Marketing planning

1. Marketing planning • Making objectives and strategies by collecting and analyzing existing data and retrieving new data. • Marketing mix – the combined elements of marketing that work together to achieve a goal

2. Market planning process • Marketing audit – seeing the condition of the market • Marketing objectives – what do we plan to achieve • Marketing strategies – what plan will we use to achieve these goals. “Ethical issues are reviewed here” • Monitoring and review – making sure targets are being met • Evaluation – checking if the objectives were met

3. 7 P’s of the marketing mix • Product – something tangible or not that fulfills a need or a want of customers. Differences in products depend on brand image, packaging, functions and after sale care. • Producer products are things that are sold to other businesses usually supplies • Consumer products – sold to the user Convenience products – food Consumer durables – appliances Specialty products – gold

4. Many businesses will sell similar products in their product line. • Other businesses may sell a variety of products in what is known as it’s product mix.

5. Price • Seller need to be careful if a price is to high buyers will not pay for it but if price is to low than it may be perceived as being low quality. They also need to make sure that the price is enough to cover cost.

6. Pricing decision depends on • Demand – The higher the number of people want something the higher the price will be. • Supply – The less of something there is the higher the price will be. • Business objectives – charities and non-profits price differently • Competition – the more competition usually the lower the price. (businesses will usually have similar prices for similar products) • Costs of production – the more it costs to make something the higher the price • Corporate image – businesses known for luxury

7. Place • Place refers to the channels of distribution or how do you get the products to the customers.

9. Today the traditional channels of distribution are less. People by more directly from the competitor which lowers the price.

10. Promotion • The strategies used to attract customers to your product. • Above the line promotion is when a business uses mass media • Below the line promotion are tactics that go straight to the customer (packaging, direct mail)

11. People • Customer service before and after a sale is made is huge. It is considered far easier to keep customers than to find new ones. Most businesses will try to keep customers for life. • Things to determine if staff are offering good service. • Appearance and body language, attitudes, feedback, efficiency (how long customers have to wait)

12. Processes • How is the product or service gotten to the customer. • Services are harder to convince people they need than customers. Process in service marketing • Payment methods – the more the better • Waiting time – less the better • Customer services – the more the better • After sales care – the more the better

13. Physical evidence • What does the environment of the services look like. • Also some businesses offer peripheral products such as free coffee. Challenges of good customer service • Correcting mistakes – it is hard to make an angry customer happy • Measuring productivity – how do we know how good a doctor is? • People management – Effective leadership skills can be a problem.

14. Packaging services • Proper packaging can be necessary for high end goods. • Some people can recognize a product because of it’s packaging. Also information can be included on packaging. • Packaging can help shipping and safeguard from damage. • Can incurage impulse buying (when someone buys something they did not plan on). • Cost of production and cost to the environment can be huge because of excess packaging.

16. Ethics of marketing • There are certain moral guidelines that businesses should use when marketing a product or service.

17. Bait and switch is a technique used by marketers where they offer deals that are “too good to be true” • They will many times offer some product or service for a very low price then only offer a very few at that price but advertise it “tricking” people to come to there store. • Fake heath fraud for medical cures • Get rich quick schemes • Telling people about amenities at a hotel that are exaggerated or do not exist. • Using brand names that are close to big companies. • Saying things like 9 out of ten people say …. • Trying to get children to bother their parents Depending on local laws and the morals of managers is what determines how much or little a business will use these tactics.

18. Most businesses are careful when using these practices because the government can get involved or the customers could boycott the product. • Businesses will many times make an effort to make sure that they have ethical code of practice.

19. Ways that governments may get involved with marketing • Regulation of television • Consumer protection laws • Trying to make sure that advertising dollars are spent in a far amont

20. Marketing Audit a review of what they have tried • How well they meet their objectives • Is market share growing or falling • Competitors larger r smaller • Who are their customers • Helps managers with pest and SWOT analysis

21. Marketing objectives • Provide purpose to marketing department • Know how they are doing • Help make strategies

22. Possible objectives • Increase market share • Become market leader • Product positioning – help people to understand the product better • Consumer satisfaction – seeing if customers like the product • Diversification – offering new products • Market development – Selling in new markets • New product development – selling new products in existing markets • Product innovation – having a brand new product • High market standing – do people respect your product.

23. Reasons why it can be hard to achieve objectives • Finance • Cost of production – can a business compete on price • Size and status of firm – the more known a business is the easier it is to achieve objectives • Social issues – Do people like your product • Time lags – It takes time for marketing to work • Political environment – are there any laws about marketing your product. (Cigarettes can not be advertised on TV in the US). (but they can in movies)

24. Market research • Primary and Secondary research used to discover the needs, wants and opinions of customers. • Ad hoc market research refers to research done to deal with one problem or issue. • Continuous research – research that is done all the time. (top movie of the week) • This allows business to get up to date info, • see if their products meet customers needs, improve marketing mix • See how customers like products • Understand competitors • Help predict the future • Homework think of a product then ask the questions on page 470

25. Primary market research Field research gathered directly from customers. • Questioners - contains a series of questions for the customers. Self-completed questionnaires, personal questionnaires, postal questionnaires, Telephone questionnaires. • Should have no bias (do not have people answer a question the way they want) No jargon ( technical language), closed questions (yes and no), open questions (different types of responses) allow the researcher to gather information easily • Observations – seeing how people react to different situations • Experimentation – giving people choices and seeing which they choose • Online surveys – questionnaires used through the internet.

26. Advantages • More up to date than secondary research • Directly deals with a question or concern • Unique for a firm • Objectivity – helps make informed decisions • Disadvantages • Time consuming • Costly • Validity – How do we know the figures are real?

27. Secondary research • Desk research is taking information already collected. Is not specific but covers a broad range of topics through searching. Internally and Externally. • Advantages • Cheaper if relevant data exists • Large range of choices • Secondary research lets businesses know what effects their industry • Disadvantages • Becomes out of date • Only might have partial information • Competitors can obtain the same information

28. Market segmentation involves subdividing a group to a small group. (age group, male/female, race, marriage status, Religion, Language, income) • Advantages of Segmentation • Understand who they should be trying to sell to and not waste resources • Increase sales • Possibility of growth – see new opportunities better by going after new segments of a population • Differentiation of products • Problems with segmentation • Differential problems – segments must be unique • Actionable – must be able to provide the right product for each segment • Accessible – must reach customers in an easy way • Substantial – each segment must be large enough to be able to make a profit on it.

29. Targeting is deciding on how to market to the segment the business has chosen. • Niche marketing – usually small markets or high end (products for boats or horses, small plain accessories) • Advantages • More targeted marketing • Little competition and higher prices • Highly specialized • Disadvantages • Limited number of customers • Can not use economies of scale • May attract larger firms into the market.

30. Undifferentiated marketing(mass marketing) tries to market to many segments at the same time. (Coke, Nike, Sony….) • Advantages • Many potential customers so can take advantage of economies of scale and more potential profit • Marketing mixes can be very broad do not have to reach segments • Disadvantages • It is not right for all businesses • Completion is very intense • Can be wasteful

31. Differentiated marketing • Targets it’s marketing to individual groups of people. Advantages Customers feel that marketing is directed more at them. Risk is spread by going after different segments differently Disadvantages Costly because lots of resources need to go into marketing each segment (can not take advantage of marketing economies of scale) Can confuse customers that are in more than one segment

32. Market positioning • How do customers view a product in comparison to other products. (BMW vs Toyota). Stages to positioning • Identify competitive advantages of product • Decide on which of these should be marketed • Implement the desired positioning by using an appropriate marketing mix.

33. Corporate image in marketing • Many businesses have really hurt themselves through safety concerns and just plain being stupid. • If businesses are not careful bad corporate image will lose customers and may cause governments to get involved. • CSR can help to improve a businesses image • If a business has a unique selling point (something that makes it stand out) they will do their best to take advantage of it. Other strategies • Cost leadership – have the lowest cost • Differentiation – using branding to set off your products • Focus – only trying to sell to one market segment at a time.

34. Position map shows a customers perception of a product compared to competitors. • Different types of products • Premium brands high price but considered high quality • Economy brands – Low quality but also low priced • Bargain brands low price but high quality used to attract customers • Cowboy brands – low quality but high price used to raise revenue in short term.

36. Reasons for position maps • Businesses can find out what products they don’t offer that they should. • Help with targeting segments that are appealed to your products • Businesses may reposition their products if they feel they are missing a segment of the market.

37. Some marketing tactics used to meet objectives • Buy one get one free deals • Bait and switch methods • Deceptive or misleading marketing tactics • Dropping prices in short term to attract customers • Phases of marketing tactics • Market research to target customers • Product planning making products customers want or need • Implementation using a marketing mix to get the word out.

38. Market planning and business strategy • Large businesses can take advantage of many different strategies for market research as well as different vision of advertising. Good businesses will monitor these carefully to see If their strategies are working. • Different names will mean different things around the world. Because of different cultures different techniques are used. “Durex” • It is very important that information is obtained in a proper way. If not “Garbage in is Garbage out” • . Most businesses will be carful that their marketing in Ethical while others will deliberately try to “trick” the customers.