Overview of elements of marketing process
Elements of the marketing process is a statement that depicts the steps involved for successful marketing and gives an overall glimpse of all the terms. However, a few things must be studied before talking about the same.
Marketing Process Steps
Marketing is all about creating value for consumers and building relationships with the customers to get something in return.
However, 5 steps in the elements of the marketing process for the customers involved in the framework which are as follows:
- Understanding customers need, want and marketplace
- Marketing strategy with a customer-driven design
- An integrated plan for marketing with superior value
- Profitable
- Capture value
Understanding customer need, want and marketplace
To satisfy the customers, it becomes significant to understand customers needs, wants and the marketplace as a whole. The offerings should be focussed on value-laden to create customer relationships in the elements of the marketing process. As a result, customer equity for the company increases in the long term.
Needs – They showcase the necessities like clothing, food, warmth, shelter, individual needs and safety for self-expression and knowledge. Since they form a basic part of human life, marketers cannot develop these needs.
Wants – Wants are developed from one’s individual personality and culture which are described as the objects that lead to the satisfaction of the above needs.
For example, Hunger is a need while satisfying it with McDonald’s only is a want.
Note: However, the buying power of the customers with available resources creates demand that adds value to the customer’s satisfaction and value in the elements of the marketing process.
Marketing strategy with a customer-driven design
- Selecting the target market or the customers to be served
- Choosing an appropriate value proposition
- Production concept
- Product concept
- Selling concept
- Marketing concept
- Societal concept
Firstly the company decides whom it will serve and then segments the market. Further, it categorizes the sections of the target market. The market segmentation takes place based on the timing, level and nature of the demand in the elements of the marketing process.
Secondly, it solves the question of how the customers will be served. This explains how the company differentiates its position in the market. The term value proposition depicts the benefits and values that the customers are promised to be delivered. This decision ensures that the company gains the greatest advantage in target markets.
An integrated plan for marketing with superior value
After deciding whom and how to serve, the company develops marketing plans that will bring the intended value from the target customers. This step includes setting up the marketing strategy by using tools i.e 4 Ps of the marketing mix.
The decided marketing program helps in transforming the strategy into action in the elements of the marketing process. As a result, the company blends all the tools into an integrated and comprehensive way that delivers customers the required value.
Profitable
By delivering superior value to satisfy customer, builds a relationship which in turn helps in building and maintaining a profit in the elements of the marketing process.
Relationship management helps to create customer equity and loyalty throughout a lifetime. Building profitable relationships help the company to increase the share of customer portion gained in its product categories.
Capture value
The higher the loyalty of the profitable company’s customer, the higher will be the customer equity in the elements of the marketing process. The term represents a better way of measuring the performance rather than sales or market share.
The marketers need to work on the liaison world since customer value cannot be developed only by customer relationships. As a result, this step explains that the company needs to develop a good partner relationship management also in the elements of the marketing process.
Explain the Various Elements of the Marketing Process
Targeted customers are considered as the centre of the marketing process. The process analyses the opportunities, the target markets or the customers, create the marketing mix, and finally leads to the management of marketing effort. However, to explain the various elements of the marketing process, the structure below needs to be referred to.
- Situational analysis
- Objectives
- Strategy
- Marketing Mix
- Implementation and Control
Situational analysis
Firstly, to explain the various elements of the marketing process starts with term situational analysis which forms the foundation of the plan or market research. Furthermore, it includes factors like pestle analysis, swot (strength, weakness, opportunity and threats) analysis, stakeholder analysis and porter’s five forces.
- SWOT analysis gives a brief of steps which may be needed to advise strategic planning.
- Pestle analysis ( technological, political, legal, economic, environmental and social) which depicts the external factors that affect the business.
- This step helps to create an understanding of the factors that will influence the organisation in future in the elements of the marketing process.
Objectives
Secondly, to explain the various elements of the marketing process is setting up the objectives or goals of the organisation for successful results by encouraging products to the customers. The objectives depict the benefits the company gains from training and managing employees, marketing etc. SMART criteria help to gain effective goals.
Strategy
Thirdly, to explain the various elements of the marketing process we have a strategy which helps to achieve the objectives mentioned above. This step includes a 3 step approach to build a marketing plan.
Segmentation is generally referred to as brainstorming activity which includes division of target market due to psychographics, demographics, lifestyle, value and beliefs, geography, life stages, benefit and behaviour.
Targeting involves choosing among the segments that can give maximum benefit to the firm.
However, positioning depicts fixing a unique image in the mind of customers of their products as compared to the competitive industry in the elements of the marketing process.
Marketing Mix
Fourthly, to explain the various elements of the marketing process there is a seven variable combination controlled by the company to achieve objectives known as the marketing mix. Managers prefer this since the principles are easily manageable and named as follows:
Implementation and Control
Fifth, to explain the various elements of the marketing process the implementation of the whole outcome of the marketing planning is significant.
Strategic control counts up as the last step which includes evaluating and monitoring the strategy to ensure the marketing management process is operating properly. Furthermore, it helps to find out the deviations by comparing the targets and actual result gained.
What are the Elements of Marketing Mix?
The elements of the marketing mix depict how a product or a service is framed. However, for a product there are 4Ps while for service industry there are three additional P’s that needs to be understood which are as follows:
Product
The tangible thing which is offered to the consumers is known as the good/product (like shoes, pen, radio etc) while an intangible need offered to satisfy customers (like banking, airlines, hotels etc) is termed as service.
In the case of a product, the life cycle and challenges that can be faced during different stages ( briefly studied in the market test) must be taken into consideration. The product features, labelling, brand name etc are taken care of according to the demands of the customer in the elements of the marketing process.
Price
Secondly, the company or the marketer decides the price which can be readily paid by the customers. Pricing helps to determine the profit that will be generated. As a result, this step becomes a significant decision in the elements of the marketing process.
Pricing is set by considering factors in mind like competitors range, production cost, perceived value etc. However, the decisions taken are related to the list prices, discounts, credit terms etc.
Place
Thirdly, place talks about where and how the product is circulated. Briefly, the distribution and the methods used to reach the customers. This step involves deciding the physical logistics( supply chain management) and intermediaries.
For example, Warehouse or the transportation required in the case of perishable products should be near the target location of the distribution. Also, deciding the number of intermediaries required to sell the product.
Promotion
Lastly, promotion represents the tactics used by the company to gain the attention of the target customers. This step includes sales promotion tools, advertising, public relations, personal selling etc in the elements of the marketing process.
Moreover, the factors that should be considered while making the decision are competitive industry’s methods, most effective channels that match the perceived value of the good.
NOTE: The 7Ps or the three extended elements of the marketing mix acts as the modified version. Briefly, they are commonly used in the service industry i.e people, process and physical evidence.
People
People here refer not only to the customers but also the employees or management who are directly or indirectly related to the product. This decision ensures choosing the right people to work for the company and the right type of people to be offered in the elements of the marketing process.
For example, In airlines, economy and business class seats define the difference in comfort and quality of service offered to the respective customers.
Process
The pipeline or the system followed to provide a quality service is termed as a process in the elements of the marketing process. Briefly, the process should be free from unnecessary blockers who increase the expenses in the execution of the service.
Moreover, the research, innovation, design features and development required are focussed. This step takes into account how the services are consumed by customers like service delivery, complaints, etc.
Physical Evidence
Lastly, physical evidence depicts what the consumers notice while consuming the product or service. This factor includes artefacts, facilities, brand etc. However, this should be noted that the physical aspects attached to the product add value to it.
How to Create a Marketing Strategy?
Effective marketing starts with developing marketing strategies which help to define the company’s mission, vision, and goals that outlines the steps needed to achieve them.
The chosen marketing strategy affects how a business is run in the elements of the marketing process. As a result, this must be planned and developed after consulting all the team managers. It is a tool that:
- Defines the role of products and position in the market
- Helps to find the marketing tactic to be used
- Describes the business
- Profiles the competition and the customers
- Aid in building a marketing plan effectiveness
Note: Although marketing strategy talks about overall direction on one part, a marketing plan being a subset outlines the actions needed to implement the specific marketing strategy. The marketing strategy may be planned for a few years or a long run while a marketing plan represents the tactic applied in the present year.
Overlook of the competition with SWOT
Understanding the targeted market is a major aspect that needs to be taken care of and can be done by finding out the following for the company:
- Strengths: The best or the unique thing offered by the product
- Weaknesses: The area where the product is vulnerable
- Opportunities: Improvement scope that can be focussed by the company
- Threats: Factors negatively affecting the success of the business externally( economic forecasts, diminishing demand, shifting market trends, increased competition)
Identifying business goals
After knowing the market, the company must identify its mission/goals so that the marketing goals can be set to support them. The business goals may include:
- Approaching a new customer segment
- Increasing awareness or knowledge of the products
Goals must be as focussed as possible so that deviations can be measured clearly in the elements of the marketing process. However, criteria to set a business goal is known as the SMART method.
- Specific: Stating clearly what to achieve
- Measurable: should be set in tangible terms so that the results can be measured
- Achievable: objectives must be set that lie within the budget and capacity of the business
- Relevant: objectives that improve particular aspects
- Time-bound: objectives achieved within the targeted time
Stating marketing goals
After deciding the business goals, the marketing goals required to achieve need to be defined. The marketing goals can be short term or long term taking a few years to be successful in the elements of the marketing process. However, they must be clear, measured and achieved within a given time.
For example, marketing goals represent increasing market penetration or market development.
Good marketing strategies do not change every year but rather are revised. Also, the strategy may be amended due to the external factors like the entrance of a new competitor, products change substantially or new technology.
Research of market
Knowledge of the market such as growth, size, demographics (like gender, age and family type) and social trends must be taken in the elements of the marketing process. Briefly, an eye on the market must be kept to know about the changes. As a result, the strategy can also be altered, updated and remains relevant.
Profile of potential customers
After completing the market work, the profile of the customers that need to be targeted must be focussed. A pattern of their demand, buying behaviour, what they buy and from where must be noted. To remain updated a regular review of the trends should be looked upon so that the business does not lose any opportunity.
Furthermore, with the introduction of new customers, the marketing strategy should be framed in a manner that it maintains the relationship with the existing customers.
Profile of competitors
Likewise, apart from the customers, a profile of the competitors must also be developed by identifying their supply chains, products, marketing tactics, and pricing. This procedure helps to gain a competitive advantage ( what sets a business apart from others). The comparison improves performance by knowing strengths and weaknesses.
Developing marketing strategies to support goals
- By increasing adult awareness of the products
- Posting regular updates on social media like Facebook and Twitter
- Advertising in magazines or offering discounts to the students
The above-mentioned examples refer to the various strategies which can be used to achieve marketing goals in the targeted market in the elements of the marketing process.
Using 7Ps of the marketing mix
Choosing the right combination of the 7Ps ( product, price, promotion, place, process, people, physical evidence) helps the company to get a successful and effective marketing strategy. When the internal management is perfectly executed than it becomes easy for the company to present the product to the market.
Testing the ideas
For deciding the tactics, few ideas or approaches must be tested on a customer group or employees to get a review of what works in the market. A proper idea must be found out to satisfy the customer needs, increase the reach and improve the sale results.