Farhad Mehrtash Marketing Planning Unit 4.2 Marketing planning ...
Farhad Mehrtash Marketing Planning Unit 4.2 Marketing planning •
Marketing planning is the systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals.
Marketing planning process involves: • • • • •
Marketing audit – an examination of the current climate in which the business operates. Market research is integral to this investigation. Marketing objectives – The marketing audit enables the firm to set marketing goals and targets, such as increased market share. Marketing strategies - the plan and use of the marketing mix to achieve the objectives Monitoring and review – a continual process of checking and assessing that targets are being met. Evaluation – an examination of the extent to which the firm has succeeded in achieving its market objectives.
Marketing mix •
The marketing mix is combination of the elements needed to successfully market any product.
Four P’s: • • • •
Product – the good or service being marketed to meet the needs and wants of customers. Price – how much customers are charged for the product. Place – the distribution channels used to get the products to customers. Promotion – informing, reminding and persuading customers to buy the product
3 examples of promotional activities • • •
Advertising – this tends to be the most expensive form of promotion. Sales promotion – these are temporary ways of boosting sales, e.g. price reductions, gift vouchers, and free gifts. Publicity – this is the marketing process of getting good press (media) coverage, perhaps through using famous celebrities to endorse a firm’s products.
Marketing ethics: •
Marketing ethics refers to the moral aspects of a firm’s marketing strategies.
Bait and switch •
Bait and switch marketing techniques are considered to be unethical. This is a controversial marketing method used to entice customers by advertising deals that are simply too good to be true.
2 examples of businesses that use this type of marketing. • •
Mobile phone retailers Real estate companies
3 other examples of misleading or deceptive forms advertising. • • •
Health fraud – such as making unsubstantial promises of overnight medical cures. Travel fraud – involving misleading information being given to travelers such as descriptions of hotel facilities and ‘sea view’ rooms. Unsubstantial claims – using promotional declarations that cannot proved such as ‘9 out of 10 tests prove…’ or ‘4 out of 5 people prefer …’
Code of practice • • • •
Ethical codes of practice help to serve three main functions: To identify acceptable business practices (from society’s point of view) To foster internal management and control. To avoid confusion regarding what is and what is not acceptable.
Marketing audits • •
A marketing audit is a review of the current marketing position of a firm in terms of its strengths and weaknesses The audit helps to clarify the marketing opportunities and threats, and allows managers to make any necessary changes to their plan.
Marketing objectives •
Marketing objectives are the targets that the marketing department wishes to achieve. These objectives should be compatible with the firms overall objectives.
Marketing objectives are important because the targets can: • • •
Provide a sense of purpose, direction and motivation for the marketing department Allow progress to be monitored and success to be assessed Help in the planning and development of appropriate marketing strategies.
They include:
• • • • • • • • •
Maintain/increase market share Market leadership Product positioning Consumer satisfaction Diversification Market development New product development Product innovation High market standing
Constraints on achieving marketing objectives: •
There are numerous constraints or limitations faced by firms trying to achieve their marketing objectives. These include internal constraints and external.
Examples • • • • • • •
Finance Costs of production The size and status of the firm Social issues Time lags Activities and reaction of competitors The state of the economy
Marketing research •
Marketing research refers to marketing activities designed to discover the opinion, beliefs and feelings of potential and existing customers
2 main categories of marketing research • •
Ad hoc market research takes place on an as and when necessary basis. The focus of the research is on specific marketing problems or issues and tends to be on a one-off basis. Continuous research takes place on a regular and on-going basis, perhaps on a monthly basis.
Purposes of market research • • •
Gives businesses up-to-date information Enables businesses to improve their marketing by using a distinct marketing mix for each customer target group. Assesses customer reactions to a new product by testing it on a small group of customers
• •
Gives businesses an understanding of the activities and strategies used by their rivals. Helps businesses to predict what is likely to happen in the future.
Answer questions such as: • Are customers likely to buy the product? • Which marketing segments are interested in the product? • How much are customers willing to pay? • How often are they likely to purchase the product? • Which brands do customers see as being a rival to the marketed product? • What are the preferred methods of promotion? • Where and how should the products be sold? Drawbacks of market research • • •
Findings are only as good as the research methodology used. This is known as garbage in, garbage out whereby unreliable or inaccurate input data generates poor quality output of information Data and information can also be inaccurate or unreliable due to bias The cost of good market research is often very high
Primary research: • • • • • •
Primary research is market research that involves gathering new data first-hand for a specific study. There are several methods such as: Questionnaires Observations, Experimentations Online surveys
Questionnaires: -
Self – completed questionnaires are completed by a sample of people, e.g. many hotels and restaurants use questionnaires to gather the views of the customers
-
Personal questionnaires are conducted face to face rather like an interview. This method benefits from the interviewer being able to address any questions that might arise from the questionnaire
-
Telephone questionnaires are similar to personal questionnaires but rather than conduct a face-to-face interview the interviewer uses telecommunications technology. The benefit of this is that a larger number of people in a wider geographical spread can be covered in the research
-
Postal questionnaires are sent to people’s home or office address for them to complete in their own time. One drawback is that people might simply treat the questionnaires as junk mail and hence ignore them
Observations: -
This method of primary research involves watching how people behave and respond in different situations. It can be done under controlled conditions or as real life situations. Observations can be carried out using surveillance filming photographic evidence or by using a survey. Traffic audits for example use all three of these methods to measure the flow of traffic on certain roads or in certain areas.
Experimentation: -
It is the process of introducing marketing activities to a group of people to measure their responses and reactions. For example, an ice cream manufacturer might give out different samples to customers in a shopping mall to see which flavors they prefer.
Online surveys: -
Online surveys using email or dedicated software such as zoomerang.com are an increasingly popular way of gathering primary data. For example many schools use online surveys to find out the views of staff and students on a range of issues such as getting feedback on school uniform and staff induction programmes. Hotels use online surveys to get feedback from their customers and employees.
Advantages of primary research: • • • •
Up to date Relevance Confidential and unique Objectivity
Disadvantages of primary research: • • •
Time consuming Costly Validity
Secondary search:
•
Involves the collection of second hand data and information that already exists in another firm.
Examples: • • • • •
Government data Information from competitors Newspaper articles Encyclopedias Internet
Advantages of secondary research: • • •
If the data or information exists it is generally cheaper and faster to collect and analyze than primary research There is a huge range of sources that the researcher can use making secondary data usually more accessible than primary data Secondary research often provides an insight to changes or trends in an industry such as whether customers are spending more money on household goods automobiles and tourism
Disadvantages of secondary research: • • • •
Second hand data may be out of date or can become obsolote quite quickly The data of information might be in an inappropriate format for the researcher as it has been collected for another purpose Secondary research might only provide partial information as it was produced for a different purpose Unlike primary research the data and information is widely available to competitors
Qualitative market research: -
Qualitative market research involves getting non-numerical answers and opinions from respondents. 2 main types of Qualitative market research: Focus groups:
-
Focus groups involve getting small discussion groups together to gain insight into the attitudes and behavior of respondents. The group is typically made up of participants who share a similar customer profile They can provide important information to the business in devising and refining its marketing strategies
In depth interviews: -
Involve one on one interview between an interviewer and individual customers to investigate their personal circumstances and opinions. Beliefs attitudes and feelings can also be examined in detail. The interviews are usually carried out in person although in-depth telephone interviews can also be used. The findings from all interviews are analyzed to identify the views that customers share
Advantages of Qualitative market research: • • • •
It is better than quantitative research for exploring the driving and restraining forcers concerning the behavior and attitudes of respondents. Information gathered from qualitative research can be very rich in depth Due to the small number of respondents involved in qualitative market research it can be inexpensive yet provide detailed information to the marketing department. With one to one interviews respondents are not under the pressure of conforming to the views of the majority.
Disadvantages of Qualitative market research:
• Due to the small sample size typically used in qualitative research the findings might not be representative of the whole population. • It can be very time consuming to conduct and to interpret the findings.
• A high level of interviewing expertise is required to engage and encourage respondents. • Interviewer bias might be introduced to serve the researchers own purpose. Quantitative market research: •
Quantitative Market research relies on a much larger number of responses to get ‘hard’ answers. (Factual and measurable information rather than people’s opinions)
Disadvantages and advantages of Quantitative market research: Are the opposite if those for qualitative methods as outlined above
Marketing planning is the systematic process of devising marketing objectives and appropriate marketing strategies to achieve these goals.
Marketing planning process involves: • • • • •
Marketing audit – an examination of the current climate in which the business operates. Market research is integral to this investigation. Marketing objectives – The marketing audit enables the firm to set marketing goals and targets, such as increased market share. Marketing strategies - the plan and use of the marketing mix to achieve the objectives Monitoring and review – a continual process of checking and assessing that targets are being met. Evaluation – an examination of the extent to which the firm has succeeded in achieving its market objectives.
Marketing mix •
The marketing mix is combination of the elements needed to successfully market any product.
Four P’s: • • • •
Product – the good or service being marketed to meet the needs and wants of customers. Price – how much customers are charged for the product. Place – the distribution channels used to get the products to customers. Promotion – informing, reminding and persuading customers to buy the product
3 examples of promotional activities • • •
Advertising – this tends to be the most expensive form of promotion. Sales promotion – these are temporary ways of boosting sales, e.g. price reductions, gift vouchers, and free gifts. Publicity – this is the marketing process of getting good press (media) coverage, perhaps through using famous celebrities to endorse a firm’s products.
Marketing ethics: •
Marketing ethics refers to the moral aspects of a firm’s marketing strategies.
Bait and switch •
Bait and switch marketing techniques are considered to be unethical. This is a controversial marketing method used to entice customers by advertising deals that are simply too good to be true.
2 examples of businesses that use this type of marketing. • •
Mobile phone retailers Real estate companies
3 other examples of misleading or deceptive forms advertising. • • •
Health fraud – such as making unsubstantial promises of overnight medical cures. Travel fraud – involving misleading information being given to travelers such as descriptions of hotel facilities and ‘sea view’ rooms. Unsubstantial claims – using promotional declarations that cannot proved such as ‘9 out of 10 tests prove…’ or ‘4 out of 5 people prefer …’
Code of practice • • • •
Ethical codes of practice help to serve three main functions: To identify acceptable business practices (from society’s point of view) To foster internal management and control. To avoid confusion regarding what is and what is not acceptable.
Marketing audits • •
A marketing audit is a review of the current marketing position of a firm in terms of its strengths and weaknesses The audit helps to clarify the marketing opportunities and threats, and allows managers to make any necessary changes to their plan.
Marketing objectives •
Marketing objectives are the targets that the marketing department wishes to achieve. These objectives should be compatible with the firms overall objectives.
Marketing objectives are important because the targets can: • • •
Provide a sense of purpose, direction and motivation for the marketing department Allow progress to be monitored and success to be assessed Help in the planning and development of appropriate marketing strategies.
They include:
• • • • • • • • •
Maintain/increase market share Market leadership Product positioning Consumer satisfaction Diversification Market development New product development Product innovation High market standing
Constraints on achieving marketing objectives: •
There are numerous constraints or limitations faced by firms trying to achieve their marketing objectives. These include internal constraints and external.
Examples • • • • • • •
Finance Costs of production The size and status of the firm Social issues Time lags Activities and reaction of competitors The state of the economy
Marketing research •
Marketing research refers to marketing activities designed to discover the opinion, beliefs and feelings of potential and existing customers
2 main categories of marketing research • •
Ad hoc market research takes place on an as and when necessary basis. The focus of the research is on specific marketing problems or issues and tends to be on a one-off basis. Continuous research takes place on a regular and on-going basis, perhaps on a monthly basis.
Purposes of market research • • •
Gives businesses up-to-date information Enables businesses to improve their marketing by using a distinct marketing mix for each customer target group. Assesses customer reactions to a new product by testing it on a small group of customers
• •
Gives businesses an understanding of the activities and strategies used by their rivals. Helps businesses to predict what is likely to happen in the future.
Answer questions such as: • Are customers likely to buy the product? • Which marketing segments are interested in the product? • How much are customers willing to pay? • How often are they likely to purchase the product? • Which brands do customers see as being a rival to the marketed product? • What are the preferred methods of promotion? • Where and how should the products be sold? Drawbacks of market research • • •
Findings are only as good as the research methodology used. This is known as garbage in, garbage out whereby unreliable or inaccurate input data generates poor quality output of information Data and information can also be inaccurate or unreliable due to bias The cost of good market research is often very high
Primary research: • • • • • •
Primary research is market research that involves gathering new data first-hand for a specific study. There are several methods such as: Questionnaires Observations, Experimentations Online surveys
Questionnaires: -
Self – completed questionnaires are completed by a sample of people, e.g. many hotels and restaurants use questionnaires to gather the views of the customers
-
Personal questionnaires are conducted face to face rather like an interview. This method benefits from the interviewer being able to address any questions that might arise from the questionnaire
-
Telephone questionnaires are similar to personal questionnaires but rather than conduct a face-to-face interview the interviewer uses telecommunications technology. The benefit of this is that a larger number of people in a wider geographical spread can be covered in the research
-
Postal questionnaires are sent to people’s home or office address for them to complete in their own time. One drawback is that people might simply treat the questionnaires as junk mail and hence ignore them
Observations: -
This method of primary research involves watching how people behave and respond in different situations. It can be done under controlled conditions or as real life situations. Observations can be carried out using surveillance filming photographic evidence or by using a survey. Traffic audits for example use all three of these methods to measure the flow of traffic on certain roads or in certain areas.
Experimentation: -
It is the process of introducing marketing activities to a group of people to measure their responses and reactions. For example, an ice cream manufacturer might give out different samples to customers in a shopping mall to see which flavors they prefer.
Online surveys: -
Online surveys using email or dedicated software such as zoomerang.com are an increasingly popular way of gathering primary data. For example many schools use online surveys to find out the views of staff and students on a range of issues such as getting feedback on school uniform and staff induction programmes. Hotels use online surveys to get feedback from their customers and employees.
Advantages of primary research: • • • •
Up to date Relevance Confidential and unique Objectivity
Disadvantages of primary research: • • •
Time consuming Costly Validity
Secondary search:
•
Involves the collection of second hand data and information that already exists in another firm.
Examples: • • • • •
Government data Information from competitors Newspaper articles Encyclopedias Internet
Advantages of secondary research: • • •
If the data or information exists it is generally cheaper and faster to collect and analyze than primary research There is a huge range of sources that the researcher can use making secondary data usually more accessible than primary data Secondary research often provides an insight to changes or trends in an industry such as whether customers are spending more money on household goods automobiles and tourism
Disadvantages of secondary research: • • • •
Second hand data may be out of date or can become obsolote quite quickly The data of information might be in an inappropriate format for the researcher as it has been collected for another purpose Secondary research might only provide partial information as it was produced for a different purpose Unlike primary research the data and information is widely available to competitors
Qualitative market research: -
Qualitative market research involves getting non-numerical answers and opinions from respondents. 2 main types of Qualitative market research: Focus groups:
-
Focus groups involve getting small discussion groups together to gain insight into the attitudes and behavior of respondents. The group is typically made up of participants who share a similar customer profile They can provide important information to the business in devising and refining its marketing strategies
In depth interviews: -
Involve one on one interview between an interviewer and individual customers to investigate their personal circumstances and opinions. Beliefs attitudes and feelings can also be examined in detail. The interviews are usually carried out in person although in-depth telephone interviews can also be used. The findings from all interviews are analyzed to identify the views that customers share
Advantages of Qualitative market research: • • • •
It is better than quantitative research for exploring the driving and restraining forcers concerning the behavior and attitudes of respondents. Information gathered from qualitative research can be very rich in depth Due to the small number of respondents involved in qualitative market research it can be inexpensive yet provide detailed information to the marketing department. With one to one interviews respondents are not under the pressure of conforming to the views of the majority.
Disadvantages of Qualitative market research:
• Due to the small sample size typically used in qualitative research the findings might not be representative of the whole population. • It can be very time consuming to conduct and to interpret the findings.
• A high level of interviewing expertise is required to engage and encourage respondents. • Interviewer bias might be introduced to serve the researchers own purpose. Quantitative market research: •
Quantitative Market research relies on a much larger number of responses to get ‘hard’ answers. (Factual and measurable information rather than people’s opinions)
Disadvantages and advantages of Quantitative market research: Are the opposite if those for qualitative methods as outlined above
