Please enable JavaScript.

Coggle requires JavaScript to display documents.

The marketing plan (Role of MP (Sets the budget, It sets timeframes for…

- - - - Strategy development
        
        Strategies are the means or the ways to achieving set objectives.
        
        In marketing the strategies for achieving objectives are called STP
        
        Targeting
        
        Refers to the specific group of people within the chosen segment that the company will serve.
        
        Differentiated targeting: L'Oréal (shampoo with different effects for the hair)
        
        Customised targeting: tailor made suits
        
        Undifferentiated targeting: same product to everyone in its segment
        
        positioning
        
        Refers to how the company wants its products to be perceived by consumers (brand perception)
        
        Product feature: blackberry, BBM, Keyboard
        
        Product benefit: VOLVO
        
        Product user: Coutts
        
        Competition: Hertz vs Avis
        
        Product use: ADVIL (pain killer)
        
        Country of origin: Vodka
        
        Segmentation
        
        Segmentation implies that the firm will divide consumers into sub-groups of people with similar characteristics and then focus all its efforts on satisfying the sub-groups.
        
        Benefits of segmentation
        
        Strong brand name
        
        Makes it easier to introduce new products to target market
        
        Strong understanding of the target audience
        
        Bases for segmentation: 5 bases/methods for B2C segmentation
        
        5 more items...
      - Tactical
        
        Tactics are short term actions that support a strategy
      - Objective setting
        
        Objective specify what the company wants to achieve in its marketing activities.
        
        Example of objectives include:
        
        Brand awareness
        
        Sales
        
        Market share
        
        Customer retention
        
        Profits
        
        Customer satisfaction
        
        Objective must be smart:
        
        A= achievable, attainable
        
        R= realistic, firm must have resources to achieve set objectives
        
        M= measurable, quantifiable
        
        T= time bound, the objective must be achieved within a specific time-period. To increase sales (specific) by 15% (measurable) over the next 18 months (time period)
        
        S= specific, precise
        
        'Under promise but over deliver'
      - Action
        
        Refers to the implementation of planned marketing activities/ making the plan happen
        
        Action involves 3 activities
        
        Allocate responsibilities to staff
        
        Allocate time frame for executed plan marketing activities
        
        Setting the marketing budget
        
        Methods for setting marketing budgets
        
        Competitive parity
        
        match competitor's budget
        
        Arbitrary method
        
        senior managers will use their experiences to set the budget
        
        Percentage of sales methods
        
        anticipated sales (2017) and previous year's sales (2016)
        
        Historical method
        
        based on past budgets
        
        All you can afford
        
        Objective and task method
        
        Determine the task to achieve set objective (Advertise 500000$)
        
        Budget is therefore set at 500000$, which is the cost of the task to achieve the objective.
        
        Determine the objective to be achieved (sales of 2m$)
      - Situation analysis
        
        These answers the the question: Where are we now? This helps understanding the current position of the business.
        
        The business operates in 3 environments
        
        Micro/Industry (limited control)
        
        This refers to the industry environment in which the firm operates.
        
        To analyse micro/industry environment, we use Porter's 5 forces: competitive rivalry: threats of new entrants (how easy or difficult is it for competitors to enter the market, cost of capital, patents, government laws). Threats of substitutes (McDonald's, burger king, indirect: steak restaurant, hostile, friendly) Bargaining power of buyers (consumer have a choice). Bargaining power of suppliers (Starbucks, coffee farmers) (pay on time, contract, hedging)
        
        External/Macro (mo control)
        
        This refers to what goes on outside of the business but can still effect the business.
        
        We use PESTLE analysis to better understand the macro environment.
        
        Social: population demographics (brith and death rates), lifestyles (1.2 kids in UK), religion, aesthetics (number, colour), language
        
        Technological: people's IT skills or knowledge, communication infrastructure (broadband/internet), transportation infrastructure (road, airports, seaports)
        
        Economical: interest rate, inflation, exchange rates, income levels
        
        Legal: employment laws (retirement age), health and safety laws.
        
        Political: government policies, political stability, attitude of politicians
        
        Environmental: pollution, organic products, recycling
        
        Internal (firm has control)
        
        To analyse the internal environment, we use SWOT analysis but with more emphasis on strengths and weaknesses
        
        Strengths capitalise them in opportunities, weaknesses convert them in strengths. Threats (competitors) convert to opportunities. Aquire (buy the competitor)
        
        This refers to the immediate environment=what goes on inside the business and the company has total control over these.
      - Control
        
        This means evaluating the effectiveness of the plan/ plan met his objectives or not
        
        Brand awareness: surveys, sales figured
        
        Profits: profit control
        
        Market share: compare against competitors
        
        Sales: sales control (measure sales performance against sales objectives)
        
        Customer loyalty: repeat purchases using customer database
        
        Customer satisfaction: surveys, sales