Download Unit 2 Marketing Planning

1. Understand the concept of market and market
identification
2. Understand the concept of market segmentation
3. Understand the importance of evaluating marketing
plans
Students 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
Market
1. Market – all potential customers who have the
ability and willingness to buy
Target Marketing
1. Focusing all Marketing efforts on a very specific
group of people who you want to reach.
1. Customers – people who
buy the product
1. 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 Analysis
The situation analysis is the foundation of the
strategic planning process.
S: Strengths - Internal
W: Weakness - Internal
O: Opportunities - External
T: Threats - External
The study of the internal and external factors that
affect marketing strategies. (test)
Students 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 Markets
1.Market segmentation is a way of
analyzing a market by specific
characteristics as in order to define the
target market.
Types of Segmentation:
Demographics
2. Psychographics
3. Geographics
4. Behavioral
1.
Demographics
1. Demographics – statistics that describe a
population in terms of personal
characteristics. Demographics include:
2. Age
A. Baby Boom Generation
B. Generation X
C. Generation Y
3. Gender
4. Marital Status
5. 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. Activities
B. Attitudes
C. 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
Geographics
1. Geographics –
Segmentation based on
where people live
A. Political Boundary
B. Climate
C. Natural Boundary
Behavioral Segmentation
1. Looking at the benefits desired by consumers,
shopping patterns, and usage rate. Market
benefits, not just the physical characteristics of a
product
Behavioral Segmentation
1. 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 Segmentation
1. Mass marketing not as popular as it once was.
2. Niche marketing (the current trend) – markets are
narrowed down and defined with extreme
precision.
Students 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
Ad Agencies must now prove, through research,
what the outcomes of advertising will be. Businesses
will no longer spend money on an ad campaign
because if “feels” like it will work. Businesses want
guarantees!
Monitor and evaluate marketing
plans
Listed 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