Unit 4.2 –Marketing Planning

Explore the elements & Role of market planning

4 Ps of Marketing Explore marketing mix Target markets v. Market segments Niche market; mass market Production position/Perception Map Importance of USP (Unique Selling Point) How organizations stand out from

competitors

Goals of Chapter

Marketing Objectives◦ SMART

Key Strategic Plans◦ How will objectives be achieved

Detailed Marketing Actions◦ Information of specific activities to be carried out

The Marketing Budget◦ Finance required to fund the strategy

Elements of a Marketing Plan

Benefits of Marketing Planning◦ Helps identify potential problems◦ Setting SMART objectives improves chance of

success◦ Sharing with other depts. Improves coordination◦ Devising a budget ensures resources aren’t

wasted◦ Plan could improve employee motivation

Limitations◦ May become outdated◦ Process may consume considerable resources◦ If objectives aren’t prioritized, meeting objectives

is difficult

Role of Marketing Planning

Product – what is being marketed◦ Consumer’s interests must be considered

Price – how much consumer is charged◦ Setting can be difficult; many factors at play

Promotion – Informing, reminding, persuading customers to buy◦ Above-the-line & below-the-line promotions

Place – Distribution channels used

Marketing Mix – Four P’s

Ensure that consumers’ needs & wants are adequately met

Message must be clear and focused To be effective:

◦ Well-coordinated◦ Clear, focused and not abstract◦ Consider the market◦ Look at the competition product has◦ Target the right consumer

An appropriate Marketing Mix

Segment – distinct group of customers How can a market be segmented? By Demographics

◦ Age; Gender; Religion; Family Characteristics; Ethnic grouping

By Geographic –◦ Regions in a country; Climatic conditions

Psychographic◦ Social & economic status; Values

Market Segmentation & Consumer Profiles

Helps businesses identify existing gaps and new opportunities

Designing products for a specific group can increase sales

Minimizes waste of resources By differentiating, diversification happens;

risks are spread

Advantages of Segmentation

Consumers w/common needs/wants Mass Marketing

◦ Targets the entire market◦ Consider common needs & wants of all

Dell, Coca-Cola Segmented Marketing

◦ Targets several market segments& develops appropriate marketing mixes

Niche Marketing◦ Appeals to smaller and more specific market

segments

Target Marketing

Information provided about a consumer’s characteristics◦ Age, gender, status, income level, etc.◦ Can include details about spending patterns◦ Very important that firms know WHO their

customers are.◦ Allows them to target efficiently

Consumer Profiles

Analyzing how consumers define or perceive a product

Consumers can be faced with information overload◦ To simplify, consumers categorize products and

position them

Positioning

Visual representation of how consumers perceive a product in relation to other products

Importance of a Position Map◦ Helps determine competitors & threats◦ Helps identify gaps or opportunities in the market◦ Simple and quick way of presenting research data◦ Helps a firm satisfy consumer needs & wants

Importance of Position Maps

A feature that differentiate YOU from the competition

A USP◦ Helps establish a competitive advantage◦ Leads to customer loyalty

Examples page 270-271

Unique Selling Point (USP)