CHAPTER 4 - Marketing Plan

8/10/2019 CHAPTER 4 - Marketing Plan

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MARKET NEEDMarket need analysis:

enables you to meet the current needs of

your markets and to anticipate and preparefor future demands.

reveals risks and opportunities, buying habits,challenges, and adoption rates whileproviding information about those whoevaluate products and make the purchasingdecisions and generating valuable prospect

lists.


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By implementing our Market Needs Analysis solutionwe can expect to:

Reduce financial risk

Correctly position your products for optimalperformance

Identify your target markets demographic makeup

Identify optimal product and company positioning

Measure the effectiveness of your marketing andadvertising messages

Identify new qualified leads for your sales executives


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Niche MarketA focused, targetable portion of a

market

Addressing a need for a product orservice that is not being addressed bymainstream providers


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Why should we bother to

establish a niche market?**Great advantage of being aloneas service or product provider**


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Market Size

The number of buyers and sellers in a particularmarket.

Market Size is measured by the total volume andor value of all sales in the market.

Sales volume is measured in terms of the

number of units of goods purchased, whilst salesvalue measures the total amount spent bycustomers on the volume of goods sold.


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Market Growth An increase in the demand for a particular

product or service over time.

Market growth can be slow if consumers donot adopt a high demand or rapid ifconsumers find the product or service usefulfor the price level.

For example, a new technology might only bemarketable to a small set of consumers, butas the price of the technology decreases andits usefulness in every day life increases,

more consumers could increase demand.


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Target Market The specific group of customers that a company aims

to capture.

Group of persons for whom a firm creates andmaintains a product mix that specifically fits theneeds and preferences of that group.

Those who are most likely to buy from the company.

They have been identified as people with needs orwants that can be met with the products or servicesfrom the company.


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Marketing Strategy It determines the choice of target

market segment, positioning, marketing

mix, and allocation of resources.


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Marketing Mix


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Process of Marketing Plan


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Price Competitiveness

Price lower than that offered by thecompetitors.

Or

The same price but more attractivebecause of added incentive, such as

longer payment terms.


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Pricing Strategies

There are many ways to pricea product

1. Premium Pricing.

Use a high price where there is a uniquenessabout the product or service. This approach isused where a substantial competitiveadvantage exists. Such high prices are chargefor luxuries such as Cunard Cruises, SavoyHotel rooms, and Concorde flights.


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Pricing Strategies Penetration Pricing.

The price charged for products andservices is set artificially low in order togain market share. Once this isachieved, the price is increased. This

approach was used by France Telecomand Sky TV.


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Pricing Strategies Economy Pricing.

This is a no frills low price. The cost of

marketing and manufacture are kept ata minimum. Supermarkets often haveeconomy brands for soups, spaghetti,

etc.


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Pricing Strategy

Price Skimming. Charge a high price because the company have a

substantial competitive advantage. However, the

advantage is not sustainable. The high price tends to attract new competitors into

the market, and the price inevitably falls due toincreased supply.

Example:Manufacturers of digital watches used a

skimming approach in the 1970s. Once othermanufacturers were tempted into the market and thewatches were produced at a lower unit cost, othermarketing strategies and pricing approaches areimplemented.


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Pricing Strategies


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Place

Another element of Marketing Mix is

Place. Place is also known as channel,distribution, or intermediary.

It is the mechanism through which

goods and/or services are moved fromthe manufacturer/ service provider tothe user or consumer.


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Place

Channels of distribution Industrial Goods

Manufacturer

Manufacturer

Industrial User

Wholesaler Industrial User


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Place

Channels of distribution Consumer Goods

Manufacturer

Manufacturer

Manufacturer

Consumer

Consumer

Consumer

Retailer

Wholesaler Retailer


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Product

Three Levels of a Product:

1. Core

2. Actual

3. Augmented


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Product

The COREproduct:

NOT the tangible, physical product. We can't

touch it. The core product is the BENEFIT of the

product that makes it valuable to us. So withthe car example, the benefit is convenience

i.e. the ease at which we can go where welike, when we want to. Another core benefit isspeed since we can travel around relativelyquickly


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Product

TheACTUALproduct:

is the tangible, physical product. We

can get some use out of it. Again withthe car example, it is the vehicle thatwe test drive, buy and then collect.


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Product

TheAUGMENTEDproduct:

is the non-physical part of the product.

It usually consists of lots of added value, forwhich we may or may not pay a premium.

For example when we buy a car, part of theaugmented product would be the warranty,

the customer service support offered by thecar's manufacture, and any after-salesservice.


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Product Positioning Strategy

Positioning is what the customer believesabout our product's value, features, and

benefit it is a comparison to the other available

alternatives offered by the competition.

These beliefs tend to based on customerexperiences and evidence, rather thanawareness created by advertising orpromotion.


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Product Positioning Strategy

Marketers manage product positioningby focusing their marketing activities on

a positioning strategy. Pricing,promotion, channels of distribution, andadvertising all are geared to maximize

the chosen positioning strategy.


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Promotion

Promotional mixpromotion bymarketers that informs, persuades and

reminds potential buyers. Promotion objectives:

A = AWARENESS

I = INTERESTD = DESIRE

A = ACTION


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Promotion

Promotion includes: Publicity- any commercial news covered

by media that boosts sales but for which

the company does not pay Personal selling - personal contact

between sales personnel and potentialcustomers resulting from sales efforts

Advertising- any sales presentation that isnon personal in nature and is paid Sales Promotionto stimulate consumer

buying

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CHAPTER 4 - Marketing Plan