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 Outlines a firm’s marketing objectives and marketing strategies to achieve the objectives.  Preceded by marketing audit – a review of the current position of a firms’ marketing mix in terms of SWOT.

 Marketing objectives that are SMART  Methods of market research to identify target markets.  Assessment of strengths and weaknesses of competitors.  Outlines the marketing mix.  Budget  Anticipated difficulties and strategies to deal with potential problems.

 Marketing planning – systematic process of devising objectives and strategies to achieve the goals.  Process includes: Audit Objectives Strategies Monitor & review Evaluation

 Main advantage: improves a firm’s success.  Limitations: Takes time and money Can be outdated quickly

Marketing mix – combination of elements needed to successfully market a product.

 The good or service that fulfills needs/wants of customers.

 Amount a customer pays for a product.  Goal is to determine the equilibrium price (where supply meets demand).  Based on: (DRASTIC) Demand Rivalry Aims Supply Time Image Cost of production

 Also known as channel of distribution.  How the product gets from production to consumption.

 Strategies used to attract customers to the products.

 Page 347

 Targets that the marketing department wishes to achieve.  Important because targets can: Provide purpose/direction/motivation. Monitor progress/success. Help plan/develop marketing strategies.

 Marketing objectives include: Market share Market leadership Product positioning Consumer satisfaction High market standing – the extent to which a firm has a presence in the marketplace based on its reputation.

 Marketing services requires: People – personnel to provide service Physical environment – tangible aspects used in providing the service Process – the way the service is delivered

 Finance (budget)  Costs of production  Size/status of firm  Social issues (i.e. marketing cigarettes)  Time lags  Competitors  State of economy  Politics/legalities

 Market Segment = distinct groups of customers with similar characteristics.  Targeting = creating a marketing mix for each segment.  Consumer profiles = characteristics of customers (demographics & psychographics)  Case Study example – page 350

 Markets are segmented to: Better understand customers Achieve higher sales Grow Effectively differentiate products and spread risks

 Age  Gender  Race/ethnicity  Marital status  Religion  Language  Income/socio-economic status  Case studies – page 351

 Demographic groups in the UK  Creative demographic segmentation

 Location – regions, countries, cities  Climate – weather impacts types of products sold in certain areas.

 Hobbies/interests  Values – beliefs, morals, principles  Religion  Status – (feel-good factor of owning certain brands)  Culture

 Criteria for successful segmentation (DAMAS): Differential – unique marketing mix Actionable – cater to each segment Measurable – size and purchasing power of each market segment must be quantifiable. Accessible – products must reach customers in affordable way. Substantial – each segment must be large enough to create profit.

 The stage after segmentation.  Case study page 353  Types: Niche (concentration) marketing Undifferentiated/mass marketing  Businesses will use both.

 Targets a specific and well-defined market segment.

 Advantages: Better marketing focus Less competition = higher prices charged Firms are highly specialized = first-rate customer service & encourages customer loyalty.  Disadvantages: Small market = small number of potential customers. Few opportunities to use economies of scale. Threat of larger firms can endanger survival.

 Also called market aggregation.  Ignores target markets.  Large number of people aimed at to create large sales volumes.

 Advantages: Economies of scale No need to tailor marketing mix. Cater to larger markets = more profits.  Disadvantages: Not always suitable. Fierce competition. Lack of focus as specific segments are not targeted.

 With a partner, discuss and be ready to share answer c.  Answers:  C. A niche market refers to a small and lucrative market segment. Pink Ladies is specifically targeted at women travelling alone who do not have or want to use their own cars. Advantages of operating in a niche market include:

 Limited competition (if any) since Pink Ladies offers a unique service; premium prices can be charged to earn higher profits.  Focused marketing at a specific market segment allows them to meet consumer needs better and improve competitiveness.  More effective use of the marketing budget as marketing is highly concentrated on a particular market.  Highly specialized service which helps them promote their brand and create loyalty.

 A visual tool that reveals customer perceptions of a product or brand in relation to others in the market.  In other words, the prestige of a company: Chanel vs. Maybelline Evian vs. Aquafina Hormel vs. Great Value

 Draw the map from page 356 into your notes. HighLow HighPremiumCowboy LowBargainEconomy Price Quality

 Premium = High quality, High price Lexus, Chanel, Evian water  Economy = Low quality, but appropriate prices. Generic brands such as Great Value (Walmart)  Bargain = high quality, low price; not sustainable; used short-term to boost sales.  Cowboy = Poor quality; high price; used to deceive customers and used only short-term to gain revenue.

 Ten of America’s most admired companies – 1983 & 2014

 Three stages: Identify competitive advantages of product Decide on which aspects of these strengths should be marketed. Implement desired positioning with appropriate marketing mix.

 Cost leadership = excel as a low cost supplier.  Differentiation = using methods such as branding to differentiate products that competitors provide which are similar.  Focus = paying close attention to a particular market segment.

 Perception affects corporate image.  A poor image will drive customers away.  Case study, page 357  Box 4.2d – Corporate blunders... How to get the wrong image.

 Perception map should be used to gauge the perception of the target market not of the student creating it.

 With a partner discuss and be ready to share your answers for a & b (construct a map for a on paper).  Answers:  A. Perception maps will vary according to the variables chosen; that is: Price with quality of location Price with quality of service Quality of location with quality of service

 A. Example of perception map:

 B. The use of position maps may be beneficial to both Savoy Hotel and Peckham Hotel because: It can provide information to aid their pricing decision It can help the hotels determine whether they want to reposition. Savoy hotel may use such perceptions to fine-tune its marketing by emphasizing the perceptions of high quality. For hotel chains, it can help determine whether there are gaps in the market.

 Any aspect of a business, product or brand that makes it stand out from the competition.  Read examples on pages  Case Study examples, page 359.

 The act of distinguishing a business or its products from competitors.  Targeting strategy that tailors a marketing mix to each segment.

 Advantages: Higher Prices can be charged. Brand recognition and loyalty can be a competitive advantage. Improved placement of products in retail stores..  Disadvantages: Expensive Economies of scale cannot fully be used. Can drain resources & confuse customers.

 Customer Solution (product)  Cost to the Customer (price)  Communication (promotion)  Convenience (place)

 Read pages  Consider how the concepts of change, culture, ethics, globalization, innovation and strategy apply across the content discussed in this unit on marketing planning.