4.

2 MARKETING
PLANNING
(including introduction to the four “Ps”)
WHY DO YOU
THINK
MARKETING
PLANNING IS
IMPORTANT?
WHAT YOU CAN
EXPECT TO LEARN
➤ state the elements of a marketing
plan
➤ explain the role of marketing
planning
➤ comment on the four Ps of the
marketing mix
➤ prepare and analyse an appropriate
marketing mix for a particular
product or business
➤ discuss the effectiveness of a
marketing mix in achieving
marketing objectives
➤ distinguish between target markets
and market segments
WHAT YOU CAN
EXPECT TO LEARN
➤ identify possible target markets and
market segments in a given situation
➤ distinguish between niche market and
mass market
➤ analyse how organizations target and
segment their market and create
consumer profiles
➤ draw a product position map/perception
map and comment on it
➤ explain the importance of having a
unique selling point/proposition USP
➤ evaluate how organizations can
differentiate themselves and their
products from competitors
THE ELEMENTS OF
A MARKETING
PLAN
➤ A marketing plan is a detailed
document about marketing strategies
that is developed to achieve an
organization marketing objectives.
➤ How does can a business compete in
the market without proper planning?
➤ These are the elements of a M.P.
➤ marketing objectives
➤ key strategic plans
➤ detailed marketing actions
➤ the marketing budget
THE ROLE OF
MARKETING
PLANNING
➤ Marketing planning is the process of
formulating marketing objectives and
coming up with appropriate
marketing strategies to meet those
objectives
➤ This allows everyone to be on the
same page!
 MARKETING PLANNING

➤ Helps in identifying potential problems and

seeking solutions to them
➤ SMART improves chances of success
➤ Sharing the plan provides a clearer picture
for the entire organization
➤ A budget allows for efficient, not wasteful
spending
➤ It can improve motivation and confidence
for employees
 MARKETING PLANNING

S
➤ Marketing plans may become outdated quickly
➤ The process itself can consume considerable resources
in time, expertise, and money
➤ Success will be tough to measure if objectives are not
clear
THE FOUR “PS” OF
THE MARKETING
MIX
➤ Marketing mix is the key
elements of a marketing strategy
that ensure the successful
marketing of a product
➤ It consists of product, price,
promotion, and place
➤ The good or service being offered.
➤ Products need to satisfy the needs
and wants of consumers
➤ A business needs to ensure their
interests are considered
➤ The amount customers are charged for a product.
➤ It indicates the value consumers perceive the product to have.
➤ Why does a second hand phone sell for a lower price?
➤ Setting a price is a complex process as it directly affects consumer behavior!
➤ Various ways in which consumers are informed and persuaded to purchase a
product.
➤ A firm may use above the line promotion such as television or advertising or
below the line promotion such as promotions in the mail or a combination of
both
➤ Location of the product or channel
for distribution
➤ Retail, internet, wholesaler, agents
are examples of place.
➤ Getting products to where consumers
need them.
AN APPROPRIATE
MARKETING MIX
➤ Consumers needs and wants are
adequately met!
➤ Businesses need to produce the
right product, charged at the right
price, available at the right place,
and communicated through the
right promotion channels.
➤ If this is not accomplished, the
firm risks losses…
➤ Marketing mix has to be clear and
focused, considering competition
and the consumer.
INAPPROPRIATE
MARKETING MIX
➤ Advertising an expensive car in a
colorful children’s magazine
➤ Selling and exclusive perfume in
a second-hand clothing store
➤ A real-estate agent attempting to
sell houses in a vegetable market.
➤ Selling expensive concert tickets
at a government housing complex
 MARKET
SEGMENTATION

A market segment refers to a sub-group of consumers with similar characteristics in

a given market.

Market segmentation is the process of dividing the market into smaller or distinct
DEMOGRAPHIC GEOGRAPHIC
groups of consumers in an effort PSYCHOGRAPHIC
specifically to meet their desired needs and wants
SEGMENTATION SEGMENTATI SEGMENTATION
ON
 DEMOGRAPHIC
SEGMENTATION

➤ Refers to the varying characteristics of

the human population
➤ Age
➤ what do people of each age want?
➤ Gender
➤ what products do women prefer over
men?
➤ Religion
➤ pork in a muslim country?
➤ Family characteristics
➤ OINK, DINKY
➤ Ethnic grouping
➤ dialects, sub-cultures
What market segment would they be thinking of?
 GEOGRAPHIC
SEGMENTATI
ON
➤ This is when the market is
divided into different
geographical sectors
➤ Regions in a country where
consumers reside
➤ urban? rural? “La GAM”?
➤ Climatic conditions
➤ demand for products varies by
climate, what examples can
you think of?
 PSYCHOGRAPHIC
SEGMENTATION
➤ This is a division by lifestyle
choices and personality
characteristics such as:
➤ Social and economic status
➤ high-income consumers tend to
go for luxury
➤ Values
➤ customer morals and beliefs
➤ recycling? animal testing?
 MARKETING SEGMENTATION

➤ This is,
Helps businesses however,
identify gaps andexpensive in terms of research
and
opportunities development,
domestically production, and promotion.
and internationally
➤ Designing a product for a specific group of
consumers can increase sales and profitability
➤ The right product for the right consumer
reduces waste
➤ Differentiation is possible, thus spreading risk
TARGETING
➤ Once a market is segmented, a
firm must choose their target
market.
➤ It is a market segment that the
business wishes to serve or sell to.
➤ Therefore, targeting is the process
of marketing to a specific market
segment
 THIS CAN BE
ACHIEVED BY
- ignores the differences in the specific market segment and targets the
Mass
entire market. They aim to sell their products to a wide range of
Marketing
customers.
Samsung, Nokia, LG, Dell, HP, and Coca Cola

Segmented - targets several market segments and develops marketing mixes

Marketing appropriate for each

Apple iPhone 5c (budget phones)

Niche - this appeals to smaller, more specific market segments. Few

Marketing competitors exist and a firm can take advantage of opportunities

Rolls-Royce cars
 IMPORTANT
TERMS TO KNOW
Market segment
Market segmentation
Target market
Targeting
Niche market
Segmented marketing
Mass market
CONSUMER
PROFILES
➤ These include information on
characteristics of consumers of a
particular product in different
markets
➤ Gender, age, social status, and
income levels, spending patterns.
➤ For segmentation to be
successful, firms need to know
who their consumers are!
➤ Have you thought of supermarket
point cards?
 THIS IS
DEFINE OR
PERCEIVE
CALLED: A
PRODUCT IN
COMPARISON TO
PRODUCT
OTHER PRODUCTS
POSITIONING
IN THE MARKET?
POSITIONING
➤ Consumers get an overload of
information!
➤ They categorize products and
position them accordingly
➤ A tool marketers use to plan their
positioning strategies is known as
a position or perception map
➤ It is a visual representation of
how consumers perceive a
product in relation to other
competing products.
STEPS IN POSITIONING

1: FIND ASPECTS CONSUMERS

FIND IMPORTANT
2: CHOOSE WHICH PRODUCT ASPECTS TO
DEVELOP A POSITIONING STRATEGY

3: COMMUNICATE POSITION TO CONSUMERS

WITH SUPPORT OF A MARKETING MIX
 WHY IS IT
IMPORTANT?
➤ Establishing close threats from
competitors in the market
Positioning ➤ Identifying opportunities or gaps
to be filled by creating new
products or offering new services
➤ Simple way to present
sophisticated research data
➤ Helps target specific market
segments
➤ Remember difference between
customer and consumer!
UNIQUE SELLING
POINT OR
PROPOSITION
(USP)
Feature of a product that differentiates it from competing products in the market

Leads to
Helps a firm customer What examples
establish loyalty as can you think
competitive customers of? Think 4 P’s
advantage in identify when
its product something differentiating
offering special about …
the product
CHECK FOR UNDERSTANDING AND
KNOWLEDGE
➤ What is a marketing plan? What are its elements? Pros and cons?

➤ What are the 4p’s in marketing?

➤ What is an appropriate marketing mix? Can you think of examples?
What about inappropriate?
➤ What is a target market? What is a market segment? What is market
segmentation?
➤ How are mass markets and niche markets different?
➤ What is product positioning and why is it important?
➤ What is a consumer profile?