4.

2 Marketing Planning

Elements of a marketing plan

1. Details of the companys SMART marketing objectives

2. Sales forecasts to allow the progress of the plan to be monitored
3. Marketing budget (how much finance is planned to be spent and how it is allocated
4. Marketing strategies to achieve the marketing objectives
5. Detailed action plans showing the marketing tactics used to implement the strategies

Marketing Planning

Roles

1. Plans provide focus for the work of the marketing department and a road map of the
stages to be taken in implementing marketing strategies
2. SMART marketing objectives increase the chance of the marketing campaigns
success
3. Budget should be planned in advance with the finance department; must be
adequate to achieve the campaigns objectives
4. Helps achieve integration of different business function asz allm departments have to
be involved in the planning process
5. Planning ahead helps to ensure that the marketing mix is appropritate and fully
integrated

Limitations

1. Plans that are unrevised to meet changes in internal or external conditions become
outdated
2. Plants are insufficient on their own
Have to be renewed constantly
Final outcome must be judged against original objectives to aid future
decision making
3. Marketing plans have to be based on an uptodate assessment of the market and
consumer preferences
If not will be unsuitable for current conditions

Marketing Mix

4 Ps

1. Product
a. Consumers require the right good or service
b. This might be an existing product, its adaptation or a newly developed one
2. Price
a. Too low: consumers lose confidence in the products quality
b. Too high: many unable to afford the product
3. Promotion
a. Must be effective and targeted at the appropriate market
b. Tell customers about the products availability and convince them to choose
your brand
c. Packaging is used to reinforce this image
4. Place
a. How the product is distributed to the consumer
Appropriate marketing mix

Based on marketing objectives achievable within the marketing budget

Coordinated and consistent with each other
Targeted at the appropriate consumers

Difference between market segments and target markets

1. No need to differentiate between market segments if mass marketing is used

Segmentation process

1. Research on the whole market, identify specific consumer groups

o Consumers in the same segment respond to trends and market forces in
similar ways, require similar products
2. Decide which segments will be target markets

Market Segmentation

Advantages

1. Can define target market precisely

o Design and produce goods and marketing mix specifically aimed at the
groups; leads to increased sales
2. Helps to identify gaps (groups of consumers currently not targeted) in the market
o Can exploit gaps
3. Differentiated marketing strategies and mixes for target market groups
o Avoids wasting money trying to sell product to consumer groups that do not
want to buy it
4. Small firms (unable to compete in entire market) can specialise in 1 or 2 market
segments

Disadvantages

1. High R&D, production costs due to marketing several product variations

2. High promotion costs
a. Different ads needed for different segments
b. Marketing EOS not fully exploited
3. Consumers in marketing segments could change purchasing habits significantly
a. Leads to losses due to specialisation in that one segment

Ways of segmentation
1. Geographic differences
Consumer tastes may vary within different geographical areas
Need to offer different products, market in location specific ways
2. Demographic differences
Age, sex, family size can be used to sperate markets
Social class has a great impact on expenditure patterns
Due to income differences between different classes of employment
3. Psychographic factors
Differences between lifestyles, values, attitudes
Niche marketing

Advantages

1. Small firms can survive, thrive in markets dominated by large firms

2. Offer the chance to sell at high prices and high profit margins
a. If market is unexploited by competitors
b. Consumers might pay more for an exclusive product
3. Niche market products used by large firms to create status and image
a. Mass market products may lack these qualities

Disadvantages

1. Small market niches do not allow EOS unlike mass marketing

a. Higher average costs of production
2. Higher risks than mass marketing
a. Niche marketing have relatively small numbers of consumers
b. Change in consumer buying habits leads to decline in sales
c. Problem for small firms in a niche market with one product

Product Positioning

1. After segmentation and identifying target markets, position product

2. Analyse how new brand relates to other brands in the market (in the minds of
consumers)

Stages for preparing product position map

1. Identify features of the product considered important to consumers (established by

market research)
a. Eg. Price, quality of materials used
2. Based on qualitative market research, position competing products on the graph
according to consumers perception of them

Uses of product position map

1. Identifies potential gaps in the market (that the business can aim for)
2. Identifies key features of the product that should be promoted most heavily
3. Monitor position of existing brands
a. Allows a firm to see if repositioning of any is needed
b. Could involve advertising campaign / restyled packaging