LESSON #02

THE PROCESS OF MARKETING

Presented by:
Dr. Chacha Magasi
College of Business Education

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 Learning Objectives
• Discuss the components of the marketing
management process
• Explain the benefits of marketing management
• Describe different methods of organizing a
marketing department (Types of Marketing
Organization Structures)
• Discuss the techniques available for marketing
evaluation
• Describe the process used to control the
marketing plan

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Introduction
• Marketing is not an act, but a process
• As such, the marketing activities and the
people involved in marketing efforts must be
managed
• The process related to the management of all
marketing activities and the people involved
is called marketing management

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The Marketing Management Process
• The process of marketing management involves the
following activities:
– Marketing analysis:- careful assessment of the current
marketing situation
– Marketing planning:- formulating marketing objectives
and strategies and developing marketing plans
– Organizing the marketing activities
– Implementing marketing plans and programs
– Evaluating the marketing plan and programs:- measuring
performance
– Controlling the marketing plans and programs:- taking
corrective actions to ensure the marketing plans are
successful

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Marketing Analysis
• Marketing management process begins with
situational analysis.
• This is a careful assessment of the current
marketing environment.
• The purpose of situation analysis is to identify
the strengths, weaknesses, opportunities and
threats.
• It is also known as SWOT analysis

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SWOT Analysis
• SWOT analysis is an overall evaluation of a company’s
strengths, weaknesses, opportunities and threats.
• It involves assessing the external and internal
environment.
• Strengths and weaknesses are identified by assessing the
internal environment
• Opportunities and threats are identified by assessing the
external environment
• After SWOT analysis is complete, a company has to build
on strengths that it has, do everything to eliminate or
correct weaknesses, take advantage of opportunities and
do what it takes to minimize or avoid threats.
• The information gathered from SWOT analysis is used
as basis of setting goals, formulating strategies and
implementation.

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Marketing Planning
• Marketing planning involves:
– Setting Marketing Objectives: A statement of what is
to be accomplished through marketing activities to
match strengths to opportunities, or to provide for
the conversion of weaknesses to strengths
– Formulating the marketing strategy: Formulating
means of achieving the marketing objectives
– Developing the marketing plan: preparing a written
document that specifies
the activities to be performed to
implement and control the marketing activities

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Organizing
• This the process of developing the internal
structure of the marketing unit.
• It involves establishment of the marketing units/
departments e.g. sales, department, research
department, production department etc.
• Different types of marketing organization
structures:
1) Functional Organization
2) Product-oriented Organization
3) Geographical/Territory-oriented Organization
4) Customer-oriented Organization

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Product oriented organization; departments are
organized according to product categories/brands

Marketing Manager

Research Manager
Sales Manager

Product A Product B Product C

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 Zone A Zone B Zone C

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 Customer based organization; based on group
of customers served.

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Marketing Implementation
• Refers to putting the plan into action and
performing marketing tasks according to
predefined schedule
• It involves coordination and close monitoring
of marketing activities.
• It also involves motivation of marketing
personnel, and effective communication
within the unit

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 Marketing Evaluation & Control

It involves:
a)Setting standards based on
plan e.g. monthly sales target
b)Measuring performance based
on standards
c)Taking corrective actions

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Marketing Control Process
Marketing Objectives

Performance Standards

Measurement of Performance

Corrective Action

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 Tools and Techniques for Marketing
Evaluation & Control
Business firms use several tools and techniques for marketing evaluation and control. The important
ones among them are:
1.Sales Analysis:- Assessment of the actual sales achieved relative to the target
2.Market share analysis:- Assessing how well the company is doing in the marketplace compared to
competitors e.g. market size in percentage terms, market growth etc.
3.Efficiency Ratio Analysis:- expenses/revenue analysis to measure how productive or efficient the
marketing operations are
4.Market Information Analysis:- analyzing the market information in terms of new customers added,
disappointed customers, consumers dropped, quality of service, preferences of target markets etc.
5.Profitability Analysis: Assessing the company’s ability to make sales and earn profit e.g. buyer power,
supplier power,
6.Marketing Audit:-assessing the extent to which the marketing program has been effective (gap
analysis) e.g.
– How effective is our marketing team?
– How effective and efficient is distribution?
– How effective are our customer facing processes?
– What is the perception of customers towards our brand?

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Benefits of Marketing Management
• Marketing efforts are accomplished in a well-planned,
systematic way
• An adequate amount of marketing research and other
marketing information is generated
• Marketing weaknesses are quickly spotted and corrected
• Funds and human resources available for marketing are
used as efficiently and effectively as possible
• Marketing personnel and other staff members are more
highly motivated toward achieving marketing objectives
• There is a much clearer understanding of marketing
results, good and bad, and the reasons for successes and
failures
• There is definite accountability for marketing
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