Marketing Strategy Flashcards
marketing plan
marketing plan: a detailed and fully researched written report on the marketing objectives and the marketing strategy to be used to achieve them.
key contents of a marketing plan
key contents:
- purpose of the plan and the mission of the business
-
situational analysis and market research = where the business is now, covers:
current product portfolio, target market & competitor analysis, PEST analysis, SWOT analysis - marketing objectives = the plan to achieve these targets, where the business wants to be (e.g. market share target, profit margin targets for new product)
- marketing strategy = the overall plan of action to be taken to achieve these targets (e.g. selling to a new market segment, selling to the existing markets & consumers, mass or niche marketing)
- marketing mix = the coordination of the 4Ps
- budget to implement the plan + expected sales performance
- the summary and time frame to execute the plan
benefits of marketing planning
- an essential part of the overall business plan of both existing businesses and new start-up proposals - important element to attract investors
- reduces risk of failure of strategies that haven’t been implemented before. (clear objectives, market research undertaken, budget setting, etc.)
- help give clear direction to other departments within the business, finance prepares cash resources needed, operations ensure sufficient production of output, HR recruits and trains the workforce needed
limitations to marketing planning
- not easy to execute esp for a small business. complex, time consuming, costly, requires skilled management expertise
- can become outdated very quickly due to rapidly changing market conditions esp if its a complex and inflexible plan
- a plan not based on adequate research of market and customer needs can result in inappropriate marketing strats being adopted
approaches to marketing strategy - consistency
a marketing strategy must be consistent in the quality, quantity and message the marketing activities portray. Must also be consistent with:
- the business = the business’s image and brands’ identities
- the product = the nature and planned image of the product
- the market = the nature of the targeted market (niche or mass, industrial or consumer)
approaches to marketing strategy - coordination
- marketing mix must be coordinated with the marketing objectives
- promotion tactics need to be coordinated with the marketing budget
- marketing-mix decisions need to be coordinated together so that the 4s are aligned with each other
approaches to marketing strategy - focused
- marketing strats must be focused on achieving SPECIFIC marketing objectives, rather than the OVERALL marketing plan
- this is because different objectives must require different strategies
e.g a breakfast cereal producer
-marketing objective #1-
increase total sales by 50% in 3 years
-marketing strategy-
market the product in foreign markets by selling through agents
-marketing mix tactics-
- change product taste to adhere to international consumer tastes
- use different language
- promotion as per local culture
-marketing objective #2-
increase profit margins
-marketing strat-
use integrated strategy to increases added value and establish premium brand image
-marketing mix tactics-
- focus promotion on quality and healthy ingredients
- raise the price
- change product recipe to appeal to high income groups
changing role of IT & AI in marketing - IT applications in marketing
- Internet
- websites are now necessities or businesses
- allows for the sharing of product details, reviews, etc. in order to attract. potential customers
- used for communication, promotion and direct selling to customers around the world - Email
- most businesses have created opted-in email lists of customers who are already interested in their products
- effective way to announce new products, give discounts, share info about products, in an affordable and engaging way - Mobile
- reaches customers on mobile phones through text messages and applications
- special deals/other info can be given to consumers on marketing lists - In store
- digital signage can capture the attention of customers and market specific products to them
- advanced point-of-sale (POS) systems can provide employees immediate info on stock availability, info about products on shelves, and track customer’s preferences - Social Media
- quick and easy way to communicate regularly with customers and to encourage them to share info and reviews about products with others
- can be cost-free, however has to be appealing and up to date and consistent to effectively attract customers
potential AI applications in marketing
- Data analysis = gain a more complete understanding of consumers by monitoring what they are buying, reading, watching and commenting on via social media. Allows managers to quickly modify a message or special offer to meet customer preferences
- Digital advertising campaigns = optimizing effectiveness by analyzing consumer word searches, social profiles and other online data. More effective promotions can be directed to consumers
- personalization = creating detailed customer profiles so that the right message can be sent to each individual at the right time, using the right media
- identifying trends and huge blocks of data = allows brand marketing to interact with consumers exactly when they are making purchase decisions, influencing which product is bought
limitations of using AI in marketing
- consumer resistance to data being collected and used may lead to pressure group activity against businesses dependent on big data
- management supervision and control still required
- requires significant investments in data collection, IT expertise and computing power
- Current AI computing systems lack human creativity and imagination
strategies for international marketing - globalisation, economic collaboration, free-trade agreements
globalisation = the growing trend towards worldwide markets in products, capital and labour, unrestricted by barriers
- not a new process but has accelerated in recent years with the rapid expansion of economic collaborations (countries working together to achieve common aims) and free-trade agreements (agreement between countries to eliminate trade barriers), reducing/eliminating tariffs (tax) and quotas (physical limit) on imports
dont have to memorize all of this it’s just for information
features of globalisation that have an impact on business strategy
- increased international trade due to reduced trade barriers
- growth of multinational companies in all countries due to greater freedom of capital and resources to be invested from one country into another
- free movement of workers between countries
positive implications of globalisation
- opportunities for higher sales, economies of scale and improved profitability, opening up new markets which may have not reached saturation levels of the domestic markets
- increased competition provides incentives for firms to become more internationally as well as domestically competitive (e.g. importing materials from low-cost countries, reducing product prices)
- one global marketing strategy can be used to create a global brand identity, saving costs of ‘different products for different markets’
- more opportunity to arrange mergers, takeovers and joint ventures with international businesses, could make marketing in other countries easier
negative implications of globalisation
- Wider consumer choice means that if national business are uncompetitive, sales will fall
- increased competition from multinational businesses will force national businesses to reduce prices and profits may fall
- using the same marketing strategy across the globe does not take into consideration differences in culture and consumer tastes
- anti-globalisation pressure group activities may result in bad publicity for multinational businesses (concerning environmental and cultural impacts)
international marketing
selling products in markets other than the original domestic market
BRICS - acronym for 5 rapidly developing economies with greater market opportunities: Brazil ,Russia, India, China and South Africa
