4.2 Marketing Planning & Introduction to the 4 Ps

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.