4.2 Marketing Planning & Introduction to the 4 Ps
Marketing Planning
The role of marketing process
Marketing planning is the process of formulating marketing objectives and devising appropriate marketing strategies to meet these objectives
The general planning process involves 5 steps and they are the following:
Marketing Audit - Where is the business now?
Marketing Objectives - Where does the business want to be?
Marketing Strategies - How will the business get there?
Monitoring & Review - Is the business on track?
Evaluation - Did the business succeed?
AIDA - Awareness, Interest, Desire, Action
4 P's
Product
Place
Promotion
Price
Marketing objectives
These objectives should not bet set in isolation, rather they should be compatible with the firm's Corporate Objectives. These are often set by the board of directors, and will also need to consult other business functions in order to be effective.
Types of marketing objectives
There are numerous types of objectives that the board of directors may set. For example, these may include:
Increasing sales (volume or revenue)
Increasing market share (volume or revenue)
To enhance the brand image
To reposition the brand's image
To improve customer satisfaction and retention rates
Raising brand awareness
Development and maintence of USP (unique selling point)
Increasing brand loyalty
Improving corporate image
Marketing strategy
Marketing strategies is the process or plan for how the marketing objectives are going to be achieved.
The seven Ps, (Product, Price, Place, Promotion, People, Processes and Physical Evidence) can be manipulated in part of the marketing strategy. For example: if a business wants to increase sales, they may decrease the Product's Price, and increase awareness through Promotion.
Moreover, there is another strategy called AIDA. This stands for:
Awareness - Raise awareness for the product
Interest - Give interest for the customers
Desire - Customers should want the product, satisfy wants/needs
Action - The purchase of the good/services
How are marketing objectives set?
In business, there is an acronym to aid in helping set marketing objectives. This acronym is called "S.M.A.R.T.":
Smart
Measurable
Agreed
Realistic
Timed
Reasons why marketing objectives are not achieved
Internal Constraints
Financial problems (negative cash-flow, unpredictable sales)
Personnel (mass worker strike, incompetent)
Unrealistic objectives (Increase sales by 100% by next year, MUST BE S.M.A.R.T.)
External Constraints
Competition (another company taking the market)
The economy (Poor economy)
Tastes and fashions
Marketing Segmentation
The process of dividing the market based on defining attributes/ different .
Each segment has distinct needs, wants and identity and products are catered to accordingly.
Segmentation allows a business to develop products that more closely meet the costumers needs.
Consumer Profiles:
Facebook and Google
Segmentation requires understanding of costumers and the appropriate marketing for specific segment.
Niche and Mass Markets
Case study Car market:
Niche market = small segment of a much larger market i.e. Tesla (electric cars)
In a few years when electric cars might become mass market
Targeting: Refers to each distinctive market segment having its own specific marketing mix.
Consumer profiles: The demographic and psychographic characteristics of consumers in different markets.
e.g. their age, gender, occupation, income level, religion, marital status and purchasing habits.