4.2 - Marketing Planning

marketing planning

the systemic process of researching and analysing potential markets and devising appropriate marketing strategies to achieve an orgs marketing objectives. it allows marketers to have a unified purpose and sense of direction. managers can align marketing and overall bus plans

market segment

a distinct sub group in a larger market made of customers with similar characteristics like age, gender, income, religion, race etc. and simialr needs and wants

target market

particular market segment a bus can focus its marketing effort on. determined my geogrpahics, demogrpahics, psychogrpahics and behaviours

market segmentation

process of splitting a market into distinct consumer groups to better understand their needs. once the market is segmented, different sub groups can be targeted with appropriate marketing mix and strategies to achieve bus marketing objectives. the purpose of this is to increase sales and profits. being more customer focused allows business to improve cost effectiveness while increasing sales, market share and profits

adv of market segmentation

• useful for identify new business oppurtunites like an unfilled niche

dis of market segementation

• can steryotype customers and some dont fit into categories

what are some customer proflies from market sgementation

1. socio-economic segentation

2. psychographic segmentation

3. demogrpaphic segmentation

4. geographic segmentation

socio economic segmentation

classifying consumers based on income, profssion, or education

pyschographic segmentation

classify consumers based on personality traits, lifestyle and attitudes

demograohic segmentation

population structures like age, ethnicity, marital status, language, family size and religion

geographic segmentation

based on the physical location of the customer and considers the natural environmental and climate of location. useful when the target market has different preferences based on location

targeting `

practice of devising approriate marketing mix and marketing strategies for different segments. this occurs after segmentation and enables a bus to tailor its marketing strategy by devising a apropriate place, price and promotional mix for each segment

position map

visual represenatation of a customers perception of a product relative to its competitors using variables like price and quality. if a firm finds its postition or positionmap to be different than what they strived for, the bus needs to repostition the product/brand by appealing to a different segment or excecuting a improved marketing mix

cowboy product

percieved as low quality but high price. these products can maximise sales short term but arent sustainable

premium product

ercieved as high quality and high price. luxury brands

economy product

low quality and low price like supermarket brands products

bargian product

percieved as high quality low price. short term tactic thar helps increase sales and brand awareness but not sustainable

niche marketing

marketing based on identifying and serving a relatively small and specific target market. enables firms to operate profitably, as large orgs dont tend to caterto those marketing due to small market size and limited opurtunites to exploit eos

niche market

group of customers with a distinctive set of traits who have unique needs or prefrences. niche markets are smalla nd focused so they have oppurtunites for high profit margins bc high prices can be charged.

mass marketing

marketing strategy aimed at all consumers in a market without trying to differentiate them into market segments.. g/s are provided to an extensive number of customers, so markeers use a single broad marketing msgt argeted at the general public rather than a specifc target s\audience

adv of mass marketing

• helps bus get eos bc they cater to a large number of customers which increases profit from more sales

• creates brand awareness and recognition among a wide and general target audience of customers

usp

any positive feature of aspect of a business, brand, or product, that makes it distinctive from those offered by competitors. used as a key part of marketing to communicate the distinctive value of a g/s to cutomsers

adv of usp

• makes bus exclusive and differentiates it helping to improve brand awareness and loaylty

• may be imprortant bus long term sucess bc it helps to establishand maintain a strong market position and competitive adv

differentiation

process of making a business or its product distinct from others in the same market. makes a perception among cutomers that the firms product is different or uniqe, thus generating better value compared to comp

adv of differnetiation

• firm can charge more due to uniqueness of the product

• brand awareness, recognition, and loyalty

• creates okacement ir distribution advantage as more retailers will want to have the product for sale

dis of differentiation

• can be very expensive

• making product unique makes it difficult to reap the benefits of mass produced products

• can create confusion in the minds of consumers thru excessive differention and advertising clutter

what are the 7 p’s for

differentating products through altering some or all aspects of thier marketing mix

what are the 7 p’s

1. product - new feautures, designs, colous sizes & focusing on quality

2. price 0 differentiated pricing for diff products and market segments

3. place - using e commerce for customer convenience

4. promo - logos, slogans, and branding or promoting a USP like sustainable bus practice

5. people - offering presonalised customer service & sales support

6. process - implementing new tech or process that competitors dont offer

7. physical evidence - tangible representation of the bus or its products like packaging to create a more memorable and positive customer experience

what is the main role of marketing planning

identify need and prefrences of customers & target audience. plan allows managers t make informed desicions about startegies to increase sales rev

adv of targeting

can be cost effective if targeting leads to efficient use of orgs resources in conducting sucessful and justified marketing activites

why are profit marging lower when u mass market

bc the producers sell standardised products to a large consumer market