7.2 - Marketing Planning Part 2

7.2 - Marketing Planning Part 2

Why is market research so important? 

Market research is the process of collecting, recording and analysing data about customers, competitors and the market. It is concerned about whether a customer will buy a product, but furthermore trying to analyse their reaction to different price levels, alternatives forms of promotion, new types of packaging, different methods of distributions,etc. (Notice how this all evolves back to the 7Ps).  Market research enables companies to reduce risks associated with new product launches, to predict future demands, to explain patterns in sales of existing products and market trends and to assess the most favoured promotions and packages for a certain product. They conduct both primary and secondary data research in order to provide an accurate overview of the market and consumer behavior. 

To do so, they implement market segmentation and consumer profile. 

Market segmentation: identifying different segments within a market and targeting different products or services to them. Thus, instead of selling one product to a mass public, different variations are sold to different target markets (the market segment that a particular product is aimed at). This is a form of niche marketing. The three most commonly used bases for segmentations are: 

1. geographic differences/areas 

2. demographic differences: age, sex, family size, ethnic background, culture, social class

3. psychographic factors: differences between people’s lifestyle, personalities, values and attitudes. 

Market segment: a sub-group of  whole market in which consumers have similar characteristics

Consumer profile: a quantified picture of consumers of a product, showing proportions of age groups, income levels, location, gender and social class. 

Positioning: before targeting a niche market, businesses often analyse consumers’ perceptions of existing brands. This allows them to identify the potential gaps within a market and how they can fill it either through the product itself( aka changing it) or through branding (how they present it). 

Unique selling point/proposition (USP): differentiating factor that makes a company’s product unique, designed to motivate customers to buy.  

CORPORATE IMAGE

In a competitive climate, businesses strive to create and communicate a positive image to their customers and stakeholders, while boosting the corporate image (consumer perception of the company behind a brand). A positive corporate image should focus on long term reputation, honest/ethical dealings, uphold the stakeholders’ right to information about the company and its activities, and develop good company policies. While marketing might not directly interact with the corporate image, the marketing planning reflects it. 

Conclusion

Marketing planning is far more than flashy ads or catchy slogans—it’s a structured, research-driven process that aligns product, price, promotion, and place with a company’s goals and market realities. It requires insight, analysis, and strategic thinking. Whether identifying target audiences or adjusting to competition, effective planning shapes every marketing decision.