4.2 (Marketing planning) Flashcards
A Marketing plan
Marketing plan is a document outlining an organizations marketing objectives and the marketing strategies to be used to achive these objectives
Market plan is usually preceded by a marketing audit - a review of the current position of an organizations marketing mix in terms of its strengths, weaknesses, oppunirites and threats.
Marketing audit - an examination of the current condition in which the business operates. Market research is neccesary to this investagation
Marketing objectives: the marketing audit ebales business to set marketing goals and targets
Marketing strategies: the plan and use of marketing mix to achieve marketing objectives
Monitoring and review - a conintunal process of checking and monitoring that targets are met
Evaulation - an examination of the texten to which the business has succeded in achieving its marketing objectives
Marketing plan process and advantages and disadnvatges
Marketing audit - an examination of the current condition in which the business operates. Market research is neccesary to this investagation
Marketing objectives: is the specific and ell defined marketing goals of the organization
Marketing strategies: the plan and use of marketing mix to achieve marketing objectives
Monitoring and review - a conintunal process of checking and monitoring that targets are met
Evaulation - an examination of the texten to which the business has succeded in achieving its marketing objectives
Main advnatgesl improes an organizations chance os success,and helps managers idenfiy and deal with likely problems. Also will allow the organization to have alearer idea of the objectives and constraints in which they operate
Limitations:
Small business do not have the time, resources, or expertise to plan their marketing in such a systemic way. They react to (rather than anctipate) changes in the marketplace
Marketing mix (two types of products)
Pricing decision depends on. (not too important)
Define promotion and types of promotion (4)
Must know how to draw marketing mix. Marketing mix in middle, right is price, left is place, bottom is promotion, top is product
The marketing mix is the comibiton of various elements needed to successfully market a product. It is used to review and delvop marketing and is at the center of marketing planning. The marketing mix is known as the Four P’s
Prodoct - the goods or service being marketed to meet the neds or wants of customers.
Two types of products.
Producer products: are products bought for industrial and business purposes
Examples
Machinery, plants, and raw materials are some examples of industrial goods. On the other hand, food, clothing, and drinks are some examples of consumer items.
Consumer products are sold to the end users (private individuals) and bought to satisfy consumer needs and wants
Price - refers to the amount of money that customers pay for a particular good or service
The pricing deicisonn depends on a DRASTIC number of choices
Demand - the greater the ability and willingness of customers to pay, the higher the price can be
Rivarly- the higher the degree of competition, the more price competitive firms tend to be
Aims - charities and NGOs will price differently from firms seeking to maximise business objectives
supply - the lower the supply of a certain product, the higher its price tends to be
Time - the price of some products such as electronic fall over time as newer version become available
Image - businesses with prestigious and exclusive image can charge higher prices for their products
Cost of product - the higher the cost of production the higher the price tends to be
Promotion - refers to the strategies used to attract customers to buy a firms products.
Types of promotions
Adverisiting - tends to be the most expensive form of promotion. Advertising is paid promotion to promote the business and its products with a goal to inform customers and generate sales
Sales promotion - these are temporary methods of boosting sales. ex price reduce, gift vouchers, free gifts
Sponsorship - this refer to financial gifts, donations or payments in support of an event of a business venture in return for publicity and advertising space
A corporate sponsorship is marketing in which a company pays to be associated with a project or program.
Publicity - is the marketing process of getting good press (media) coverage, including the use of famous celebrities to endorse a firms products
Revenue streams, marketing objectives
Revenue streams are the various sources from which a business earns money from the sale of goods or the provision of services.
Marketing objectives are the targets that the marketing department wishes to achieve.
Marketing objectives could include the following:
Market share: Market share is the percentage of an industry’s sales that a particular company owns, this allows the business to increase sales revenue and profits by
Market leadership - the business strvies for the greatest market share in the industry
Product position - the business attempts to improve the corpote image and percitpion held by consumers
Marketing services
Marketing services three additonal P’s are required in the marketing mix
People - refers to the personnel used in the provision of service (example a barber, cleaner etc)
physical environment - refers to the physical place where the service is being held.
Process - refers to the way in which a service is provided delivered
Market segment, targeting, consumer profiles
Market segment: refers to a distinct (clear) group of customers with similar charestics (such as age or gender) and similar wants or needs
Market segmentation is a process that consists of sectioning the target market into smaller groups that share similar characteristics, such as age, income
Targeting refer to each distintice market segment haveing its own specific marketing mix. Examples first class travellers are targeted differently than those who travel by economy
Consumer profits are the demographic psychogrpaghic characesittics of consumers in different markets (ex their age, gender, occupation, income level, marital status)
Example the consumer profit for suzuki motorbikes mighe be males between 20-45 years. Knoweldge of consumer profiles helpa. business idenfiy the needs and wants of its customers.
Niche marketing , mass marekting
Niche marketing targets a specific and well defined market segment. An example is business that provide highpend specaility goods in niche markets, catering for consumers interested in exlsuvie luxury goods.
Advnatges and disadanvtes
Adv: Better marketing focus on specific market segment is target
There is less competition business can higher prices for their unique or exclusive products
Business can become highly specialized in meeting the needs and wants of their target market
Disv: Niche markets are small which limits the number of potineal customers in the market
Due to the limited market size, business have few opportunities to exploit economies of scale
Mass marketing:
Refers to undifferentiated marketing, a strategy that ignores targeting indiviusal market segment. Instead different market segment are targeted to maximise sales volume
ADv: business can gain huge economies of scale by supplying products in mass markets
There is no need to modify marketing strategies for different segment as the whole market can be targeted with a single marketing campaign
Catering for larger market means that the business esiablisha. bigger customer base, thereby earning more profits
DISV: mass marketing is ntos subitbale for all business
COmpeition can become quite fierce and ou have many compiitors who are purely focusing in that niche market
There is a lack of focus, mass marketing can be quite wastefully as specific customers are not being targted
Unique selling point (USP)
Unique selling point is any aspect of a business, product or brand that makes it stand out from those offered by competitors.
The usp explains why customers buy the product over rival ones, such as its distinctive features or appealing packaging
Differentation
DifferentiationL is the act of distugishing a business or its products from rivals in the industry
Common methods of differentiation revolve around the 8P’s in the marketing mix
Product
Price
promotion
Place
Poeple
Processes
Physical environment
packaging
Product position map / perception
Is a visual represenation of customers perceptions of a product, with Y axis being Price and X axis being Quality.
So On the top of Y is High price, On the right of X axis is high quality and vise versa
Premimum Product = High quality and High price
Cowboy product = Low quality and High price
Bargain product = high quality and low price
Economy brand = low quality and low price
