1. Chapter 2: Analyzing the Current Situation The Marketing Plan Handbook Fourth Edition Marian Burk Wood 2-1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Environmental Scanning and Analysis Involves the analysis of both: Internal Factors, and External Factors. 2-2

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall The Macro- and Micro-environments To formulate a flexible and practical marketing plan, one needs to properly track and differentiate between macro-environmental and micro-environmental factors:  Macro-environmental factors are broad forces that impact overall marketing strategy and performance.  Micro-environmental factors more directly influence marketing strategies and activities. 2-3

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall The Macro- and Micro-environments Macro-environmental factors:  Demographic.  Economic.  Ecological.  Technological.  Political-legal.  Social-cultural forces. Micro-environmental factors:  Customers.  Competitors.  Channel members, partners, suppliers and employees. 2-4

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall SWOT Analysis Strengths Weaknesses Opportunities Threats 2-5

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Factors Mission. Resources. Offerings. Previous results. Business relationships. Keys to success and warning signs. 2-6

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Factors Demographics. Economic. Ecological. Technology-related. Political-Legal. Social-Cultural. Competitors. 2-7

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Mission Mission: States the firm’s fundamental purpose. Indicates how the firm will add value. 2-8

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Resources Human. Financial. Informational. Supply. 2-9

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Offerings Examining what the firm is currently offering in the way of goods and services: Fit with mission and resources. Affirm role of each line and item. 2-10

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Previous Results Includes:  Sales (dollars and units).  Profitability.  Customer acquisition and retention costs.  Other financial results. Helps separate the effective programs from the less-effective programs. 2-11

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Business Relationships Includes relationships with: Suppliers. Distributors. Other business partners. Examine: Capacity. Quality. Value provided. 2-12

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Internal Analysis: Keys to Success and Warning Signs Keys to Success:  Identify special factors most crucial to success.  Maintain focus on key priorities. Warning Signs  Indicate potential problems with the plan. 2-13

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Demographic Trends Examined by target market:  Consumer Demographics  Business Demographics 2-14

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Consumer Demographic Trends Key consumer demographic trends include: Population growth Population composition:  Age  Gender  Ethnicity  Religious makeup  Education  Occupation  Household size  Income 2-15

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Business Demographic Trends Size and growth of industries  Number of companies.  Number of locations or branches.  Number of employees.  Sales revenues. Trends in new business formation may signal emerging opportunities. 2-16

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Economic Trends Must keep an eye on global, national, regional, and local economic trends. Some measures typically monitored:  Buying power  Income  Debt  Credit Usage 2-17

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Ecological Trends Potential impacts:  Availability of raw materials.  Government regulations.  Social attitudes. 2-18

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Technological Trends Key trends include: Smartphones. Smaller computers. Digital media. Incorporation of electronic capabilities into a wider range of products. 2-19

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Political-Legal Trends Legal Trends: Laws includes international, federal, state, and local. Related to: Competitive behavior. Pricing. Taxation. Promotion. Distribution. Product liability. Labeling. Product purity. 2-20

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Political-Legal Trends Political Trends Global, national, or local. Can signal a change in the legal environment. 2-21

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Social-Cultural Trends Key trend: Increasing diversity in markets. Keep tabs on popular culture.  Tends to be volatile. Core beliefs and values change more slowly over time. 2-22

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall External Analysis: Competitors Identify:  Current competitors.  Possible future competitors. Learn about the unique competitive advantages of each competitor. Track trends in market share. 2-23

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Porter’s Five Forces Model 2-24

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Three Fundamental Business Strategies Cost Leadership Strategy Differentiation Strategy Focus Strategy 2-25

26. 2-26 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall