4.2 Market planning Flashcards
Marketing planning
systematic process of devising marketing objectives and appropriate marketing strategies to achieve theses goals
Typical marketing planning process involves
marketing objectives - set marketing goals + targets
marketing strategies - the plan and use of the marketing mix to achieve marketing objectives
Advantage of marketing planning
improves a firm’s chances of success
clearer idea of the organisation’s objectives and the constraints in which they are to operate
Limitations of marketing planning
quickly outdated
costly and time consuming
Marketing mix
Product
Price - method of distributing products
Promotion
Place
Type of product
Producer products - industrial products sold to other businesses to further the production process, e.g. raw materials
Consumer products - sold to end user
Pricing decision depends on
demand - greater demand –> higher price can be
rivalry - the higher to degree of competition, the more price-competitive firms tend to be
Marketing objectives
Targets that the marketing department wishes to achieve
should be compatible with the organisation’s overall objectives
Importance of setting marketing objectives
Provide a sense of purpose, direction and motivation
Allow progress to be monitored and success to be measured
Market segment
distinct group of customers with similar characteristics and similar wants or needs
–> easier for a business to analyse which groups of customers buy the product
Targeting
each distinctive market segment having its own specific marketing mix
Consumer profiles
demographic and psychographic characteristics of consumers in different markets
Benefits of business segment
Better understanding of customers
Higher sales
Segmentation by demographics
Age
Gender
Segmentation by geographic factors
Location
Climate
