Summary Marketing Strategy - Chapter 22 (A-Level CIE Business 9609)
33 views 1 purchase
Course
9609 (9609)
Institution
CIE
This summary contains all the information from Chapter 22 that CIE could ask students about marketing strategy, such as:
Planning the marketing strategy
Marketing Plan (Purpose, contents, advantages and disadvantages)
Planning the marketing strategy
The changing roles of IT and AI in market...
Marketing strategy
22.1 Planning the marketing strategy
Marketing plan: a detailed and fully written report on the marketing objectives and
the marketing strategy to be used to achieve them
Contents of a marketing plan
● Purpose of the plan and the mission of the business
● Situational analysis - where the business is now, which includes market
research
● Marketing objectives - the strategy must be focused on achieving these
● Marketing strategy - the overall plan of action to be taken to achieve the
objectives
● Marketing mix - the combination of the 4Ps that is to be used
● Marketing budget - the resources available
● Executive summary and time frame for implementing the plan
Purpose and mission
● This gives information about the plan’s purpose
● Is the proposal a new business or a new product launch?
● The mission statement and other background information of the business help
users to report to understand where the marketing plan fits in with the
existing business
Situational analysis and market research
● We need to know where the business is now to make a marketing plan
● To develop effective marketing strategies, we need to know the following:
○ The current product portfolio
○ Market research into the target market (typical consumer profiles)
○ Competitor analysis - how many there are and their marketing mix
○ The economic and political environment - a PEST analysis
○ SWOT analysis
Marketing objectives
● All marketing strategies need clear marketing objectives to focus on
● These objectives should be SMART so that the progress made can be
monitored at regular intervals
● Marketing objectives can be measured in terms of:
○ Sales level to be reached by a given date (units or monetary values)
, ○ Market share target
○ Rate of sales growth
○ Profit margin targets for the new product
Marketing strategy
● The marketing strategy analyses how the business intends to achieve its
marketing objectives
● Marketing strategies could include:
○ Niche or mass marketing
○ Selling to the existing markets and consumers
○ Selling to a new market segment
○ Developing new markets (in other countries)
Marketing mix
● The marketing plan will give specific marketing tactics that will be used as part
of the coordinated strategy
● These tactics are the 4Ps of the marketing mix
● Details in the marketing plan will include:
○ Product - the USP the main differentiating factor
○ Price - whether skimming or penetration pricing
○ Promotion - the methods to be used
○ Place - the main distribution channels to be used
● The marketing plan should explain how the 4Ps are linked and coordinated
with each other and how they should work together to achieve the marketing
objectives
Marketing budget
● The plan should clearly state the amount to be spent on each promotion
method with a clear month-by-month timetable
● The total sum to be spent shouldn't exceed the allocated budget for the
launch of the new product
● There is little point in proposing a strategy that the business can’t afford
Executive summary and timescale
● A short overall summary of the plan and the timescale over which it will be
introduced
Reviewing the marketing plan
● How successful was the marketing plan?
● This is an important test of the marketing plan’s effectiveness
, ● According to its effectiveness, the
marketing plan might have to be
changed for the next period of time
● At the end of the planning period
under review, overall success must
be assessed and this information
will be used to help develop the
marketing strategy for the next
period
● Reviewing the marketing plan has to
be done continuously as it’s part of
the strategic planning cycle
Benefits of market planning
● The marketing plan is part of the
overall business plan, the plan demonstrates that a market exists for a
product which shows that it would be profitable to exploit the market and the
marketing mix tactics are appropriate for the market
● By following the stages of a plan, major potential risks are much reduced
because clear objectives are set, market research is undertaken, a
coordination strategy is used and promotion spending is kept within a budget
● Planning marketing activities helps to give clear directions to other
departments within the business
Limitations of market planning:
● Marketing plans take up management time and a small business may not
have the skilled management expertise to produce an effective and
professional plan
● Any plan can be affected by events in a fast-changing market, a complex,
inflexible plan could be a disadvantage
● A plan not based on adequate research of the market and consumers’
preferences can result in inappropriate marketing strategies being adopted
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bernadettgerends. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R287,04. You're not tied to anything after your purchase.
