CHAPTER 2 THE MARKETING PLAN

LEARNING TARGETS I can conduct a SWOT analysis I can name the three key areas of an internal company analysis I can Identify the factors in an environmental scan I can explain the basic elements of a marketing plan I can explain the concept of market segmentation I can analyze a target market I can differentiate between mass marketing and market segmentation

TARGET MARKET?

SECTION 2.1 I can conduct a SWOT analysis I can list the three key areas of an internal company analysis I can identify the factors in an environmental scan I can explain the basic elements of a marketing plan.

SWOT Internal Strengths Weaknesses External Opportunities Threats SWOT Analysis: How to perform one for your organization

What are your strengths? What are you doing better than your competitors? What can you continue to improve upon? What do others perceive as your strengths? What trends or conditions may positively impact you? What opportunities are available to you? What are your weaknesses? What do your competitors do better than you? What can you improve, given the current situation? What do others perceive as your weaknesses? What trends or conditions may negatively impact you? What are your competitors doing that may impact you? Do you have solid financial support? What impact do your weaknesses have on the threats to you? InternalInternal ExternalExternal

Profitable Customer Relationship Management Global Brand Original Dotcom Original Electronic Book Selling Expertise to other companies Work with Public Sector Libraries Exclusive Offers from Publishers Many other retailers are folding Too Many Categories dilutes brand Shipping Costs Too focused on their own technology External Fullfillment New electronic books Seasonality Transportation Costs Economy New Countries have different laws and requirements. InternalInternal ExternalExternal

THREE AREAS OF AN INTERNAL COMPANY ANALYSIS Company Analysis  Staff  Financial  Production Capabilities  Marketing Mix  Product  Price  Promotion  Place Customer Analysis Competitive Position

EXTERNAL/ENVIRONMENTAL SCAN Competition Political Economic Socio-Cultural Technological

Executive Summary Situation Analysis  SWOT analysis  Environmental Scan Objectives  Mission  Marketing objectives  Financial objectives Marketing Strategies  Positioning and points of difference  Marketing Mix  Price  Product  Place  Promotion Implementation  Organization  Activities and responsibilities  Timetables Evaluation and control  Performance standards and measurements  Marketing objectives  Financial objectives  Marketing mix strategies  Corrective action Appendix ELEMENTS OF A MARKETING PLAN

SECTION 2.2 MARKET SEGMENTATION Explain the concept of market segmentation Analyze a target market Differentiate between mass marketing and market segmentation

DEMOGRAPHICS: STATISTICS THAT DESCRIBE A POPULATION Age Gender Income Disposable income Discretionary income Marital Status Ethnic Background

GEOGRAPHICS: SEGMENTATION BASED ON WHERE YOU LIVE

PSYCHOGRAPHICS: GROUPING PEOPLE WITH SIMILAR LIFESTYLES Activities Attitudes Personality & Values

BEHAVIORAL : SEGMENTING BASED ON SHOPPING PATTERNS AND USAGE RATE.

MASS MARKET VS. SEGMENTATION MASS MARKET Products have universal appeal Products have few unique features SEGMENTATION Products have specific uses Products are unique Products don’t appeal to everyone.

REVIEW 1)Which type of income, disposable or discretionary is more important to businesses that sell expensive watches, second homes and financial services? 2)Of what significance are the combined African American, Hispanic and Asian-American population to marketers? 3)A recent study shows that teens are drinking more bottled water and reducing the amount of carbonated beverages they drink. Which psychographic or lifestyle trend does this study support? 4)If 93% of the US Population of 290,890,777 (2003 estimate) snacks at lease once a day, how large is the market for snack foods? 5)Why does the United States conduct a census of its residents every ten years?