Download Marketing Process

MARKETING PLANS
THE MARKETING PROCESS

Marketing plans have either a product-orientation
approach or a sales-orientation approach, as
outlined in the table below.
Marketing
Approach
Company Goals
Company Strategy
Product
orientation
Better products than
competitors
Company spends more time
and money on product
component of the marketing
mix
Sales
orientation
Encouraging more
consumers to buy
the product
Company spends more time,
effort and money on price
structure, promotion and
placement activities in the
marketing mix
The marketing process
involves many stages and
is a continuous cycle.
Marketing is cyclical
because most products
eventually become
outdated and there is a
constant demand for
new products.
MARKETING MIX
The marketing mix is made up of four organised
activities:

product planning

price structure

placement or distribution

promotion
1. PRODUCT PLANNING
The product Life Cycle: shows how a products
income generation for a company changes as it
progresses through the market phases of:
 introduction
 growth
 maturity
 decline
 leading to its ultimate failure.

PRODUCT LIFE CYCLE
2. PRICING STRUCTURES
Pricing is an integral part of the marketing plan.
Some people are prepared to pay more for a
product than others are; it depends on the value
they place on it.
 The best pricing policy allows for consumers to pay
more if they see more value in a product — for
example, selling the best-quality king prawns for
$29.00 per kilogram while school prawns
are $10.00 per kilogram.

2. PRICING STRUCTURES
The product price depends on what the target market
is prepared to pay.
Characteristics of the target market:
 age
 gender
 socioeconomic level
 family size
 education
PRICING TACTICS
Penetration pricing
 Price skimming
 Competitive pricing
 Status-quo pricing

ACTIVITY
Visit a retail outlet such as a supermarket. Choose
one food product that has at least four different
brands and is the same size (for example, canned
salmon).
 Identify which target market each product is
targeting and record the price of the item.
 Do you think consumers are paying more for a
higher quality item in each case or not? Give
reasons for your answer.

3. PROMOTION
Promotion informs consumers about new products,
and persuades customers to buy a new product or
buy more of an existing one. Promotional activities
teach us to be consumers. The types of activity
include:
 advertising
 personal selling
 publicity and public relations
 sales promotions (sales, in-store sample testing,
product giveaways and demonstrations).
4. PLACE AND DISTRIBUTION
Place in the marketing mix refers to where the
product will be sold geographically and to the
kinds of outlet in which it will be sold.
 Distribution refers to the process of moving the
product from the producer to the consumer.

4. PLACE AND DISTRIBUTION
Place is where the target market lives, works, plays and shops.
Marketers have several tactics to consider when placing a
product to reach the target market.
 Intensive distribution — means when products are available
at every possible outlet (for example, chocolate bars are sold
in small shops, service stations, grocery stores, newsagents,
bakery shops, vending machines and online)

Selective distribution — this is when there is a wide but not
intensive distribution (for example, some types of cheese are
available at delicatessen chains such as Cut Price Delis rather
than Woolworths or Coles)

Exclusive distribution — means when a limited supply of a
product is sold in only a few retail outlets, usually because the
product is expensive (for example, handmade chocolates) and
has an elite image in the consumer's mind.
4. PLACE AND DISTRIBUTION
Once a company has chosen its placement strategy,
the physical distribution of the product takes place.
Distribution involves moving the product from the
manufacturer to the point of sale. The longer the
distribution chain is, the less efficient it is.
 warehousing
 materials handling
 inventory control
 order processing
 transportation