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 .
Advantages of mass marketing
- lower average cost of production
-fewer risks
Targeting, segmentation and
consumer profiles
- by demographics eg. age, gender
- by geographic factors eg. location, climate
- by psychographic factors eg. values, hobbies
Product positioning map (perception map)
A graph that analyses consumer perception of a group of competing products in respect to two product characteristics.
Bargain products (perception map)
Goods or services of perceived to be high quality at low prices.
Cowboy products (perception map)
Goods or services that are perceived to be low quality, but high price.
Premium products (perception map)
Goods or services perceived to be high quality at high prices.
Economy products (perception map)
Goods or services that are perceived by costumers to be low quality at low prices.
Unique selling point (USP)
A factor that differentiates a product from its competitors.
Unique selling point (USP) can be:
- Low/lowest price
- Trust
- Ethical stance
- Convenience
- Product features
Unique selling point (USP) can be:
- Low/lowest price
- Trust
- Ethical stance
- Convenience
- Product features
