4.2 marketing planning Flashcards
marketing planning
structural process of formulating marketing objectives and appropriate marketing strategies to achieve these goals
marketing plan
plan of action with consideration of all elements of the marketing mix in order to meet marketing objectives
main elements of a marketng plan
- executive summary outlining main points of the marketing plan
-situational analysis outlining the external and internal factors - marketing objectives
- market research
- marketing budget
disadvantages of marketing plans
- time and money are used, could have been spent better
- might not be realistic due to budgets
- can only guide, not accurate
advantages of marketing plans
- helps marketing managers to formulate more effective marketing strategies
- enables marketing managers to have better sense of purpose
- helps marketers to identify potential problems
- improve financial decision making
market
collective term for the buyers and sellers of a particular good and service
characteristics of market which an organization operates
market size and market growth
market segments
individual subgroups of a large market, consisting of customers who share common characteristics.
market segmentation
describes the process of divididingg a market into segments
examples of segments
- age
- cultural background
- gender
- ethnicity
- family size
types of segmentation
demographic segmentation
geographic segmentation- split based on location
phychographic segmentation- based on peoples lifestyle and personal value
target market
clearly identifiable group of cutomer that organization market towards
2 types of markets for businesses to operate
- mass markets:
- niche markets: specialized
product position map
high price high quality: helps identify possible gaps in the market
4 categories of products in a product positioning map
pemium products
cowboy products- low quality but high price
bargain products- high quality but low price
economy brands
niche marketing
approach that involves business focusing on a relativley small group of people
mass marketing
approach that involves businesses targeting all customers for a particular product
USP- unique selling point
purpose of product differentiation
benefits
attracts customers to the organization, its products and brands
key selling points
key difference from competitors
more customer loyalty
drawbacks of USP
- creating and sustaining a unique product requires substantial investments
- might not attract a market
ways to differentiate
product, price, place, promotion
advantages of differentiation
enables businesses to charge hugher prices
brand awareness
better product placement
disadvantages of differentiation
expensive
create unecessary or wasteful competition
limits choice of price as t can prevent entrants from succeding in the market
