Marketing planning Details

Question 1

Elements of a marketing plan

Answer 1

-The marketing objective
-The marketing budget
-Segmentation and the target market
-Market research
-Market strategies
-Control tools

Question 2

Ways in which a marketing budget could be set

Answer 2

-Objective based
-Sales based
-Incremental based

Question 3

Ways by which data for marketing strategies can be gathered

Answer 3

-Sales revenue and profit data
-The number of repeat customers
-Surveys and focus groups

Question 4

Marketing should be viewed as an ongoing process and marketing plans should be continually updated(T/F)

Answer 4

True

Question 5

Elements of the marketing cycle

Answer 5

-Marketing objectives set(generally carried out first)
-Target market identified
-Market research carried out
-Marketing strategies developed and implemented
-Control tools used to assess the campaign’s success
-Adaptations made depending on success(cycle repeats)

Question 6

Types of segmentation

Answer 6

-Geographic segmentation
-Demographic segmentation
-Psychographic segmentation

Question 7

In geographic segmentation, customers can be divided by…

Answer 7

-Region and continent
-Country
-State and country region
-Urban and rural settings, etc.

Question 8

In demographic segmentation, customers can be divided by…

Answer 8

-Age
-Gender
-Socio-economic group
-Occupation, etc.

Question 9

Advantages of segmentation

Answer 9

-Identifies gaps and opportunities in markets
-Designs suitable products for specific groups(in order to increase sales and profits)
-Reduces the waste of resources
-Diversifies and spread risks targeting different consumer segments

Question 10

In product positioning maps, there are no set rules about how information is displayed(T/F)

Answer 10

True

Question 11

Uses of product positioning maps

Answer 11

-Identifying market segments whose needs/wants are not fulfilled
-Establishing gaps and opportunities in the market for launching new products
-Helping a business to understand who and what their closest competitors and threats are

Question 12

Types of promotion techniques

Answer 12

-Above the line
-Below the line

Question 13

Type of promotion technique more likely to be used in niche markets

Answer 13

Below the line techniques

Question 14

Examples of niche markets

Answer 14

-Luxury clothing
-Niche sports(e.g. wake boarding, horse riding, etc.)
-Equipment designed for left-handed people, etc.

Question 15

Advantages of niche markets

Answer 15

-Less competition(may lead to high profit margins)
-Suitable for small businesses
-Greater potential for customer loyalty

Question 16

Disadvantages of niche markets

Answer 16

-High per unit cost
-Less reach
-Less growth potential

Question 17

Type of promotion technique more likely to be used in mass markets

Answer 17

Above the line techniques

Question 18

Advantages of mass markets

Answer 18

-Large markets(potentially higher revenues)
-Low per unit production and marketing costs
-Potentially higher reach

Question 19

Disadvantages of mass markets

Answer 19

-High costs
-More competition

Question 20

Types of differentiation(via USPs)

Answer 20

-Differentiation by product USPs
-Differentiation by price USPs
-Differentiation by promotion USPs
-Differentiation by place USPs(e.g. stores in convenient locations)
-Differentiation by people USPs(e.g. great customer service)
-Differentiation by physical evidence USPs
-Differentiation by process USPs(e.g. easy refund process)

Question 21

Elements of Porter’s Generic Strategies

Answer 21

-Cost leadership
-Cost focus
-Differentiation
-DIfferentiation focus
-Stuck in the middle

Question 22

(In Porter’s Generic Strategies)Cost leadership and differentiation apply to…

Answer 22

businesses that are selling their products to a broad target market

Question 23

(In Porter’s Generic Strategies)Cost focus and differentiation focus apply to…

Answer 23

businesses that are sellling their products to niche markets

Question 24

Where are cost leadership strategies most suited to?

Answer 24

Markets where the producs are standardised and there is less opportunity to differentiate through product quality, branding or promotion

Question 25

Features of differentiation strategies

Answer 25

Businesses will usually find their USP and aim to make the product the best in the industry on that point

Question 26

Features of cost-focus strategies

Answer 26

Businesses will usually produce a product that is relatively basic(perhaps a lower-cost copy of a popular and higher priced product)

Question 27

In a differentiation focus strategym the differentiation may be…

Answer 27

-High quality
-Very exclusive
-Provides a wanted special characteristic

Question 28

Features of businesses ‘stuck in the middle’

Answer 28

-Not differentiated enough to convince customers to buy its products
-Costs of production8and likely its prices) are too high relative to competitors
-Earning low profits/experiencing losses