Download Marketing Planning

Marketing
Planning
Chapter
2
The Marketing Plan
• Section 2.1 Marketing Planning
• Section 2.2 Market Segmentation
Marketing Planning
Key Terms
SWOT analysis
environmental
scan
marketing
plan
executive
summary
situation
analysis
marketing
strategy
sales forecasts
performance
standard
Objectives
• Conduct a SWOT analysis
• List the three key areas of an internal company
analysis
• Identify the factors in an environmental scan
• Explain the basic elements of a marketing plan
Marketing Essentials Chapter 2, Section 2.1
Marketing Planning
SWOT analysis
An assessment
of a company’s
strengths and
weaknesses and
the opportunities
and threats that
surround it;
SWOT:
strengths,
weaknesses,
opportunities,
threats.
Good marketing relies
on good plans. A
business can analyze its:
Strengths
Weaknesses
Opportunities
Threats
in the marketplace using a process called a
SWOT analysis X.
This procedure helps because it:
• prepares a company for competition or a
changing marketplace.
• provides guidance and direction for
future marketing strategies.
Marketing Essentials Chapter 2, Section 2.1
Internal Strengths and Weaknesses
Strengths and weaknesses are internal
factors that affect a business operation.
The analysis centers around three Cs:
•Company
•Customers
•Competition
Marketing Essentials Chapter 2, Section 2.1
Internal Strengths and Weaknesses
• Company
When evaluating itself, a company must analyze these areas:
• Company staff
• Financial situation
• Production capabilities
The company must also consider the four Ps of the Marketing Mix:
1. Product
2. Place
PRODUCT
3. Price
PLACE
4. Promotion
Marketing Essentials Chapter 2, Section 2.1
PRICE
PROMOTION
Customer Analysis
• Customers
Companies study customer buying patterns
using surveys or conducting interviews
with people in their target markets. These
methods gather information that helps to:
• find out what customers are pleased or
dissatisfied with.
• create interest-specific ads and catalogs.
Marketing Essentials Chapter 2, Section 2.1
Competitive Position
• Competition
A company may find that it has certain
strengths and weaknesses when compared to its
competitors. Questions that help a business to
analyze its competitive position are:
• What market share does the company have?
• What advantages does the company have
over its competitors?
• What core competencies does the company
possess?
Marketing Essentials Chapter 2, Section 2.1
External Opportunities
and Threats
Businesses must always look
for opportunities to create
competitive advantage if they
are to succeed in the
marketplace.
Marketing Essentials Chapter 2, Section 2.1
Competition
Companies need to know what their
competitors are doing at all times.
Changes in other companies’ financial
situations affect the marketplace, and
conducting a SWOT analysis helps a
business react and adjust to these
shifts.
Marketing Essentials Chapter 2, Section 2.1
Environmental Scan
environmental
scan
An analysis of
outside
influences that
may have an
impact on an
organization.
Often, a business will conduct an
environmental scan to methodically
examine four main areas of the marketplace.
The acronym PEST refers to each of the four
factors evaluated in the scan:
• Political
• Economic
• Socio-cultural
• Technological
Marketing Essentials Chapter 2, Section 2.1
Political
Political issues center around
government involvement in
business operations, such as:
• Laws
• Regulations
Global companies need to know
the political structure and
regulations of each foreign
country in which they conduct
business.
Marketing Essentials Chapter 2, Section 2.1
Economic
Businesses are always interested in the economy
because if it is healthy, people will be more likely
to invest in products and markets. If the economy
is in recession, companies need to be more
cautious in their decisions. The economy is affected
by factors such as:
• Unemployment rate
• Inflation
• Retail sales figures
• Productivity
• Consumer confidence
Marketing Essentials Chapter 2, Section 2.1
Socio-Cultural
A socio-cultural analysis is based on customers
and potential customers. It focuses on their:
• Attitudes
• Lifestyles
• Opinions
And also considers:
• Age
• Income
• Occupation
• Education level
• Marital status
Marketing Essentials Chapter 2, Section 2.1
Technological
Changing technology may be a threat
for one industry, but an opportunity
for others. Companies develop
completely new products or capitalize
on new developments by making
products to support them.
Marketing Essentials Chapter 2, Section 2.1
Let’s Practice!
All these concepts… but how can we
remember them?!
A great way is by using acrostic poems or
a mnemonic (memory/learning tool).
Gather information in lightning speed
One perfect search engine sufficed the need
Our transport machine in this time and space
Get events, facts and ads in wise displays
Look! Everything is in our fingertips!
Expansive knowledge now all within grips
In your table group, create a rap or poem
to help you remember the term/concept
assigned to you.
Writing a Marketing Plan
marketing plan
A formal written
document
communicating
the goals,
objectives, and
strategies of a
company.
Because marketing is a complicated
activity, marketers create a
marketing plan to communicate
aspects such as:
• Company goals
• Specific responsibilities
• Budgets
• Deadlines
• Overall performance
Marketing Essentials Chapter 2, Section 2.1
Elements of a Marketing Plan
The six basic elements of a marketing plan are:
1. Executive summary
2.
Situation analysis
3. Marketing goals/objectives
4.
Marketing strategies
5. Implementation
6.
System for evaluation and control
Marketing Essentials Chapter 2, Section 2.1
Writing a Marketing Plan
executive
summary
A brief overview
of an entire
marketing plan.
situation
analysis
The study of
the internal
and external
factors that
affect
marketing
strategies.
An executive summary briefly
summarizes the marketing plan. It
addresses each topic and explains the costs
involved for the plan’s implementation
The situation analysis studies the
internal and external factors that affect
marketing strategies based on the SWOT
analysis.
Goals and objectives let everyone know
what the marketing plan will accomplish,
and they must be in line with the
company’s mission.
Marketing Essentials Chapter 2, Section 2.1
Marketing Planning
marketing
strategy
Identification of
target markets
and
determination of
marketing mix
choices that focus
on those markets.
A marketing strategy identifies target markets
and sets marketing mix choices that focus on
those markets. The strategy is determined by the
company’s or product’s competitive position and
the SWOT analysis.
A good marketing strategy will focus on points of
difference between companies in areas such as:
• quality
• distribution
• ad campaign
• pricing
Marketing Essentials Chapter 2, Section 2.1
sales forecasts
The projection of
probable future
sales in units or
dollars.
Implementation: Make the Plan,
Work the Plan
Implementation is putting the marketing
plan into action and managing it. A
timetable shows where all or parts of the
plan come into play, such as:
• Schedule of activities
• Job assignments
• Sales forecasts
• Budgets
• Personnel
Marketing Essentials Chapter 2, Section 2.1
Evaluation and Control
performance
standard
An expectation of
performance that
reflects a
company’s goals
and marketing
plan objectives.
To evaluate how well a
marketing plan is being carried
out, performance standards
measure progress against the
plan’s original objectives.
Marketing Essentials Chapter 2, Section 2.1
SECTION 2.1 REVIEW
1 What is a SWOT analysis and why is it
helpful?
2. What is a marketing plan and what is its
purpose?
3. What is an environmental scan? What are
the four main areas it to consider? (Hint: PEST)
Market Segmentation
Key Terms
market
segmentation
demographics
disposable
income
discretionary
income
geographics
psychographics
mass marketing
Objectives
• Explain the concept of market
segmentation
• Analyze a target market
• Differentiate between
mass marketing and
market segmentation
Marketing Essentials Chapter 2, Section 2.2
Identifying and Analyzing Markets
market
segmentation
The process of
analyzing and
classifying
customers in a
given market to
create smaller,
more precise
target markets.
Companies identify
groups of people who
have common
interests and traits.
This grouping process
is called market
segmentation.
Businesses use these
groups to create
market-specific ads
and products that
connect with potential
customers on a
personal level.
Marketing Essentials Chapter 2, Section 2.2
Identifying and Analyzing Markets
The four factors that help segment a
market and describe a target market
are:
• Demographics
• Geographics
• Psychographics
• Behavioral factors
Marketing Essentials Chapter 2, Section 2.2
Identifying and Analyzing Markets
demographics
Statistics that
describe a
population in
terms of personal
characteristics
such as age,
gender, income,
marital status,
ethnicity,
education, and
occupation.
Demographics refer to statistics
that describe a population in terms of
personal characteristics such as:
• Age
• Gender
• Income
• Marital status
• Ethnic background
• Education
• Occupation
Marketing Essentials Chapter 2, Section 2.2
Identifying and Analyzing Markets
disposable
income
The money left
over after taxes
are taken out of a
consumer’s
income.
discretionary
income
The money left
over from a
consumer’s
income after
paying for basic
living necessities
such as food,
shelter, and
clothing.
When calculating how much
products should cost, marketers
look at two types of income
measurement:
• disposable income- Money left after
subtracting taxes
• discretionary income - Money left after
subtracting costs for basic living necessities.
Marketers who sell necessities such as food and
clothing are concerned with disposable income,
while those who sell luxury products pay attention
to discretionary income.
Marketing Essentials Chapter 2, Section 2.2
Geographics
geographics
Segmentation of
the market based
on where people
live.
The term geographics refers to segmentation of
the market based on where people live. People
who live in a certain area will have noticeable
similarities that affect their markets. To segment a
market geographically, you can refer to:
• Local markets
• Regional markets
• National markets
• Global markets
Marketing Essentials Chapter 2, Section 2.2
Psychographics
psychographics
Studies of
consumers based
on social and
psychological
characteristics.
Psychographics involves grouping people with
similar:
• Lifestyles
• Attitudes
• Values
• Opinions
Consumer lifestyles include how people spend their
time and money. The different sections of magazines
in a bookstore illustrate segmentation by:
• Activities
• Interests
Marketing Essentials Chapter 2, Section 2.2
Behavioral
Separating the market based on product-related
behavior involves looking at the:
• Benefits desired by consumers
• Shopping patterns
• Usage rate
By studying consumer behavior, many businesses
find that 80 percent of a company’s sales are
generated by 20 percent of its customers. This
phenomenon is known as the “80/20" rule.
Marketing Essentials Chapter 2, Section 2.2
mass marketing
Use of a single
marketing plan to
reach all
customers.
Mass Marketing
versus Segmentation
When products have universal appeal
and few features differentiate them
from competitors, mass marketing is
used. Mass marketing involves using
a single marketing strategy to reach
all customers. However, the current
trend is niche marketing, meaning
that marketing targets extremely
specific markets.
Marketing Essentials Chapter 2, Section 2.2
SECTION 2.2 REVIEW
1. What is the difference between market
segmentation and mass marketing?
2. What is discretionary income and what
kind of purchase would you generally
make with it?
3.What does it mean to segment a
market based on demographics?
Geographics? Psychographics?
SECTION 2.2 PRACTICE
In groups of no more than 4:
• Find an ad online or in a magazine and
describe the market segment being targeted.
Hint: Explain in terms of demographics,
psychographics, geographics.
• Describe the aspects of the ad that helped
you draw this conclusion.
• Explain how the ad could be modified
to target a different market.
This chapter has helped prepare you to meet the
following DECA performance indicators:
• Explain the nature of marketing plans
• Conduct SWOT analysis for use in a marketing planning
process
• Explain the concept of a market and market
identification
• Explain the nature of sales forecasts
• Select a target market