1. The Marketing Plan
Chapter 2
Page 34

2. The Marketing Plan Chapter One Recap Marketing Affects Businesses
Transportation, Financing, Promotion, Developing and Understanding Target markets, etc. (7 Functions)
Customer Satisfaction-adapt to likes/dislikes to make consumers “happy”
Marketing Concept
Marketing Mix

3. The Marketing Plan SWOT Analysis Good Marketing relies on good plans
Businesses must analyze not only themselves but the business environment as well

4. The Marketing Plan
This assessment analyzes a company's Strengths and Weaknesses
It also includes Opportunities and Threats

5. The Marketing Plan Definition 1- SWOT Analysis
The process for analyzing a business’s Strengths, Weaknesses, Opportunities and Threats

6. The Marketing Plan Internal and external awareness
Examples of threats?
Competitors, the changing Marketplace

7. The Marketing Plan
The internal analysis centers around the three C’s: Company, Customers, and Competition
The analysis addresses what a company does well and what areas are weak

8. The Marketing Plan
The review addresses staff (Management and Support Staff), Company Finances, Production Capabilities, and the Marketing Mix

9. The Marketing Plan Example Questions: 1.)Staff-Related
What is the company’s Mission Statement? Does everyone know it? Is everyone following it?
How experienced is Management?

10. The Marketing Plan Does the company have too much or not enough staff?
Is there overlap?
What is the quality of the staff?
Training and assessment
How effective is the sales force?

11. The Marketing Plan 2.) Financial
Is the company profitable? What areas? Why?
Do we have the financial resources to reach company goals?
Debt
Sales increasing/decreasing?

12. The Marketing Plan 3.)Production
Do we make adjustments in production depending on sales?
Is Research and Development (R&D) successful?
What products account for sales?
Technology changes?

13. The Marketing Plan External Opportunities and Threats Competition
Definition 2- Environmental Scan
Methodical look at the outside world using PEST

14. The Marketing Plan What is PEST?
Political, Economical, Socio-Cultural, and Technological Factors

15. The Marketing Plan
Political Examples of Governmental involvement in Business Operations
Do Not Call
Digital Downloading made illegal

16. The Marketing Plan Economic
If the economy is good, business can be robust: R&D high, new products offered
If the economy is bad, few or no offerings, staff reductions, etc.

17. The Marketing Plan Socio-Cultural
The US is becoming more ethnically diverse, promotion should reflect that
Health Issues: Obesity, Smoking, etc.

18. The Marketing Plan Technological Use new technology
Photography, Mobile Phones

19. The Marketing Plan Marketing Mix Product-
What new products have been successful? Why?
Do we own patents?
Any patents expiring?

20. The Marketing Plan Place- Do products easily reach customers?
Who helps with distribution?

21. The Marketing Plan Price- What are the present pricing strategies?
Are they working?

22. The Marketing Plan Promotion-
What are the promotional strategies? Have they been successful?
What is our reputation?

23. The Marketing Plan
Use the Internet to find three examples of disastrous Promotional campaigns
They can involve a celebrity endorser, a bad campaign slogan or promotion, product name, or a controversy/legal issue regarding a company

24. The Marketing Plan Section 2.2- Market Segmentation Analyzing Markets
Definition 3- Market Segmentation
Analyzing a Market by specific characteristics in order to create a TM
When the TM is identified, businesses can customize product offering and marketing strategies to a particular group

25. The Marketing Plan
Businesses may segment by four major characteristics: Demographics, Geographics, Psychographics, and Behavioral (Trends)
Definition 4
Demographics- Statistics that describe a population by personal characteristics

26. The Marketing Plan Marketers can segment by: Age
For example using the product categories of toys, clothing, and food
Who are the consumers and customers for each?
Marketers classify ages according to groups

27. The Marketing Plan
Baby Boom Generation- The 76 million babies born between 1946 and 1964
Why are they called the Baby Boomers?
WWII returning veterans and their wives wanted families

28. The Marketing Plan
Boomers account for 2.6 trillion dollars and 51% of the nation’s wealth
What are the Boomers interested in?
Luxury and recreational items
Why?

29. The Marketing Plan
Generation X- 40 million people born between 1965 and 1976
Xers are products of dual-career households and divorced parents
Exposed to media since an early age and tend to be savvy and skeptical

30. The Marketing Plan
Better educated, more financially cautious and conservative
Marketers need music, imagery, and humor to reach this market

31. The Marketing Plan Generation Y- 77 Million born between 1977 and 1997
Have grown up during the computer revolution
Used to interactivity and multi-tasking
AKA Echo Boomers or Milennium Generation (Milennials)

32. The Marketing Plan Gender Creates market segments for men and women
Can a company offer products to both men and women?
Gillette, Jockey, etc.
Gender Neutral- Cellphones

33. The Marketing Plan Income Two types of measurement
Definition 5-Disposable Income-
Money left after taking taxes from your pay
Marketers who produce needs are interested in this income
Why?

34. The Marketing Plan Definition 6-Discretionary Income
Money left after paying for necessities
Marketers who sell luxury items interested in this income
Income levels can distinguish socio-economic groups

35. Group Work Select any existing product/service
What celebrity endorser?
What product/service?
What gender(s)?
What medium of promotion? How would you position it to reach your market?
In a Word Document or Presentation, explain your rationale for your choices

36. The Marketing Plan Ethnic Background
US population is becoming more multicultural and ethnically diverse
Combined African-American, Hispanic, and Asian-American make up 28% to rise to 37% in 2025
Why is it important for marketers to understand this?

37. The Marketing Plan Geographics Definition 7- Geographics
Segmentation of a market based on where people live
Local, Regional, National, and International
Helps to determine what media to use

38. The Marketing Plan
Marketers study geographics for ethnic concentrations
For example, if Marketers want to reach Hispanic populations, they look to California, New York, Texas, and Florida
Regions can also be segmented in terms of lifestyle
Ex. Torq Energy Drink in California and the Pacific Northwest, McDonald’s McGriddles is SW, etc.

39. The Marketing Plan Psychographics Definition 8-Psychographics
Studies of consumers based on social and psychological characteristics
There is a correlation between lifestyles and values
How do Marketers reach people with similar values?

40. The Marketing Plan Magazines that aim at certain people
Sports Illustrated, Maxim, Good Housekeeping, etc.
Trends
Marketers must look for changes in households, the economy, politics, and the workplace

41. The Marketing Plan
Changes in trends can change attitudes about health, time, fun, etc.
What are some health related trends that marketers target?
Trans-fat, Low-Sodium, Low-Fat, etc.
What is a work-related trend that Marketers target?
Dressing-down

42. The Marketing Plan How do Markers address Leisure and Luxury?
Ben and Jerry’s, Haagen Dazs, Martha Stewart, etc.
Glitzy, Gold, Prestigious

43. The Marketing Plan Behavioral (Product Benefits)
Involves studying consumers’ behaviors, needs, and wants
Companies will market the benefits, not only the product itself
Ex. Nike Basketball, Football, Cross-Training, Under Armour, Propel

44. The Marketing Plan Mass Marketing involves a singular marketing plan
Mass Marketing is not as popular because products can still be segmented
Ex. “Got Milk?”
Different spokespersons for single product

45. The Marketing Plan
The advantage of market segmentation is that products can be targeted more effectively
Disadvantages are the marketers must be more creative and spend more money to reach the different segments

46. The Marketing Plan
Advantage of Mass Marketing is that costs are less because one theme is used
Disadvantage is that the theme must be very general and it may not be understood by all

47. The Marketing Plan A Marketing Plan is a formal written document
The 7 elements of a Marketing Plan are:
1.) Executive Summary- Brief overview of plan
2.) Situation Analysis-SWOT and PEST
3.) Goals and Objectives- What you will accomplish

48. The Marketing Plan
4.) Strategies- Identify TM’s and set Marketing Mix choices to meet goals
5.) Implementation- How to put the plan into effect and how to monitor it (Sales forecasts and sales are key)
6.) Evaluation and Control-Performance standards (How performance reflects the plans objectives
7.)Appendix- Any supplemental materials