Standard 02 – Market PlanningWhat You’ll Learn . . .

1.Understand the concept of market and market identification

2.Understand the concept of market segmentation

3.Understand the importance of evaluating marketing plans

Standard 2 Day 1Students will be able to:•Understand the concept of market and market identification

• Define the term “market”• Define the term “target market”• Understand how to identify an

appropriate target market• Understand the difference between

B2B marketing and B2C marketing• Explain the role of situational analysis

in the marketing planning process

Market1.Market – all potential customers who

have the ability and willingness to buy

Target Marketing1.Focusing all Marketing efforts on a very

specific group of people who you want to reach.

1.Customers – people who buy the product

2.Consumers – people who actually use the product

Is mom the customer or the consumer?

What about the kids?

B2B vs. B2C

B2B – “Business-to-Business” A business that markets its products or services to other businesses.

B2C – “Business-to-Consumer” A business that markets its products or services to consumers.

Situational AnalysisThe situation analysis is the foundation of the strategic planning process. S: Strengths - InternalW: Weakness - InternalO: Opportunities - ExternalT: Threats - External

The study of the internal and external factors that affect marketing strategies.

Standard 2 Day 2Students will:• Understand the concept of market

segmentation. • Define the term market

segmentation• Understand common methods used

to segment a market (demographic, psychographic, geographic, and behavioral)

Analyzing Markets1.Market segmentation is a way

of analyzing a market by specific characteristics as in order to define the target market.

Types of Segmentation:1. Demographics2. Psychographics3. Geographics4. Behavioral

Demographics1.Demographics – statistics that describe

a population in terms of personal characteristics. Demographics include:

2.AgeA. Baby Boom GenerationB. Generation X C. Generation Y

3.Gender4. Marital Status5. Ethnic Background

U.S. Trend – The percentage of the Caucasian population is declining, while other ethnic populations increase.

Psychographics 1.Involves grouping people

with similar lifestyles, as well as shared attitudes, values, and opinions.A. ActivitiesB. AttitudesC. Personality & Values

Music teachers,

dancers, and other music

lovers would be one category of

people who share

psychographic characteristics.

VALS™ is a marketing and consulting tool that helps businesses worldwide develop and execute more effective strategies. The system identifies current and future opportunities by segmenting the consumer marketplace on the basis of the personality traits that drive consumer behavior. VALS applies in all phases of the marketing process, from new-product development and entry-stage targeting to communications strategy and advertising.

Click on VALS to learn more and to take a survey to determine your VALS type

Geographics1.Geographics –

Segmentation based on where people liveA. Political

BoundaryB. ClimateC. Natural

Boundary

Behavioral Segmentation1.Looking at the benefits desired by

consumers, shopping patterns, and usage rate. Market benefits, not just the physical characteristics of a product

Behavioral Segmentation1.Many businesses find that the 80/20 rule

applies.2.80 % of a company’s sales are generated

by 20 % of its loyal customers.

Mass Marketing Vs Segmentation1.Mass marketing not as popular as it once

was.2.Niche marketing (the current trend) –

markets are narrowed down and defined with extreme precision.

Standard 2 Day 3Students will:• Understand the importance of

evaluating marketing plans. • Define Return on Marketing

Investment (ROMI)• Explain methods to monitor &

evaluate the performance of marketing plans.

ROMI Return on Marketing Investment – A measurement organizations calculate that helps them evaluate their marketing investment

Monitor and evaluate marketing plansListed below are a few metrics or tools used to evaluate marketing plans:

-Sales-Profit-Market Share-Growth vs. previous year-Comparisons with competitors-Exposure-Brand awareness