AS2 TP6 Flashcards
what is business planning
process which which organisations attempt to anticipate the future and course of action that will help them achieve corporate objective
what are internal factors influencing the market plan
finance (budgeting)
technology ( manufacturing process)
people (their abilities)
what are external factors influencing market plan
politicians ( legalisations)
economy (unemployment)
social trends
what is market segmentation
process by which people in a market are divided in groups according to characteristics that affect their ability and willingness to buy a product e.g age
benefits of using market segmentation
increase market share - can identify market segments that haven’t been reached and adapt its products to find them
to assist new product development - gaps in market segments can be used to indicate the scope to introducing new products
to sell more products overall and perhaps increase profits
drawbacks of market segmentation
difficulty in identifying more important segments for a product can lead to missed opportunities
lost EOS from producing too many different types of goods
meeting needs of customers not included in chosen segment can lead to other potential customers being neglected
what ways can market be segmented
price, age, gender
what is target marketing
once the firm has segmented the market it needs to choose what segment to focus on
what is market positioning
process by which firms try to create an image for their products in the minds of potential customers
advantages of market positioning
helps spot gaps in the market
encourages use of market research
useful for analysing competitors
disadvantages of market positioning
just because there is a gap doesn’t mean theres a demand
how reliable is the market research
no guarantee of success
what is the marketing plan
process of the market segmentation, targeting and positioning is used to help inform the decisions that need to be made for product, pricing and promotion
influences a new product development
new technology, competitors actions, entrepreneurial skills of owner and the marketing budget
advantages of a marketing plan
ensures the business uses its humans and financial resources most effectively
may be required to receive finance from banks
takes into consideration the internal strengths and weaknesses
disadvantages of a marketing plan
Time and expense involved in drawing up a market plan aswell as having to be constantly updated
targets set may prove restrictive and too much attention may b focused on them potentially causing business to lose focus on customers
if targets aren’t met it may be demotivating for owners, managers
