Marketing Strategy Flashcards
(33 cards)
Define Marketing Plan
A detailed and fully written research report on the marketing objectives and the marketing strategy to be used to achieve them
What are the contents of a Marketing Plan?
- Mission of the business / Purpose of the plan
- Situational Analysis
- Marketing Objectives
- Marketing Strategy
- Marketing Budget
- Executive Summary / Time Frame
What are the benefits of a Marketing Plan?
- Reduces the risk of failure / difficulties [Efficient Allocation of Resources]
- A clear direction is given to different departments in the business [coordination]
What are the limitations of a Marketing Plan?
- Requires skilled expertise and time to draft
- The plan should be flexible and less complex because of the dynamic business enviornment
- It requires adequate research on customer preferences, otherwise strategies can be inappropriate
What are some evaluative points to consider about the importance of a Marketing Plan?
- Reduces business risk as it uses data driven research and forecasting to reduce uncertainty
- External factors can make the plan outdated - business environment should be considered
- Contingency plan incorporated with a marketing plan may be worthwhile if strategies fail
- Size of Business [ex. large businesses with multiple markets need more detailed plans]
- Risk of Over-reliance by managers [plan should only guide]
What are the approaches that need to be considered for an effective Marketing Strategy?
- Consistency
- Coordination
- Focus
What is Consistency refer to?
- The image of the business / brand identity [customer perceptions, avoid confusion]
- The nature of the market [mass or niche]
- The Product [Should be supported by relevant promotional methods]
What does Coordination Refer to?
A consistent message is communicated when the marketing mix is aligned and coordinated with the marketing objectives, and the promotional tactics are coordinated with the marketing budget
What does Focus refer to?
Marketing strategies should be specific and measureable on achieving marketing objectives
What is the benefits of IT in marketing?
- The internet and social media can be used to communicate and promote the product
- It can allow businesses to predict trends, understand customer behaviour and create personalised marketing campaigns
- It can aid customer loyalty through loyalty programmes, personalised email campaigns and discounts on repeat purchases
What are the limitations of IT in Marketing?
- High start up costs - CRM and IT tools require significant capital investment
- Employees need to be trained to develop the skills to run online campaigns etc.
- Risks of Data Breaches - may require protection systems
What are the benefits of AI in Marketing?
- Understand customer profiles through data analysis and cater specific messages / personalisation to customers preferences
- Improved targeting of promotion by identification of different segments. This Optimises the effectiveness of digital advertising campaigns by analysis consumer word searches / social profiles
What are the limitations of AI in marketing?
- It can lack human creativity and imagination
- Certain customers may be resistance to personal data collection - disadvantageous to data driven businesses [pressure group risk]
- Management supervision and control is needed
Define Free Trade Agreements
Agreements made between countries to reduce/eliminate trade barriers like tariffs and quotas
What is the impact of Globalisation on Businesses?
- Increased International Trade
- Increased movement of workers
- Growth of MNCs [freedom of capital investment]
What are the benefits of Globalisation?
- Greater oppurtunity for selling goods in different markets [home markets could be saturated]
- Can improve quality of goods at a lower cost by importing raw materials
- More oppurtunities for mergers, takeovers or joint ventures which make it easy for businesses to integrate into new markets
What are the limitations of Globalisation?
- Businesses need to alter their marketing strategies to cater to the differences in culture and customer preferences
- Anti-Globalisation pressure groups can impact MNCs due to cultural and environmental impact
- Domestic markets can suffer due to increased competition and wider consumer choice
- Businesses can lose their labour if MNCS provide higher pays / forced lower prices
What is International Marketing?
Selling products in markets other than a domestic market
Why may international marketing be important to businesses?
- Saturated home markets
- Profit motives
- Risk Spreading
- Poor trading conditions in the home market
- Legal differences in countries
Define Pan-Global Marketing
Marketing a standardised product across the globe as if the world was a single market
What are the benefits of Pan-Global Marketing?
- Can aid customer recognition as a standard identity is built
- Cost reductions can be substantial and economies of scale can be achieved
- Successful strategies aimed at the youth due to lesser differences between one another
What are the limitations of Pan-Global Marketing
- Culture and religious variations may still persist which needs some form of global localisation - this can affect sales
- Income levels may vary in different countries which requires effective pricing methods
- Brand names can be translated differently in certain countries which can act offensive [language]
- Legal restrictions in terms of promotion methods
What is Global Localisation?
Adapting the marketing mix, including product differentiation and national / regional cultures to maintain local differences
What are the benefits of Global Localisation?
- Culture and taste differences are taken into account which better caters the product
- Products are likely to meet local legal standards
- Less political and pressure group opposition through this kind of activity
