4Ps of marketing mix should fit together with * Marketing objectives * Marketing budget * Integrated marketing mix
* The Marketing Plan is the detailed statements of the business’s marketing strategy including how it will be implemented & the budget available for it.
* Purpose of plan and mission of business * Situational analysis * Marketing objectives –marketing strategy * Marketing tactics--- marketing mix * Marketing budget * Executive summary and timeframe for implementation.
* Current product analysis * Target market analysis * Competitors analysis * Economic and political environment * SWOT analysis
* Where do we want to be? * Must be SMART objectives. * Give sense of direction * Strategy can be conducted easily
Strategic decisions include : * Should we pursue a mass marketing or a niche marketing strategy * Sell to same market or find new markets. Final Strategy depends on: * The company`s mission and objectives * Situational analysis * The resources of the business.
* Product * Price * Promotion * Place Group activity
The Marketing Budget Budgets are financial plans for future time periods. Marketing Budget underlines marketing plans and allow a comparison between marketing expenditure and expected sales.
a) Sales targets. b) Marketing expenditure budgets. - This can be set by using a number of different approaches: -A percentage of sales. -Objective-based budgeting. -Competitor-based budget. Spending as much as competitors.
A) The Objectives Of The Business · The marketing strategy that a business uses most reflect the objectives of the business as a whole. B) The Strategies Of Competitor Businesses · E.g.: If a competitor promotes all of its company products on the Internet successfully other businesses may follow. C) The Structure Of The Market · Marketing strategies will be influenced by the level of competition & the degree of change within different markets. E.g.: Changes in consumer tastes.
D) The Attitudes Of Key Decision Makers Within Businesses. Desirability of risk & change such as attitudes are influenced by the environment within which a business operate. E) The Size Of The Business F) The Strengths Of The Business
* Reviewing the plan and the marketing strategy—changes in overall plans * Marketing planning –an evaluation– essential part of business plan --specific marketing plans needed for introduction of new strategy for future success-- different departments involved. Finance, production etc.
* Complex * Costly * Time consuming * Mangers wedded to plans will not see economic downturn, Inflexibility.
Demand for a product can be influenced by factors other than price such as: * Income elasticity of demand * Promotional elasticity of demand * Cross elasticity of demand * Evaluating these measures of elasticity
* AIDA—model that explains the successive stages a customer passes through in buying a product. Attention—interest –desire – action. * DAGMAR ----- Process of establishing goal for a promotion campaign so that it is possible to determine whether it has been successful or not. DEFINING ADVERTISING GOALS FOR MEASURED ADVERTISING RESULTS
* Pg 349 – silent reading * Points to be shared in discussion
It has two meanings: 1.Integrating with other depts. of the business 2.Integrating the 4 elements of the marketing mix.
The design,creation and marketing of new goods and services. A new product must have : * Desirable features * Sufficiently different from other products to stand out. * Marketed effectively.
1. Generating new ideas 2. Idea screening 3. Concept development and testing 4. Business analysis 5. Product testing 6. Test marketing 7. Commercialisation
* The scientific research and technical development of new products and processes. Examples: Apple, HP, Honda and Toyota.
* Providing some legal security to inventors and designers by allowing them to register a design. * Financial assistance to businesses engaging in R&D
* The nature of industry * The R&D spending plans of competitors * Business Expectations * The risk profile or culture of the business * Government Policy
Predicting future sales levels and sales trends BENEFIT S: 1. To know how much to produce. 2. To know how much to distribute. 3. To know level of staffing. 4. Planning of cash flows with more accuracy.
* Sales force composite * Delphi method * Consumer surveys * Jury of experts
* Correlation –establishing casual relationships * Time series analysis— past sales data * Extrapolation— past results * Moving averages—calculating moving totals from a number of sales figures -the trend-underlying movement in a time series -Seasonal Fluctuations—regular variations in sales data with in 12 months. -cyclical Fluctuations—regular variations in sales data over 1 year and due to business cycle. -random Fluctuations—any time unusual and un predictable/