Unit 4.2

Question 1

Define market planning

Answer 1

The process of identifying and creating marketing strategies in order to meet the business’ marketing objectives

Question 2

What are elements of a market plan?

Answer 2

Details of the business’ marketing objectives

Market Research- market share, main competitors etc.

Sales forecasting

Marketing budget

Marketing strategies

Question 3

The 4 P’s

Answer 3

Product

Price

Promotion

Place

Question 4

Define market segmentation

Answer 4

Breaking a market into different parts (“segments”), where consumers in each segment have similar characteristics

Question 5

Define target market

Answer 5

Which market segment(s) to aim for

Aim for one only

Aim for multiple

Conduct market research to find the segment’s consumers

Question 6

Define mass marketing

Answer 6

Selling a product to the whole market

No targeting of different segments and a standardized product

Question 7

Define niche marketing

Answer 7

Targets a specific and well-defined segment of the market

E.g. luxury, extreme sports

Question 8

What are the three market segments

Answer 8

Demographic

Geographic

Psychographic

Question 9

What are examples of demographic segmentation

Answer 9

Segmenting by:

Age

Gender

Race

Ethnicity

Religion

Marital status

Education

Socio-economic class

Question 10

What are examples of geographic segmentation

Answer 10

Local tastes

Local culture

Climate

Urban/rural

Population density

Question 11

What are examples of psychographic segmentation

Answer 11

Lifestyle

Hobbies and interests

Values

Status

Motivations and priorities

Question 12

Product positioning map (PPM)

Answer 12

Question 13

Define USP (unique selling point)

Answer 13

Any aspect of the business that makes it stand out or be differentiated from the competition.

Question 14

How organizations can differentiate themselves and their products from competitors

Answer 14

1) Gaining information on the market

To check what customers perceptions are of their brand

Do these agree with what the business thinks?

Does the business need to change their marketing strategy?

2) Finding gaps in the market

Discovering a gap in the market

Less competition when we enter the market segment

3) Repositioning

Using marketing strategies to change your business’ position in the PPM

From Premium to Luxury: An Evaluation of the repositioning of Rimowa

4) Creating a product portfolio

Have a range of products that target different segment

Then your products don’t compete for the same customers