4.2 Market Planning

Market Planning

a business deciding what marketing strategies are more suited to their product/service and the best way of attracting the attention of their target market. The marketing plan needs to work in line with the business plan.

Market Segmentation

the process of dividing up the market into smaller groups of consumers in an effort to specifically meet their desired needs and wants. The market segmented in different ways including demographically, geographically, and sociographically.

Demographic segmentation

Dividing a market into distinct groups based on demographic factors such as age, gender and income. This approach helps businesses tailor their products and marketing strategies to meet the specific needs of each segment.

Geographic Segmentation

Dividing a market into distinct groups based on geographic factors such as country, region, city, or climate, enabling businesses meet needs of customers in different locations.

Psychographic Segmentation

Dividing a market into distinct groups based on psychological characteristics such as lifestyle, social class, and personality traits, enabling businesses to align with the specific values of different consumer segments.

Targeting

the process of marketing to a specific market segment. It can be carried out in different ways which include mass marketing, niche marketing, and segmented marketing.

Mass Marketing

ignoring the differences in the specific market segments and targeting the whole market. Companies consider the general needs and wants of consumers and try to create a product that everyone would want.

Segmented Marketing

targeting a number of market segments at once and developing appropriate marketing mixes for each segment. This approach allows businesses to more effectively meet the diverse needs of different customer groups.

Niche Marketing

when a business just appeals to a small group with a very specific product. It is usually an industry where the product is so unique, and people are willing to spend a lot of money on it due to this reason.

Consumer Profiles

information about the characteristics of consumers in different markets that allow products to have more chance of succeeding

Unique Selling Point (USP)

A feature of a product or service that differentiates it from competing products. The differentiating factor is what makes a product unique and may be the reason that a customer chooses one company over another.

Product Differentiation

Businesses create uniqueness in their products through features, quality, branding, or design to stand out from competitors. Attracts customers by offering something distinct that meets their needs.

Service Differentiation

Businesses gaining an advantage by providing superior customer service, personalised support, or additional benefits. This improves customer satisfaction and loyalty.

Price Differentiation

Businesses gaining an advantage by adjusting prices based on factors like customer segments, purchase volume, or location to attract different buyers. This maximises revenue and competitiveness.

Distribution Differentiation

Businesses gaining an advantage by using unique or more efficient distribution channels to make products easily accessible. This can involve exclusive retailers, e-commerce, or fast delivery networks.

Relationship Differentiation

Businesses gaining an advantage by building customer loyalty, offering personalized experiences and strong customer service, creating a lasting connection between the brand and its consumers.

Image/Reputation Differentiation

Businesses gaining an advantage by establishing a strong brand identity and positive public perception. A good reputation can drive customer preference and business success.

Position Map

a graphical organizer that businesses use to plan the position of their products. It allows them to know who their competitors are, identify gaps in the industry and helps a business to target specific markets.