August 16, 2021

Marketing Strategy - Marketing Process - Kotler's Description

The Marketing Process

The marketing process consists of analyzing marketing opportunities, developing the marketing strategies, planning marketing programs, and managing the marketing effort. (Kotler)


Market-oriented Strategic Planning


How do companies compete and succeed in a global market place?  One part of the answer is a commitment to creating and retaining satisfied customers.  Second part is adapting to a continuously changing marketplace through market-oriented strategic planning.

The aim of strategic planning is to shape and reshape the company's businesses and products so that they yield target profits and growth. Strategic planning calls for action in three key areas. The first calls for managing a company's businesses as an investment portfolio. Resources must be allocated to various businesses based profit earning potential. Second, each business has to be assessed for its market growth rate and the company's position and fit in the market. Based on this assessment objectives and goals are to be fixed for each business and strategy, that is game plan for achieving the objectives and goals is to be made for each business.

Marketing plays a key role in the company's strategic planning process. Customers' needs are the core focus of strategy. That does not mean overall strategy or marketing strategy are set up by marketing department only. In today's companies plans are developed by teams, with inputs and signoffs from every important function. In most large companies strategic plans are made at four levels: corporate level, division level, business level, and product level.

The Nature of High Performance Business


The consulting firm of Arthur D. Little proposed a model of the Characteristics of a high-performance business. The characteristics are related to stakeholders, processes, resources and organization.


Planning at the corporate level, division and business levels is an integral part of the marketing process. Businesses are engaged in delivering value at a profit to customers. This value delivery process can be initiated through a technological development and the producer hires people to make and sell. In this type of value delivery process, marketing takes place in the second half of the value delivery process.

But a more rational value delivery process is doing marketing at the beginning. There is homework or initial work to be done by marketing before a product is conceptualized or designed. The marketing staff have to identify the potential market for the likely product (product idea) and must segment the market and select the appropriate target segment and then only product can be finalized for its specific attributes. Kotler emphasized that segmentation, targeting, positioning (STP) is the essence of strategic marketing.

Once the business unit accepts to offer the value proposition supported by marketing as well as operations, further marketing activities include detailed product specifications, distribution system and price decisions. At the next stage, the value proposition is to be communicated in the market so that there are enough potential customers who are aware of the product and will be inclined to buy the product for the trial. Advertising through mass communication channels, public relations, personal selling and sales promotion campaigns are launched in this stage to make actual sales.

To carry out the three marketing activities outlined at the three stages, marketing managers follow the marketing process.

The marketing process consists of analyzing marketing opportunities, developing marketing strategies, planning marketing programs, and managing the marketing effort. (Kotler)

Analyzing Marketing Opportunities


Periodically, marketing managers have to analyze the long-run opportunities in the market or economic environment for improving the unit's performance. These opportunities can be for new products. Marketers have to conduct formal research using secondary sources followed by personal, phone, mail surveys, which are further supported by focus groups (primary sources). The data collected is analyzed by statistical tools to identify the effects of various marketing activities. In the marketing research, information related to long-term activities of competitors is also to be collected understood.

Developing Marketing Strategies


The information collected from the marketing research process to support marketing strategy decisions has to be analyzed to find stable and distinct market segments. The needs and potential of each segment needs to estimated and the segment that the market can serve best and make optimal profit is to be determined. For this selected target segment, differentiation decision for the product offered is to be arrived at and positioning strategy has to finalized. While differentiation can be in multiple attributes, position strategy calls for one or two features to be emphasized in communications so that position is associated with the company's product whenever a potential user thinks of the product.

The differentiation decision gives the signal for full development of the new product. Marketing has further role to play in the new product development process. The marketing strategy related to the product gets modified based on the life cycle stages: introduction, growth, maturity, and decline. The marketing strategy is also influenced by the position the product gets in the competitive market place: leader, challenger, follower and niche player. Internationalization and globalization may become possible or may become necessary at some stage in the product life cycle and marketing strategy may need to redeveloped taking into consideration the expanded market.

Marketing Strategy Concepts and Alternatives: market segmentsdifferentiationposition strategy,
 life cycle stagesleaderchallengerfollower and niche playerInternationalization and globalization

Marketing Programs


Marketing strategy decisions have to be converted into marketing allocations of budget and manpower for the marketing tools of the marketing mix.

Marketing mix is a key concept in marketing management and allows orderly thinking of the marketing process.

*Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. (Kotler)

There are large number of marketing tools. McCarthy provided a categorization for them in terms of four Ps of marketing: Product, price, place and promotion. Under each P, there are number of tools. Some choices are possible in short term frames while some choices may take longer-time. A choice to develop a new product can be implemented in long-term only. To make budget allocations to various possible marketing tools, sales-response functions are developed. The functions indicate how sales would be affected by the various incremental amounts spent on each specific tool.

Product related marketing tools can be related to quality, design, packaging, branding etc.

Price related options or marketing tools would be commissions to wholesalers and retailers, discounts and credit terms.

Place options are related to distribution outlets - online sales, home shopping, mail order shopping, retail stores in neighborhoods and giant malls etc. Multi-brand stores versus single brand stores is also a choice.

Promotion includes personal sales, as well as choice of mass media, events to support and now social media activities.

Marketing strategy making and marketing programs development form the marketing process. Of course these activities are subjected to managerial oversight which is under the activity of managing the marketing effort.

Summary


To sum it up Marketing Strategy activity is divided into:

Differentiating and Positioning the Market Offering

Developing New Products

Managing Life-Cycle Strategies

Designing Appropriate Competitive Strategies (Leader, Challenger,, Follower, Nicher)

Designing Global Marketing Strategy

Marketing Programs are explained under

Product related programs

Pricing decisions

Marketing channel decisions

Promotion decisions



Developing Marketing Strategies and Plans - Kotler & Keller- Quick Review

_____________________

_____________________

Source

Philip Kotler, Marketing Management 


Related Articles

Kotler and Keller - 14 Edition Marketing Management Brief

30 Day MBA Self Study Course - Free Notes

February Management Knowledge Revision Plan

Planned Revision schedule for marketing chapters is in February and March

Updated  17 August 2021,  10 May 2019 3 May 2019

2018 - 25 January

 23 Feb 2015, 14 Jan 2015, 12 Dec 2011

36 comments:

  1. wow nicely illustrated...
    Product, price, place and promotion.
    Under each P, there are number of tools.
    Some choices are possible in short term
    frames while some choices may take
    longer-time. A choice to develop a new
    product can be implemented in long-term
    only. To make budget allocations to various
    possible marketing tools, sales-response
    functions are developed. The functions
    indicate how sales would be affected by
    the various incremental amounts spent
    on each specific tool.
    Excellent post! You covered the topic well.
    Extraordinary work
    Certainly wonderful! I will definitely share it with others.
    You ought to have appreciations for giving out.

    free articles submission




    ReplyDelete
  2. Really excellent Online maketing Strategies all of the rule. So,I used to be more than happy to seek out this web-site.I needed to thanks on your time for this glorious learn!!
    Web Marketing Company

    ReplyDelete
  3. Thanks for the post. People who are really concerned about their marketing and advertising of home, online and offline business may take help from the free advertising sites so as to make it more interesting and amazing as well as a profitable one. This can prove itself a really important thing in a money making business.

    ReplyDelete
  4. Great blog created by you. I read your blog, its best and useful information.You have done a great work.Super blogging and keep it up. Sales and Marketing Strategy

    ReplyDelete
  5. Does anybody knows why Kotler used in his competitive strategies exactly proportion 40%-30%-20%-10% for market player such as Leader, challenger, follower and nicher? Thank you to smart people for answer

    Milan

    ReplyDelete
  6. Hello i am reading your blog,its good informative blog regarding online marketing.For more information related online marketing visit on this link Online Business Marketing Strategies

    ReplyDelete
  7. #Blog Success Search Google for: Management Theory Blog - Do you find Management Theory Review?

    ReplyDelete
  8. Thanks for the valuable post. Its a good breif for people. And we our one of the Best Digital Marketing Agency in Delhi. We help people in Branding & Marketing

    ReplyDelete
  9. Hello! #AtoZChallenge #Reflection Visiting Management Blogs. Commenting on blogs in the area of your interest will increase your interaction with blogging community.

    Marketing Strategy - Marketing Process - Kotler's Description

    ReplyDelete
  10. Liked the post https://thebusdom.blogspot.com/2018/12/loreals-marketing-strategy-using.html

    ReplyDelete
  11. Interesting. Listerine changed its target market. https://vizopost.blogspot.com/2019/03/how-to-build-product-marketing-strategy.html

    ReplyDelete
  12. Useful in marketing. https://www.digitalbeaver.co.in/2019/03/how-to-create-goals-and-track.html

    ReplyDelete
  13. Thanks for sharing such valuable information I am also impressed by the creativity of the writer. This is excellent information. It is amazing and wonderful to visit your site. What is influencer marketing and how to build a strategy

    ReplyDelete
  14. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skills. Thank you so much. “ startup marketing strategy to promote startup business

    ReplyDelete
  15. Thanks for sharing this nice blog. Fahim Moledina is capable of generating robust strategic and marketing plans, coaching executives and leaders, while assisting and managing all financial aspects of an organization.

    ReplyDelete
  16. This is the most crucial stage so you should share whatever information your leads need so that the bottom of the funnel is streamlined for an easy conversion.

    You can expect to have a significantly smaller group at the bottom of the funnel compared to the initial group of leads at the top. what is a marketing funnel However, people here are ready to take action – they are in the decision stage of their journey.

    With that being the case, you can cut back on educational content, and instead focus on giving your leads the details they need to make their minds up. You can make them aware of:

    Pricing
    Costs
    Quotes
    Benchmarks
    Specific product information
    Service information

    ReplyDelete

  17. Digital commerce, also known as e-commerce , is indeed a business concept that allows businesses and individuals to buy and sell goods through the Internet. The growth of online developers in India has been fueled by advancements in the IT industry and increased consumer understanding of the Internet.
    Website Development company in ranchi

    ReplyDelete

  18. Digital commerce, also known as e-commerce , is indeed a business concept that allows businesses and individuals to buy and sell goods through the Internet. The growth of online developers in India has been fueled by advancements in the IT industry and increased consumer understanding of the Internet.
    PPC company in India
    PPC Company in USA

    Social Media Marketing Agency in Delhi
    Adwords- PPC Management Company Delhi

    ReplyDelete
  19. If you run a business but don't have a website, you may miss many opportunities that benefit your business. A website designed by the best website development company in delhi can be used to implement many different marketing strategies to help your business grow.

    web portal development company
    ecommerce website development in delhi


    ReplyDelete
  20. Hey thanks for sharing a valuable article post in this blog page.
    You can click here for know about what are the best strategies for Social Media Marketing?

    ReplyDelete
  21. Hii
    Nice Blog
    Guys you can visit here to know about
    Google Promotion Company in Delhi

    ReplyDelete
  22. Thanks for sharing this great post. I am also student of marketing management doing my distance certificate course in marketing and this info was very useful to me.keep sharing.

    ReplyDelete
  23. à°šà°¦ిà°µాà°¨ు 24 à°«ిà°¬్రవరి 2022 à°¨.

    ReplyDelete
  24. I impressed by the quality of information on this website. There are a lot of good resources here. I am sure I will visit this place again soon. B2B and B2C Marketing Great work buddy, keep it up

    ReplyDelete
  25. Hii,
    Thanks for your blog. The information which you have shared is really useful for us.
    GoTrendingNews

    ReplyDelete
  26. This article explains how devices like Best Remote Employee Monitoring Software may make firms more efficient. Your sharing of this knowledge is quite valuable.

    ReplyDelete
  27. Nice post I will Read It again it contains most helpful information for me thanks.
    Scaling engine

    ReplyDelete
  28. Diving into a Management Theory Review is a journey into the core of organizational strategy. Just as this post delves into theories, effective Customer Relationship Management (CRM) strategies form the cornerstone of successful management. At Proven ROI, we specialize in crafting CRM solutions that align with your management principles. Elevate your organizational strategy with Proven ROI's CRM expertise. Explore more at Proven ROI - where CRM meets management excellence.

    ReplyDelete