1. Marketing Principles CHAPTER 2 SECTION 1

2.  SWOT analysis – an assessment that lists and analyzes the company’s strengths and weaknesses  This analyzes everything that can help the business succeed and what could make it fail.  SWOT – strengths, weaknesses, opportunities, and threats  Strengths and weaknesses are both internal factors that affect a business’s operation.

3.  A company’s internal analysis includes: its financial situation, a review of the staff, its production capabilities, and every aspect of the marketing mix.  Good marketing relies on good plans and accurate analysis.  To monitor customer satisfaction, many firms ask customers to complete a survey or questionnaire after making a purchase.  Catalog companies use database technology to analyze buying patterns, which allow them to create interest-specific catalogs.

4.  Companies need to know what their competitors are doing at all times to stay competitive.  PEST analysis – scanning of outside influences on an organization  Usually includes four factors: political, economic, socio-cultural and technological  Political issues center around gov’t involvement in business operations.  Companies must be aware of changes in laws and regulations relating to their industry.

5.  Examples of gov’t involvement:  Do not call registry  Downloading music from the internet  The current state of the economy is of interest to all businesses.  Factors of the current state of the economy:  Unemployment, inflation, retail sales, productivity, and consumer confidence  Import and export prices affect how a company buys and sells products in a global market.

6.  Examples of economic factors that would be considered opportunities or threats: recession, unemployment, currency rates, import pricing, and trade restrictions  Companies cannot control these factors so they have to react to them in ways to create opportunities and reduce threats.  Socio-cultural analysis based on customers and potential customers.  Changes in attitudes, lifestyles, and opinions create opportunities or threats.

7.  Two examples of such changes: diversity and health  Changing technology may be a threat for one industry or company, but an opportunity for others.  Companies that keep up with the newest technology can use that to be more competitive.  Marketing Plan – formal, written document that directs a company’s activities for a specific period of time  Helps the company monitor performance  Communicates the goals, objectives, and strategies of a company’s management team

8.  They differ from company to company  Executive Summary – brief overview of the entire marketing plan  Situation Analysis – study of the internal and external factors that affect marketing strategies  Takes a look at where the company/product has been, where it is now, and where it is headed.  Objectives let everyone know what the marketing plan will accomplish.  They are based on the company’s mission statement.

9.  To be useful objectives must be: single-minded, specific, realistic, measurable, time framed.  Marketing Strategy – identifies target markets and sets marketing mix choices that focus on those goals  Company’s or product’s position in the marketplace determine the appropriate marketing strategy.  Should be focused on the key points of difference (the advantage a company or product has over the competition)

10.  Implementation – putting the marketing plan into action and managing it  Sales forecast – the projection of probable, future sales in units or dollars  Performance standard – expectation for performance that reflects the plan’s objectives (measuring stick so to speak)  The evaluation at the end of the marketing process in called a marketing audit