BUS502 Study Guide

Unit 1: Marketing Planning Process

1a. Explain the importance of the marketing planning process for a marketer

  • What is the marketing planning process?
  • What is included in the marketing planning process?
  • What are the steps to create a marketing plan?

Every good marketing strategy begins with a good plan. It is important to create a plan, and there are a few ways to do this. This section includes information on what those processes are and how to create your own marketing plan. In addition, the marketing strategy may also include goals from a corporate strategic plan and may need to be revised based on the changing needs of the business and the marketplace.

The marketing planning process includes the strategic plan, resources needed to complete the plan, and how those goals are aligned with the overall organization. The marketing planning process allows for future growth and sales. It is important to create a strategic marketing plan so you know in what direction the marketing should be focused.

To review, see Marketing Plans and Strategies.

 

1b. Relate the environmental analysis methods of SWOT and PESTLE to the marketing planning process

  • What does SWOT mean?
  • What is PESTLE?
  • How can you apply SWOT to the marketing planning process?
  • How can you use PESTLE in a marketing plan?

There are a few resources that can be used to develop a marketing planning process. Strengths, weaknesses, opportunities, and threats (SWOT) is a resource that is useful when creating a marketing planning process. Reviewing and completing a SWOT analysis will help to give an overall picture of what needs to be accomplished in a marketing plan. It is a great place to begin and will assist in understanding the issues and what needs to be resolved.

A PESTLE analysis is another great resource when beginning the marketing planning process. PESTLE stands for political, economic, social, technological, legal, and environmental. A PESTLE analysis helps to identify and build a strategic marketing plan that will account for these environmental issues that are part of an organization.

To review, see Environmental Analysis.

 

1c. Apply the 4Ps of marketing (the marketing mix) to plans for marketing a product or service

  • What are the four Ps of marketing?
  • How can you apply the 4Ps of marketing to a product or service?
  • Why is it important to understand the four Ps?

The 4Ps of marketing are product, promotion, place, and price, and each one will guide you in developing a better marketing plan for a product or service. In marketing, it is important to define the 4Ps when creating any marketing plan, as this will create value for the consumer, and in turn, the company will benefit as well. As you read through the next four sections, think about how you might address the needs of each of the 4Ps.

  1. Product: Think about the product as it relates to the consumer. What needs and wants does this product address? Why would the consumer be interested in buying the product? What are the benefits of the product? Is the product unique, or does it have a benefit that might stand out from competitors?
  2. Price: Is the price in line with similar products, or are the features and benefits so different that a premium price might be appropriate? Will any discounts be available, and if so, how easy will it be for the consumer to obtain any discounts? Can this product be combined with any other product for a discount (for example, buying an iPhone and iPad)?
  3. Place: Will this product only be sold online, or can the consumer try it out in person before they buy? If it can only be purchased online, can it be returned if the consumer does not find it useful?
  4. Promotion: How can you promote this product? How will the company communicate features and benefits to consumers? How easily can the consumer interact with the company if they have questions about the use of the product? Can influencers promote the product before it is available for sale?

To review, see The Marketing Mix.

 

1d. Relate segmentation, targeting, positioning, and differentiation to marketing plans for specific groups

  • What is an example of how segmentation can be used in marketing?
  • Why is it important to understand segmentation?
  • How do you use segmentation to reach a specific group of people?

When promoting a product, it is important to understand who you are selling to and how you will reach those people. Using segmentation to understand the demographics of the consumer is crucial when developing a marketing plan. Demographics might include age, race, gender, homeownership, or people in a specific income range. If the target market is females between 25 and 40 years of age, then demographics will allow you to segment the specific market you need to promote a product to.

Understanding who the target market is for a specific product will allow you to focus on that market instead of all people. The more focused you can be about the target market, the more likely it is that you will find appropriate buyers.

Differentiation occurs when you can set your product apart from others in the marketplace. If the product you are promoting has different features or benefits, then it will be important to focus marketing on those features to set this product apart from others. Positioning may occur when the features and benefits of a product are vastly different from others in the marketplace, and then a higher price point may be needed.

To review, see Segmentation, Targeting, Positioning, and Differentiation.

 

1e. Apply the concepts of ethics and social responsibility to marketing planning to protect people and the environment

  • Why is it important to take ethics and social responsibility into consideration in marketing?
  • In marketing, how does social responsibility protect people?
  • In marketing, why is it important to consider the environment?

Today, being socially responsible and ethical is important to consider when developing a marketing plan. It is important for any marketer to recognize their ethical obligation when it comes to marketing research and communications as well as to promoting products and developing a marketing plan. Since consumers take ethical issues into consideration when purchasing a product, companies must respond with ethically produced products and marketing that focuses on social responsibility.

A good example of ethical social responsibility is when the creator of the Keurig coffee machines did not take into consideration that the initial K-cups were not recyclable. Even though the company worked quickly to make this change to the K-cups, the media frequently questioned this process, and the company was often asked about this oversight. Later, after being frequently questioned about this issue (even though it had been rectified), the Keurig company owner made comments that he wished he had never created the product in the first place. Thinking through the process of ethics and social responsibility is important for any company and any marketing department.

To review, see Ethics and Social Responsibility.

 

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • 4Ps of marketing
  • differentiation
  • marketing planning process
  • PESTLE analysis
  • positioning
  • segmentation
  • socially responsible
  • SWOT (strengths, weaknesses, opportunities, and threats)
  • target market