4.

2 MARKETING
PLANNING
MARKETING PLANNING

• A formal document which outlines the details of how a

business plans to achieve its marketing objectives as
derived from its corporate objectives.
MARKETING MIX

• Effectively combining key decisions in the areas of

product, price, promotion, and place to successfully
market a product.
THE 4 P’S OF MARKETING

Product
Price
Promotion
Place
WHAT IS A PRODUCT?

• Tangible or Intangible
• Perishable or durable
• Producer or consumer product
PRODUCT

• The right product could include:

• An existing product
• An updated existing product
• A new product
PLC
EXTENSION STRATEGIES

Redesign
Product differentiation
Repack
New market
Price reduction
BCG MATRIX
BRANDING

• Brand awareness
• Brand development
• Brand loyalty
• Brand value
PRICE

The right price must be set for the product

Too low – the product quality may be perceived as low quality

Too high – the customer may not be able to afford the product

Can you identify a product that fits into a too

LOW price and a too HIGH price category?
PRICING STRATEGIES

• Cost plus (Mark-up)

• Penetration pricing
• Price skimming
• Psychological pricing
• Loss leader
• Price discrimination
• Price leadership
• Predatory pricing
TASK TO DO……

• Identify an organization of multiple product portfolios

• Select a product and provide the PLC
• Categorise the products using BCG matrix
• Identify the pricing strategies practiced by the enterprise.
PROMOTION
Telling your customer about your product and convincing them to
buy.

Packaging is considered part of promotion and can reinforce image

or create a product preference.

Time to reflect:

Can you think of any promotion activities that encouraged you to

make a purchase?
Can you think of any creative packaging that would make you
purchase one product over another?
TYPES OF PROMOTION

• Above the line (ATL)

• Television
• Radio broadcasting
• Movie theatres
• News paper & Magazines
• Outdoor Hoardings & Flex
• Below the line (BTL)
• Slogans & Logos
• Word of mouth
• Direct mail & Marketing
• Sponsorship
• Packaging & Publicity
• Point of sale
PROMOTIONAL MIX

• Advertising
• Personnel selling
• Public relations
• Sales promotion
• AIDA
• Attention
• Interest
• Desire
• Action
ROLE OF TECHNOLOGY

• Social marketing
• Social networking
• Viral (Peer to Peer)
• Guerrilla marketing (Stealth marketing)
PLACE

• Distributing the product to the proper PLACE so

customers can make a purchase.
If your product is not available at the right time
and place, customers cannot buy it.

• Reflect……
Where might you make purchases?
How is “PLACE” changing?
Is place being influenced by technology?
CHANNELS OF DISTRIBUTION

Zero level (P to C)
One level (P-R-C)
Two level (P-W-R-C)
OTHER CHANNELS

• Telemarketing
• E-commerce
• Auto-vending machines
• Direct mail
 THE 3 OTHER P’S
There are 3 more P’s – related to Service

People: Selling services require people to create a

positive experience for the customer (restaurants,
hair salons)
Process: Satisfying customer needs as part of
marketing services (automatically renewing a
membership of potential customer)
Physical Evidence: Customers can see for
themselves the quality of the product (a clean lobby
at a hotel, table clothes used a nice restaurant)
 SUCCESSFUL MARKETING MIX
The marketing mix must be consistent in order
to be successful in sending a clear message to
customers.
Example: McDonald’s
Product: Fast Food
Price: Inexpensive to moderate
Promotion: Billboards, road signs, TV
commercials
Place: Convenient, busy streets
People: FAST service, Order takers, Drive thru
Physical Evidence: Clean
HOW TO PROCEED?

Target market
Market segment
Consumer profile
Demographic
Geographic
Psychographic
HOW MANY MARKETS?

• Niche market
• Mass market
PRODUCT POSITION
(PERCEPTION) MAP
PORTER GENERIC STRATEGY
WHAT IS USP?
MARKETING ETHICS

• Ethical marketing issues are increasing with the globalization

of the world’s markets.
• What do you think of these situations?
• Sell a printer cheaply or give it away to sell expensive ink
cartridges.
• Advertise low airfare then add taxes and surcharges after the
purchase has been made.
• Close retail stores and only sell on the Internet when your customer
base historically does not use computers.
• Buy cheap raw materials to decrease a products price.
MARKETING AUDIT

• A regular review of the cost and effectiveness of a

marketing plan including the analysis of external and
internal influences.
MARKETING AUDIT

A marketing audit answers the question:

What is our current situation?
3 Factors:
Examine INTERNAL strengths and weaknesses
Examine EXTERNAL opportunities and threats
Review progress of the plan:
Market share – how does it compare with the objective
Actual sales performance – is it meeting original sales
goals
Is the company meeting its SMART objectives