Marketing Planning Fundamentals
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Questions and Answers

What are the two axes commonly used to draw the Product Positioning Map (PPM)?

  • Price and demand
  • Quality and availability
  • Price and quality (correct)
  • Cost and features

    • Niche markets are broadly defined groups of potential customers.

    False

    Name one example of a business that operates in a niche market.

    Billabong or Lewwinski.com or Yves Saint-Laurent

    Unique selling point (USP) refers to a special feature of a product that helps it to stand out among _____?

    <p>competitors</p> Signup and view all the answers

    Match the product types with their descriptions:

    <p>Premium products = High price, high quality Cowboy products = High price, low quality Economy products = Low price, low quality Bargain products = Low price, high quality</p> Signup and view all the answers

    What is one advantage of marketing planning?

    <p>It fosters interdependence among business functions.</p> Signup and view all the answers

    Marketing planning guarantees success for an organization.

    <p>False</p> Signup and view all the answers

    Which of the following statements is true regarding mass market products?

    <p>They are described as being 'for everyone'.</p> Signup and view all the answers

    Consumer profiles for mass market customers sound very specific and realistic.

    <p>False</p> Signup and view all the answers

    What is market segmentation?

    <p>The process of dividing potential customers into groups with similar characteristics.</p> Signup and view all the answers

    What is a key characteristic of consumer profiles in niche markets?

    <p>They are very specific and realistic.</p> Signup and view all the answers

    Demographic segmentation divides the market by _____ characteristics.

    <p>demographic</p> Signup and view all the answers

    Which of the following is a disadvantage of marketing planning?

    <p>It can be time-consuming and costly.</p> Signup and view all the answers

    Match the types of market segmentation with their definitions:

    <p>Demographic segmentation = Dividing market by age, gender, and similar factors Geographic segmentation = Dividing market by regions and climates Psychographic segmentation = Dividing market based on consumer lifestyles and values Behavioral segmentation = Dividing market based on user behaviors and decision-making processes</p> Signup and view all the answers

    What is one way in which marketing planning can motivate staff?

    <p>By providing clear objectives and strategies to work towards.</p> Signup and view all the answers

    Marketing planning can lead to increased bureaucracy in organizations.

    <p>True</p> Signup and view all the answers

    Which of the following is NOT a type of targeting?

    <p>Isolated targeting</p> Signup and view all the answers

    Psychographic segmentation only considers a person's wealth and social class.

    <p>False</p> Signup and view all the answers

    What is the purpose of consumer profiling?

    <p>To outline the description of a 'perfect customer' by listing their key characteristics.</p> Signup and view all the answers

    The process of selecting relevant market segments to sell to is known as _____ .

    <p>targeting</p> Signup and view all the answers

    Which brand is best associated with differentiated targeting?

    <p>Nike</p> Signup and view all the answers

    Match the types of targeting with their definitions:

    <p>Undifferentiated targeting = Targets all consumers without differentiation Differentiated targeting = Targets specific segments differently Concentrated targeting = Focuses on a narrow, specific group</p> Signup and view all the answers

    Positioning refers to how a brand is perceived in the minds of customers.

    <p>True</p> Signup and view all the answers

    What tool visually outlines customers' perceptions on brands/products?

    <p>Product Perception Map (PPM)</p> Signup and view all the answers

    Which of the following is NOT a differentiation strategy based on the marketing mix?

    <p>Geographical differentiation</p> Signup and view all the answers

    Cost leadership implies that a business provides the highest quality product at the lowest price.

    <p>False</p> Signup and view all the answers

    What does USP stand for?

    <p>Unique Selling Proposition</p> Signup and view all the answers

    Businesses that aim to minimize costs of production are pursuing __________.

    <p>cost leadership</p> Signup and view all the answers

    Match the following differentiation strategies with their descriptions:

    <p>Product differentiation = Creating unique features in products Price differentiation = Offering competitive pricing to attract customers Promotion differentiation = Using unique advertising approaches Place differentiation = Ensuring product availability in convenient locations</p> Signup and view all the answers

    Porter's Generic Strategies include which of the following?

    <p>Cost leadership</p> Signup and view all the answers

    Differentiation only relies on one element of the marketing mix.

    <p>False</p> Signup and view all the answers

    Name one method businesses can use to achieve cost leadership.

    <p>Economies of scale or improved supply chains or relocation</p> Signup and view all the answers

    Study Notes

    Marketing Planning

    • Involves setting marketing objectives and determining strategies for achievement.
    • Requires documentation for decision-making guidance.
    • A systematic and cyclical process that evolves through reflective actions.

    Advantages of Marketing Planning

    • Reduces risks by preparing for changes.
    • Fosters collaboration across all business functions.
    • Motivates staff by providing clear objectives and strategies.

    Disadvantages of Marketing Planning

    • Does not guarantee success due to unforeseen changes.
    • Can be time-consuming and costly, especially for large organizations.
    • May bureaucratize the organization, adding paperwork and accountability.

    Market Segmentation

    • Divides potential customers into groups with similar characteristics.
    • Demographic segmentation: based on age, gender, ethnicity, marital status, etc.
    • Geographic segmentation: based on location such as country, region, climate, etc.
    • Psychographic segmentation: based on lifestyles, hobbies, wealth, and social class.

    Targeting

    • Involves selecting relevant market segments to sell to, creating target market profiles.
    • Three types of targeting:
      • Undifferentiated (mass) targeting covers a broad audience, e.g., Coca-Cola.
      • Differentiated (segmented) targeting focuses on specific segments, e.g., Nike.
      • Concentrated (niche) targeting targets a narrow group, e.g., Billabong for surfers.

    Consumer Profiling

    • Outlines the characteristics of an ideal customer, akin to targeting and segmentation.
    • May describe a hypothetical customer with varied attributes.

    Positioning

    • Refers to how a brand/product is presented to create desired customer perception.
    • Businesses can manipulate positioning through product, price, and promotion.
    • Perception is formed in customers' minds and cannot be directly controlled.

    Product Perception Map (PPM)

    • A visual tool illustrating customer perceptions of brands/products based on quality and price.
    • Four categories:
      • Premium products: high price, high quality.
      • Cowboy products: high price, low quality.
      • Economy products: low price, low quality.
      • Bargain products: low price, high quality.

    Niche Market

    • A specifically defined group of potential customers with unique characteristics.
    • Marketing approaches are targeted and based on realistic consumer profiles.

    Mass Market

    • A broadly defined group of potential customers, typically non-targeted.
    • Products are designed to appeal to a wide audience, e.g., Coca-Cola.

    Unique Selling Point (USP)

    • A distinctive feature that differentiates a product or organization from competitors.
    • Often highlighted through elements of the marketing mix: product, price, promotion, etc.

    Differentiation

    • The process of using USP to position a product as unique.
    • Strategies can include product differentiation, price differentiation, and more.

    Porter’s Generic Strategies

    • A framework identifying cost and differentiation strategies for gaining competitive advantage.
    • Considers both broad and niche market targeting.

    Cost Leadership

    • A strategy aimed at being the lowest cost supplier in the market.
    • Focuses on minimizing production costs and maintaining profitability through volume sales.
    • Methods to achieve cost leadership include economies of scale and improved supply chains.

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    Description

    Explore the essentials of marketing planning in this quiz. Learn about setting marketing objectives, determining strategies for success, and the cyclical process involved in effective marketing decision-making. This comprehensive quiz will guide you through the critical components of effective marketing planning.

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