Download Analyze Market Planning - Joplin Business Department

Analyze Market
Planning
SWOT Analysis
A company must take a good look at itself and it’s business environment,
or the market in which it operates.
 S=Strengths
 W=Weaknesses
 O= Opportunities
 T= Threats
This assessment lists and analyzes the company’s
strengths and weaknesses. It also includes the
opportunities and the threats that surround it. As
an analyst you are looking for anything that
could make the business fail.
Internal Strengths &
Weaknesses
The internal analysis centers around the 3 C’s:
Company, Customers, and Competition.
 Company Analysis:
 Staff-Related Questions
 Financial Questions
 Production Capability Questions
 Marketing Mix (Four P’s) Questions
Internal strengths and
weaknesses cont..
 Customer Analysis
 Who are the customers?
 How do groups of customers differ from one another?
 What, when, and how much do they buy?
 How do customers rate the company on quality, service,
value?
 How satisfied is each customer segment?
 What customer segments are not having their needs met?
 Is your customer base increasing or decreasing? Why?
Internal Strengths &
Weaknesses cont…
 Competitive Position:
 What is the company’s market share?
 What advantages does the company have over its
competitors?
 What core competencies does the company
possess? Does it have a better reputation, own a
patent, have special resources, or better distribution
capabilities?
 Are competitors taking business away from the
company? How? New Products? Better promotion?
External Opportunities &
Threats
 Competition
 Environmental Scan
 Political
 Economic
 Socio-Cultural
 Technological
Market
Segmentation
Identifying & Analyzing
Markets
 Marketers anaylze groups of customers to see if
any of them can be broken down into smaller,
more precise clusters. This process is know as:
Market Segmentation (p. 38)
Demographics Statistics that describe a population in terms of
personal characteristics such as:
 Age- by generation
 Gender
 Income
 Disposable income
 Discretionary income
 Marital Status
 Ethnic Background
Geographics
 Refers to segmentation of a market based on
where people live. Geographics relate closely to
demographics because of the similarity among
people who live in a certain area.
 Marketing to Latinos
 Marketing to children
 Marketing to elderly
 Marketing to wealthy
Psychograhics
 Grouping people with similar lifestyles, as well as
shared attitudes, values, and opinions.
Consumer lifestyles include how people spend
their time and money. Attitudes, values, and
opinions require research to learn more about a
group’s personality traits and motivation.
 Activities- look at the variety of magazines offered at
a book store, this is a good way to get a feel for
market segmentation. Each magazine represents a
market segment
 Attitudes- health conscious, parents.
 Personality & Values- religious, comedy, etc.
Behavioral
 Involves looking at the benefits desired by
customer, shopping patterns, and usage rate.
Many people regardless of their income desire luxury
and premium merchandise. The luxury market is a
growing consumer trend.
 Credit card companies provide marketing research
 Companies have clubs or free memberships, you get
coupons and they get research.
The Rule of 80/20
This means that 80 percent of a company’s sales are
generated by 20 percent of its loyal customers.
Mass Marketing Vs.
Segmentation
 Mass Marketing is used when a product has
universal appeal and few features differentiate
them from competitors. A single marketing
strategy is used to reach all customers.
 The current trend is niche marketing, which
means that markets are narrowed down and
defined with extreme precision.