Transcript IB1 Ch 4.2 Marketing Planning

4.2 Marketing
Planning
Marketing Planning
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The process of formulating appropriate
strategies and preparing marketing activities to
meet marketing objectives.
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SMART objectives
Sales forecasts
Marketing budget
Marketing strategies
Detailed plan of action
Marketing doesn't just happen!
Marketing Mix
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Effectively combining key decisions in
the areas of product, price, promotion,
and place to successfully market a
product.
The 4 P’s of Marketing
(Marketing Mix)
Product
Price
Promotion
Place
The 4 P’s of Marketing Video:
http://www.youtube.com/watch?v=JIirzTdaey4
The 3 other P’s
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There are 3 more P’s – related to Service
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People: Selling services require people to
create a positive experience for the customer
(restaurants, hair salons)
Process: Satisfying customer needs as part of
marketing services (automatically renewing a
membership)
Physical Evidence: Customers can see for
themselves the quality of the product (a clean
lobby at a hotel, table clothes used a nice
restaurant)
Successful Marketing Mix
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The marketing mix must be consistent in
order to be successful in sending a clear
message to customers.
Example:
Product: Rolex watch
Price: Expensive
Promotion: “Hi-line” magazine ads
Place: Upscale jewelry stores
What is wrong with this
picture?
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An expensive well-known brand of
perfume for sale by a street-vendor.
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Saks Fifth Avenue wrapped your fine
china purchase in newspaper.
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Lamborghini sports cars are advertised
in Seventeen magazine.
Market Segmentation
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Identifying different segments within a
market and targeting different products or
services to them.
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Hewlett-Packard sells computers for office and
home use. They also make laptops for people
who travel.
Coca-Cola makes regular soda, diet soda for
weight conscious consumers, and athletic drinks
for athletes.
How are markets segmented?
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Geographic
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Tastes may very by geographic location
Demographic
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Most common way to segment
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Age, gender, family size, ethnic background, income, weight,
job
Psychographic
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Differences in lifestyle, hobbies, personalities, values
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Sports fans, athletes, fisherman, church-goers
Consumer Profile
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A quantified picture of the consumers in
your market segment for the products you
expect to sell:
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Proportions of age
Income levels
Location
Gender
Social class
Niche Market vs Mass Market
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Niche Market: A small and specific part of a
larger market.
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The Dollar Store – sells inexpensive items only
Versace – only sells to very upscale clients
Mass Market: A market for products that are
often standardized and sold in large
quantities.
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Toothpaste
Printer paper
Product Positioning Map
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A graph that analyses consumer perception
of each group of competing products in
respect of two characteristics.
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Establish 2 important features of the competing
products such as Price/Quality
Then place products on a graph
Product Positioning Map
High Calorie
Women
Men
No Calorie
Product Positioning Map
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Analyzing a Product Positioning Map
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May indicate a potential gap in the market
May identify key features of a product that are
being under promoted
Repositioning existing brands may be needed by
the use of advertising techniques, or new
packaging.
Unique Selling Point (USP)
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The factor that makes your company’s
product unique…designed to motivate
customers to buy.
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Product: Dyson’ vacuum cleaner with cyclone
technology
Price: Walmart – always low prices
Place: Dell Computers – first computer
manufacturer to utilize Internet sales
Promotion: FedEx….when it absolutely,
positively has to be there overnight.