4.2 Marketing planning

Question 1

Marketing planning

Answer 1

The process of formulating appropriate strategies and preparing marketing actives to meet marketing objectives

Question 2

What are the main elements of a marketing plan?

Answer 2

Details of the company’s (SMART) marketing objectives

Sales forecasts to allow the progress of the plan to be monitored

Marketing budget

Marketing strategies to be adopted to achieve the marketing objectives

Detailed action plans showing the marketing tactics to be used to implement the strategies

Question 3

Role of marketing planning

Answer 3

Focus to the work of the marketing department and a road map of the stages to be taken

Marketing strategies linked to SMART objectives will increase the likelihood of the marketing campaign’s success

Budget should be planned in advance with the finance department and should be adequate to achieve the campaign’s objectives

Achieve integration of different burins functions as all departments will need to be involved in the planning process

Planning ahead helps to ensure that the marketing mix is appropriate and fully integrated

Question 4

Limitations of marketing planning

Answer 4

Plans that are not revised to meet changing internal or external conditions will become outdated

Plans are insufficient on their own

Need to be based on an up to date assessment of the market and consumer preferences

Question 5

Marketing mix

Answer 5

The key decisions the must be taken in the effective marketing of a product

Question 6

What is the marketing mix made of?

Answer 6

The 4 ps

Question 7

What are the 4 Ps?

Answer 7

Product

Price

Promotion

Place

Question 8

Product

Answer 8

Consumers require the right good or service. This might be an existing product, an adoption of an existing product or a newly developed one

Question 9

Price

Answer 9

If set too low, consumers may lose confidence in the product’s quality, if too high, then many will be unable to afford it

Question 10

Promotion

Answer 10

Must be effective and targeted at the appropriate market - telling consumers about the product’s availability and convincing them that your brand is the one to choose.

Question 11

Place

Answer 11

Refers to how the product is distributed to the consume. If it is not available at the right time in the right place, then even the best product in the world will not be bought in the quantities expected

Question 12

Coordinated marketing mix

Answer 12

Key marketing decisions complement each other and work together to give customers a consistent message about the product

Question 13

Market segment

Answer 13

A sub groups of a market made up of consumers with similar characteristics, tastes and preferences

Question 14

Target market

Answer 14

The market segment that a particular product is aimed at

Question 15

Market segmentation

Answer 15

Identifying different segments within a market and targeting different products or services to them

Question 16

Consumer profile

Answer 16

A quantified picture of consumers of a firm’s products showing proportions of age groups, income levels, location, gender and social class

Question 17

What are the main characteristics for consumer profile?

Answer 17

Income levels

Age

Gender

Social class

Region

Question 18

What are the 3 commonly used bases for segmentation?

Answer 18

Geographic differences - geographic areas

Demographic differences - age, sex, family size, ethnicity

Psychographic factors - lifestyle, personalities, values, attitudes

Question 19

Advantages of market segmentation

Answer 19

Define their target market precisely

Identify gaps in the market

Selling specifically reduces spending of money

Small firms unable to compete in the whole market

Price discrimination can be used to increase revenue

Question 20

Limitations of market segmentation

Answer 20

Different advertisements need costs might be high

Stock gliding costs higher as there is more than one product

Specialisation can lead to problems if consumers change their purchasing habits

Question 21

Niche market

Answer 21

A small and specific part of a larger market

Question 22

Niche marketing

Answer 22

Identifying and exploiting a small segment of a larger market by segment of a larger market by developing products to suit it

Question 23

Mass market

Answer 23

A market for products that are often standardised and sold in large quantities

Question 24

Mass marketing

Answer 24

Selling the same products to the whole market with no attempt to target groups within it

Question 25

Advantages of niche marketing

Answer 25

Small firms may be able to survive and thrive in markets dominated by large firms

Used by large firms to create status and image

Question 26

Advantages of mass marketing

Answer 26

Small market niches do not allow economises of to be achieved

Mass market strategies run fewer risks than niche strategies.

Question 27

Product position map or perception map

Answer 27

A graph that analyses consumer perceptions of each of a group of competing products in respect of two product characteristics

Question 28

When and why is a product position map used?

Answer 28

After a market has been segmented and a target market is identified. A business then has to position its product to other brands in the market in the minds of consumers.

Question 29

First stage of product position map.

Answer 29

Identify the features of this type of product considered to be important to consumers.

Might be price, quality of materials used, perceived image, level of comfort offered.

Question 30

Second stage of product position map.

Answer 30

Position each of the competitions products on the graph according to consumer’s perceptions of them .

Question 31

How can the product positioning map be used?

Answer 31

Identify potential gaps in the market.

Identify the sector with the greatest niche potential the marketing manager is then made aware of the key feature of the product that should be promoted most heavily.

Question 32

Unique selling point

Answer 32

A factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first ever product of its kind.

A USP could be thought of as ‘what you have that competitors don’t’

Question 33

What can a USP be based on?

Answer 33

Product

Price

Place

Promotion

Question 34

How can an organisation differentiate themselves from competitors?

Answer 34

Low prices

Trust

Ethical stance

Convenience

Product features