Marketing Planning Flashcards
Key elements of marketing plan
- summary
- analysis
- objectives
- strategies
- tactics
- budget
Marketing plan
a detailed, fully researched written report on marketing objectives and strategy to be used to achieve objectives
What is included in the summary?
- mission statement
- any necessary information to understand the marketing plan
(e.g. a new business proposal - financial status, outline of strategy, brief sketch of goals and plans)
Situational analysis
an analysis of the internal and external factors of a business
What does situational analysis include?
- Current product analysis
- Target market analysis - consumer profiles, mass or segmented market, consumer perceptions
- Competitor analysis - identifying competitors, strengths and weaknesses of competitors
- Economic and political environment (PEST analysis)
- SWOT analysis - internal attributes of the business (e.g. management skills)
What are marketing objectives for?
- answers the question “where do we want to be”
- targets to focus attention and to direct effort
- must follow SMART objectives
Advantages of situational analysis
- understand the business’ current information (e.g. strengths, current product range, consumer tastes and trends etc.)
Disadvantages of situational analysis
- time consuming - requires extensive market research
Advantages of marketing objectives
- gives a sense of direction to the entire marketing department
- final review of the company’s marketing strategy can be conducted more easily
What is marketing strategy for?
- outlines how the company tends to achieve its marketing objectives
- NO TACTICS INVOLVED only overall approach
The final marketing strategy will depend greatly on:
- the company’s mission and objectives
- situational analysis
- resources of the business
What are included in marketing mix tactics?
The 4Ps
- must be determined consistently and linked with overall marketing objective
What does marketing budget include?
- how much is required to put marketing strategy and tactics into effect (e.g. the amount spent on each type of advertising, market research, promo technique etc.)
- the expected sales performance of the plan
Approaches to setting a marketing budget
- follow competitor’s budget
- correlation technique
What is being done when reviewing the marketing plan?
- check with original objectives
- analysis of consumer reaction if objective not achieved
- plan changes to the overall plan
- judge overall success
Benefits of marketing planning
- to convince investors to invest
- reduce risk of failure
- giving a sense of direction to the dept
- coordination and cooperation with other depts
Limitations of marketing planning
- time consuming and costly
- risk of being out of date in a fast changing market
- less flexible – managers want to stick to the plan
Income elasticity of demand
measures the responsiveness of demand for a product following a change in consumer incomes
Income ED = %change in demand / % change in consumer incomes
Cross elasticity of demand
measures the responsiveness of change in demand for a product following a change in the price of another product
Cross ED = %change in demand / %change in price
Promotional elasticity of demand
measures the responsiveness of demand for a product following the change in the amount on promoting it
Promotional ED = %change in demand / %change in promotional spending
Evaluation of 3 elasticity
- Promo ED not reliable - change in sales may have been due to other factors
> economic conditions
> competitors
How to analyse marketing strategies with their marketing objectives?
when asked to evaluate or rec a strategy, objectives and strategy MUST be linked!!!
- result
- reason
- action
- success
Why is integrated marketing mix important?
- integrating with other depts of the business to ensure coordination and cooperation
- the 4Ps must be supportive and integrated with each other
New product development definition
the design, creation and marketing of new goods and services
