4.2 Marketing planning Flashcards
What is a marketing plan?
A marketing plan refers to the document outlining a firm’s marketing objectives and strategies for a specified time period.
What does the typical marketing planning process involve?
Marketing audit - examination fo the current climate Marketing objectives Marketing strategies Monitoring and review Evaluation
What are the benefits and limitations of marketing weaknesses, opportunities and threats planning?
Benefit: improves a firm’s chance of success.
Limitations:
Some firms do not have the time and resources or expertise to plan their marketing in a systematic way.
Can be outdated quickly
What is the marketing mix?
The marketing mix is the combination of various elements needed to successfully market a product; it contains: product, price, promotion and place.
What are the different elements of a marketing mix?
Product
Price
Place
Promotion
Product
a physical good or an intangible service
What are the two types of products?
Producer products are industrial products sold to other businesses to further the production process.
Consumer products are sold to the end user, i.e. private individuals.
Price
the amount that customers pay for a particular
good or service.
What are the factors that the pricing decision depend on?
DRASTIC Demand Rivalry Aims Supply Time Image Costs of production
Place
the methods of distributing products to customers
Promotion
the strategies used to attract customers to buy a firms products.
Distinguish between above the line and below the line promotion.
ATL promotion uses paid-for mass media, e.g. television, radio and newspapers. BTL promotion refers to all other promotion, e.g. packaging, sponsorship and viral marketing
What are marketing objectives?
the targets that the marketing department wishes to achieve.
Why is setting marketing objectives important?
- Provide a sense of purpose, direction and motivation for the marketing department.
- Allow progress to be monitored and success to be measured.
- Help in the planning and development of an appropriate `marketing mix and marketing strategies.
What are marketing strategies?
tactics/plans of action that are used to achieve the firm’s marketing objectives
What are the factors that affect the effectiveness of any marketing strategy?
finance costs of production the size and status of the firm social issues time lags actions and reactions of competitors state of the economy political and legal environment
What is market segment?
a distinct group of customers with similar characteristics (such as age or gender) and similar wants or needs.
What is targeting?
Targeting refers to each distinctive market segment having its own specific marketing mix.
What are consumer profiles?
the demographic and psychographic characteristics of consumers in different markets, e.g. their age, gender, occupation, income level, religion, marital status and purchasing habits.
Why do businesses segment their markets?
better understanding of customers
higher sales
growth opportunities
support for product differentiation
What are the three types of business segmentation?
by demographics (age, gender, race and ethnicity etc.) by geographic factors (location, climate) psychographic factors (hobbies and interests, values, religions)
Niche marketing
targets a specific and well-defined market segment.
Mass marketing
refers to undifferentiated marketing, i.e. a strategy that ignores targeting individual market segments.
Ads + disads of niche marketing
better marketing focus
less competition
highly specialised
limits the number of potential customers
few opportunities to exploit economies of scale
attract new entrants due to success
Ads + disads of mass marketing
economies of scale
no need to modify marketing strategies
bigger customer base
high entry barriers for mass production
high competition
lack of focus - wasteful
What is a product position map (perception map)?
a visual tool that reveals customer perceptions of a product or brand in relation to others in the market.
Draw a perception map. (HINT: Quality vs. Price)
premium
bargain
cowboy
economy
What is the purpose of position map? What are their ads + disads?
allow a business to identify any gaps in its product portfolio
+ simple
+ quick and easy to interpret
- unrealistic for a business to aim to be good at everything
What is a unique selling point?
any aspect of a business, product or brand that makes it stand out from those offered by competitors
What is ‘differentiation’?
the act of distinguishing a business or its products from rivals in the industry.
What are the ads + disads of differentiation?
\+ price advantages \+ brand recognition and loyalty \+ distribution advantages - expensive to differentiate - economies of scale - excessive differentiation
