Market planning

Market planning

Market planning

Market planning is the process of formulating marketing objectives and devising appropriate marketing strategies to meet those objectives.

What does a marketing plan consist of?

• Marketing objectives that are SMART

• Key strategic plans 

• Detailed marketing actions. 

• Marketing budget. 

Market segment

A market segment refers to a sub group of consumers with similar characteristics in a given market.

Market segmentation

Market segmentation is the process of dividing the market into smaller groups of consumers in order to meet their desired needs and wants.

What are the three types of market segmentation?

Demographic segmentation

Geographic segmentation

Psychographic segmentation

Target market

A target market is a group of consumers with common needs or wants that a business sells to.

Targeting

Targeting is the process of marketing to a specific market segment. For it to be effective, it is important that they know who their consumers are.

Marketing strategies include

• Mass marketing (undifferentiated marketing) 

  • A business ignores the differences in the specific market and targets the entire market. 

  • Aim to sell their products to many customers to maximise their sales. 

• Segmented marketing (differentiated marketing)

  • Targets several market segments and develops appropriate marketing mixes for each of these segments. 

  • Can gain a stronger position in each of their segments which increases sales and market share. 

• Niche marketing (Concentrated marketing)

  • Appeals to smaller and more specific market segments

  • Good for small firms with limited resources. 

  • Few competitors and take advantage of opportunities overlooked by larger firms

Consumer profile

The characteristics of consumers of a particular product in different markets based on their gender, age, and income levels, etc.

Product positioning

Product positioning involves analysing how consumers define or perceive a product compared to other products in the market.

Product position map/ perception map

A product position map/perception map is a visual representation of how consumers perceive a product in relation to other competing products.

Niche market

A niche market focuses on a small group of people or consumers that have interests that align with the product or service of a specific organisation.

Mass market

A mass market is aimed at a large or broad market segment. Involves communicating to the largest possible audience. 

USP

A unique selling point/proposition is a product’s feature that differentiates it from other competing products in the market.

Different types of differentiation

• Product differentiation

  • Physical or perceived difference in a product

  • Durability, performance, reliability, etc. 

  • Consumers spend time looking for this. 

• Service differentiation 

  • Customer service, delivery, supporting business elements such as installation and training. 

• Price differentiation 

  • Recognises that every customer is willing to pay a different price for a product. 

• Distribution differentiation

  • Path which a good or service passes until it reaches the end consumer. 

• Relationship differentiation

  • Organisation’s personnel, including employees or team members with customer links. 

  • Important link between product and consumer, without it the business would be broken. 

  • Builds trust. 

• Image/reputation differentiation 

  • Built from other types of differentiation but mostly how the business interacts with its customers.