Process and Stages of Marketing: Role of Marketing Mix

INTRODUCTION
Marketing is defined as set of activities that is undertake by an organisation in order
to promote the buying as well as selling of goods or services. In addition to this, marketing is
a significant procedure & action which assist business entity in enhancing sales and
profitability of an organisation (Baines, 2017). One of the main important role of marketing is
promotion, advertising, identifying customer requirements, conducting market research,
delivering products and many more. The present essay is based on Adidas which is a German
multinational corporation founded in year 1924 and headquarter in Herzogenaurach,
Germany. The products offered by company is sportswear, footwear, sports equipment and so
on. The report will cover the process & stages of marketing along with the role of marketing
mix. In addition to this, Porter's five force model, STP analysis and SWOT analysis of
respective organisation is described. Moreover, Stakeholder engagement and their influence
on the marketing activities of a company is elaborated in the report.
PART 2
1. Process and stages of marketing including the role of marketing mix
Marketing is termed as a procedure as well as actions of promoting goods and
services offered by company through advertising and market research. In addition to this, it is
a significant function for a business entity in order to enhance its sales as well as profitability
in an effective manner. Moreover, marketing is basically how an entity develop value for
customers and create strong relationship with customers properly.
Marketing process Stages allow a company to identify the customer issues,
developing marketing material to reach target audience, analyse market opportunities and
many more. In addition to this, marketing process involve five steps that an organisation
require to discover in order to develop offerings which meet with the requirements of
customer (Boshnakova and Goldblatt, 2017). The first step is setting mission which is
important for an organisation in order to align the activities in a proper manner and achieve
objectives as well. The mission statement of Adidas is “To be the global leader within sports
industry with brands develop on a passion for sports & sporting lifestyle”. The second step is

Situational analysis that allow a business entity to develop effective strategies and attain
competitive advantage at marketplace. In addition to this, situational analysis is significant as
it help in knowing both the internal as well as external factors affecting on the organisational
performance and productivity.
In order to conduct situational analysis, the higher authorities of Adidas make use of
SWOT analysis and Porter's five force model that is explained below in context to respective
organisation:
Porter's five force model is an strategic tool which analyse and identifies five
competitive forces that shape every business entity and assist in determining industry's
weaknesses. In addition to this, this analysis is frequently adopt by company to identify
business structure that directly determine corporate strategy. It is analysed that managers of
Adidas make use of porter's five force model as it help in analysing the level of competition
prevailing at marketplace. The model consist of five competitive forces that is explained:
Adidas is one of the renowned and leading organisation within the sports fashion
industry and apart from this, it is making apparel and sports. In the recent years, Adidas gain
higher growth that take place because of high focus on marketing (Çalı and Balaman, 2019).
The company also gain improvement in its operating margin. With the help of porter's five
force model, the company is able to focus on the factors which are favourable as well as
unfavourable for Adidas & how it impact its ability to deal with the competitive forces. The
threat of new entrants for Adidas is low as there are more barriers to entry and to open such
level of business require high cost and time as well. In addition to this, because of its high
capital investment, it is complex for new entrants to invest and reach on its level as well. It is
important for the company to offer quality and maintain relationship with customers as it help
in maintaining the performance at marketplace. The second competitive force is power of
suppliers, it is analysed that Adidas has a high brand power that attracts large number of
suppliers globally. Along with this, Adidas has multi-layered and global supply chain which
states the suppliers has low power to influence. It allow respective organisation to set the
rules which suppliers are needed to comply with that impact positively on its performance
and productivity.
It is stated that the customers are looking forward for the standardized goods and for
the people who have no knowledge about offerings, organisation make decision for them.
The bargaining power of buyers for respective organisation is low to moderate due to the
presence of high competitors such as PUMA and NIKE. With the increase in number of

competitors that is small or large, threat of substitute product for Adidas is low to moderate.
It is determine that some of its rivals supply the requirement of high end customers, but its
competitors give goods at low price. Therefore, it is important for Adidas to offer innovative
and quality products to its customers as it ensure customer satisfaction and retention with the
brand. The last competitive force is rivalry among the competitors. It is analysed that
respective organisation is facing tough competition as there are lot of competitors prevailing
at marketplace such as Puma, Nike and so on that offer same kind of products (Chaffey,
2019). It is significant for Adidas to focus on maintaining its relationship with customers and
provide them innovative product as it help in attaining competitive advantage at marketplace.
One of the main advantage of porters five force model is it help in determining about
the competitors and their strategy that allow respective organisation to develop effective
strategy and attain its competitive advantage at marketplace. On the other side, the model did
not consider other factors which may have bearing on environment in which the organisation
it operates and is consider as disadvantage of porter's five force model.
SWOT analysis is a matrix used by the management of the company to recognise the
internal affairs of its structure, it helps to identify key strengths, weaknesses, future
opportunities and alert the management for the upcoming threats to the organisation. It is
stated that it allow business entity to develop an effective strategy for declining the level of
threats and make improvements which leads to raise in performance of respective
organisation. The SWOT analysis of Adidas are as follows:
Strength:
Adidas being an established company has strong hold in its financial position, because of
which it can expand its market globally and gain higher profits as well.
It is determine that the company has high online presence and as per the current situation
online market have gain high importance that directly leads to raise in sales and revenue of
company (Chautard and Collin-Lachaud, 2019).
Weaknesses:
It is been observed that the company suffers high cost structure as a result the net prices of its
product is high, that resulted in capturing only high income level of people.
The company sometimes face difficulties in sale maximization due to its limited product line.
Opportunities:
The company is a supporter of innovations, with the changing lifestyle of people it have a
huge growth opportunity as the basis of production is been set to consumer oriented.