4.2 - Marketing Planning Flashcards
(25 cards)
Marketing plans
Outlines a firm’s marketing objectives and the marketing strategies used to achieve these objectives - systematic process
Parts of the marketing plan (6)
- SMART marketing objectives
- Strengths and weaknesses of competitors
- Methods of market research
- The marketing mix
- The marketing budget
- Anticipated difficulties and potential solutions
Steps of marketing process
- Conduct marketing audit
- Set marketing objectives
- Plan marketing strategies
- Monitor and review performance
- Evaluation
Advantages of marketing planning (name 2)
- improves chances of success
- provides clear objectives and constraints
- allow managers to have better control and understanding
Disadvantages of marketing planning (name 2)
- time cost
- money cost
- human resource cost
- plans may be inflexible and outdated
Market segments
A distinct group of customers with similar characteristics (such as age and gender) and similar needs or wants
* based on consumer profiles
Target market
The market segment a firm wishes to sell to specifically
Components of consumer profiles (3)
- demographic factors
- geographic factors
- psychographic factors
Demography
The study of the characteristics of the human population within a certain area, country or region
Demographic variables (name 3)
- age
- gender
- race and ethnicity
- marital status
- religion
- language, income and socio-economic class
Geographic factors (+ broad categories)
Can have implications for segmentation because demographic factors can largely be influenced by geographic issues
* categories: location, climate
Psychographic factors
Consider the emotions and lifestyles of customers
* include: hobbies and interests, values, religion, status, culture
Position maps
Reveals customer perceptions of a product or brand in relation to others in the market
* allows business to identify gaps in its product portfolia and refine marketing strategies such as:
* targeting segments based on customer perceptions
* repositioning a brand to overcome undesirable customer perceptions
Three stages to market positioning strategies
- Identify competitive advantages of product
- Select key competitive advantages to market
- Implement desired positioning using an appropriate marketing mix
Niche market (2 examples)
Niche marketing targets a specific and well-define market segment
* luxury yacht markets, haute cotoure, minority sports
Advantages of niche marketing (name 2)
- better marketing focus
- able to charge higher prices due to less competition
- highly specialised in meeting needs and wants
Disadvantages of niche marketing (name 2)
- limited customer base
- few opportunities to exploit economies of scale
- successful niche markets can attract new entrants into the industry, leading to more competition
Mass markets
Mass marketing targets multiple market segments to maximise sales
* clothing market, telecommunications, energy drinks
Advantages of mass marketing (name 2)
- economies of scale
- able to use a single marketing campaign to address entire market
- large customer base
Disadvantages of mass marketing (name 2)
- high barriers to entry
- heavy competition
- lacks focus and may not satisfy individual needs and wants
Unique selling point (USP)
Any aspect of a business, product or brand that makes it stand out from competitors
Examples of USP (name 2)
- being the only firm in an area to supply certain product
- first mover advantage
- reputation for high quality
- repoutation for low costs
- highly popular slogan
Differentiation
The act of distinguishing a business or its products from rivals in the industry
* revolve around marketing mix (7Ps)
Advantages of differentiation (name 2)
- price advantages
- brand recognition and loyalty
- distribution advantages
