4.2 Marketing Planning

Question 1

Marketing Planning

Answer 1

The process of identifying the marketing goals of a business and what strategies they will use to achieve their goals.

Question 2

What does a marketing Plan include?

Answer 2

Marketing objectives - e.g. increase market share
Marketing strategies - e.g. target new consumers
Target market
Market research - e.g. main competitors, customers needs
Marketing budget

Question 3

3 steps to a marketing plan

Answer 3

1. set objectives - target market, increase market share
2. marketing strategies - market research, implement strategies
3. Reflection and Evaluation - did the strategies meet the objectives?

Question 4

Mass marketing

Answer 4

when a business aims to sell a product to all consumers in the market. An undifferentiated strategy - i.e. does not target anyone in particular example chocolate bar

Question 5

Niche marketing

Answer 5

when a business focuses on a specific and well-defined segment or part of the market
a differentiated strategy - i.e. is aimed at certain consumers
example:
luxury goods, vegan chocolate bar

Question 6

Pros of mass marketing

Answer 6

more potential customers and higher sales
higher brand recognition
lower costs as higher production leads to economies of scale

Question 7

pros of niche marketing

Answer 7

product is designed for its consumers so brand loyalty
less competition so can charge higher prices for specialized products
can specialize and focus on your target consumers

Question 8

general info about mass and niche marketing

Answer 8

in general small/new firms will use niche marketing
with success they may move more into the mass marketing as they look to increase sales.

Question 9

product differentiation

Answer 9

ways in which your business’ products are different to the competition

Question 10

USP - unique selling point/proposition

Answer 10

any aspect of the business that makes it appear different to the competition in the mind of consumers

Question 11

Examples of USP

Answer 11

the best/cheapest
well-known slogan/advert
only business in the area
the first/original
the shopping experience
home delivery

Question 12

pros of product differentiation

Answer 12

brand image
increase brand loyalty
can charge higher prices
more resistant to changes in the market

Question 13

cons of product differentiation

Answer 13

marketing costs
can be copied by competitors
might limit the potential audience

Question 14

market segment

Answer 14

a part of the market where consumers share characteristics which are the same

Question 15

examples of market segment

Answer 15

clothing market
- male youth
- sportswear

Question 16

market segmentation

Answer 16

breaking a market into different parts (segments), where consumers in each segment have similar characteristics.

Question 17

Target market

Answer 17

targeting your product towards a certain market segment.

Question 18

Demographic segmentation

Answer 18

age
gender
race
religion
marital status
education
income
language

Question 19

Geographic segmentation

Answer 19

Local tastes
Local culture
climate
urban/rural
population density

Question 20

Psychographic segmentation

Answer 20

lifestyle
hobbies and interests
values
motivations

Question 21

what is included in customer profiling

Answer 21

description, age range, whats most important to them?, how to market to them?, perfect channels?

Question 22

product position matrix (PPM)

Answer 22

shows customers perception of product or brand compared to competitors

Question 23

reasons for businesses to do a PPM

Answer 23

1. gain information on the market
2. finding gaps in the market - less competition when entering the market segment
3. repositioning - from premium to luxury
4. creating a product portfolio - have a range of product that target different segments - then your products don’t compete for the same customers