Marketing planning Details Flashcards
Elements of a marketing plan
-The marketing objective
-The marketing budget
-Segmentation and the target market
-Market research
-Market strategies
-Control tools
Ways in which a marketing budget could be set
-Objective based
-Sales based
-Incremental based
Ways by which data for marketing strategies can be gathered
-Sales revenue and profit data
-The number of repeat customers
-Surveys and focus groups
Marketing should be viewed as an ongoing process and marketing plans should be continually updated(T/F)
True
Elements of the marketing cycle
-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)
Types of segmentation
-Geographic segmentation
-Demographic segmentation
-Psychographic segmentation
In geographic segmentation, customers can be divided by…
-Region and continent
-Country
-State and country region
-Urban and rural settings, etc.
In demographic segmentation, customers can be divided by…
-Age
-Gender
-Socio-economic group
-Occupation, etc.
Advantages of segmentation
-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
In product positioning maps, there are no set rules about how information is displayed(T/F)
True
Uses of product positioning maps
-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
Types of promotion techniques
-Above the line
-Below the line
Type of promotion technique more likely to be used in niche markets
Below the line techniques
Examples of niche markets
-Luxury clothing
-Niche sports(e.g. wake boarding, horse riding, etc.)
-Equipment designed for left-handed people, etc.
Advantages of niche markets
-Less competition(may lead to high profit margins)
-Suitable for small businesses
-Greater potential for customer loyalty
Disadvantages of niche markets
-High per unit cost
-Less reach
-Less growth potential
Type of promotion technique more likely to be used in mass markets
Above the line techniques
Advantages of mass markets
-Large markets(potentially higher revenues)
-Low per unit production and marketing costs
-Potentially higher reach
Disadvantages of mass markets
-High costs
-More competition
Types of differentiation(via USPs)
-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)
Elements of Porter’s Generic Strategies
-Cost leadership
-Cost focus
-Differentiation
-DIfferentiation focus
-Stuck in the middle
(In Porter’s Generic Strategies)Cost leadership and differentiation apply to…
businesses that are selling their products to a broad target market
(In Porter’s Generic Strategies)Cost focus and differentiation focus apply to…
businesses that are sellling their products to niche markets
Where are cost leadership strategies most suited to?
Markets where the producs are standardised and there is less opportunity to differentiate through product quality, branding or promotion
Features of differentiation strategies
Businesses will usually find their USP and aim to make the product the best in the industry on that point
Features of cost-focus strategies
Businesses will usually produce a product that is relatively basic(perhaps a lower-cost copy of a popular and higher priced product)
In a differentiation focus strategym the differentiation may be…
-High quality
-Very exclusive
-Provides a wanted special characteristic
Features of businesses ‘stuck in the middle’
-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
