4.2 Market planning Flashcards
Market planning
The process of formulating appropriate strategies and preparing marketing activities to meet marketing objectives.
Main elements of a marketing plan
- Details of a company’s (SMART) marketing objectives
- Sales forecast – to monitor the progress of the plan
- Marketing budget – planned spending and allocation of finances
- Marketing strategies
- Detailed action plan
Role of market planning
- Provides focus to the work of the marketing department
- Strategies linked to SMART objectives increase the likelihood of the campaign’s success
- Planning budget in advance
- Helps to achieve integration of different business functions
- Planning ahead
Marketing mix (the 7 Ps)
The key decisions that must be taken in the effective marketing of a product:
- Product
- Price
- Promotion
- Place
- People
- Process
- Physical evidence
An appropriate marketing mix decisions
- Are based on marketing objectives, achievable within the budget
- Coordinated and consistent with each other
- Targeted at appropriate consumers
Marketing objectives
Targets that the marketing department wishes to achieve, they include:
- market share
- market leadership
- product positioning
- consumer satisfaction
- high market standing
Target market
Market segment a product is aimed at.
Market segment
Sub-group of a market made up of consumers of similar characteristics, tastes and preferences.
Market segmentation
Identifying different segments within a market and targeting different products or services to them, it’s a form of niche marketing, to be effective a firm must analyse and research the total market.
Advantages of segmentation
- Precise defying a business target market
- Identifying gaps in the market
- Small firm’s can specialise in a few segments
- Usage of price discrimination to increase revenue and profits
Disadvantages of segmentation
- Coast might be high because of several different product variations
- High promotional coast
- High production and stock-holding coasts
Consumer profile
A quantified picture of a consumers of a firm’s product, showing proportions of age groups, income levels, location, gender and social class.
Niche market
A small and specific part of a market.
Advantages of niche marketing
-small firms are able to thrive in a market dominated by larger firm’s
-if the market is unexploited, the firm can charge high prices
-can be used by small firms to create status and image
Mass market
A market for products that are often standardised and sold in large quantities .
