Market Planning Flashcards
What is Market Planning
a logical sequence of activities leading to the setting of marketing objectives and the formulation of plans for achieving them. McDonald 2004
Why Market Plan?
The need for sources to identify the source of their competitive advantage.
Avoids uncoordinated actions and lack of focus in strategies and tactics.
Identifies potential threats before they become actual threats and opportunities before they are missed.
Boiled Frog Syndrome
If you throw a frog into hot water, it will jump back out. However, if you put the frog in cold water and boil it, it will die. Handy 1994
Environmental Scanning Relevance
Aids in keeping organisations connected in the external environment, and key knowledge when making market planning decisions.
Types of Marketing Plans
Strategic - 3-5 year period. Tactical - For the year ahead. Contingency - an alternative if the original plan is false.
The Planning Stages
Corporate objectives marketing audit SWOT analysis marketing objectives marketing strategies marketing programmes budgets control and evaluation
1 - Corporate Objectives
Mission Statements - What is the business? who is the customer? what is the value to the customer? what will and should the business be? Usually short and snappy. Mainly - top level strategic direction.
2 - Marketing Audit
External
- a detailed examination of the markets, competition, business and economic environment in which the organisation operates.
Internal Audit
- an evaluation of the firms entire value chain
3 - SWOT Analysis
A technique used to collect findings on the internal and external audits which outlines the critical factors. Strengths Weaknesses Opportunities Threats
4 - Marketing Objectives
Used to... - Build brand awareness - Grow market share - Reposition brand Longer than a corporate objective, as they should also be SMART.
SMART Objectives
Specific Measurable Achievable Realistic Timed
5 - Marketing Strategies
Build brand awareness - sponsorship campaigns?
Grow market share - Increasing promotional spend?
Reposition brand - Developing new products in premium segments?
6 - Marketing Programmes/ Tactics
The marketing mix Price Product Place Promotion People Physical evidence Process
7 - Budgets
How much is the marketing going to cost?
How can I justify this to senior management?
How will I Evaluate my effectiveness of the spend?
8 - Control and Monitoring
Typical objectives monitored are…
- Financial Targets e.g profit, sales
- Market share
- Price level achieved
- Quality levels achieved
- Customer satisfaction
How to Evaluate
What is things are off plan?
Objectives may have been missed.
Perhaps strategies are not effective?
How to react to the outcome
Good marketers will respond and react during the process of the marketing plan, by using contingency plans to attempt to amend and control the outcome.
Coveys 7 Habits
1 - be proactive 2 - begin with the end in mind 3 - putting first things first 4 - think win-win 5 - seek first to understand 6 - synergise 7 - sharpen the saw
Ansoff’s Matrix
Market Penetration - Existing market - Existing product Product Development - Existing market - New products Market Development - New market - Existing product Diversification - New Market - New Product
Disadvantages to the marketing mix
it focuses on what the marketers do to customers rather than what they do for them
it is externally directed, ignoring the internal market.
It is too structured, not exactly related - more transactional.
Simplistic view of a complex reality Booms et el, 1981
Product - Specsavers
Hundreds of frames and designer brands to choose from
Price
Low prices with no hidden cost
Promotion
Two for One deals
Place
Big Expansion, 600+ highstreet locations and online.
Physical Evidence
Consistency between corporate look and personal experience in stores
do the staff appear professional?
Processes
What is the customer flow in the store?
how does it flow behind the scenes?
People
Customer service levels
Training
Motivation
Benchmarking
How does the Mix Influence Buying Decisions?
Great prices Inspirational adverts Convenient distribution channels Superb customer service Well designed products that meet the needs effectively.
