1. Unit 4.2 –Marketing Planning

2. Goals of Chapter 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

3. Elements of a Marketing Plan
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

4. Role of Marketing Planning
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May become outdated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

5. Marketing Mix – Four P’s
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

6. What Else is Involved? People – customer relations
Attitude is everything
Customers must be happy
Process – methods used to give a good experience
Physical evidence
Packaging – how is the product presented?

7. Packaging Impact on customer perceptions
Acts as a form of differentiation
Protects against damages
Labeling provides information
Makes distribution easier
Encourages impulse buying
Advertises the brand or business

8. An appropriate Marketing Mix
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

9. Box 4.2b - Ethical Marketing
Ethics of Marketing
Important principle that guides business behavior
Example – Bait and Switch Advertising
Misleading Tactics
Health fraud
Get rich quick schemes
Product misrepresentation
Unsubstantiated Claims
Pester Power
Confusion Marketing
Box 4.2b - Ethical Marketing
Look through examples?

10. Marketing Audit Systematic review of strengths & weaknesses of a firm.
Clarifies marketing opportunities
Marketing objectives and strategies
Existing products and brands
Effectiveness of marketing activities
Firm’s market share
Competitor analysis
Update on customer demographics

11. Marketing Objectives Maintain/increase market share Market leadership
Product positioning
Consumer satisfaction
Diversification
Market development
New product development
Product innovation
High market standing

12. Constraints on achieving
Finance
Cost of production
Size and status of firm
Social issues
Time lags
Activities and reaction of competitors
State of the economy
Political and legal environment

13. Market Segmentation & Consumer Profiles
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

14. Advantages of Segmentation
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

15. Target Marketing 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

16. Targeting Niche Marketing aka Concentration Marketing
Advantages - Better market focus; can charge higher prices; encourages customer loyalty
Disadvantages – limits # of customers; small market size, no economies of scale
Undifferentiated Marketing – Mass Marketing
Advantages – huge economies of scale; no need to tailor for different segments; +++ customers
Disadvantages – not suitable for all businesses; competition fierce; can be wasteful because not targeted

17. Consumer Profiles
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

18. Positioning Analyzing how consumers define or perceive a product
Consumers can be faced with information overload
To simplify, consumers categorize products and position them

19. Importance of Position Maps
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

20. Unique Selling Point (USP)
A feature that differentiate YOU from the competition
A USP
Helps establish a competitive advantage
Leads to customer loyalty
Examples page