4.2 Marketing planning

Question 1

Marketing planning

Answer 1

process of formulating marketing objectives and devising appropiate marketing strategies to meet those objectives

Question 2

Marketing objectives

Answer 2

Objectives that follow the SMART criteria (specific, measurable, achievable, relevant and time specific)
example: increasing sales by 6% next year

Question 3

Key strategic plans

Answer 3

steps that provide an overview of how the marketing objectives will be achieved
example: plans on how to sell new products in existing markets

Question 4

Detailed marketing actions

Answer 4

providing information on the specific marketing activities that are to be carried out
example: which pricing strategies will be used

Question 5

Marketing budget

Answer 5

including the finance required to fund the overall marketins trategy

Question 6

Benefits of marketing planning

Answer 6

1. helps identify potential problems and seek solutions to them
2. improves chance of success for a firms marketing strategy
3. sharing the marketing strategy with oteher departments improves coordination and provides the whole organization with a clearer picture or sense of where it is heading
4. devising a budget ensures that resources are not wasted on unprofitable activities
5. can improve employee’s motivation and inspire confidence about the future

Question 7

Limitations of marketing planning

Answer 7

1. may become outdated if organizations are not quick to consier market changes
2. the process may consume considerable resources in terms of time, expertise and money
3. failure to prioritize marketing objectives may make it difficult for firms to tell whether they are meeting them

Question 8

Market segmentation

Answer 8

process of dividing the market into distinct groups of consumers so as to meet their desired needs and wants

Question 9

Market segment

Answer 9

A sub group of consumers with similar characteristics in a given market

Question 10

Demographic segmentation

Answer 10

1. age
2. gender
3. religion
4. family characteristics
5. ethnic grouping

Question 11

Geographic segmentation

Answer 11

1. regions in a country where consumers reside
2. climatic conditions

Question 12

Psychographic segmentation

Answer 12

1. social and economic status
2. morals and values

Question 13

Advantages of segmentation

Answer 13

1. helps identify existing gaps and new opportunities in domestic and international makets
2. increases sales and profitability
3. minimizes waste of resources by identifying the right consumers for their products
4. diversify and sprad their risks in the marketk, increasing market share

Question 14

Targeting

Answer 14

process of marketing to a specific market segment

Question 15

Target market

Answer 15

group of customers with common needs and wants that a business decides to sell to

Question 16

Targeting strategies

Answer 16

1. mass market
2. segmented market
3. niche market
4. consumer profile

Question 17

Consumer profile

Answer 17

characteristics of consumers of a particular product in different markets based on their gender, age and income levels

Question 18

Segmented market

Answer 18

targeting several market segments developing appropiate marketing mixes for each

Question 19

Positioning

Answer 19

analysing how consumers define or perceive a product compared to other products in the market

Question 20

Positioning map

Answer 20

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

Question 21

Importance of a position map

Answer 21

1. helps establish close competitors and threats
2. helps identify important gaps or opportunities in the market
3. simple and quick way to present researched data
4. helps target specific segments to best satisfy consumer needs and wants

Question 22

Nicke market

Answer 22

focuses on small group of people or consummers who have interests that align with the product or service, specialize the offerings to the specific small segment

Question 23

Mass market

Answer 23

aimed at a large or borad market segment, involve capturing the largest possible audience

Question 24

Unique selling point

Answer 24

a products feature that differentiates it from other competing products in the market

Question 25

Importance of an unique selling point

Answer 25

1. competitive avantage
2. attracts more customers
3. customer loyalty
4. improved revenue
5. easy to sell

Question 26

How can an organization differentiate itself

Answer 26

1. product differentition
2. service differentiation
3. price differentiation
4. distribution differentiation
5. relationship differentiation
6. image/reputation differentiation

Question 27

Porter’s generic strategies

Answer 27

1. cost leadership
2. differentiation
3. focus (niche market)
   – a. cost focus
   – b. differentiation focus