CHAPTER 2
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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 rends 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?
Opportunities Threats
Strengths WeaknessesInternal
External
Internal 4 P’s
• 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.
Opportunities Threats
Strengths WeaknessesInternal
External
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
M A S S M A R K E T
Products have universal appeal
Products have few unique features
S E G M E N T A T I O N
Products have specific uses
Products are unique
Products don’t appeal to everyone.
REVIEW1) 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?