2. What is SWOT?  Strengths  Weakness  Opportunity  Threats

3. SWOT  A strategic planning tool that separates influences on a business’s future success into internal and external factors.

4. SWOT allows Business’s to… Define realistic goals Improve capability Overcome weaknesses with strengths Identify threats than can be turned into opportunities

5. A SWOT Matrix separates a companies internal and external factors StrengthsWeaknessopportunitiesThreats Internal External

6. Strength  Superior product  Lowest price  Best expertise  Location customer service

7. Weakness  A tired brand  Inferior location  Lack of R&D or research and development

8. Opportunities  Marketing opportunity (this could be any good press; an event for cancer research)  Untapped market  A gap left by a failed competitor

9. Threats  New company in the market  Problems with the economy  Market shrinkage

11. Market Segmentation  The process of analyzing and classifying customers in a given market to create smaller, more precise target markets.  Companies identify groups of people who have common interests and traits.  Businesses use these groups to create market- specific ads and products

12. Identifying and Analyzing Markets The four factors that help segment a market and describe a target market are: Demographics Geographic Psychographics Behavioral factors

13. Demographic  Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnicity, education, and occupation.

14. Income disposable income The money left over after taxes are taken out of a consumers income. discretionary income The money left over from a consumers income after paying for basic living necessities such as food, shelter, and clothing.

15. Geographics  Segmentation of the market based on where people live. To segment a market geographically, you can refer to: Local and regional markets National and global markets

16. Psychographics  Studies of consumers based on social and psychological characteristics: Lifestyles, attitudes, values, and opinions. The different sections of magazines in a bookstore illustrate segmentation by:  Activities and interests

17. We also study…  Behavioral  Separating the market based on product-related behavior involves looking at the: Benefits desired by consumers Shopping patterns (time of year, frequency of purchase) Usage rate

18. Mass Marketing  Use of a single marketing plan to reach all customers.  When products have universal appeal and few features differentiate them from competitors