IBDP Business 4.2

Marketing planning

the process of setting marketing objectives and determining marketing strategies to achieve them

Marketing plan

A document that records marketing objectives and strategies, and any research or targeting methods

What marketing planning has to be

systematic, and reflective to reset objectives and improve

Marketing cycle

a series of reflective actions that a business goes through to keep improving

Advantages of marketing planning

reduces the risks, fosters independence in the organisation and motivates people because there is a goal

Disadvantages of marketing planning

It doesn't guarantee success, it can be time consuming and costly as well as making the organisation have a lot more paperwork

Segmentation

The process of dividing potential customers into group with similar characteristics 

Market segment

A group of customers with similar characteristics 

Types of segmentation 

Demographics, geographic and psychographic

Targeting 

The process of selecting the relevant market segments

Target market

Potential customers that share similar characteristics

Undifferentiated (mass) targeting

When you target virtually no one specific and your product is for everyone

Differentiated (segmented) targeting

When your product is still for everyone, but there's different groups of customers that need different approaches

Concentrated (niche) targeting

When the company is really specific about who they are selling their stuff to

Consumer profiling

The process of outlining the description of the perfect customer

Consumer profile

A description of a potential customer

Positioning 

The process of presenting the brand/product in a specific way in order to create the desired customer perception

PPM

Product positioning map is a visual tool that outlines customer’s perceptions of brands/products

Niche market

Very specific group of potential customers

Mass market

Very broadly defined group of potential customers

USP

A unique selling point of a product that helps it stand out

USP advantages

It can be cost effective, and bring in more sales if attractive

USP disadvantages

It doesn’t guarantee sales 

USP and Differentiation relationship

USP is a feature, and differentiation is the process of it

Differentiation 

The process of using the USP so customers perceive the product as unique from competition

Differentiation advantages 

It is cost effective

Differentiation disadvantages 

It does not guarantee sales