marketing planning Flashcards
marketing plan
composed to devise marketing strategies to meet mqrketing objectives, plan of actions which employs the marketing mix
-identifying customer needs
-coming uo with strategies to satisfy those
advantages of marketing planning ig
- gives marketibg managers and marketers a better sense of purpose and direction
- helps identify potential problems and plan accufrate solutions for rhose
- help improve financial decision making (marketing budgets can be set appropriately to ensure a cost efficient way of using resources)
disadvantages of marketing plannig
- opportunity cost; the money and resources could have been spent on other areas of the business
- unrealistic for small companies, limited budgets (expensive)
-even the best and most thought out plan can only be used as a guide in business decision making MARKETING PLANS QUICKLY BECOME OUTDATED and so they cannot be folloed too rigidly, the organisation will need to adjust its strategies as unpredicted threats and opportunities arise
maketing segments
individual subgroups of a large market, consisting of customers who share common simmilar characteristics
market segmentation
dividing the market of a product, into smaller distinct grous of chracters, who share similar characteristic abd meeting their customer needs
DEMOGRAPHIC SEGMENTATION
splitting customers according to statistical characteristics of a population
AGE
GENDER
FAMILY SIZE
RELIGION
ETHNICITY
PSYCHOGRAPHIC SEGMENTATION
life choices & personal beliefs (interests and hobbies & moral beliefs and values)
GEOGRAPHIC SEGMENTATION
according to phydical geographic location
SOCIOECONOMIC SEGMENTATION
according to consumer // household income level linked to professions and level of education
businesses devise focused marketing mixes targated at various target segments based on income level social status znizki studenckie
target market
clearly identifies group of consumers tha an organisation focuses ts marketing on
consumers in a certain target. market have certain unique tastes and preferances
targeting
systematic process of marketing towards a certain target segment
mass markets
supplying products to cater for a broad range of taget markets (water, cereal, smartphones) for the general public
doesnt split customers into separate market segments
niche markets
supply highly specialised products to cater for a small and specific target market (ib calc, thematic magazines, merch)
product position map
perception map
graphic illustration of customer perception of a business, its productts or brands as compared to other firms in the industry based on 2 predetermined criteria
(price and quality np)
strengths of product position map
- helps identfy potential gaps in the market
- knowinh how the business is pereived by customers
weaknesses of product perception map
- only shows the perception of customers surveyed at one point in time which makes it not representative
- bias
premium products
high quality
high price
cowboy products
low quality
high price
(unsastainable)
bargain products
high quality
low price
unsustainable
economy brands
low quality
low price
niche markets strengths ans weaknesses.
- BTL promotional strategies
- limited direct competition
- high customer loyalty (related to lack of competition)
- due to lack of substiyutes the business can charge premium prices
- no economies of scale
mass markets
- expensive ATL promotional strategies to brod audiences
- opportunities for economies of scale
- low profit margin of each unit of production
- incredibly high sale quanitities
- intense cometiton
- businesses MUST establish brand loyalty and USP
USP unique selling point
exclusive features and aspects of a business that differentiates it from others in the same industry
product differentiation
the process of attempting to makr goods and services stand out against the other firms in the market in orde to increase sales revenue
interrelated basic components of USP
Benefits - what attracts customers to the organization, its products, or its brands
Emotive - what attracts people to the organization, its products, or its brands on an emotional level
Key selling point(s) - what makes the organization, its products, or its brands better than others
Key difference(s) from competitors - what makes the products or brand stand out from the competition
Competitive advantage - what makes the organization attractive to customers, such as its reputation or area of expertise in a particular market.
advantages of product differentiation
enables businesses to charge higher prices due to the distinctive features or aspects of the products they are selling adds value to a good or service, creating better value for money from the perspective of customers.
creates brand awareness and can help to create customer loyalty.
creates competitive advantages for a business, such as market leadership and dominance. Hence, successful differentiation can give the firm strategic advantages.
differentiation disadvantages
Differentiation, especially the ability to create a unique selling point, can be highly expensive. Furthermore, differentiation strategies are often easily copied by rivals businesses (see task below).
Differentiation can create unnecessary or wasteful competition, such as excessive packaging and marketing clutter (such as spam advertising).
As differentiation can prevent new entrants from succeeding in the market, it can be anti-competitive. This limits the choice and price competition for customers in the market.
