The Marketing Plan Chapter 2

A. SWOT Analysis A company’s planning begins with a critical look at itself and the market in which is operates. Analyze the company’s: Strengths and weaknesses Opportunities and threats Also called the SWOT analysis Example

Internal Strengths and Weaknesses Revolve Around: Company Customers Competition Must be fair and objective

Internal Strengths and Weaknesses Company Analysis Includes a review of staff Company’s financial situation Production capabilities Marketing Mix Sample Questions P. 27

Internal Strengths and Weaknesses Competitive Position Market Share Advantages over the competition Core competencies - better reputation, own a patent, have special resources, better distribution capabilities Are competitors taking business away? How? New product? Better promotion?

External Opportunities & Threats Competition Changes in competitors financial situation Problems in the marketplace Environmental Scan - Outside influences Political Economic Socio-Cultural Technological

Writing a Marketing Plan Formal document that directs company activities for a specific period of time. Review P. 34

2.2 Market Segmentation Demographic Geographic Psychographic Behavioral

Demographics Age Gender Income Marital Status Ethnic Background

Geographics Children Utah, Alaska, Texas, Arizona, California, Idaho Seniors California, Florida, New York, Texas, Pennsylvania

Behavioral How consumers use the product Ways they shop / decide to buy the product How often they use the product 80/20 Rule = 80 percent of the company’s sales are generated by 20 percent of its loyal customers

Niche Marketing New….Niche Marketing - Defining the target market narrowly Old….Mass Marketing - using a single marketing strategy to reach all customers

Questions Page 43 #8, Page 44 #19