4.2

Question 1

Marketing planning:

Answer 1

Is the process of devising marketing objectives and marketing strategies to achieve the marketing objectives.
Document outlining the marketing objectives and marketing strategy of a particular business

Question 2

Marketing objectives

Answer 2

objectives are goals that help to give marketing teams a sense of purpose and direction: Marketing objectives of for-profit objectives:
To inform and persuade potential customers about the firm’s product about how it can benefit them, with the intention to generate sales revenue.
Product development in new and existing markets in order to gain greater market share.
To increase customer loyalty through a better and greater product range, and superior customer service.
Ultimately, to increase the commercial firm’s profitability.
Marketing objectives of Non For Profit
focus on the work they do or the causes that they support.
to raise awareness of a social issue or cause

Question 3

Elements of marketing planning:

Answer 3

an executive summary outlining the main points of the marketing plan
a situational analysis outlining the internal and external factors affecting the organization (SWOT)
a market analysis outlining the intensity of competition in the market
marketing objectives
market research
identification of target market(s) and market segments
the marketing mix: details of the product, price, promotion and place marketing strategies, and
marketing budgets, including the resources required to execute the marketing plan.

Question 4

Purpose of marketing planning:

Answer 4

Marketing planning is the systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals.
The typical marketing process involves the following steps:

Question 5

Advantages of marketing planning:

Answer 5

Helps to formulate more effective marketing strategies
Help identify and deal with problems
Helps to have a better sense of direction and purpose, improve motivation and labour productivity
Helps marketing managers to align their marketing plans and marketing strategies with the rest of the organization.
Better managerial control and decision-making

Question 6

Disadvantages of marketing planning

Answer 6

Requires time, resources, and expertise
Some businesses may react to (rather than anticipate) changes in the marketplace
Might not be realistic for smaller firms to use
Plans can be inflexible and outdated quickly

Question 7

Market segmentation:

Answer 7

Market Segment: A distinct group of customers with similar characteristics (such as age or gender) and similar wants and needs.
These similar characteristics are based on consumer profiles.
Market segmentation: The process of splitting a market into distinct groups of buyers in order to better meet their needs and wants.

Question 8

A market can be segmented in four ways

Answer 8

Demographic segmentation
geographic segmentation
psychographic segmentation
Socio economic segmentation

Question 9

Demographic segmentation:

Answer 9

Age
Cultural background
Family size
Gender
Lifestyle
Marital Status
Religion

Question 10

Geographic segmentation:

Answer 10

Splits consumers according to their different geographical locations:
By urban or rural setting
By regions or states
By country
By global region or continent
population density,
climate (weather),
Geographical locations.
It is important in marketing, especially for multinational companies with global brands

Question 11

Psychographic segmentation:

Answer 11

​​Splits the market according to people’s lifestyle choices and personal values:
hobbies and interests
Personal values: vegans, vegetarians and environmental activists.
Culture
status
people’s views or beliefs: animal testing, fair trade, and sustainability

Question 12

Socio Economic Segmentation:

Answer 12

Splits the market according to consumer or household income levels:
Level of education
Income Level
Social Status
Profession
Higher managerial and professional occupations
Lower managerial and professional occupations
Intermediate occupations (clerical, sales, service)
Small employers and own account workers
Lower supervisory and technical occupations
Semi-routine occupations
Routine occupations
Never worked and long-term unemployed

Question 13

Advantages of segmentation:

Answer 13

Defines the business’ target market precisely
Design and produce goods for these groups → increased sales. Marketing activities can be tailored to the specific needs of that group
Identify gaps in the domestic market and international markets, finding an unfilled niche

Question 14

Disadvantages of segmentation:

Answer 14

Creates a limited number of categories (with some stereotypical customers); some current or potential customers may not fit these categories.
Highly dependent on the quality and effectiveness of the market research conducted

Question 15

Factors affecting which segment to target:

Answer 15

The level of competition: A mature market, with established competitors who have loyal customers, will be unattractive for new entrants.
The marketing budget
The marketing Objective: All marketing activities should work towards achieving the marketing objective.
The current brand image

Question 16

Targeting:

Answer 16

Target market is the specific group of customers at which a firm aims its product(s).
Once the market is segmented the next stage in marketing planning is targeting.
Targeting: Deciding which market segment to enter. Market segment that a business wants to sell to. Each distinctive market segment has its own specific marketing mix.
Consumer profiles: Demographic, geographic, psychographic and socio-economic characteristics of consumers in different markets.

Question 17

Positioning:

Answer 17

existing brands.
This is called positioning the product by using a technique such as market mapping.

Question 18

Niche marketing:

Answer 18

Is a specific marketing strategy that focuses on identifying and meeting the needs and wants of specific and well-defined market segments.
Niche marketing is a specific marketing strategy that focuses on identifying and meeting the needs and wants of a small market segment.
As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond.

Question 19

Mass Marketing:

Answer 19

Mass marketing – Undifferentiated marketing strategy, focuses on selling standardized (homogeneous) products to all customers in the market without splitting them in segments.
Marketing strategy aimed to all customers in the market

Question 20

Differentiation

Answer 20

Differentiation: Differentiation is the process of distinguishing a product or business from competitors in the market or industry.
An important part of the marketing of the product is through product differentiation. This means making the product different from its competitors.

Question 21

Advantages of differentiation

Answer 21

Businesses can charge higher prices
Creates brand awareness and can help to create customer loyalty.
Improves product placement (distribution channels) as more distributors (such as wholesalers and retailers) choose to sell the product.
It adds value to a good or service, creating better value for money. This can help a business to increase sales and establish customer loyalty.
It can help to hinder or prevent new entrants in the market,

Question 22

disadvantages of differentiation

Answer 22

Can be highly expensive. (to create a USP)
Strategies are often easily copied by rivals businesses
Can create unnecessary or wasteful competition
Limits the choice and price competition for customers in the market.
Excessive differentiation can drain resources and confuse customers

Question 23

USP

Answer 23

A unique selling point (USP) is the aspects of a business, product or brand that makes it stand out from those offered by competitors
Designed to motivate customers to buy the product.
Customers are often attracted towards goods or services that offer a distinctive image, service, feature, or performance.
The best USPs are those that add value to the consumer and are difficult to copy.

Question 24

A USP has several basic components:

Answer 24

Benefits - what attracts customers to the organization, its products, or its brands
Emotive - what attracts people to the organization, its products, or its brands on an emotional level
Key selling point(s) - what makes the organization, its products, or its brands better than others
Key difference(s) from competitors - what makes the products or brand stand out from the competition

Question 25

USPs can be based on any aspect of the marketing mix:

Answer 25

Price: a lower price, value for money Product: a smaller version of the product, offering extra functions, range of colours or designs, high quality Promotion: memorable slogan Place: business location, distribution networks, makes the product or brand stand out from the competition in the market.