The Marketing Process

Concept of Marketing Process

The process of the analyzing the opportunities in the markets, selecting target markets, and development of the marketing mix and management of the marketing efforts is called the marketing process.

The marketing process involves four steps. They are:

1. Locating marketing opportunities:

It is important to locate new opportunities that give the firm a competitive existence in the market. New opportunities arise due to change in any of the macro environmental forces. For example:

• A change in technology provides opportunities for new product development based on the new technology.
• The increase in consumers' purchasing power may allow marketing of luxury products and leisure related services.
• Socio-cultural dynamism may bring new attitudes, beliefs, and behavior demanding new products and services.

2. Identification of the target market:

It is a second step of the marketing process of the firm. A firm must identify its target customers. A firm identifies the total market for the product and then divides the total market into smaller market segments having similar characteristics such as similar age group, income group, or similar product needs. And then the firm selects the most profitable segments to operate.

3. Develop marketing mix:

The marketing mix is a set of controllable marketing variables that the firm blends to produce and satisfy the wants of the target. After the opportunities have been identified, analyzed and assessed the marketing manager develops alternative marketing mixes for each market segment. Now, the firm has to develop several strategies options and then to analyze the viability of the options in terms of long term profitability and survival of the organization.

4. Select competitive advantage factors and achieve growth:

The firm must outperform its competitor in delivering superior value to its customers. An organization is only successful and makes profit only when it is able to deliver better products and services than its competitors.

Structure of the Marketing Process

Persons involved in marketing build marketing process structure. They conduct different activities. Those important persons are:

1. Suppliers and Processors:
The process of marketing begins with the suppliers. It supplies the various inputs to the firm and the customers. They supply raw materials other materials to producers, labor, capital, technology and information for production.

• Factory, mine, and processors supply raw materials.
• Employment exchanges and manpower agencies supply workers.
• Manpower agencies supply labors.
• Research firm supplies information.
• Consulting firm supply technology.
• Bank, finance companies supply capital.

2. The firm:

The firm converts the inputs into useful products and services. They add different values to the product through four methods:

• First, they develop useful and efficient products for customers.
• Second, they provide various after sales services, such as delivery, installation, advice, warranty and so on.
• Third, they use competent salespersons to communicate, promote and sell products.
• Finally, they create images of the product which deliver a high level of satisfaction to buyers.

3. Competitors:

The competitors are the part of the marketing process who buy from the same suppliers and processors. They influence the firm in the following ways:

• It influences the price of input because they buy from the same suppliers and processors.
• It influences the sales, market share, price, revenue, and costs of the firm as they also sell to the same market and customers.

4. Marketing Intermediaries:

Marketing intermediaries facilitate the flow of goods between the place of production and the market. Marketing intermediaries are agents, distributors, dealers and retailers.

• They search for potential buyers for the product.
• They take the title of ownership of the product.
• They maintain a communication link between the firm and the marketplace.

5. Customers:

Customers are the main focus of the marketing process. All the activities of the organization in the marketing are targeted to fulfill the want and desire of customers. Customers are of two categories- institutional and non-institutional. Institutional buyers are manufacturers, resellers, government agencies, and social institutions. Non-institutional customers are known as consumers.

6. Facilitating Institutions:

The marketing process is not complete without the facilitating institutions. Transport companies, insurance companies, market research agencies and advertising agencies are the facilitating institutions. The function of the facilitating institution are as follows:

• Transport companies physically move the product from one point to the other point.
• Insurance companies provide cover for loss in transit or storage.
• Market research agencies provide vital information to the firm about demand, product trends, consumer needs.
• Advertising agencies design and implement the firm's promotion campaigns.

References:

Koirala, Dr. Kundan Dutta.Elementary Marketing.Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd, 2014.

Thapa, Gopal, Dipendra K. Neupane and Dilli Raj Mishra.Introduction to Marketing.Kathmandu: Asmita Books Publishers and Distributors (P) Ltd., 2014.