THE WORLD OF MARKETING SECTION 2 1 MARKETING

THE WORLD OF MARKETING

SECTION 2. 1 MARKETING PLANNING Learn how to conduct a SWOT analysis. List the three key areas of an internal company analysis. Identify the factors in a PEST analysis. Explain the basic elements of a marketing plan.

THE MAIN IDEA A company looks at itself and the world around it to create a marketing plan for reaching goals.

SWOT The SWOT analysis is an assessment that lists and analyzes the company’s strengths and weaknesses. It also includes the opportunities and the threats that surround it. The acronym for strengths, weaknesses, opportunities, and threats is also the name of this process: SWOT analysis.

COMPANY ANALYSIS Questions that are part of a company’s internal analysis are about what a company does well (core competencies) and what areas are weak. This includes a review of the staff, the company’s financial situation, its production capabilities, and each aspect of the marketing mix (product, promotion, place, and pricing).

MARKETING MIX: PRODUCT Choosing what products to make and sell §Product development design features improvements

MARKETING MIX: PRICE What is exchanged for the product? §What are customers willing to pay? §Consumer prices versus reseller price. §What does the competition charge?

MARKETING MIX: PLACE The means of getting the product into the consumers’ hands. §Which geographic areas? §Which channels of distribution? §Sold directly or through intermediaries?

MARKETING MIX: PROMOTION How customers will be told about a company’s products. §Advertising, personal selling, sales promotions, and publicity. §The message and media selected.

CUSTOMER ANALYSIS Customers are a great source of information. Studying their buying habits reveals patterns that offer insights into product offerings and pricing strategies.

COMPETITIVE ANALYSIS A company may find that it has certain strengths and weaknesses when compared to its competitors.

EXTERNAL OPPORTUNITIES AND THREATS Companies must always look for opportunities to create competitive advantage due to external factors. §Competition

PEST ANALYSIS A PEST analysis is the scanning of outside influences on an organization. This is a methodical look at the world that typically includes four factors: § Political issues § Economic factors § Socio-cultural factors § Technology

WRITING A MARKETING PLAN A marketing plan is a formal, written document that directs a company’s activities for a specific period of time. A marketing plan also communicates the goals, objectives, and strategies of a company’s management team.

ELEMENTS OF THE MARKETING PLAN Executive summary Situation analysis Objectives Marketing strategies Implementation Performance standards and evaluation Appendix

EXECUTIVE SUMMARY An executive summary is a brief overview of the entire marketing plan.

SITUATION ANALYSIS Situation analysis is the study of the internal and external factors that affect strategies.

OBJECTIVES Objectives let everyone know what the marketing plan will accomplish. Marketing objectives must be in line with the organization’s goals and mission.

MARKETING STRATEGIES A marketing strategy identifies target markets and sets marketing mix choices that focus on those markets.

IMPLEMENTATION Implementation is putting the marketing plan into action and managing it.

EVALUATION AND CONTROL In the evaluation section of the marketing plan, measures that will be used to evaluate the plan are discussed. § It is important to explain exactly how a specific objective will be measured and who will be responsible for providing that evaluation.

PERFORMANCE STANDARDS A performance standard is an expectation for performance that reflects the plan’s objectives.

APPENDIX The appendix is the section of the marketing plan that includes supplemental materials such as financial statements, sample ads, and other materials that support the plan.

MARKET SEGMENTATION

EQ’S Explain the concept of market segmentation. Analyze a target market. Differentiate between mass marketing and segmentation.

THE MAIN IDEA The key to marketing is to know your customer or target market. Market segmentation helps identify the target market.

IDENTIFYING AND ANALYZING MARKETS Market Segmentation- the process of classifying people who form a given market into even smaller groups.

GATHERING DATA Private Researc h Government Data Gatherin g Data Compan y Researc h Trade Associations

TYPES OF SEGMENTATION Demographic- Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background. Geographic- Segmentation of the market based on where people live.

TYPES OF SEGMENTATION CONT’D Psychographics- Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values. Behavioral-Segmenting the market based on purchasing-related behavior involves analyzing your customers with regard to sales generated, shopping patterns, and purchase decision-making processes.

MASS MARKETING VS SEGMENTATION Mass marketing involves using a single marketing strategy to reach all customers. Advantages Disadvantages • Economies of scale • Competitors can identify Companies can produce unmet needs and wants more products at lower and then steal customers costs because their product, promotion, pricing, or distribution does not change. • Simplified marketing plan

MASS MARKETING VS SEGMENTATION Niche marketing narrows and defines a market with extreme precision, which increases the chances of a product’s success. Advantages Disadvantages • Extremely precise • Cost – Research • Increased chance for – Production success – Packaging – Advertising