Friday, July 10, 2026

MARKETING PROCESS

Dr. S. Anthony Rahul Golden
M.Com., M.Phil., NET., Ph.D., MBA.,SET., NET., M.A., M.Sc. (Psy)., M.A.,  PGDBA., 
Asst. Professor of Commerce., Loyola College (Autonomous), Chennai - 34
Mobile No- 91+9176313545
https://yesrahul.blogspot.com/

https://orcid.org/0000-0001-8071-4801

https://vidwan.inflibnet.ac.in/profile/339311

https://www.researchgate.net/profile/Anthony-Golden-S 

https://scholar.google.com/citations?hl=en&user=faw7X-UAAAAJ
Anthony Rahul Golden, S. - Author details - Scopus Preview


1. MARKETING PROCESS

The Marketing Process is a systematic sequence of activities through which an organization identifies customer needs, creates value, delivers products and services, builds customer relationships, and earns profits.

Definition

According to Philip Kotler,

"The marketing process is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return."

Steps in the Marketing Process

Step 1: Understanding the Marketplace and Customer Needs

The organization studies:

  • Customer needs

  • Customer wants

  • Customer demand

  • Competitors

  • Market opportunities

Step 2: Designing Customer-Driven Marketing Strategy

The company identifies:

  • Target customers

  • Customer value proposition

  • Marketing objectives

Step 3: Developing an Integrated Marketing Program

Using the 4Ps

  • Product

  • Price

  • Place

  • Promotion

Step 4: Building Customer Relationships

  • Customer satisfaction

  • CRM

  • Loyalty programmes

  • After-sales service

Step 5: Capturing Value from Customers

Results:

  • Sales

  • Profits

  • Customer loyalty

  • Market share

  • Brand equity

Diagram

Understanding Customer Needs
            ↓
Marketing Strategy
            ↓
Marketing Mix (4Ps)
            ↓
Customer Relationship
            ↓
Customer Value & Profit

2. UNDERSTANDING THE MARKETPLACE

Meaning

Understanding the marketplace means studying customers, competitors, and the business environment before making marketing decisions.

It includes

  • Customer needs

  • Customer wants

  • Customer demands

  • Market offerings

  • Customer value

  • Customer satisfaction

  • Competitors

  • Marketing environment

Objectives

  • Identify customer needs

  • Understand buying behaviour

  • Develop better products

  • Gain competitive advantage

  • Improve customer satisfaction

Importance

  • Reduces business risk

  • Improves marketing decisions

  • Creates customer value

  • Increases profitability

3. CORE MARKETING CONCEPTS (CMC)

Core Marketing Concepts are the basic ideas upon which modern marketing is built.

A. Needs

Basic human requirements.

Examples

  • Food

  • Water

  • Shelter

  • Education

B. Wants

Specific forms of needs influenced by culture and personality.

Example

Need → Food

Want → Pizza

C. Demands

Wants supported by purchasing power.

Example

A student wants a laptop.

If he has money to buy it, it becomes demand.

D. Market Offerings

Anything offered to satisfy customer needs.

Includes

  • Products

  • Services

  • Experiences

  • Information

  • Ideas

E. Customer Value

Customer Value

= Benefits Received − Costs Incurred

Benefits

  • Quality

  • Service

  • Brand

  • Warranty

Costs

  • Money

  • Time

  • Effort

F. Customer Satisfaction

Occurs when product performance meets or exceeds customer expectations.

G. Exchange

Giving something to receive something of value.

Example

Paying ₹100 for a notebook.

H. Transactions

A completed exchange between buyer and seller.

I. Markets

A market consists of actual and potential buyers sharing a need or want.

4. CUSTOMER-DRIVEN MARKETING STRATEGIES

Meaning

Customer-driven marketing strategy means selecting customers and creating value better than competitors.

Objectives

  • Customer satisfaction

  • Customer retention

  • Competitive advantage

  • Profitability

Components

Choosing Customers

  • Market Segmentation

  • Target Market Selection

Choosing Value Proposition

Answering

Why should customers buy from us?

Benefits

  • Better customer satisfaction

  • Increased loyalty

  • Higher profits

  • Better market share

5. STP (Segmentation – Targeting – Positioning)

A. Market Segmentation

Meaning

Dividing a large market into smaller groups having similar characteristics.

Types

Geographic

Based on

  • Country

  • State

  • City

Example

Selling winter jackets only in cold regions.

Demographic

Based on

  • Age

  • Gender

  • Income

  • Occupation

  • Education

Example

Children's toys.

Psychographic

Based on

  • Lifestyle

  • Personality

  • Values

Example

Luxury watches for high-income professionals.

Behavioural

Based on

  • Usage

  • Benefits

  • Loyalty

  • Buying occasions

Example

Airline frequent flyer programmes.

Advantages

  • Better customer understanding

  • Effective promotion

  • Efficient resource utilization

B. Targeting

Meaning

Selecting one or more market segments to serve.

Targeting Strategies

Undifferentiated Marketing

One product for all customers.

Example

Salt.

Differentiated Marketing

Different products for different segments.

Example

Samsung mobile phones.

Concentrated Marketing

Focus on one market segment.

Example

Ferrari targets luxury car buyers.

Micromarketing

Individual customer focus.

Example

Customized birthday cakes.

C. Positioning

Meaning

Creating a unique image of the product in customers' minds.

Positioning Bases

  • Quality

  • Price

  • Benefits

  • User

  • Competitor

Examples

Volvo → Safety

Apple → Innovation

Nike → Performance

Importance

  • Creates brand image

  • Differentiates products

  • Builds customer loyalty

STP Diagram

Entire Market
      ↓
Segmentation
      ↓
Targeting
      ↓
Positioning
      ↓
Customer Satisfaction

6. MARKETING ENVIRONMENT

Meaning

Marketing Environment consists of all internal and external factors affecting marketing decisions.

Types

  1. Micro Environment

  2. Macro Environment

A. MICRO ENVIRONMENT

Micro environment includes factors directly connected with the company.

Components

Company

Management, employees and departments.

Suppliers

Provide raw materials.

Example

Steel supplier to Tata Motors.

Marketing Intermediaries

Help distribute products.

Examples

  • Wholesalers

  • Retailers

  • Transport companies

Customers

The most important element.

Competitors

Businesses selling similar products.

Publics

Groups interested in company activities.

Examples

  • Media

  • Banks

  • Government

  • Local communities

Importance

  • Directly influences business performance.

  • Helps improve customer service.

  • Strengthens competitive position.

B. MACRO ENVIRONMENT

Macro environment includes broader forces beyond company control.

Components

Demographic Environment

Population size

Age

Education

Income

Economic Environment

Inflation

Employment

Interest rates

Purchasing power

Natural Environment

Climate

Natural resources

Environmental protection

Technological Environment

Innovation

Artificial Intelligence

Automation

Digital marketing

Political and Legal Environment

Government policies

Taxation

Consumer Protection Laws

Competition Laws

Cultural Environment

Religion

Language

Customs

Beliefs

Lifestyle

Importance

  • Helps identify opportunities.

  • Reduces environmental risks.

  • Supports long-term planning.

  • Enables adaptation to changing markets.

Comparison: Micro Environment vs. Macro Environment

BasisMicro EnvironmentMacro Environment
MeaningFactors close to the businessBroad external forces
ControlPartially controllableUncontrollable
ImpactDirect impactIndirect impact
ComponentsCustomers, suppliers, competitors, intermediariesDemographic, economic, technological, political, natural, cultural
ScopeInternal/ImmediateExternal/Broad

UNIVERSITY EXAMINATION QUESTIONS

Two Marks

  1. Define Marketing Process.

  2. What is Customer Value?

  3. Define Market Segmentation.

  4. What is Targeting?

  5. What is Positioning?

  6. Define Marketing Environment.

  7. What is Micro Environment?

  8. What is Macro Environment?

Five Marks

  1. Explain the Marketing Process.

  2. Discuss Core Marketing Concepts.

  3. Explain STP with examples.

  4. Describe the components of the Micro Environment.

  5. Explain the Macro Environment.

Ten/Fifteen Marks

  1. Explain the Marketing Process with a neat diagram.

  2. Discuss the Core Marketing Concepts in detail.

  3. Explain Customer-Driven Marketing Strategies and STP with suitable examples.

  4. Describe the Marketing Environment. Distinguish between Micro and Macro Environment with examples.

Dr. S. Anthony Rahul Golden
M.Com., M.Phil., NET., Ph.D., MBA.,SET., NET., M.A., M.Sc. (Psy)., M.A.,  PGDBA., 
Asst. Professor of Commerce., Loyola College (Autonomous), Chennai - 34
Mobile No- 91+9176313545
https://yesrahul.blogspot.com/

https://orcid.org/0000-0001-8071-4801

https://vidwan.inflibnet.ac.in/profile/339311

https://www.researchgate.net/profile/Anthony-Golden-S 

https://scholar.google.com/citations?hl=en&user=faw7X-UAAAAJ
Anthony Rahul Golden, S. - Author details - Scopus Preview


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