marketing Expenditure And Market allocation 4Ps Organize, Implement, Control Marketing Plan - Build Mktg Organization to deliver value - 3 types of control - Annual Plan Control ( quarter by quarter) - Profitability Control - Marketing Strategy Control Initiate Pdt Dev, Test, Launch, Monitor

Marketing Management Process is Value Delivery Process Connect with Customers - STP Deliver Value – Place / Distribution Communicate Value (Sales, Advertising) Create and Capture Value – Products and Price

Look at Customer Customer Value, Long Term Customer Value Customer Satisfaction as a precursor to relationships Look at Relationship Customer Retention, Intimacy, Loyalty Understanding Nature of Relationship - Trust, Commitment Building long term relationship Look at Management of Customer Relationships Customer Equity Relationship risk Build competitive advantages using relationships The Marketing management process can also be seen as a Customer Relationship Management process

One of the most important elements of the Marketing Process is Managing the Marketing Environment

Managing the Marketing Environment Mega Marketing Identify Trends and Megatrends Monitor environmental forces Monitor Changes in Consumer tastes and preferences Understand the impact of environmentalism on marketing Manage consumer action groups – Consumer Protection Act

Market externalities are decisions taken by members external to the decision making unit of firm Management of market externalities is called MegaMarketing This includes Lobbying with the Government, Banking relations, Decisions of Channel members

Some Trends in Marketing  Increased use of e-commerce and e-business  Mass customization  satisfaction to delight and ecstasy; value to super-value  increasing brand proliferation  Dual Nature – Relationship Marketing and Transaction Marketing  Redefinition of wants / needs ; today’s wants is tomorrow’s needs  Emergence of Mass- Affluent Markets

Executive Summary Situation Analysis – Information on sales, costs, profits, market, competitors, macro-environment conditions and pertinent historical information – used for a SWOT Framework. Opportunity and - Review opportunities done in SWOT, issue analysisIdentify issues affecting org objectives Objectives – Sales volume, market share, profit, customer satisfaction goals Marketing Strategy - STP, Use inputs of Purchasing, M/F, Sales, Finance, HR Action Programs (quarter by quarter) – Who will do, what will they do, How much it will cost, how is progress measured Financial Projections – Proforma P/L, Bal. Sheet, Budget Approvals Schedule of Implementation and Controls One of the most important outputs of the marketing process is the marketing plan.

Important Aids to Marketing Plan Sales response functions sales – price, sales-marketing expenditure, sales-advertising Profit Optimization Planning Resource Allocation Optimization