Module 2: Marketing and Planning
Section 1: Marketing Assessment and Strategy
According to Friedman (1987),
may be defined as:
the process associated with promoting for sale goods or services. The classic components of marketing are the Four P's—
price, place, and promotion—
[emphasis added] the selection and development of the product, determination of price, selection and
design of distribution channels (place), and all aspects generating or enhancing demand for the product, including advertising
Marketing assessment may be regarded as encompassing the Four Ps (also known as the
), with particular emphasis on identifying, measuring, and meeting the marketplace demand to satisfy
wants and needs. In other words, marketing is finding a need or a desire and meeting it, within time and
budgetary constraints. Marketing may be further defined as ".
..a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging products and
values with others" (Kotler and Armstrong 1996, 6).
Beyond the modest basics of food, clothing, shelter, and transportation, consumers may not need much
more. Nevertheless, consumers often do, or can be motivated to, want much more than they need
(Sanow and McComas 1994). For example, consumers only need basic foods, but want gourmet foods.
Likewise, consumers typically do not need very large houses, but, finances permitting, often want larger
homes. In addition to needs and wants, other key concepts are: demand; product value, satisfaction, and
quality relationships; and markets. In terms of assessing and creating demand, marketing communicates
to the consumer the need for the producer’s goods and services; sometimes the marketing is also
conducted by distributors or middlemen.
Together, the previous key concepts form the marketing mix, or the set of marketing tools that affect the
marketplace. For example, selling and advertising are important components of the marketing mix. A
marketing strategy specifies a target market and a related marketing mix (McCarthy and Perreault 1987).
Entrepreneurs have limited time and monetary resources to commit to marketing. Therefore, they must
objectively define the most optimal demand sectors. Concentrating on one or more key segments is the
basis of target marketing (Blake and Bly 1983). The major ways to segment a market are:
demographic (age, income)
type of business (high-tech, manufacturing, retail)
product (how the consumer uses it)