4.2 Marketing Planning

Question 1

Marketing Plan

Answer 1

A document that outlines a firm’s marketing objectives and strategies over a period of time

Question 2

Elements of a marketing plan

Answer 2

Marketing Audit (examining the current climate the business operates in)
Marketing Objectives (setting marketing goals and targets)
Marketing Strategies (using the marketing mix to achieve objectives)

Question 3

Role of marketing planning

Answer 3

1. gives a better sense of direction and purpose for the business (improves employee motivation + productivity)
2. allows managers to make informed decisions about their marketing strategies

• however it may be unrealistic due to limited budgets and can become outdated quickly due to changing external factors

Question 4

Marketing Mix

Answer 4

The key elements of a marketing strategy that ensure the successful marketing of a product

Question 5

The four “Ps”

Answer 5

Product, Price, Place, Promotion

Question 6

Market Segments

Answer 6

a sub-group of customers within a larger market who share similar characteristics

Question 7

Target Market

Answer 7

a particular market segment that an organization focuses its marketing efforts on

Question 8

Ways that markets can be segmented

Answer 8

Demographics (age, gender, ethnicity)
Geographic (location, climate)
Psychographic (lifestyle choices, personal interests)

Question 9

Niche Marketing

Answer 9

A marketing strategy that involves identifying and selling products to a group of customers with distinctive traits/ specific needs

Question 10

Characteristics of a Niche Market

Answer 10

Lack of direct competition
High customer loyalty
Charge premium prices
Few opportunities for economies of scale

Question 11

Mass Marketing

Answer 11

A marketing strategy that involves selling products to all customers in large and undifferentiated target markets

Question 12

Characteristics of Mass Marketing

Answer 12

Intense competition
Benefit from economies of scale due to the standardization of production
High sales
Low profit margin per unit of output

Question 13

Consumer Profile

Answer 13

The demographic and psychographic characteristics of consumers in different markets

Question 14

Perception/ Position Map

Answer 14

A visual representation of how consumers perceive a product in relation to other competing products

Question 15

Value of Positioning

Answer 15

Understanding the way customers perceive a product/ brand helps a business to adjust its marketing mix and improve its marketing strategies in order to increase sales revenues and profits

Question 16

Ranking Attributes for a Position Map

Answer 16

Price + quality

Question 17

Categories on a Position Map

Answer 17

Premium Products (high price, high quality)
Economy Brands (low price, low quality)
Bargain Products (low price, high quality)
Cowboy Products (high price, low quality)

Question 18

Unique Selling Point (USP)

Answer 18

A product’s feature that differentiates it from other competing products in the market

Question 19

Importance of having a USP

Answer 19

• Establishes a firm’s competitive advantage
• Improves brand awareness (attracting new customers
• Improves brand loyalty (increases sales)

Question 20

Benefits/ disadvantages of market segmentation

Answer 20

• firms gain greater knowledge of their customers leading to more successful marketing (otherwise the marketing mix may be inappropriate)
• identifying new business opportunities (unfulfilled niche in the market)
• however segmenting is limited to a certain number of groupings and may not encapsulate all customerss