1. Chapter 2 The Marketing Plan
Marketing Planning
Section 2.1 Marketing Planning
Section 2.2 Market Segmentation

2. Market Planning
Lesson 2.1

3. Marketing Planning Objectives Conduct a SWOT analysis
Key Terms
SWOT analysis
environmental scan
marketing plan
executive summary
situation analysis
marketing strategy
sales forecasts
performance standard
Objectives
Conduct a SWOT analysis
List the three key areas of an internal company analysis
Identify the factors in an environmental scan
Marketing Essentials Chapter 2, Section 2.1

4. Marketing Planning Good marketing relies on good plans
Planning begins with looking at your business (internal) and the external business environment its operating in
A business can analyze itself with a SWOT analysis:
SWOT analysis - An assessment of a company’s strengths and weaknesses and the opportunities and threats that surround it;
Strengths
Weaknesses
Opportunities
Threats

5. Video

6. Purpose of each component?
The SWOT Analysis helps because it:
Strengths: Why would you want to know this?
Lists everything a business does well (the company's advantages over its competitors) Positive factors in company’s control
Weaknesses:
Characteristics of a company that they don’t do well in comparison to competitors. (areas of competitive disadvantages) – Negative factors in company’s control
Opportunities:
External untapped markets or business developments or trends they could add/use to make their business better - Positive factors outside company’s control
Threats:
Elements of the external environment that could negatively affect the company, including technological, environmental and regulatory factors – Negative factors outside company’s control

7. SWOT Analysis
Two Internal Factors
What two components analyze internal factors that impact a business?
Strengths and Weaknesses
Two External Factors
What two components analyze external factors that impact a business?
Opportunities & Threats

8. C C C ompany ustomers ompetition Internal Anayslsis
Internal Analysis looks at the Three Cs
The three C’s of internal analysis
What do you think the three “C”s are? C
ompany C
ustomers C
ompetition

9. 1. Company Analysis
When evaluating itself, a company must analyze these areas:
Company staff
Financial situation
Production capabilities
The four Ps of the Marketing Mix:
Product
Place
Price
Promotion
Marketing Essentials Chapter 2, Section 2.1

10. Company Analysis Company Staff Financial Questions:
Do staff know and follow the mission statement
Do we have strong executives
Quality staff and enough staff – effectiveness of sales force
Financial Questions:
Are we profitable
Sales history – are sales increasing or decreasing

11. Production Capabilities
Company Analysis
Production Capabilities
What changes in technology are required to be competitive
Has Research & Development created new successful products
Percentage of sales from products older than 5 years

12. Marketing Mix (Four Ps Questions)
Company Analysis
Marketing Mix (Four Ps Questions)
Product:
What new products are successful and why
Patent on any products or are any expiring
Branding Image
Price:
What are present pricing strategies and are they working
Promotion:
Are promotional strategies successful
Company’s reputation with it’s customers
Place:
Do products easily reach customers

13. 2. Customer Analysis
Companies study customer buying patterns using surveys or interviews with people in their target markets
Who are the customers?
How do groups of customers differ from one another?
What do customer surveys and customer interviews reveal?
What, when, where, and how much do they buy?
How do customers rate the company on quality, service, and value?
Is your customer base increasing or decreasing? Why?

14. Strengths and weaknesses compared to competitors
3. Competitive Position
Strengths and weaknesses compared to competitors
What is the company’s market share?
Questions that help a company analyze its internal competitive position:
What advantages does the company have over its competitors?
What core competencies does the company possess?
Are competitors taking business away? Why?
Marketing Essentials Chapter 2, Section 2.1

15. NIKE Strengths: Weaknesses: Competitive Organization
Strong at research and development
Global brand
Famous “swoosh”
Weaknesses:
Heavily in the footwear market
Price sensitive – competitive market

16. McDonalds Strengths: McDonald's has successfully rolled out new items
With a strong product offering, the company has grown income throughout the recession
Operations are spread around the world
Weaknesses
It will be harder and harder to find prime locations to build a set of golden arches

17. Opportunities & Threats
External Factor
What two components of the SWOT analyze external factors that impact a business?
Opportunities & Threats
Marketing Essentials Chapter 2, Section 2.1

18. External Opportunities
Businesses must always look for opportunities to create competitive advantage and avoid threats (do better than competition)
This is done through:
Knowledge of the Competition & Trends
Environmental Scan
Marketing Essentials Chapter 2, Section 2.1

19. External Opportunities
1. Opportunities can include
new and emerging markets
new business and product developments
strategic business partnerships that may create more sales and profits (TACO Bell)
Marketing Essentials Chapter 2, Section 2.1

20. Four Factors of a PEST Analysis
2. Threats
environmental scan
An analysis of outside influences that may have an impact on an organization.
Businesses conduct an environmental scan X – analysis of outside influences that impact the organization
The acronym PEST refers to each of the four main areas evaluated in the external scan:
Political
Economic
Four Factors of a PEST Analysis
Socio-Cultural
Technological
Marketing Essentials Chapter 2, Section 2.1

21. Socio-Cultural Factors
PEST Analysis
Government affects business operations
Changes in Laws that affect business operation
Changes in Regulations
Political Issues
Recession
Unemployment Rate
Currency Rates
Import Pricing
Trade Restrictions
Economic Issues
Customers and potential customers:
Changes in attitudes, lifestyles, and opinions provide opportunities and threats
Socio-Cultural Factors
Embrace technology and innovate to stay competitive – broadband, licensing such as patents, new technology, IT usage
Technology

22. McDonalds Opportunities:
There are opportunities for new restaurants outside the United States, China is a great opportunity for the company, as is much of Asia.
Menu innovations are limited only by imagination.
Low interest rates provide cheap capital for growth.
Threats
Governments are considering regulations targeting fast food.
McDonald's faces competition from strong peers such as recent Yum! Brands and Burger King.
New product rollouts often have to go head-to-head with established players like Starbucks coffee or Jamba smoothies

23. Strengths
Weaknesses
Opportunities
Threats

24. SMART Objective

25. From your SWOT, you learned a weakness you have is your sales are declining. While you carry a lot of different items, you notice your sweatshirt sales in the store are low. You decide to create a marketing plan around increasing your sweatshirt sales.

26. Increasing Sales using a SMART Goal?
Increase the sale of Sweatshirts
By 10%
By increasing product options, marketing on social media, and having sales events
To do so, I will need about three months to purchase and market
By February 1, 2018

27. SMART Goal = Increase sales on Sweatshirts by 10% by February 1, 2018
Increase the sale of Sweatshirts
By 10%
By increasing product options, marketing on social media, and having sales events
To do so, I will need about three months to purchase and market
By February 1, 2018

28. Writing a Marketing Plan
marketing plan X A formal written document communicating the goals, objectives, and strategies of a company’s activities for a specific time
- written after conducting a SWOT Analysis
Purpose: A Roadmap of how a product will enter the market, be advertised and sold
It communicates to management:
Company goals, objectives and strategies
Specific responsibilities
Budgets
Deadlines for completion
Overall performance

29. Elements of a Marketing Plan
Six Elements of a Marketing Plan
Executive Summary
Written last – defines the entire plans key points
Situation Analysis
Your SWOT
Single goal of what going to do as a company.
Elements of a Marketing Plan
Objectives
Marketing Strategies
4ps: Product, Place, Price, Promotion
When, how, and who will implement plan, budget
Implementation
Evaluation and Control
Measurement on how you are doing