Marketing Planning

1. Marketing Planning Unit 4.2(continued)

2. Market Objectives Marketing objectives are the targets that the marketing department wishes to achieve. Will involve/determine some or all of the following: Market share Market leadership Product positioning Market development New Product Development Consumer satisfaction Product innovation High market standing

3. Setting Marketing Objectives The marketing objectives a business sets should be SMART in the same way as the overall objectives of the business. They should be: Specific stating exactly what is trying to be achieved, able to be measured to decide if they have been achieved, what usually involves setting targets, agreed by everyone involved, realistic and able to be achieved within constraints of the business and time specific stating exactly when they should be achieved

4. Constraints on achieving marketing objectives Finance Costs of production Size and status of the firm Social issues Time lags Activities and reactions of competitors State of the economy Political and legal environment

5. Role of market research Market research refers to activities designed to discover the opinions, beliefs and feelings of potential and existing customers. Market research involves collecting primary and secondary data and information to gain some insight and understanding into the structure of a market.

6. Categories of Market research Ad hoc-takes place on an �as and when necessary� basis. The focus is on specific market problem or issues. Continuous research-takes place on a regular and ongoing basis. It is carried out over and over ,perhaps monthly or yearly

7. Uses of market research Gives businesses up-to date and accurate information Allows a business to see whether current products meet the needs of customers. Allows businesses to improve their marketing by using a distinct marketing mix. Gives business an understanding of the activities and strategies used by their competitors.

8. Drawback of market research Data can be inaccurate or unreliable due to bias Costs of good market research is high Depends upon the research methodology used. Unreliable or inaccurate data generates poor quality output of information.

9. Classification of Market Research Market research is classified into primary research and secondary research. Primary research is the market research that involves gathering new data first-hand for a specific study.

10. Methods of conducting primary research Questionnaires Observations Experimentation Online surveys

11. Advantages of primary research Up-to date Relevance Confidential and unique Objectivity

12. Disadvantages of primary research Time consuming Costly Validity

13. Secondary research/desk research Involves the collection of second-hand data and information Example-reports in a newspaper or magazine, encyclopedia and internet

14. Advantages of secondary research Cheaper and faster to collect Huge range of sources that the researcher can use. Provides an insight to changes or trends in a whole industry.

15. Disadvantages of secondary research Can be out of date or can become outdated quite quickly. Data may be in an inappropriate format May provide only partial information as it was produced for a different purpose. Data is widely available to competitors.

16. Qualitative and Quantitative Market research Qualitative is a form of research that involves getting non-numerical answers and opinions from respondents. The main purpose of this research is to understand the behaviour ,attitudes and perceptions of customers or employees.

17. Types of Qualitative research Focus groups-getting small discussion groups together to provide an insight into the attitudes and behaviour of customers. In-depth interviews-involves an interviewer and a customer having a one-on-one interview to find out more about the interviewee�s personal situation and opinions.

18. Advantages of Qualitative research Better than quantitative research to explore the driving(motivators) and restraining forces( demotivators) concerning the behaviour and attitude. Very rich in depth. There is flexibility in the process. Can be inexpensive yet provide useful information. More realistic and representative responses.

19. Disadvantages of Qualitative research Findings cannot be used to represent the whole population Can be time consuming to conduct and interpret the findings. Cost of hiring skilled interviewers can be high. Validity of the findings becomes questionable because of interviewers bias.

20. Quantitative market research Relies on a much larger number of responses to get factful and measurable information rather than people�s opinions. It involves using a representative sample to gauge the views of the population.

21. Techniques of quantitative research Closed questions Example-true or false questions and multiple choice. Ranking or sliding scales Examples-using a scle from strongly agree to strongly disagree.

22. Advantages and disadvantages Are opposite of those for qualitative methods. Since the findings can be represented numerically, the results are easier to analyze.

23. Sampling methods -HL Sampling is the practice of selecting a small group of the population for a particular market for primary research purposes. There are numerous methods used to choose a particular sample. The five main methods of sampling are: random,stratified,cluster and snowballing.

24. Quota Sampling Aim is to obtain a sample that is "representative" of the overall population; the population is divided ("stratified") by the most important variables (e.g. income,. age, location) and a required quota sample is drawn from each stratum

25. Advantages of Quota Sampling Quick & easy way of obtaining a sample Findings are more reliable than simply asking anyone on a random basis.

26. DisAdvantages of Quota Sampling Not random, so still some risk of bias need to understand the population to be able to identify the basis of stratification Sampling errors occur since not everyone gets an equal chance to be sampled.

27. Random sampling/Probability sampling Ensures that every member of the population has an equal chance of selection The respondents are often randomly chosen by a computer using information from a database. This method is useful when all members of a population have the same or very similar characteristics.

28. Advantages of random sampling Simple to design and interpret Helps to minimize bias as everyone has an equal chance of being selected. easy to get a sample using this method.

29. Drawbacks of Random Sampling Need a complete and accurate population listing It is indiscriminate(may select people who are not part of the target group) sample size needs to be large enough to get representative results.

30. Stratified sampling This is similar to quota sampling. This method chooses a number of respondents from each stratum that is proportional to the population as a whole and then randomly selects them for interviewing.

31. Advantages of stratified sampling Findings will be more relevant and with less sampling errors.

32. Disadvantages of stratified sampling Is that it can be difficult to select relevant strata.

33. Cluster sampling Is used when getting feedback from respondents involves too much time. Units in the population can often be found in certain geographic groups or "clusters" (e.g. primary school children in Derbyshire. A random sample of clusters is taken, then all units within the cluster are examined

34. Uses of Cluster sampling Quick & easy; does not require complete population information It is not necessary to sample people from every location.

35. Drawbacks of Cluster sampling Expensive if the clusters are large Greater risk of sampling error and bias

36. Snowballing Refers to surveys or interviews carried out with individuals who then suggest other friends, family or colleagues to increase the sample. This technique is used when businesses are unable to get hold of appropriate respondents since the population is not clear.

37. Advantages of snowballing It is cheap to get hold of the research subject�s contact details.

38. DisAdvantages of snowballing It is extremely difficult to make unbiased estimates from the samples.

39. Conclusion Each sampling method has its own strengths and weaknesses. With all forms of sampling, there is a risk that the sample may not represent the population. Sampling errors such as bias or an inadequate sample size will hinder the validity of the findings. The best method of sampling for a business depends on its size, financial resources, the purpose of its research and the extent to which customers have homogeneous or heterogeneous tastes

40. Limitations of sampling and sampling errors(HL Extension) Sampling is not perfect science and the findings from a sample may not be absolutely reliable. There is always a chance that respondents do not give truthful answers. Careful sample designs can also help to reduce sampling errors.

41. Types of errors Non sampling errors �caused by human error or human behaviour. These arise from the researcher�s mistakes in recording, processing or analyzing data. It can also occur because respondents do not always give truthful and honest responses.

42. Continued Sampling errors-these arise from mistakes made in the sample design. Sampling errors may arise from many sources, for example-if sample size is too small, sample selected is not representative of the population, inappropriate sampling method is used or if there is bias present in the research.

43. Bibiliography Hoang,Paul,Business and Management,1st edition,IBID press,2007 Dave Hall, Rob Jones, Carlos Raffo, Business Studies, 3rd Edition, Causeway Press Ltd, 2005. Stimpson Peter, AS and A Level Business Studies, Cambridge University Press, 2000. Barratt Michael, Mottershead Michael, AS and A Level Business Studies, Pearson Education Ltd, 2000. www.bized.ac.uk www.tutor2u.net.