2.1 Marketing PlanningMARKETING

MR. PAVONE

SWOT Analysis

SWOT Analysis

SWOT Analysis – An assessment of a company’s strengths and weaknesses and the opportunities and threats that surround it; SWOT: strengths, weaknesses, opportunities, threats.

The internal and external awareness will help a business identify weaknesses and prepare to handle threats such as competition or a changing marketplace; will also help a company be more competitive because it provides guidance and direction.

Internal Strengths and Weaknesses

Strengths and weaknesses are both internal factors that affect a business operation, centering around three C’s: Company Customers Competition

Company Analysis By reviewing staff, financial situation, production

capabilities, and each aspect of the marketing mix, a company can find out what they do well and in what areas they are weak.

Areas of question would be: Staff-Related Questions Financial Questions Production Capability Questions Marketing Mix (Four Ps) Questions

Product

Price

Promotion

Place

Customer Analysis

Customers are a great source of information, more can be found out by asking who they are, how groups differ, what, when, where and how much do they buy, etc.

Catalog companies use database technology to see buying patterns, allowing them to introduce interest-specific catalogs.

Surveys and questionnaires are done by customers to pinpoint areas that need improvement.

Monitoring customer satisfaction reveals both strengths and weaknesses.

Competitive Position

A company may have certain strengths and weaknesses when compared to its competitors, a strength being having greater market share, a weakness being losing market share.

Some questions that help a company analyze its internal competitive position are what is the company’s market share, what advantages does the company have over its competitors, what core competencies does the company possess, and are competitors taking business away from the company.

External Opportunities and Threats

Companies must always look for opportunities to create competitive advantage due to external factors, such as: Competition Environmental Scan Political Economic Socio-Cultural Technological

Competition

To stay competitive, companies need to know what their competitors are doing at all time, including changes in a competitor’s financial situation and problems in the marketplace to provide opportunities.

Companies that conduct SWOT analysis on an ongoing basis are in a better position to react and make adjustments to their marketing mix.

Environmental Scan

Environmental Scan – An analysis of outside influences that may have an impact on an organization.

Four areas are studied in an environmental scan: Political Economic Socio-Cultural Technological

Political

Companies must be alert to changes in laws and regulations that affect their industries, as well, global companies need to understand the political structure and regulations of each foreign country in which they conduct business.

Examples of issues and current regulations that may affect certain industries in a positive way: Do Not Call Registry

Downloading Music from the Internet

Economic

Current state of the economy is of interest to all businesses: robust economies are more likely to invest in new products and ideas, while an economy in recession is likely to slow that process down.

Important factors to be considered are: An economy is recession poses a threat to nearly all companies.

Unemployment and consumer confidence.

Changes in foreign currency rates.

Illegal dumping (selling imported products at a very low price).

Changes in trade restrictions, such as lowering or raising taxes.

Socio-Cultural

Socio-cultural analysis is based on customers and potential customers, covering changes in demographic factors, such as: Age

Income

Occupation

Education level

Marital status

Two examples are: United States becoming more ethnically and racially diverse.

Obesity causing health problems, advocating healthier eating habits.

Technological

Changing technology may be a threat to one industry or company, but an opportunity for others to develop new products to support it.

Some examples are: Computer Automation

Satellite Technology

Writing a Marketing Plan

Writing a Marketing Plan

Marketing Plan – A formal written document communicating the goals, objectives, and strategies of a company.

A marketing plan: Details analysis and research efforts.

Provides a roadmap for how a product will enter the market, be advertised and sold.

Elements of a Marketing Plan

Marketing plans may differ from company to company. Basic elements in a marketing plan include:

Executive Summary

Situation Analysis

Goals and Objectives

Marketing Strategies

Implementation

Evaluation and Control

Performance Standards and Evaluation

Appendix

Executive Summary

Executive Summary – A brief overview of an entire marketing plan.

This is the introduction to the marketing plan. Its clarity and brevity sell the plan to readers.

Situation Analysis

Situation Analysis – The study of the internal and external factors that affect marketing strategies.

Situation analysis includes: SWOT analysis Environmental scan

This part provides a snapshot of the company’s present position.

It often reports the results of a SWOT analysis and an environmental scan.

Goals and Objectives

This section includes: Company’s mission Marketing objectives Financial objectives

This section defines specific goals to be met. To be effective, objectives must be single-minded,

specific, realistic, and measurable, and must contain a time frame.

Marketing Strategies

Marketing Strategy – Identification of target markets and determination of marketing mix choices that focus on those markets.

This section includes: Positioning and points of difference Marketing mix (four Ps)

Product

Promotion

Price

Place (distribution)

This is where the company defines how it is going to meet its objectives with a marketing mix: the four Ps.

Implementation: Make the Plan, Work the Plan

Sales Forecasts – The projection of probable future sales in units or dollars.

Implementation includes: Organization Activities and responsibilities Timetables

This part outlines how the company will put its plans into effect.

Evaluation and Control

Evaluation and control includes: Performance standards and measurements

Marketing objectives

Financial objectives

Marketing mix strategies

Corrective action

This part tells how the marketing plan will be evaluated and what measures might be necessary if objectives are not met.

Performance Standards and Evaluation

Performance Standard – An expectation of performance that reflects a company’s goals and marketing plan objectives.

This section suggests actions that should be considered if objectives are not met; the company’s goal is also to reduce the gap between planned performance standards and the actual performance.

Appendix

The appendix is the section of the marketing plan that includes supplemental materials such as detailed financial statements, sample ads, and other materials that support the plan.

Conclusion

The marketing process is a circular pattern that keeps going through planning, implementation, and control, asking at the end, “Did we accomplish the objectives listed in the marketing plan within the boundaries of the plan?”

A marketing plan, that happens on a formal basis, evaluates a company’s marketing objectives, strategies, budgets, organization, and performance, as well as problem areas in marketing operations.