Marketing – Chapter 2 - SWOTWhat is SWOT and how does it apply to marketing?Strengths/Weaknesses = InternalOpportunities/Threats = External

Company Analysis (Internal):Staffing / Financial / Production Capabilities / Marketing Mix (4

P’s)

Marketing – Chapter 2 - SWOTStaffing:Ex “Too much or not enough staff?” “How effective is the staff?”

Financial:Ex “Is company profitable?” “Are sales increasing or decreasing?”

Production Capabilities“What technology is needed to be competitive?” “What production

changes are needed if sales increase or decrease?”

Marketing – Chapter 2 - SWOTMarking MixProduct – “What products are successful?” “Do we own patents?”Price – “What’s the pricing strategy? “Is it working?”Place – “Do products get to customers easily?” Who provides

distribution?”Promotion – “What are the promotional strategies and are they

working?” “What's the reputation and image?”

Marketing – Chapter 2 - SWOTCustomer Analysis (Internal):Studying buying habits and customer satisfactionProduct Offerings and Pricing / Interest Specific Options/ Strengths and

Weaknesses

Questions – “Who are the customers? And How do they differ?” “What, where, and how often do they buy?” “What’s their view on company quality, service, and value?” “Is it increasing or decreasing?

Marketing – Chapter 2 - SWOTCompetitive Position (Internal):Market ShareQuestions – “What is the market share?”

“What advantages do we have over the competitors?”

“What are our Core Competencies(Reputation, Patents, Resources, Distribution)?”

“Are we loosing business to competitors and Why?”

Marketing – Chapter 2PEST Analysis (External):What is a PEST analysis?Outside influences on a company (Opportunities and/or threats)

Consists of what 4 factors?1. Political2. Economic3. Socio-Cultural4. Technological

Marketing – Chapter 2PEST Analysis (External):

1. Political – Govt. Involvement - Global (Laws and regulations, Political structure)

2. Economic – Local/National/International (Can’t Control): Recession – Most companies slow or stop productions Unemployment – If Decreasing, companies may grow business Currency Rate – Can make products more or less expensive on foreign

markets Import Pricing – Illegal dumping (Selling imports at very low prices) Trade Restrictions – Tariffs (Taxes), Quotas (Number Limits)

Marketing – Chapter 2PEST Analysis (External):

3. Socio-Cultural Factors – Customs and Potential Customers. Changes in all Demographic Factors. Changes in attitudes, lifestyles, and opinions (Psychographics)

How are customers changing!4. Technology – Threat to some but Opportunity to others! Examples?

Marketing – Chapter 2Marketing is complicated and it involves MANY different tasks:To Stay Organized, Marketers create Marketing Plans

Marketing PlanDocument that directs the company’s activities for a specific amount

of timeRoad map to how a product will enter the market, be advertised, &

soldCommunicates the goals, objectives, and strategies of a company’s

management team: Responsibilities / Timelines / Budgests

Marketing – Chapter 2Marketing Plan Elements

1. Executive Summary – Brief Overview Used by Investors / Consultants

2. Situation Analysis – Internal & External Factors – SWOT/PEST Company, Business Unit, Product Line, or Individual

Marketing – Chapter 2Marketing Plan Elements

3. Objectives – What the Plan will Accomplish (Match to Mission Statement)

Single Minded – Each Topic Must be Separate!! Specific – No Misunderstandings or Interpretations Realistic – Achievable – Consider Strengths and Weaknesses Measurable – Evaluate Results (Ex. Increase sales by 5% from Q1 to Q2) Time Framed – To know if objective was reached

Marketing – Chapter 2Marketing Plan Elements

4. Marketing Strategies – Target Market(s) – Sets the Marketing Mix (4P’s)

Focused on the Key Points of Difference – Advantage over competition Quality / Distribution / Creative Promotions / Pricing

5. Implementation – Plan into Action – Communication Key Obtaining Resources – Financial / Management / Staffing Outlines the Schedule of: Activities / Job Assignments / Sales Forecasts (Projection of Future Sales) /

Budgets / Details of All Activities / Responsibilities

Marketing – Chapter 2Marketing Plan Elements

6. Evaluation and Control – How Objectives will be Measured and by Whom

7. Performance Standards & Evaluations – Measuring Stick Assess Objectives and Marketing Mix Strategies Actions to Take if Objectives are NOT Met Revisions to Plan

8. Appendix – Supplemental Items Financial Statements / Sample Ads / Misc. Items

Marketing – Chapter 2Identifying and Analyzing MarketsThe Best way to connect to customer’s is to KNOW them!

Remember what a Market is?What is Market Segmentation?Classifying people who form a given market into smaller groupsMore precise clusters

Marketing – Chapter 2Who do you market to?To expensive to market to everyone…Where is your advantage?

Gathering DataCensus is one optionOnce the data is collected Markets can be segmented into 4 categoriesDemographics / Geographics / Pychographics / Behavioral Characteristics

Marketing – Chapter 2DemographicsStatistics that describe personal characteristics AgeBaby Boomer Generation – 76million born in US 1946-1964 – Getting OlderGeneration X – Dual career household / Divorced Parents – Savvy/SkepticalGeneration Y – Millennium Gen./ Greater diversity– Internet

GenderTypically a different marketing approach is needed for men and women Even for the same product – Examples?

Marketing – Chapter 2DemographicsStatistics that describe personal characteristics IncomeDisposable – Money left after taxes – Necessities bought firstDiscretionary – Money left after basic necessities (Food/Shelter/Clothing)Less discretionary income in tough economic times (Recession/Depression)

Marketing – Chapter 2DemographicsStatistics that describe personal characteristics Martial Status% of Married couples in the US less than 1950’sLiving longer, Re-marrying Less, Divorcing More, Waiting longer to get

marriedFamily size products

EthnicityMulticultural and Ethnically Diverse - Caucasian % Decreasing compared to

Hispanics / African Americans / Asian Americans

Marketing – Chapter 2GeographicsWhere people live – People who live in the same geographic region

typically share similar demographicsLocal / State / RegionalProduct decisions based upon preferences of the region – Greatest appeal

to the most likely customersKnowing terms of the region – Ex. Pop, Soda, CokeOpen Google: Search for - Where you live based on the words you sayClick on NYTimes Link - How Y’all, Youse and You Guys Talk - Interactive...

Marketing – Chapter 2GeographicsWhere people live – People who live in the same geographic region

typically share similar demographicsNational and GlobalSpecific products for specific regions of the globeInformation for customer from other countries – Different languages and

imagesEx.

Marketing – Chapter 2PsychographicsAttitudes, Interests, Opinions, Lifestyles, and ValuesHow people spend their time and moneyFocus Groups

Attitudes and OpinionsChanging times and personal experiencesTrends (Long-Term) vs Fads (Short-Term)

Marketing – Chapter 2PsychographicsAttitudes, Interests, Opinions, Lifestyles, and Values

Interests and Activities People who chare common interests and activities typically purchase similar

goods and services

Interests and Activities Maslow’s Hierarchy of Needs

Marketing – Chapter 2Maslow’s Hierarchy of NeedsPeople are motivated to achieve certain needs. When one need is fulfilled a

person seeks to fulfill the next one, and so on1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.2. Safety needs - protection from elements, security, order, law, stability, freedom from

fear.3. Love and belongingness needs - friendship, intimacy, affection and love, - from work

group, family, friends, romantic relationships.4. Esteem needs - achievement, mastery, independence, status, dominance, prestige, self-

respect, respect from others.5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal

growth and peak experiences.

Marketing – Chapter 2Maslow’s Hierarchy of Needs

Marketing – Chapter 2Behavioral CharacteristicsSales generated, Shopping patterns, Purchase decisions making

processMost business identify the 80/20 rule80% of purchases comes from 20% of loyal customers

Loyalty ProgramsWeb-Sites and Online Promotions

Marketing – Chapter 2Mass Marketing vs. Segmentation MarketingMass MarketingUniversal appeal – Single marketing strategy to reach all customers Advantage – Lower Cost – Few differences in product/price/promotionDisadvantage – Competitors will go after the customer's whose needs are not

met

Niche MarketingDefines and narrows market with extreme precisions Advantage – Identify a specific marketDisadvantage – Research needed and COST