4.2 Marketing planning

Question 1

Consumer profiles

Answer 1

Consumer profiles are the demographic and psychographic characteristics of consumersin different markets,e.g. their age, gender, occupation, income level, religion, marital status and purchasinghabits.

Question 2

Differentiation

Answer 2

Differentiation is the act of distinguishing a business or its products from rivals in the industry. It tries to create the perception among customers that the firm’s product is different (unique or special) compared with substitute products from rival businesses.

Question 3

Ethical marketing

Answer 3

Ethicalmarketingreferstothemoralaspectsofanorganizations marketing strategies. It can be encouraged by the use of moral codes of practice.

Question 4

Market segmentation

Answer 4

Market segmentation isthe process ofcategorising customers into distinctgroups withsimilarcharacteristics (suchasage or gender) and similar wants or needs.

Question 5

Marketing mix

Answer 5

The marketing mix is the combination of various elements needed to successfullymarket a product. It isused to reviewand develop marketing strategies and is at the heart of marketing planning. Traditionally, it consists of the 4 Ps: product, price, promotion and place.

Question 6

Marketing objectives

Answer 6

Marketing objectives are the targets that the marketing department wishes to achieve, e.g. sales growth or increased market share. Marketing objectives should derive from the organizations overall objectives.

Question 7

marketing plan

Answer 7

A marketing plan refers to the document outlining a firm’s marketing objectivesand strategies for a specifiedtime period.

Question 8

Marketing planning

Answer 8

Marketing planning is the systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals. It requires the collection and analysis of information about a particular market, e.g. market research data on existing and potential customers.

Question 9

Mass marketing

Answer 9

Mass marketing refersto undifferentiated marketing. Thisis a strategy that ignores targeting individual market segments.

Question 10

Niche marketing

Answer 10

Niche marketing targets a specific and well-defined market segment, e.g. some businesses provide high-end speciality goods (such asLouisVuitton handbags, Bugatticarsand Cartier watches) in niche markets.

Question 11

Packaging

Answer 11

Packaging is a form of non-price competition that focuses on the ways in which a product is presented to the consumer. Psychologists argue that people’s moods are affected by aspects of packaging such as colour and texture.

Question 12

Physical evidence

Answer 12

Physical evidence refers to the image portrayed by a business (or perceived by customers) regarding its observable and tangible features, e.g. the cleanliness and physical attributes of an organization.

Question 13

Place

Answer 13

Place describes the methods of distributing products to customers, e.g. Coca-Cola distributes its drinks to customers via wholesalers, retailers and vending machines.

Question 14

Position map or perception map

Answer 14

Position map (or perception map) is a visual aid that shows I customer perceptions ofaproduct orbrand inrelation toothers I in the market, often by comparingperceptionsabout price and quality.

Question 15

Price

Answer 15

Price refers to the amount that customers pay for a particular good or service.

Question 16

Process

Answer 16

Process is part of the extended marketing mix which refers’ to the methods and procedures used to give clients the best possible experience.

Question 17

Product

Answer 17

A product is a physical good or an intangible service, such as a computer or a haircut. Businesses sell products to fulfil the needs and wants (desires) oftheir customers.

Question 18

Promotion

Answer 18

Promotion refers to the strategies used to attract customers to buy a firms products. Branding, for example, helps to differentiate a product from its competitors.

Question 19

Repositioning

Answer 19

Repositioning is a marketing strategy that involves changing the market’s perception of a firm’s product or brand in comparison to rival firms.

Question 20

Segmentation

Answer 20

Segmentation is the process of categorising customers into distinct groups of people with similar characteristics (such as age or gender) and similar buying habits for market research and targeting purposes.

Question 21

Targeting

Answer 21

Targeting refers to each distinctive market segment having its own specific marketing mix. Different markets can be targeted, depending on whether firms operate in niche or mass markets.

Question 22

Unique selling point

Answer 22

Unique selling point (or unique selling proposition) refers to any aspect of a product that makes it stand out (in a positive way) from those offered by rival businesses.