4.2 Marketing Planning
Elements of a marketing plan: The Marketing Mix: Market Segmentation:
• a written document that details all of a • contains four decisions that must be taken • involves splitting a population into groups
company’s marketing activities if a company is going to achieve its of people with similar needs or
• time and resources must be dedicated to marketing objective: product, price, characteristics
them to ensure they are thoroughly prepared promotion, place • target market is the consumer segment at
which comes at an opportunity cost. • Product which a company aims its marketing
• smaller firms may not have the resources to • decisions involve all physical aspects of messages
put together an effective marketing plans the good • 3 types of segmentation - demographic,
• contains: • design, features, packaging, colour psychographic and geographic
• the marketing objective ranges, size • geographic segmentation
• provides direction for the marketing • service decisions will focus on the total • dividing consumers according to their
function customer experience location
• if achieved should help the company • Pricing • demographic
achieve its overall corporate objective • external - number of competitors, relative • involves dividing consumers according
• the marketing budget market shares and stage of the product life to characteristics such as age, gender
• amount of money allocated to a task cycle and occupation, family life cycle, socio-
• setting a firms marketing budget: • internal - production costs and marketing economic group etc
• objective based - an estimate of how objectives • psychographic
much will be needed to achieve the • Promotion • divides the population according to
objective, they are the most flexible as • above the line and below the line lifestyle and personal interests such as
they do not limit spending promotion technology
• sales based - a fixed percentage of the • choice of promotion will depend on factors
firms sales revenue is allocated to such as which media the target market
marketing uses, promotional objectives and the
• incremental based - last years marketing budget
• Place Factors affecting which segments to
marketing budget is used as a guide,
• distribution of the product target:
with a percentage increase to cover
inflation • where the product is sold and the route it
takes from the producer to consumers • The level of competition
• segmentation and the target market
• a mature market, with established
• categorising of customers into groups with
• Factors that influence the design of a competitors who have loyal customers
shared characteristics
marketing mix will be unattractive for new businesses
• allows a company to analyse the most
profitable market segments to target • internal - marketing budget, current • The marketing budget
brand image, marketing objectives, • new and small companies will have
• market research
skills of current staff, USP limited marketing budgets and this may
• gathering information about customers
• external - level of competition, stage of force them to target niche markets
needs, tastes, habits and preferences to aid
marketing decisions the product life cycle, results of • below the line promotion -
STEEPLE analysis promotional techniques that tend to
• marketing strategies
reach customers more directly and that
• long term actions that aim to achieve the
are more within the organisations
marketing objective
control such as pamphlets and samples
• marketing mix outlines the elements of a
product that help a firm achieve its Niche markets and mass markets: • above the line - promotional activities
aimed to each large audiences, will
marketing objective
• niche market - small specific subsection feature on television, in magazines, on
• control tools
of a larger market, focused on providing a the internet and on radio
• allow managers to assess whether
marketing strategies have been successful particular product or service or satisfying • The marketing objective
the needs and wants of a small market • if the aim is to spread risk by growing
• involves gathering quantitative and
segment. Targeting niche markets will internationally, foreign markets must be
qualitative data
never lead to a high quantity of sales, but targeted
• information sources include sales figures,
customer retention figures, customer lack of competition means that customer • Current brand image
perception surveys and focus groups, loyalty is high and prices high • consumer perceptions can be very
• mass markets - mass market products are difficult to change so it can be very
market analysis reports
undifferentiated and the same marketing difficult for companies to utilise a gap in
mix is used to target all consumers. Can the market that does not fit with their
lead to high sales, but competition is fierce current brand image
in addition to price competition
Adjusting marketing mix to achieve marketing
objective:
• increase market share/sales revenue
Product positioning maps:
• price - research to confirm that product Marketing Cycle:
satisfies customers
• graphs with the axis being different
• price - reduce prices, could use penetrative
variables • marketing is an ongoing process and
pricing
• strategic groups - companies that are very marketing plans should be continually
• promotion - increase promotional activity
similar and target the same consumers. updated
• place - use multiple distribution channels
Those within the same strategic group 1. Marketing objectives set
• Improve customer satisfaction
should be considered a company main 2. target market identified
• product - use marker research to ensure the
rivals 3. market research carried out
product meets customers requirements
• product positioning maps can also be used 4. marketing strategies developed and
• price - use price discrimination to offer
to identify potential new opportunities implemented
loyalty schemes
5. control tools used to assess the
• promotion - offer an after-sales service and success of the campaign
loyalty schemes
6. adaptations made depending upon
• place - use direct distribution ensure quality success
of service USP - Unique selling proposition
Elements of a marketing plan: The Marketing Mix: Market Segmentation:
• a written document that details all of a • contains four decisions that must be taken • involves splitting a population into groups
company’s marketing activities if a company is going to achieve its of people with similar needs or
• time and resources must be dedicated to marketing objective: product, price, characteristics
them to ensure they are thoroughly prepared promotion, place • target market is the consumer segment at
which comes at an opportunity cost. • Product which a company aims its marketing
• smaller firms may not have the resources to • decisions involve all physical aspects of messages
put together an effective marketing plans the good • 3 types of segmentation - demographic,
• contains: • design, features, packaging, colour psychographic and geographic
• the marketing objective ranges, size • geographic segmentation
• provides direction for the marketing • service decisions will focus on the total • dividing consumers according to their
function customer experience location
• if achieved should help the company • Pricing • demographic
achieve its overall corporate objective • external - number of competitors, relative • involves dividing consumers according
• the marketing budget market shares and stage of the product life to characteristics such as age, gender
• amount of money allocated to a task cycle and occupation, family life cycle, socio-
• setting a firms marketing budget: • internal - production costs and marketing economic group etc
• objective based - an estimate of how objectives • psychographic
much will be needed to achieve the • Promotion • divides the population according to
objective, they are the most flexible as • above the line and below the line lifestyle and personal interests such as
they do not limit spending promotion technology
• sales based - a fixed percentage of the • choice of promotion will depend on factors
firms sales revenue is allocated to such as which media the target market
marketing uses, promotional objectives and the
• incremental based - last years marketing budget
• Place Factors affecting which segments to
marketing budget is used as a guide,
• distribution of the product target:
with a percentage increase to cover
inflation • where the product is sold and the route it
takes from the producer to consumers • The level of competition
• segmentation and the target market
• a mature market, with established
• categorising of customers into groups with
• Factors that influence the design of a competitors who have loyal customers
shared characteristics
marketing mix will be unattractive for new businesses
• allows a company to analyse the most
profitable market segments to target • internal - marketing budget, current • The marketing budget
brand image, marketing objectives, • new and small companies will have
• market research
skills of current staff, USP limited marketing budgets and this may
• gathering information about customers
• external - level of competition, stage of force them to target niche markets
needs, tastes, habits and preferences to aid
marketing decisions the product life cycle, results of • below the line promotion -
STEEPLE analysis promotional techniques that tend to
• marketing strategies
reach customers more directly and that
• long term actions that aim to achieve the
are more within the organisations
marketing objective
control such as pamphlets and samples
• marketing mix outlines the elements of a
product that help a firm achieve its Niche markets and mass markets: • above the line - promotional activities
aimed to each large audiences, will
marketing objective
• niche market - small specific subsection feature on television, in magazines, on
• control tools
of a larger market, focused on providing a the internet and on radio
• allow managers to assess whether
marketing strategies have been successful particular product or service or satisfying • The marketing objective
the needs and wants of a small market • if the aim is to spread risk by growing
• involves gathering quantitative and
segment. Targeting niche markets will internationally, foreign markets must be
qualitative data
never lead to a high quantity of sales, but targeted
• information sources include sales figures,
customer retention figures, customer lack of competition means that customer • Current brand image
perception surveys and focus groups, loyalty is high and prices high • consumer perceptions can be very
• mass markets - mass market products are difficult to change so it can be very
market analysis reports
undifferentiated and the same marketing difficult for companies to utilise a gap in
mix is used to target all consumers. Can the market that does not fit with their
lead to high sales, but competition is fierce current brand image
in addition to price competition
Adjusting marketing mix to achieve marketing
objective:
• increase market share/sales revenue
Product positioning maps:
• price - research to confirm that product Marketing Cycle:
satisfies customers
• graphs with the axis being different
• price - reduce prices, could use penetrative
variables • marketing is an ongoing process and
pricing
• strategic groups - companies that are very marketing plans should be continually
• promotion - increase promotional activity
similar and target the same consumers. updated
• place - use multiple distribution channels
Those within the same strategic group 1. Marketing objectives set
• Improve customer satisfaction
should be considered a company main 2. target market identified
• product - use marker research to ensure the
rivals 3. market research carried out
product meets customers requirements
• product positioning maps can also be used 4. marketing strategies developed and
• price - use price discrimination to offer
to identify potential new opportunities implemented
loyalty schemes
5. control tools used to assess the
• promotion - offer an after-sales service and success of the campaign
loyalty schemes
6. adaptations made depending upon
• place - use direct distribution ensure quality success
of service USP - Unique selling proposition
