Transcript Chapter 25
CHAPTER 25: MARKETING PLANNING By: Chinwoo INTRODUCTION Marketing planning: The process of making appropriate strategies and preparing marketing activities to meet marketing objectives. It is usually a formal document which details how the business intends to achieve the marketing objectives. The plan will contains things such as budgets, sales forecasts and strategies. MARKETING MIX Marketing mix: Central decisions that must be taken to make ef fective marketing of a product. The 7Ps: Product, Price, Promotion, Place , People, Process, Physical evidence. PRODUCT, PRICE A business needs to make what the consumers want, this might be an existing product, a dif ferent version of an already existing product, or a completely new one Needs to be af fordable yet enough to make a profit PROMOTION, PLACE 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. PEOPLE, PROCESS, PHYSICAL EVIDENCE The business needs to leave a good impression on the people so that they come back often, this is particularly relevant in hotels and restaurants. The process is the business satisfying the customers needs. For example: Waiters refilling water in restaurants without you asking for it. Physical evidence is for the consumers to be able to see the product for themselves. PRACTICAL EXAMPLE APPROPRIATE MARKETING MIX Co-ordinated marketing mix: All of the marketing mix working together to provide consumers a consistent 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: Af fordable Co-ordinated Appropriate consumers MARKETING AUDIT Marketing audit: Review of the cost and ef fectiveness 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 objectives. MARKETING AND CORPORATE OBJECTIVES 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 management SMART Why are they important? Sense of direction Progress is measurable Forms the basics of market strategy Marketing strategy: A long-term plan to reach marketing objectives. MARKET RESEARCH Market Research: Collecting, recording, and analyzing data about customers, competitors and the market. Market Research is important because it Reduces risks with new products Predicts future demand changes Explains patterns in sales of existing products and market trends Assesses the best style of packaging and promotions for the product SOURCES OF MARKET RESEARCH DATA There are 2 types of research Primary research: First-hand data that are directly related to the business’s needs Secondary research: Data from second-hand sources such as” Government publications, local libraries, trade organizations, newspaper reports, internal company records, and the almighty internet. ACTIVIT Y Write the advantages and disadvantages for secondary research. Write the advantages and disadvantages for primary research. RESEARCH T YPES 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 because 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 packaging. RESEARCH T YPES Test marketing: Marketing a new product in a small location 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 dif ferent from the total population. Surveys- Businesses could use surveys to get both quantitative and qualitative research by asking questions that the business wants answers to. SAMPLING METHODS AND SIZE Sample: A group of people in market research survey that represents the total market. Sampling error: Errors in research because of using a sample 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 population and then uses random sampling. Cluster sampling: Only using one type of group from the population Quota sampling: Getting data from a specific sub group. Snowball sampling: Using sampling groups to recruit more samples through acquaintances. MARKET SEGMENTATION AND CONSUMER PROFILE 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, gender, and social class. Segmentation is sometimes called dif ferentiated marketing. IDENTIFYING DIFFERENT CONSUMER GROUPS Target market: The segment of a market that a product is aimed at. Geographic dif ferences- Location dif ferences Demographic dif ference- Age, sex, family size, ethnic background. Also things like social class and income is considered demographic dif ferences. Psychographic factors - Dif ferences in life style, personalities, values and attitudes. ACTIVIT Y What are some of the advantages of market segmentation and some limitations of it? CORPORATE IMAGE 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. Honesty Let the stakeholders have access to information about the company Make good company policies UNIQUE SELLING POINT/PROPOSITION Unique selling point/ proposition (USP): Factors that makes a company unique, motivating consumers to buy. Customers are attracted to good or services that are special, out of the ordinary. They want distinct image, service, feature, or performance.