P&B Chapter 02 PDF

7/19/2024 CHAPTER 2 Marketing Planning 2.1 What is Marketing planning? Marketing planning is the process of defining activities that will support business goals and establishing a timeline for when that work will be. comp...

7/19/2024 CHAPTER 2 Marketing Planning 2.1 What is Marketing planning? Marketing planning is the process of defining activities that will support business goals and establishing a timeline for when that work will be. completed. Example 1  7/19/2024 2.2 Key Components of a Marketing Plan There are 11 of Key Components of a Marketing Plan: 1. Executive summary 2. Mission statement 3. Market analysis 4. SWOT analysis 5. Competitor analysis 2.2 Key Components of a Marketing Plan 6. Target market and buyer personas 7. Marketing objectives and KPIs 8. Pricing strategy 9. Marketing channels 10.Growth strategy 11.Budgeting 2  7/19/2024 2.2 Key Components of a Marketing Plan 1. Executive summary The executive summary explains the overall purpose of marketing plan and briefly describes all the relevant components. 2.2 Key Components of a Marketing Plan 2. Mission statement A mission statement is a short statement reflecting the purpose of business at that point in time. It can talk about what firm does, the types of products and services offer, target market, or competitive advantage. Example: “ To become the number 1 fashion destination for 20-somethings globally. 3  7/19/2024 2.2 Key Components of a Marketing Plan 3. Market analysis Chapter ONE 4. SWOT analysis A SWOT analysis looks at the internal and external environment your business operates in. Strengths refer to what business does well, tangible assets and internal resources, and what sets apart from the competition. Weaknesses include areas where your business needs to improve, resource limitations, and places where your competitors are excelling. 2.2 Key Components of a Marketing Plan Opportunities refer to industry as a whole, including underserved markets, lack of competitors, growing popularity for the products/services you provide, and positive media coverage of your industry. Threats include parts of the external environment that could potentially harm business, like new laws and regulations, negative media coverage, decline of your industry, and emerging competitors. 4  7/19/2024 2.2 Key Components of a Marketing Plan 5. Competitor analysis Refer to offer a similar product or service to other companies, or offer more valuable. 6. Target market and buyer personas Demographics - age, gender, income, education, occupation, marital status Geographics - location (country, region, state, city, town), climate, culture Psychographics - lifestyle, attitudes, risk tolerance, aspirations, personality, values, struggles, pain points, goals Behavioral attributes - preferred channels and content types, loyalty, frequency of purchases, affiliations 2.2 Key Components of a Marketing Plan 6. Target market and buyer personas 5  7/19/2024 2.2 Key Components of a Marketing Plan 7. Marketing objectives and KPIs key performance indicators, are the metrics will track to determine if the company met objectives. It’s also important to track how your KPIs change over time. Here are some example KPIs to track based on your campaign: Social media - followers, engagement rate, mentions, reach, ROAS Content - comments, shares, downloads, conversion rate, leads, search ranking Website - organic traffic, paid traffic, keyword rankings, session duration, bounce rate, conversion rate, CPA App - weekly active users, activation rate, conversion rate, churn rate, CLTV 2.2 Key Components of a Marketing Plan 8. Pricing strategy How will price for products and services. There are many types of pricing strategies, but these are the main three: Price skimming - price above competitors to recapture margins, and lower the price as time passes. With this strategy will likely sell fewer products at a higher price point. Competitive pricing - base your pricing off of what competitors are charging Penetration pricing - price below competitors to increase market share, gain customers, and sell more units. 6  7/19/2024 2.2 Key Components of a Marketing Plan 9. Marketing channels Consider the best channels to promote business on. Firm may even decide to create a separate social media and/or content marketing strategy. 10. Growth strategy 11. Budgeting Competition The four types of competition— 1. perfect competition, 2. monopolistic competition, 3. oligopoly, 4. and monopoly. 7  7/19/2024 Competition Perfectly competitive markets are defined by a homogeneous product, many sellers with low market share, and absolutely no barriers to entry or exit Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry are low, Products can be differentiated in a number of ways, including quality, style, convenience, location, and brand name Competition Oligopoly means few sellers. In an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace Monopoly means one seller in the market, and there is barriers to entry. The market could be a geographical area, such as a city or a regional area, and doesn’t necessarily have to be an entire country. 8