By: ChinwooCHAPTER 25: MAR-KETING PLANNING

Marketing planning: The process of making appropriate strategies and preparing mar-keting activities to meet mar-keting objectives. It is usually a formal document which details how the business intends to achieve the market-ing objectives.The plan will contains things such as budgets, sales forecasts and strategies.

INTRODUCTION

Marketing mix: Central decisions that must be taken to make effective marketing of a product.The 7Ps: Product, Price, Promotion, Place, People, Process, Physical evidence.

MARKETING MIX

A business needs to make what the con-sumers want, this might be an exist-ing product, a dif -ferent version of an already existing product, or a com-pletely new one

Needs to be afford-able yet enough to make a profit

PRODUCT, PRICE

Promotion needs to be persuasive so that consumers would want to buy the product, packaging also helps the product image.

Place is not only where but also when, it needs to be distributed at the right time and place.

PROMOTION, PLACE

The business needs to leave a good impression on the people so that they come back often, this is particu-larly relevant in hotels and restaurants.

The process is the business satisfying the customers needs. For example: Waiters refilling water in restau-rants without you asking for it.

Physical evidence is for the consumers to be able to see the product for themselves.

PEOPLE, PROCESS, PHYSICAL EVI-DENCE

PRACTICAL EXAMPLE

Co-ordinated marketing mix: All of the marketing mix working together to provide consumers a consis-tent message about the product.All the marketing mix not working together could lead to the product being misrepresented the wrong way and therefore leading to confusion for the customers.The most appropriate marketing decisions:AffordableCo-ordinatedAppropriate consumers

APPROPRIATE MARKETING MIX

Marketing audit: Review of the cost and effectiveness of a marketing plan including an analysis of internal and external influences.Analysis of internal strengths and

weaknesses and how they have changed since the last audit

Analysis of opportunities and threats and how it has changed since the last audit

Review the marketing plan by looking at the market share, number of sales, and if it is following its SMART objec-tives.

MARKETING AUDIT

Marketing objectives: Targets for marketing to help the business achieve its goals. Ex: Increasing market share, increasing brand awareness, increasing sales, expansion, etc. Objectives should match the aims and missions of the

business. Should be decided by the senior manage-ment

SMARTWhy are they important?Sense of directionProgress is measurableForms the basics of market strategyMarketing strategy: A long-term plan to reach mar-keting objectives.

MARKETING AND CORPORATE OB-JECTIVES

Market Research: Collecting, recording, and analyzing data about customers, competitors and the market.Market Research is important because itReduces risks with new productsPredicts future demand changesExplains patterns in sales of existing products and

market trendsAssesses the best style of packaging and promotions

for the product

MARKET RESEARCH

There are 2 types of re-searchPrimary research: First-hand data that are directly related to the business’s needsSecondary research: Data from second-hand sources such as”Government publications, lo-cal libraries, trade organiza-tions, newspaper reports, in-ternal company records, and the almighty internet.

SOURCES OF MARKET RESEARCH DATA

Write the advantages and disadvantages for secondary research.

ACTIVITY

Write the advantages and disadvantages for primary research.

Quantitative research: Research that are numerical and can be presented and analyzed.For example: The number of sales made in the past year, the net profit of the business, etc.

Qualitative research: The motivation for a consumer buying products or opinions of the consumer.For example: The consumer bought the ice cream be-cause it was bigger than the others, it tasted better, etc.

Focus groups: People who are questioned about how they feel towards a product, service, advert, or packag-ing.

RESEARCH TYPES

Test marketing: Marketing a new product in a small lo-cation first before launching the product.

This can help the business as it reduces the risk of failure and can see how the product does. But it can be not accurate as the region may be different from the total population.

Surveys- Businesses could use surveys to get both quantitative and qualitative research by asking ques-tions that the business wants answers to.

RESEARCH TYPES

Sample: A group of people in market research survey that represents the total market.Sampling error: Errors in research because of using a sam-ple and not the whole population.Methods!Random sampling: Everyone has a chance to get selected, its random.Stratified sampling: Picks from specified groups of the pop-ulation and then uses random sampling.Cluster sampling: Only using one type of group from the populationQuota sampling: Getting data from a specific sub group.Snowball sampling: Using sampling groups to recruit more samples through acquaintances.

SAMPLING METHODS AND SIZE

Market segment: a sub-group of the entire market where consumers are similar.Market segmentation: Identifying segments of a market and then focusing on them.Consumer profile: A quantified picture of consumers showing the age groups, income levels, location, gen-der, and social class.

Segmentation is sometimes called differentiated mar-keting.

MARKET SEGMENTATION AND CON-SUMER PROFILE

Target market: The segment of a market that a product is aimed at.

Geographic differences- Location differences

Demographic difference- Age, sex, family size, ethnic background. Also things like social class and income is considered demographic differences.

Psychographic factors- Differences in life style, person-alities, values and attitudes.

IDENTIFYING DIFFERENT CON-SUMER GROUPS

What are some of the advantages of market segmenta-tion and some limitations of it?

ACTIVITY

Corporate image: Consumer’s view of the company and the brand.Businesses constantly try to make a good image of the brand as it has positive impacts on sale. Some ways to get a positive image is:Focusing on long-term reputation, not short-term

money.HonestyLet the stakeholders have access to information

about the companyMake good company policies

CORPORATE IMAGE

Unique selling point/ proposition (USP): Factors that makes a company unique, motivating con-sumers to buy.

Customers are attracted to good or services that are special, out of the ordi-nary. They want distinct image, service, feature, or performance.

UNIQUE SELLING POINT/PROPOSI-TION