4.2

Question 1

Marketing Planning

Answer 1

The process of identifying and creating marketing strategies in order to meet the business’ marketing objectives

Question 2

What a Market Plan contains:

Answer 2

A marketing plan may contain:

• Details of the business’ marketing objectives
• Market Research - market share, main competitors etc.
• Sales forecasting
• Marketing budget
• Marketing strategies

Question 3

Market Segmentation

Answer 3

Breaking a market into different parts/ segments, where consumers in each segment have similar characteristics

Targeting different product to them

• E.g. Clothing market
  
  • Male youth
  • Sportswear

Question 4

Target Market (Targeting)

Answer 4

Which market segments to aim for.

• One only or multiple?

Conduct market research to find the segment’s consumer needs

• Aim marketing at that segment

Question 5

Mass Marketing

Answer 5

Selling a product to the whole market

No targeting of different segments and a standardized product

Not very common for a business to do this

Question 6

Niche marketing

Answer 6

Targets a specific and well-defined segment of the market

Differentiated products

E.g. luxury, extreme sports, Euroshop

Question 7

Differentiated Marketing

Answer 7

Target multiple segments, usually with different products for each segment

E.g. Colgate - Different types of toothpastes

Question 8

Advantages of Niche Marketing

Answer 8

Better targeted marketing mix

Less competition and higher prices

Specialization and focus

Small firms can survive here

Question 9

pros of Mass Marketing

Answer 9

More potential customers

Economies of scale

Higher brand recognition

Less risky (though this is questionable)

Question 10

Demographic Segmentation

Answer 10

• Age
• Gender
• Race
• Ethnicity
• Religion
• Marital status
• Education
• Socio-economic class

Question 11

Geographic Segmentation

Answer 11

Local tastes

Local culture

Climate

Urban/rural

Population density

Question 12

Psychographic segmentation

Answer 12

Lifestyle

Hobbies and interests

Values

Status

Motivations

Question 13

The importance of having a USP (Unique Selling Point)

Answer 13

Any aspect of the business that makes it STAND OUT or be differentiated from the competition.

E.g.

• The best
• Cheapest
• Slogan
• Only firm in the area
• Be first or last
• Ethical stance

Question 14

Product position matrix (PPM)

Answer 14

Identify 2 key characteristics important to consumers

Often price and quality

But could be anything that makes sense

Question 15

The usefulness of PPMs

Answer 15

Gaining Information on the market

• To check what customer perceptions are of their brand

Finding gaps in the market

• Less competition when we enter the market segment
• Area on the PPM where no other businesses are

Repositioning

• Company moves on the PPM to an area where less competition is ot higher demand is.