Principles Of Marketing _ MGT 301 Lesson – 8 Lesson overview and learning objectives: In last Lesson we tried to understand the concept of Portfolio in detail and had a brief concept regarding the marketing process. The marketing process consists of four steps: analyzing market opportunities; developing marketing strategies; planning marketing programs, which entails choosing the marketing mix (the four Ps of product, price, place, and promotion); and organizing, implementing, and controlling the marketing effort. Today we will be covering Marketing process in more detail: A. MARKETING PROCESS The Marketing Process Once the strategic plan has defined the company’s overall mission and objectives, marketing plays a role in carrying out these objectives. The marketing process is the process of analyzing market opportunities, selecting target markets, developing the marketing mix, and managing the marketing effort. Target customers stand at the center of the marketing process. There are following steps in Marketing Process: 1. Analyzing marketing opportunities 2. Selecting target markets 3. Developing the marketing Mix 4. Managing the marketing effort a. Analyzing marketing opportunities First step of the marketing process is analyzing market opportunities and availing these opportunities to satisfy the customer’s requirements to have competitive advantage. The marketing function of analyzing market opportunities is important in the marketing planning process. Any marketing manager must analyses the long-run opportunities in the market to improve the business unit's performance. To evaluate its opportunities firms needs to operate a reliable marketing information system. Marketing research is an indispensable marketing tool for this purpose. Researching the market allows the company to gather information about their customers, competitors and any environmental changes to determine the market opportunities. Once the market opportunities have been analyzed then modern marketing practice calls for dividing the market into major market segments, evaluating each segment, and selecting and targeting those market segments that the company can best serve b. Selecting the target Market: To succeed in today’s competitive marketplace, companies must be customer centered. They must win customers from competitors and keep them by delivering greater value. • Sound marketing requires a careful, deliberate analysis of consumers. • Since companies cannot satisfy all consumers in a given market, they must divide up the total market (market segmentation), choose the best segments (market targeting), and design strategies for profitably serving chosen segments better than the competition (market positioning).
Principles Of Marketing _ MGT 301 Market segmentation is the process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes. Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company should target segments in which it can generate the greatest customer value and sustain it over time. A company may decide to serve only one or a few special segments, or perhaps it might decide to offer a complete range of products to serve all market segments. Special segments may be called “market niches.” Most companies enter a new market by serving a single segment, and if this proves successful, they add segments. Market positioning is arranging for a product to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers. In positioning a product, a company first needs to identify possible competitive advantages upon which to build the position. To gain competitive advantage, the company must offer greater competitive advantage to the target segment. The company’s entire marketing program should support the chosen...
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