Elements of a Marketing Plan Stage 6 Business Studies
Elements of a Market Analysis ◆ the situational analysis including SWOT and product life cycle ◆ establishing market objectives ◆ identifying the target market ◆ developing marketing strategies ◆ implementation, monitoring and controlling
Situational Analysis It provides answers to many of the questions asked in the planning process. Typically describes the market and the place of the business in that market. Another aspect is a description of the environment in which the business is operating. internal (factors inside the business) and external (factors outside the business).
SWOT Changes in the external environment that can be exploited to achieve objectives Changes in the external environment that make it difficult to achieve objectives. The things competitors do better Anything the business does better than its competitors StrengthWeakness OpportunityThreat
Product Life Cycle Introduction Growth Maturity Decline
Product Life Cycle - Introduction Until people get to know the product, sales will grow slowly. Heavy promotion and the costs of development often mean negative profits. Higher prices can be charged until competitors enter the market.
Product Life Cycle - Growth The heavy promotion pays off and sales grow rapidly. It is very profitable because prices are high. The profits attract competitors.
Product Life Cycle - Maturity Sales level off. Only occasional advertising is needed to promote the product.
Product Life Cycle - Decline Sales are falling and there is little purpose in fighting the trend. Heavy discounting is used to get rid of stock
Market Objectives Sets out what the business wants to achieve with its marketing effort. Objectives guide all the marketing effort. It is also important to ensure that the market objectives are consistent with the business objectives relating to such things as profit, quality and staffing. Good market objectives should be SMART
SMART Objectives S Specific M Measurable A Achievable R Realistic T Timebound
Target Market The target market refers to the group of actual or potential buyers of the product. It is the group at which the marketing effort is directed. When a business really understands its target market it can often develop new products to meet their needs.
Marketing Strategies Product includes such things as its image in the mind of customers, the brand, as well as the actual benefits the product offers the customer Place concerned with the distribution process Price the money the customer pays for the product Promotion the activities a business uses to communicate with its customers
Implementation the marketing plans are put into operation
Monitoring involves watching what happens when the product is placed in the market.
Controlling process of comparing actual results with planned results