Topic 5: Market Planning And Strategy

Question 1

What is a marketing plan? (4)

Answer 1

A marketing plan is a detailed document that summarises a business organisation’s marketing activities.

Question 2

What is Product Development? (4)

Answer 2

Summarises the plans related to new/existing products, including an outline of the product range, innovations/updates, product/service delivery initiates, and activities in support of a balanced product portfolio.

Question 3

What is a SWOT Analysis? (4)

Answer 3

A SWOT Analysis summarises the internal strengths/weaknesses of the business and outlines the potential opportunities/threats facing the business.

Question 4

What is Market Research? (4)

Answer 4

Market Research is the process of gathering information about the market, consumers and competitors, and feedback about the business’s products/services.

Question 5

What is Market Positioning? (4)

Answer 5

Market Positioning is the process by which firms try to create an image for their product in the minds of potential consumers.

Question 6

What is Marketing Strategy? (4)

Answer 6

The marketing strategy outlines the key activities to be undertaken in respect of the marketing mix, the resources available to the business organisation and the arrangements for feedback/review going forward.

Question 7

What is a Marketing Budget? (4)

Answer 7

A marketing budget summarises the costs of all marketing activities to be undertaken in the next period.

Question 8

3 advantages and 3 disadvantages of the usefulness of a Marketing Plan (18)

Answer 8

Advantages
1.Determine expected levels of demand for their products/services
2.Identifies competitors in the market/gain a competitive advantage
3.Identifies new and/or potential customers

Disadvantages
1.The time and expense involved in drawing it up
2.Difficult or expensive for the business to gather accurate, quantitative data
3.Targets set may be too difficult to achieve

Question 9

What is Market Segmentation? (4)

Answer 9

Subdivision of an entire market into smaller subsets of customers that appear to possess similar needs.

Question 10

What 3 segments could a market be divided into? (8/10)

Answer 10

1.Gender
2.Age groups
3.Ethnic group

Question 11

3 advantages and 3 disadvantages of Market Segmentation (18)

Answer 11

Advantages
1.Companies should have a better understanding of the needs of a particular segment
2.There are less wasteful resources than trying to sell to everyone
3.Encourages firms to look into new products

Disadvantages
1.Segmentation is only an approximation of behaviour
2.Costly and time-consuming to discover market segments
3.Competitors may be able to target their products to the mass market and gain cost advantages