Marketing Process

The Marketing Process refers to a systematic sequence of activities that an organisation undertakes to understand customer needs, create value, build strong relationships, and achieve business objectives through effective marketing strategies. It is a customer-centric, continuous, and dynamic process that begins with market research and ends with customer satisfaction and loyalty.
In essence, the marketing process involves analysing the market, designing marketing strategies, developing marketing programmes, implementing plans, and monitoring results to ensure that organisational and customer goals are achieved.

Definition

According to Philip Kotler,

“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others.”

Thus, the marketing process can be defined as the step-by-step approach through which a company identifies market opportunities, designs effective strategies, and delivers superior value to customers profitably.

Stages of the Marketing Process

The marketing process typically involves five key stages:

1. Understanding the Marketplace and Customer Needs

This is the foundation of the marketing process. It involves analysing the market environment, consumer behaviour, and customer needs and wants to identify potential opportunities.

Key Activities:

• Market Research: Collecting and analysing data about customer preferences, competitors, and market trends.
• Understanding Needs, Wants, and Demands:
  • Needs are basic human requirements (e.g., food, shelter).
  • Wants are shaped by culture and personality (e.g., desire for fast food).
  • Demands are wants backed by purchasing power.
• Environmental Scanning: Monitoring external factors such as economy, technology, politics, and culture.
• Segmentation and Targeting: Identifying different customer groups based on demographics, psychographics, or behaviour.

Outcome: A clear understanding of who the customers are, what they need, and how the market operates.

2. Designing a Customer-Driven Marketing Strategy

After understanding the marketplace, the next step is to design a marketing strategy that focuses on target customers and value creation.

Key Activities:

• Market Segmentation: Dividing the total market into smaller, homogenous groups of customers.
• Targeting: Selecting the segment(s) the company aims to serve.
• Positioning: Creating a distinct image or identity for the product in the minds of target customers.
• Value Proposition: Deciding how the company will deliver superior value (e.g., through quality, innovation, or price).

Example:

Apple targets premium customers who value innovation and design, positioning its products as high-quality and aspirational.
Outcome: A clear, customer-focused marketing strategy that differentiates the firm from competitors.

3. Preparing an Integrated Marketing Plan (The Marketing Mix)

Once a strategy is defined, the organisation develops a detailed marketing plan that specifies how the value proposition will be delivered through the marketing mix (4Ps).

Components of the Marketing Mix:

1. Product:
   • Design, quality, brand name, packaging, and services.
   • Ensures the product meets customer needs and offers value.
2. Price:
   • Deciding the pricing strategy, discounts, and credit terms.
   • Must reflect perceived value while remaining competitive.
3. Place (Distribution):
   • Choosing distribution channels, logistics, and inventory systems.
   • Ensures the product is available where and when customers need it.
4. Promotion:
   • Communicating with customers through advertising, sales promotion, public relations, and digital marketing.
   • Builds brand awareness and persuades customers to buy.

In modern marketing, additional Ps such as People, Process, and Physical Evidence are also considered (7Ps model), especially for services.
Outcome: A comprehensive, actionable plan that integrates all marketing elements to deliver value effectively.

4. Implementing and Managing the Marketing Effort

This stage focuses on putting the marketing plan into action. It involves organising resources, coordinating departments, and ensuring effective execution of the planned strategies.

Key Activities:

• Allocating budgets and resources.
• Assigning roles and responsibilities to marketing teams.
• Coordinating with other departments (production, finance, HR, logistics).
• Managing suppliers, distributors, and partners.
• Ensuring effective communication with customers and stakeholders.

Implementation requires strong leadership, coordination, and motivation to align all organisational efforts toward achieving marketing goals.
Outcome: Successful execution of marketing strategies leading to increased market reach, sales, and customer satisfaction.

5. Monitoring, Evaluation, and Control

The final stage involves continuously measuring performance, evaluating outcomes, and making necessary adjustments to ensure marketing effectiveness.

Key Activities:

• Performance Measurement: Tracking key indicators such as sales volume, market share, profitability, and customer retention.
• Feedback Collection: Gathering feedback from customers and distributors to assess satisfaction levels.
• Marketing Audit: Comprehensive review of marketing environment, objectives, and activities.
• Corrective Action: Revising strategies or tactics based on results and changing market conditions.

Example:

If a promotional campaign fails to achieve desired results, marketers may modify the message, target audience, or distribution channel.
Outcome: Continuous improvement in marketing efficiency and customer relationship management.

Simplified Flow of the Marketing Process

Customer Relationship and Value Creation

The marketing process revolves around creating, delivering, and sustaining customer value. Businesses that understand and anticipate customer needs better than competitors are more likely to achieve lasting success.
Key aspects include:

• Customer Relationship Management (CRM): Building and maintaining long-term profitable relationships.
• Customer Lifetime Value (CLV): Focusing on long-term profitability from customers rather than one-time sales.
• Customer Equity: The total combined value of all the company’s customers over time.

Importance of the Marketing Process

1. Customer Orientation: Ensures that all business decisions are guided by customer needs.
2. Efficient Resource Use: Helps allocate marketing resources effectively.
3. Strategic Direction: Provides a structured framework for achieving business goals.
4. Performance Measurement: Facilitates evaluation of marketing success and corrective action.
5. Competitive Advantage: Helps the firm adapt to market changes and outperform competitors.
6. Value Creation: Builds customer trust and loyalty through consistent value delivery.