Marketing Strategy

Question 1

Marketing plan

Answer 1

A marketing plan is a detailed fully researched report on marketing objectives and how to achieve them with a marketing strategy.

Question 2

Benefits of marketing planning

Answer 2

• The marketing plan is an essential part of the overall business plan of existing businesses or proposed new start-ups. The plan should demonstrate that a market exists for the product; that it would be profitable to exploit this market; and that the marketing-mix tactics are appropriate for the market.

• Marketing planning reduces the risk of failure of strategies that are very different to those the business has followed before. By following the stages of a plan, major potential risks are much reduced because clear objectives are set, market research is undertaken, a coordinated strategy is used and promotion spending is kept within budget.

• Planning marketing activities helps to give clear direction to other departments within the business:

finance prepares the cash resources needed, operations ensures sufficient output is produced and human resources recruits and trains the workforce needed.

Question 3

Limitations of marketing planning

Answer 3

• Marketing plans take up much management time and a small business may not have the skilled management expertise to produce an effective and professional plan.

• Any plan can be affected by events and, in a fast-changing market, a complex and inflexible plan could be a disadvantage. When facing changes, such as the entry of a new competitor, only a flexible marketing plan is likely to be successful.

• A plan that is not based on adequate research of the market and customers’ preferences can result in inappropriate marketing strategies being adopted.

Question 4

What is the need for the marketing strategy to be consistent with the business, the product and the market important?

Answer 4

A marketing strategy must be consistent in the quality, quantity and message the marketing activities portray. In particular a new marketing strategy should be consistent with:

• The business – the image of the business and its brands’ identities must be reflected in its marketing strategies. If the strategy is completely different to customers’ existing perceptions, then the message will be confused and misleading.

• The product – the nature and planned image of the product should be clearly supported by the promotional methods and messages used in the marketing strategy.

• The market – The marketing strategy should reflect the nature of the target market.