October 6, 2011 You can never make the same mistake twice, the second time you make it, it is no longer a mistake, it is a CHOICE.

Bellringer Activity Work in groups Work in groups Brainstorm and create list of companies that you think are successful. Brainstorm and create list of companies that you think are successful.

Marketing Section 2.1

Section Objectives Conduct a SWOT analysis Conduct a SWOT analysis List three key areas of an internal company analysis List three key areas of an internal company analysis Explain the basic elements of a marketing plan Explain the basic elements of a marketing plan

SWOT Good marketing relies on plans Good marketing relies on plans A SWOT Analysis is an analysis of a company’s strength and weaknesses, opportunities, and threats that surround it. A SWOT Analysis is an analysis of a company’s strength and weaknesses, opportunities, and threats that surround it. SWOT is an acronym for Strength, Weakness, Opportunity, Threat SWOT is an acronym for Strength, Weakness, Opportunity, Threat

SWOT Analysis The analysis is done internally and externally. The analysis is done internally and externally. What does that mean? What does that mean?

SWOT Analysis The internal and external awareness help a business identify their weaknesses. The internal and external awareness help a business identify their weaknesses.

Internal Strengths and Weaknesses Show the internal questions now Show the internal questions now

Who else can analyze? Besides a company asking themselves where they need to improve who else can they ask? Besides a company asking themselves where they need to improve who else can they ask?

What can customers offer? Who are the customers (help identify target market) Who are the customers (help identify target market) How do groups of customers differ from one another? How do groups of customers differ from one another? What, when, where, and how much do they buy? What, when, where, and how much do they buy? How do customers rate the company on service, quality, and value? How do customers rate the company on service, quality, and value? Is customer base increasing or decreasing? Is customer base increasing or decreasing?

Competitive Position A company can find strengths/weaknesses when comparing themselves to a competitor. A company can find strengths/weaknesses when comparing themselves to a competitor. Questions that help a company analyze its competitive position are: Questions that help a company analyze its competitive position are: –What is the company’s market share? –What advantages does it have over other companies? –Are competitors taking business away? If so, how? New products? Better promotion?

External Opportunities and Threats Companies must always look for opportunities to create a competitive advantage. Companies must always look for opportunities to create a competitive advantage.

Competition Companies need to know what their competitors are doing at all times. Important things to know about your competitors include: Companies need to know what their competitors are doing at all times. Important things to know about your competitors include: –Financial situation –Problems in the marketplace –New products/promotions

Example: Supermarket Strike Changes in a competitor’s financial situation and problems in the marketplace can provide opportunities. Changes in a competitor’s financial situation and problems in the marketplace can provide opportunities. Example: Smart & Final and Vons, Ralph’s Albertson Example: Smart & Final and Vons, Ralph’s Albertson

External Opportunities and Threats Environmental Scan: an analysis of outside influences that may have an impact on an organization. Environmental Scan: an analysis of outside influences that may have an impact on an organization. Four areas of Environmental Scan: Political, Economic, Socio-Cultural, and Technological (acronym: PEST) Four areas of Environmental Scan: Political, Economic, Socio-Cultural, and Technological (acronym: PEST)

Environmental Scan: Political Companies must be alert to changes in laws and regulations that affect their industries. Companies must be alert to changes in laws and regulations that affect their industries. These can affect the company in a positive or negative way. These can affect the company in a positive or negative way. Examples: Examples: –Do Not Call Registry –Downloading music from the Internet

Environmental Scan: Economic The current state of the economy is of interest to all businesses The current state of the economy is of interest to all businesses Consider: If the economy is in a recession what changes might a company do? Consider: If the economy is in a recession what changes might a company do? What about if the economy is strong? What might a company do? What about if the economy is strong? What might a company do?

Environmental Scan: Economy An economy in a recession poses a threat to nearly all companies. An economy in a recession poses a threat to nearly all companies. Most companies slow or stop plans for new facilities during a recession. Most companies slow or stop plans for new facilities during a recession. Most companies also reduce research and development efforts. Most companies also reduce research and development efforts.

Environmental Scan: Socio-Cultural A socio-cultural analysis is based on customers and potential customers. A socio-cultural analysis is based on customers and potential customers. Socio-cultural covers changes in demopgrahic factors (like age, income, occupation, education level, and marital status) Socio-cultural covers changes in demopgrahic factors (like age, income, occupation, education level, and marital status)

Environmental Scan: Socio-Cultural Example: Example: –United States is becoming a more ethnically and racially diverse company. Marketing plans need to meet this change. For example, in the area of home buying, minority consumers are expected to account for more than half of all new home purchases by 2012.

Environmental Scan: Socio-Cultural Another example: Stores picking different items to carry based on their customers. Another example: Stores picking different items to carry based on their customers. Wal-Mart in Grand Rapids, where it is more diverse, carries more Mexican food items. Wal-Mart in Grand Rapids, where it is more diverse, carries more Mexican food items.

Environmental Scan: Technological Changing technology might be a threat or an opportunity. Changing technology might be a threat or an opportunity. Is digital photography a threat or opportunity? Explain. Is digital photography a threat or opportunity? Explain.