4.2 Marketing planning Flashcards
(34 cards)
Marketing planning
The process of formulating appropriate strategies and preparing marketing actives to meet marketing objectives
What are the main elements of a marketing plan?
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
Role of marketing planning
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
Limitations of marketing planning
Plans that are not revised to meet changing internal or external conditions will become outdated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
Marketing mix
The key decisions the must be taken in the effective marketing of a product
What is the marketing mix made of?
The 4 ps
What are the 4 Ps?
Product
Price
Promotion
Place
Product
Consumers require the right good or service. This might be an existing product, an adoption of an existing product or a newly developed one
Price
If set too low, consumers may lose confidence in the product’s quality, if too high, then many will be unable to afford it
Promotion
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.
Place
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
Coordinated marketing mix
Key marketing decisions complement each other and work together to give customers a consistent message about the product
Market segment
A sub groups of a market made up of consumers with similar characteristics, tastes and preferences
Target market
The market segment that a particular product is aimed at
Market segmentation
Identifying different segments within a market and targeting different products or services to them
Consumer profile
A quantified picture of consumers of a firm’s products showing proportions of age groups, income levels, location, gender and social class
What are the main characteristics for consumer profile?
Income levels
Age
Gender
Social class
Region
What are the 3 commonly used bases for segmentation?
Geographic differences - geographic areas
Demographic differences - age, sex, family size, ethnicity
Psychographic factors - lifestyle, personalities, values, attitudes
Advantages of market segmentation
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
Limitations of market segmentation
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
Niche market
A small and specific part of a larger market
Niche marketing
Identifying and exploiting a small segment of a larger market by segment of a larger market by developing products to suit it
Mass market
A market for products that are often standardised and sold in large quantities
Mass marketing
Selling the same products to the whole market with no attempt to target groups within it
