J Sutherland Herriman High

MARKET PLANNINGSWOT Analysis

Market Segmentation

SITUATIONAL ANALYSIS

Good Marketing begins with good planning Companies must look critically within to recognize strength

and weaknesses Must also look for opportunities and threats from outside the

company as well

• External

• Harmful

• External

• Helpful

• Internal

• Harmful

• Internal

• HelpfulStrengt

hsWeaknesses

ThreatsOpportunities

And so SWOT is born...

INTERNAL Strengths vs WeaknessesHow the business operates

Company What does the company do

well, and weak.

Review of the staff It’s financial situation Production capabilities Marketing Mix

Customers Studying their buying habits.

Who are your customers? What, when, and how much do

they buy? How do customers rate the

company

Competition How are you compared to the

competition? What is the company’s market

share? Are competitors taking business

away from the company?

• Internal

• Harmful

• Internal

• HelpfulStrength

sWeakness

es

EXTERNAL

Competition Must know what the

competitors are doing at all times

Changes in a competitor’s financial situation can provide opportunities

Environmental Scan What’s happening in the

world? Politically Economic Socio-cultural Technological

Opportunities and Threats What is happening outside??

• External

• Harmful

• External

• Helpful

ThreatsOpportunities

ROMI

Return On Marketing Investment – A measurement organizations

calculate that helps them evaluate their marketing investment

MARKET SEGMENTATION

Businesses look for ways to connect with current and potential customers

They need to know these people well. Where they live Their income level Age Ethnic background Activities Values Interests

MARKET SEGMENTATION

Marketers analyze groups of customers and break them down to smaller, more precise clusters.’

For example: Jeans Who is buying? At what price? What special features do they want?

DEMOGRAPHICS Describe a population based in terms of

personal characteristics Age

Baby Boomers – Born between 1946-1964 Generation X – early 1960s to the early 1980s Generation Y - early 1980s to the early 2000s Generation Z - early years of the 2000s to the present

Gender Income Marital Status Ethnic Background

GEOGRAPHICS

Segmentation of market based on where people live Local Regional National Global markets

For example: A small restaurant will cater to people who live near by Coca-Cola and Pepsi are marketed internationally

PSYCHOGRAPHICS

Grouping people with similar lifestyles as well as: shared attitudes Values Personalities Opinions

How a shared group spends their time and money

BEHAVIORAL

Looking at the benefits desired by the customer Shopping patterns Usage rates

For example:MasterCard research revealed five groups of online customers:• Confident core users• Cautious shoppers• Mainstream users• Curious but not convinced• And technology skepticsThe overriding finding was that enhanced security influenced purchasing decisions.

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