1. IB Business Management
4.2 Marketing Planning
(Including introduction to the four P’s)

2. Learning Outcomes The elements of a marketing plan
The role of marketing planning
The four Ps of the marketing mix
An appropriate marketing mix for a particular product or business
The effectiveness of a marketing mix in achieving marketing objectives
The difference between target markets and market segments
Possible target markets and market segments in a given situation
The difference between niche market and mass market
How organizations target and segment their market and create consumer profiles
A product position map/perception map
The importance of having a unique selling point/proposition (USP)
How organizations can differentiate themselves and their products from competitors

3. The Role of Market Planning
“The process of formulating marketing objectives and devising appropriate marketing strategies to meet these objectives”
THE PLANNING PROCESS:
Marketing Audit – Where are we now?
Marketing objectives – Where do we want to be?
Marketing strategies – How will we get there?
Monitoring & review – Are we on track?
Evaluation – Did we succeed?

4. Marketing Objectives
Marketing objectives should not be set in isolation
They should be compatible with the firm’s mission statement
Often set by directors of the company
They will also need to consult other business functions (finance and production for example)
Aligning objectives with the organizations mission requires leadership. Consultation with production to ensure they can meet projected increased demand, Finance to secure financing for the new capacity and Human Resources to hire, train and retain needed labor associated with increased demand.

5. How will the marketing department meet these objectives
CORPORATE
OBJECTIVES
What the firm as a whole is trying to achieve to support the mission/vision
MARKETING
OBJECTIVES
What the marketing function needs to do to fulfil the corporate objective
MARKETING
STRATEGY
How will the marketing department meet these objectives

6. Types of Marketing Objectives
Increasing sales (By volume, By value)
Increasing market share
To enhance the brand image
To reposition the brands image
Raising brand awareness
Increasing brand loyalty
Improving corporate image
Student examples from company research?
Reposition brand image = CVS to CVS Health and not selling cigarettes.

7. Setting Marketing Objectives
Marketing Objectives must be SMART S mart M easurable A greed R ealistic T imed E.g. To increase market share by 5% in the next 2 years

8. Marketing Strategy
Marketing Strategy is the plan for how the Marketing Objectives are going to be achieved
Inclusion and emphasis depends on many factors including industry, firm size, Corporate objectives, customer preferences, external factors, etc.

9. What marketing strategies might be used to help achieve the following types of objectives?
Increasing sales (By volume, By value)
Increasing market share
To enhance the brand image
To reposition the brands image
Raising brand awareness
Increasing brand loyalty
Improving corporate image
How might a business’ marketing mix differ when trying to implement these strategies?

10. Reasons why marketing objectives are not achieved
Internal Constraints
Financial
Personnel
Unrealistic objectives
External Constraints
Competition
The economy
Tastes and fashions
Student examples?

11. The marketing Mix (The Four P’s)

12. The Marketing Mix?
“The key elements of a marketing strategy that ensure the successful marketing of a product”

13. The Marketing Mix- Product
A product can be a good or a service
It must meet the wants or needs of customers
Product design decisions can include:
Function – light bulbs vs LED’s
Features – determined using product or market oriented techniques?
Design – consumer vs industrial use?
Quality – surgeon or cafeteria knife?
Branding – local, regional or national?

14. The Marketing Mix- Price
Pricing is one of the hardest decisions in the marketing mix. Why?
What if the product is over-priced?
What if the product is under-priced?
What information might businesses need to know when setting their prices?
Pair and share

15. Pricing Decisions depend on:
Demand and Supply
Consumer perceptions (Rolex vs Timex)
Business objectives (market share vs profits)
Competition (Barriers to entry e.g. Boeing)
Costs of production
Corporate image (Luxury vs value)
Student examples from their company

16. The Marketing Mix- Place
Place is about making the product available to customers in the right place and at the right time.
Place decisions:
Distribution channels
Location
Logistics
Starbucks vertical integration + CSR with small farmers.

17. The Marketing Mix - Promotion
Promotion is all of the activities involved in informing customers about a product and in persuading them to buy it
What could this involve?

19. An Appropriate Marketing Mix Will:
Ensure consumers needs and wants are met
“Right product, at the right price, available at the right place and communicated through the right promotion channels (media)”
Discuss as a class. Some of our companies are in healthier positions than others. To what extent does this affect the blend of the mix?
Do the companies we have chosen have an appropriate marketing mix?

20. TARGET MARKETS & Market Segmentation

21. Market Segmentation
Most businesses can’t sell their products to everyone
Instead they break the market down into smaller pieces and then try and sell to these smaller groups
The smaller groups are called market segments
They consist of customers who buy similar products
These consumers are known as the target market for a product

22. Definition
“The process of splitting a market into distinct groups of buyers to better meet their needs. It is normally based on demographic, geographic and/or psychographic factors”

23. Demographic Factors
Demography is the study of the characteristics of the human population. Demographic variables include:
Age
Gender
Race and Ethnicity
Marital status
Religion
Language
Income and Socioeconomic class

24. European Socio-Economic Groupings
Description A
Higher managerial, administrative or professional e.g.
surgeon or company director B
Intermediate managerial, administrative or professional e.g.
teachers, solicitors C1
Skilled non-manual e.g. sales assistants, shop floor
supervisors C2
Skilled manual e.g. electrician, plumber D
Semi skilled e.g. assembly line workers, cleaners E
Unskilled, pensioners and unemployed

25. Geographic Factors
Geographic factors can have a huge influence on demographic factors such as race, religion, language. Geographical factors include:
Location
Climate
Example: Varying dialects of language based on geographic location in Spain.

26. Psychographic factors
Emotions and Lifestyle
Values
Status
Culture
Hobbies and Interests
Go Pro, Organic food, Starbucks, ethnic food, various

27. Developing a Consumer Profile
The demographic/ psychographic details of the average user of a product
Businesses use this knowledge to help them to identify customers needs and identify growth strategies (Ansoff’s Matrix)

28. Task
Look at the products on the following slides and see if you can identify who the target market is
What do you think their consumer profile would be?

35. How Customers Differ
Market segmentation is needed because customers are not all the same! They differ in their needs and wants.
For example, customers of shampoo differ in the…
Benefits they want from the product
Amount they are able to or willing to pay
The media they see
Quantities they buy (industrial e.g. hotel vs consumer)
Time and place that they buy

36. Benefits of Segmentation
Businesses are successful when they provide things that customers want
Segmentation allows businesses to develop products that more closely meet customer needs
A range of products can be made to appeal to different market segments
Also allows promotional spending to be targeted more effectively
E.g. adverts not put in the wrong kind of newspaper or magazine
Sales promotions (e.g. price discounts) not offered to customers who don’t respond to them

37. Difference Between A Niche and Mass Market Strategy

38. Niche Market:
“ A narrow, smaller or more specific market segment within a larger market”

39. “A large or broad market that ignores specific market segments”
Mass Market:
“A large or broad market that ignores specific market segments”

40. Market Positioning

41. Look at this perceptual map
Sweet
Mild Taste
Strong
Taste
Savoury

42. Task
Copy the market map from the previous slide onto a piece of paper.
Look at the different foods on the next slide and see if you can put them in the correct place on the axis according to whether they are sweet or savoury and whether they are mild or strong tasting

43. Milk Chocolate
Bread
Salted Crisps
Big Mac
Blue Cheese
Raw Onion
Vanilla Ice Cream
Honey
Pasta
Apple
Coffee
Tea
Mango Juice
Tuna
Walnut

44. How does this relate to business???
Perception maps can be used by businesses to analyze competition within an industry
This is known as market mapping or perceptual mapping
It is used to help with market positioning

45. What is a market map
A market map is a tool used by businesses when they are considering entering a new market or launching a new product
A market map allows the business to examine the existing competitors/products in a market
They can see which areas of the market are overcrowded or spot potential gaps
In order to construct a market map the company decides on 2 key factors of the market

46. Example market map – female clothes retailers
High Price
Burberry
Karen Millen
French Connection
classic
fashion
Top Shop
New Look
H&M
Low Price
Primark

47. Choosing the right factors
Each market will have different key features.
Examples could be:
High Price/Low Price
Youthful/Older
Modern/Traditional
Masculine/Feminine
Fashion/Classic
Aesthetic/Functional
Luxury/Everyday

48. Task As a class we are going to construct a market map of restaurants.
1. Brainstorm a list of restaurants in your local area
2. Copy the axis on the next slide into your notes
3. Position the competitors on the map

49. Market Map for Restaurants
High Price
Everyday
Special
Occasion
Low Price

50. What could these pictures be referring to?

51. Unique Selling Point (U.S.P.)
“A product’s feature(s) that differentiate it from
other competing products”
Importance of having a USP:
Creates a competitive advantage
Can attract more customers  higher sales
Promotes customer loyalty  increased sales
Can create barriers to entry to deter potential competitors
What is the USP of your business?

52. Developing a USP
Businesses can use the marketing mix as a way to create USP’s. For example:
Product – features, quality, design, (Apple products)
Price – Low to undercut or high for superior product
Place – distribution channels, locations, outlets
Promotion – slogans, advertising, sponsorship, endorsements, brand image,

53. In pairs share
In pairs discuss at least one example of how your business has developed a USP.
Also consider:
Has it worked?
Why did the business choose to differentiate in this way?
Do you think it could be better – how and why?

54. Is it the best strategy in your opinion?
Company Research
For your business, analyse how they differentiate themselves and their products from competitors?
Is it the best strategy in your opinion?