CHAPTER 25: By: Chinwoo
Marketing planning: The process of
making appropriate strategies and
preparing marketing activities to
meet marketing objectives.
It is usually a formal document
which details how the business
intends to achieve the marketing
The plan will contains things such as
budgets, sales forecasts and
Marketing mix: Central decisions that must be taken to make
ef fective marketing of a product.
The 7Ps: Product, Price, Promotion, Place , People, Process,
A business needs to
make what the
consumers want, this
might be an existing
product, a dif ferent
version of an already
existing product, or a
completely new one
Needs to be af fordable
yet enough to make a
Promotion needs to be persuasive so that consumers would
want to buy the product, packaging also helps the product
Place is not only where but also when, it needs to be
distributed at the right time and place.
PEOPLE, PROCESS, PHYSICAL EVIDENCE
The business needs to leave a good impression on the people
so that they come back often, this is particularly relevant in
hotels and restaurants.
The process is the business satisfying the customers needs.
For example: Waiters refilling water in restaurants without you
asking for it.
Physical evidence is for the consumers to be able to see the
product for themselves.
APPROPRIATE MARKETING MIX
Co-ordinated marketing mix : All of the marketing mix working
together to provide consumers a consistent message about the
All the marketing mix not working together could lead to the
product being misrepresented the wrong way and therefore
leading to confusion for the customers.
The most appropriate marketing decisions:
Marketing audit: Review of the cost and
ef fectiveness of a marketing plan including
an analysis of internal and external
Analysis of internal strengths and
weaknesses and how they have changed
since the last audit
Analysis of opportunities and threats and
how it has changed since the last audit
Review the marketing plan by looking at
the market share, number of sales, and if
it is following its SMART objectives.
MARKETING AND CORPORATE
Marketing objectives : Targets for marketing to help the
business achieve its goals. Ex: Increasing market share,
increasing brand awareness, increasing sales, expansion, etc.
Objectives should match the aims and missions of the
business. Should be decided by the senior management
Why are they important?
Sense of direction
Progress is measurable
Forms the basics of market strategy
Marketing strategy: A long-term plan to reach marketing
Market Research: Collecting, recording, and analyzing data
about customers, competitors and the market.
Market Research is important because it
Reduces risks with new products
Predicts future demand changes
Explains patterns in sales of existing products and market
Assesses the best style of packaging and promotions for the
SOURCES OF MARKET RESEARCH DATA
There are 2 types of research
Primary research: First-hand data
that are directly related to the
Secondary research: Data from
second-hand sources such as”
Government publications, local
libraries, trade organizations,
newspaper reports, internal
company records, and the
Write the advantages and disadvantages for secondary
Write the advantages and disadvantages for primary research.
RESEARCH T YPES
Quantitative research: Research that are numerical and can be
presented and analyzed.
For example: The number of sales made in the past year, the
net profit of the business, etc.
Qualitative research: The motivation for a consumer buying
products or opinions of the consumer.
For example: The consumer bought the ice cream because it
was bigger than the others, it tasted better, etc.
Focus groups: People who are questioned about how they feel
towards a product, service, advert, or packaging.
RESEARCH T YPES
Test marketing: Marketing a new product in a small location
first before launching the product.
This can help the business as it reduces the risk of failure and
can see how the product does. But it can be not accurate as the
region may be dif ferent from the total population.
Surveys- Businesses could use surveys to get both quantitative
and qualitative research by asking questions that the business
wants answers to.
SAMPLING METHODS AND SIZE
Sample: A group of people in market research survey that
represents the total market.
Sampling error: Errors in research because of using a sample
and not the whole population.
Random sampling: Everyone has a chance to get selected, its
Stratified sampling: Picks from specified groups of the
population and then uses random sampling.
Cluster sampling: Only using one type of group from the
Quota sampling: Getting data from a specific sub group.
Snowball sampling: Using sampling groups to recruit more
samples through acquaintances.
MARKET SEGMENTATION AND CONSUMER
Market segment: a sub -group of the entire market where
consumers are similar.
Market segmentation: Identifying segments of a market and
then focusing on them.
Consumer profile: A quantified picture of consumers showing
the age groups, income levels, location, gender, and social
Segmentation is sometimes called dif ferentiated marketing.
IDENTIFYING DIFFERENT CONSUMER
Target market: The segment of a market that a product is aimed
Geographic dif ferences- Location dif ferences
Demographic dif ference- Age, sex, family size, ethnic
background. Also things like social class and income is
considered demographic dif ferences.
Psychographic factors - Dif ferences in life style, personalities,
values and attitudes.
What are some of the advantages of market segmentation and
some limitations of it?
Corporate image: Consumer’s view of the company and the
Businesses constantly try to make a good image of the brand as
it has positive impacts on sale. Some ways to get a positive
Focusing on long-term reputation, not short -term money.
Let the stakeholders have access to information about the
Make good company policies
UNIQUE SELLING POINT/PROPOSITION
Unique selling point/
proposition (USP): Factors that
makes a company unique,
motivating consumers to buy.
Customers are attracted to
good or services that are
special, out of the ordinary.
They want distinct image,
service, feature, or