Marketing planning Definitions

Question 1

Marketing plan

Answer 1

a document that outlines a company’s entire marketing process

Question 2

Budget

Answer 2

a plan that outlines a business’ revenue and expenditure over a period of time

Question 3

Market research

Answer 3

gathering information to support marketing decisions

Question 4

Segmentation

Answer 4

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

Question 5

Control tools

Answer 5

mechanisms and techniques used to monitor, evaluate and adjust marketing strategies and performance

Question 6

Marketing strategy

Answer 6

a long-term action that aims to achieve the marketing objective

Question 7

Marketing audit

Answer 7

a systematic evaluation of all marketing elements and practices of a business

Question 8

Objective based budget

Answer 8

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

Question 9

Sales based budget

Answer 9

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

Question 10

Incremental based budget

Answer 10

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

Question 11

Geographic segmentation

Answer 11

a way of dividing customers based on their geographic location

Question 12

Demographic segmentation

Answer 12

a process of dividing customers into target groups according to characteristics such as age, gender and occupation

Question 13

Psychographic segmentation

Answer 13

a way of dividing the population according to lifestyle and personal interests

Question 14

Targeting

Answer 14

the process of selecting the most appropriate market segment for a marketing campaign

Question 15

Mass market

Answer 15

a market for goods that are produced in very large quantities for a significant number of end consumers

Question 16

Niche market

Answer 16

a small part of a larger market where customers have very specialised needs

Question 17

Below the line

Answer 17

a term used to describe promotion aimed at specific segments and do not rely on mass market techniques

Question 18

Above the line

Answer 18

a term used to describe promotion aimed at mass audiences, and are generally not targeted

Question 19

Product positioning

Answer 19

the process of distinguishing a brand from its competitors

Question 20

End consumer

Answer 20

the person who makes the final purchase or use of a product

Question 21

Product positioning map

Answer 21

a visual representation of how various competitors might attempt to position their brands in the eyes of the consumer

Question 22

Profit margin

Answer 22

the amount by which revenue from sales exceeds cost in a business

Question 23

Differentiation

Answer 23

the process of highlighting the differences between a product and its rivals

Question 24

Competitive advantage

Answer 24

a condition in a business that enables it to offer better products, or products at lower production cost, than its rivals

Question 25

Porter’s Generic Strategies matrix

Answer 25

a matrix that identifies cost and differentiation strategies for a business looking to gain a competitive advantage

Question 26

Cost leadership strategy

Answer 26

a situation where a business becomes the low-cost producer in the industry

Question 27

Differentiation strategy

Answer 27

a strategy where a business is producing a specialised or differentiated product for a broad market

Question 28

Premium price

Answer 28

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

Question 29

Cost focus(niche market) strategy

Answer 29

a situation where a business becomes the low-cost producer in a niche market

Question 30

Differentiation focus(niche market) strategy

Answer 30

a strategy where a business is producing a specialised or differentiated product for a niche market

Question 31

Stuck in the middle

Answer 31

a term used to describe businesses that are not differentiated enough to convince customers to buy its product