5 Steps in Marketing Process

Thomas Sim PEA2066

Q.
Explain the five (5) steps in the marketing process.

A.

5 Steps in the Marketing Process.

The marketing process model based on the publications of Philip Kotler. It consists of 5 steps, beginning with the market & environment research. After fixing the targets and setting the strategies, they will be realised by the marketing mix in step 4. The last step in the process is the marketing controlling.

Further elaborate on this.

  1. Understand the marketplace and customer needs and wants - environment analysis. (Understand Market)
  2. Construct a marketing program that delivers a superior value - niche target. (Identify needs/niche)
  3. Design a customer-driven marketing strategy - the way to do it! (Strategy)
  4. Build profitable relationships and create customer delight - align with market needs of how to reach the audience, its price, types of product, way to obtain it (4Ps). (Satisfy the needs)
  5. Manage customer relationship to create profits and customer quality - product enhancement in value to achieve customer retention and increase customer relationship. (Maintain relationship)
  6. Capture customer value, loyalty and build customer equity (Enhance customer return)
Remarks:
The 5 marketing processes sometimes is split into 6 parts.
1. Understanding the market background, needs and wants - Understanding Market.
2. Construct a marketing program that delivers a superior value - Identify needs/niche/segment
3. Design a customer- driven marketing strategy - Strategy
4. Build profitable relationships and create customer delight - 4 Ps - Satisfy the needs/Competition analysis.
5. Maintain customer relation and create profit and customer quality - Maintain relationship CRM & cross selling (partner with other providers).
6. Capture customer value in return, loyalty and repeat consumption - Capture customer equity/increase market share.
The first step of understanding the market may carry on to identifying the needs and come out with a program to deliver superior value (join together 1 & 2).
Or, it can mean a strategy that incorporate a winning marketing program (position already fixed) being the 2 step (join together 2 & 3).
The 4 Ps can be grouped under Strategy as it has to deliver a winning Programme (3 & 4 together).
Then, leave CRM on the 4th step.
Customer loyalty and return in the 5 step.

Ref:

Business Strategy/Marketing Plans and Strategies from Wikibooks at http://en.wikibooks.org/wiki/Business_Strategy/Marketing_Plans_and_Strategies
Studymode at http://www.studymode.com/essays/Kotler-Chapter-1-Introduction-To-Marketing-451898.html