4.2 - Market Planning Flashcards
what is market planning
the process when a business creates marketing objectives and plans how they aim to accomplish these objectives
- usually businesses aim to get more consumers to buy their product through marketing
what is a marketing plan?
what does it include?
a marketing plan is a plan which shows marketing objectives, strategies, budgets and marketing activities through which a business aims to meet its marketing objectives
it includes:
- executive summary
- market analysis
- marketing objectives
- marketing strategies
- resources required
- marketing budget
- marketing activities
what is a market segment
a part of the market where consumers share similar characteristics which are clearly identifiable (wants and needs)
what is market segmentation
when a market is divided into different segments
targeting (in terms of marketing)
the process of identifying a target market
target market definition
a market which a business focuses its marketing activities on
what are the different types of market segmentation?
- geographic
- demographic
- psychographic
- socioeconomic
geographic segmentation
when a business divides up a market based on the geographic characteristics of the population
this includes:
- local tastes
- local culture
- climate
- population density
demographic segmentation
when a business divides markets up based on the demographics characteristics of a population
this includes:
- age
- gender
- race
- religion
psychographic segmentation
when a business divides up a market based on the psychographic characteristics of the population
this includes:
- lifestyle
- personality
- values
- social class
- attitudes
- motivation
socioeconomic segmentation
when a business divides a market based on the economic characteristics of the population
this includes:
- income
- wealth
- spending
- profession
- education
what is a marketing mix
the combination of different elements through which a consumer decides whether or not to buy a product
what is customer profiling
when a business creates a profile of an individual which would be best suited for the product
mass marketing
marketing that is tailored towards the wider group of individuals in a specific market
mass marketing pros/cons
pros
* access to a wider range of consumers
* higher brand recognition
cons
* high levels of competition
* product is not tailored to specific consumers meaning that their wants may not specifically be met
what is niche marketing
marketing of a product towards a more selective group of individuals rather than a wider group of individuals within the markert
- it is a differentiated marketing strategy
pros/cons of niche marketing
pros
* may be able to charge higher prices as products are tailored towards individuals
* less competition
* consumers are likely to be satisfied - increased brand loyalty
cons
* this specific group may not be looking for/want the product
* smaller group of consumers - may mean lower profits
which businesses (small,large) will use which type of marketing (niche,mass)
small businesses tend to tailor towards nice markets
large businesses tend to tailor towards mass markets
what is product differenciation
ways in which a business makes their product stand out in comparison to competition in the eyes of the consumer
- process of creating a USP
what is a unique selling point (USP)
any aspect of a business or a product that differenciates it from competition in the eyes of the consumer
pros/cons of product differenciation
pros
* higher profits
* more recognition - higher brand loyalty
* better brand image
cons
* may take money and time and training
* may limit audience
* competition may copy
what is differenciated marketing
when a business functions within a range of different markets, each in which they sell a different product through marketing tailored towards the group
consumer definition
an individual who buys a good or service from a business to satisfy their needs or wants, but does not resell it
what does a product positioning map show (PPM)
how consumers percieves a product from a business in relation to other similar products from competition
