Marketing planning Definitions Flashcards
Marketing plan
a document that outlines a company’s entire marketing process
Budget
a plan that outlines a business’ revenue and expenditure over a period of time
Market research
gathering information to support marketing decisions
Segmentation
the process of dividing a broad market gap into various segments(e.g. age, interests, location, etc.) in order to allow businesses to develop marketing strategies to meet the needs of diverse groups
Control tools
mechanisms and techniques used to monitor, evaluate and adjust marketing strategies and performance
Marketing strategy
a long-term action that aims to achieve the marketing objective
Marketing audit
a systematic evaluation of all marketing elements and practices of a business
Objective based budget
a way by which a business’s marketing budget is set, where an estimate is made of the budget needed to achieve the marketing objective
Sales based budget
a way by which a business’s marketing budget is set, where a fixed percentage of the company’s sales revenue is allocated to marketing
Incremental based budget
a way by which a business’s marketing budget is set, where the previous year’s marketing budget is used as a guide, with percentage increase to cover inflation
Geographic segmentation
a way of dividing customers based on their geographic location
Demographic segmentation
a process of dividing customers into target groups according to characteristics such as age, gender and occupation
Psychographic segmentation
a way of dividing the population according to lifestyle and personal interests
Targeting
the process of selecting the most appropriate market segment for a marketing campaign
Mass market
a market for goods that are produced in very large quantities for a significant number of end consumers
Niche market
a small part of a larger market where customers have very specialised needs
Below the line
a term used to describe promotion aimed at specific segments and do not rely on mass market techniques
Above the line
a term used to describe promotion aimed at mass audiences, and are generally not targeted
Product positioning
the process of distinguishing a brand from its competitors
End consumer
the person who makes the final purchase or use of a product
Product positioning map
a visual representation of how various competitors might attempt to position their brands in the eyes of the consumer
Profit margin
the amount by which revenue from sales exceeds cost in a business
Differentiation
the process of highlighting the differences between a product and its rivals
Competitive advantage
a condition in a business that enables it to offer better products, or products at lower production cost, than its rivals
Porter’s Generic Strategies matrix
a matrix that identifies cost and differentiation strategies for a business looking to gain a competitive advantage
Cost leadership strategy
a situation where a business becomes the low-cost producer in the industry
Differentiation strategy
a strategy where a business is producing a specialised or differentiated product for a broad market
Premium price
a pricing strategy where a business sets the price of its products higher to create the impression that the products are of higher quality or value than their lower-cost equivalents
Cost focus(niche market) strategy
a situation where a business becomes the low-cost producer in a niche market
Differentiation focus(niche market) strategy
a strategy where a business is producing a specialised or differentiated product for a niche market
Stuck in the middle
a term used to describe businesses that are not differentiated enough to convince customers to buy its product
