marketing planning chapter 2 mrs. newbegin. the marketing plan swot analysis – an assessment that...

Marketing Planning

Chapter 2Mrs. Newbegin

The Marketing Plan

SWOT Analysis – An assessment that can foster the business’ success and what could make it fail.

Strengths Weaknesses Opportunities Threats

SWOT Analysis

Internal Strengths and Weaknesses affect a business’ operations.

SWOT Analysis

The 3 C’s of Internal Analysis: Company Customers Competition

SWOT Analysis

Company Analysis – Ask questions to determine what is going well and where weakness are

Look at: Staff Finances Production Marketing Mix

Staff Related Questions

What is the company mission and is everyone following it?

What is the quality of staff?

How effective is the sales force?

Financial Questions

Has the company been profitable?

Are there enough financial resources to achieve company goals?

What is the sales history?

Production Capability Questions

How are adjustments made in production related to sales?

Has R & D created successful new products?

What changes in technology are required to remain competitive?

Marketing Mix Questions

Product What new products have

been successful and why?

Are any patents expiring in the future?

Price What are the present

pricing strategies? Are the pricing strategies

working?

Marketing Mix Questions

Promotion How is the company

positioned in the market place?

What is the companies’ reputation?

Place Do products easily reach

customers? Who helps the company

with distribution?

Customer Analysis and Marketing Research

Helps to determine buying habits and insight into product offerings and pricing strategies.

Catalog and Internet companies have an advantage due to using database systems that track customers shopping habits. They can target specific groups.

Many companies use questionnaires or surveys.

Monitoring customer satisfaction reveals strengths and weaknesses.

Competitive Position

You want a larger part of the market share (over your competitor)

Find out your advantages over other companies, what core competencies it has, are competitors taking

business away…

how?

SWOT Analysis

External Opportunities and Threats look at the competition of the business.

Competition

You have to know what your competitors are doing at

all times

Environmental Scan

An analysis of outside influences that may affect your business – Look at: Politics Economics Socio-cultural Technology

Changes

Political

Companies must be alert to changes in laws and regulation, especially international deals.

Examples: Do not call registries, Music Pirating, etc.

Economic

When the economy is robust, companies will invest in new products.

Factors: Unemployment Rate Inflation Retail Sales Figures Productivity Consumer Confidence

Socio-Cultural

Analysis of customers and potential customers

Changes in all demographic factors

Technological –

Can be a threat for one company and an advantage for another.

Examples: Computer

Automation Satellite Technology

The Marketing Plan

The Report….

Marketing Plan

A formal, written document that directs a company’s activities for a specific period of time.

It is a “road map” of how products will

enter the market.

Elements of a Marketing Plan

7

Sections

1. Executive Summary

Brief overview of the entire plan

2. Situation Analysis

The study of the

internal and external factors

3. Goals and Objectives

Objectives let everyone know what the plan will accomplish in a measurable way.

A time frame is needed for each objective that is in line with the company’s goals and mission.

4. Marketing Strategies

Identifies target markets and sets marketing mix choices that focus on those markets.

5. Implementation

Make the Plan and Work the Plan

Have a timetable that shows when each part goes into play

Sales forecasts needed – the projection of probable future sales

6. Evaluation and Control

Discusses the measure that will be used to access the plan and who is responsible for that evaluation.

Performance Standards and Evaluation

The Measuring Stick

An expectation of performancethat reflects the plans objectives.

8.Appendix

Contains supplemental materials (Charts, Graphs, etc)

2.2 Market Segmentation

Identifying and Analyzing Markets

Looking at customers and grouping them by similarities.

Market Segmentation

Taking a target market and breaking it down into smaller sub-groups.

Example: Jeans Gender, Age,

Features, Price.

Demographics

Statistics that describe a

population in terms of personal

characteristics

Age

Look at Generations: Veterans/Silent BabyBoomers Gen X Gen Y = Millennial

Gender

Male or Female

Income

Disposable Income – Money after paying taxes

Discretionary Income – Money after paying needs/basic living expenses

More Demographics

Marital Status Ethnic Background – Multicultural diversity Education Occupation

Geographic: Based on where people live

Locally Regionally Nationally Internationally or Globally

Psychographics

Grouping people based upon what they do and believe

Lifestyles – How people spend their time and money

Activities, Attitudes, and Personalities

Behavioral

Segmenting a market based on product related to behavior involves looking at the benefits desired by consumers, shopping patterns, and usage rate.

Mass Marketing vs. Segmentation

Mass Marketing – Using a single marketing strategy to reach all customers

Got Milk? will use different models or themes to reach different segments of the market though it is only one slogan.