1. THE WORLD OF MARKETING

2.  Learn how to conduct a SWOT analysis.  List the three key areas of an internal company analysis.  Identify the factors in a PEST analysis.  Explain the basic elements of a marketing plan. SECTION 2.1 MARKETING PLANNING

3.  A company looks at itself and the world around it to create a marketing plan for reaching goals. THE MAIN IDEA

4.  The SWOT analysis is an assessment that lists and analyzes the company’s strengths and weaknesses. It also includes the opportunities and the threats that surround it.  The acronym for strengths, weaknesses, opportunities, and threats is also the name of this process: SWOT analysis. SWOT

5.  Questions that are part of a company’s internal analysis are about what a company does well (core competencies) and what areas are weak.  This includes a review of the staff, the company’s financial situation, its production capabilities, and each aspect of the marketing mix (product, promotion, place, and pricing). COMPANY ANALYSIS

6.  Choosing what products to make and sell  Product development  Product design  Product features  Product improvements MARKETING MIX: PRODUCT

7.  What is exchanged for the product?  What are customers willing to pay?  Consumer prices versus reseller price.  What does the competition charge? MARKETING MIX: PRICE

8.  The means of getting the product into the consumers’ hands.  Which geographic areas?  Which channels of distribution?  Sold directly or through intermediaries? MARKETING MIX: PLACE

9.  How customers will be told about a company’s products.  Advertising, personal selling, sales promotions, and publicity.  The message and media selected. MARKETING MIX: PROMOTION

10.  Customers are a great source of information.  Studying their buying habits reveals patterns that offer insights into product offerings and pricing strategies. CUSTOMER ANALYSIS

11.  A company may find that it has certain strengths and weaknesses when compared to its competitors. COMPETITIVE ANALYSIS

12.  Companies must always look for opportunities to create competitive advantage due to external factors.  Competition EXTERNAL OPPORTUNITIES AND THREATS

13.  A PEST analysis is the scanning of outside influences on an organization. This is a methodical look at the world that typically includes four factors:  Political issues  Economic factors  Socio-cultural factors  Technology PEST ANALYSIS

14.  A marketing plan is a formal, written document that directs a company’s activities for a specific period of time.  A marketing plan also communicates the goals, objectives, and strategies of a company’s management team. WRITING A MARKETING PLAN

15.  Executive summary  Situation analysis  Objectives  Marketing strategies  Implementation  Performance standards and evaluation  Appendix ELEMENTS OF THE MARKETING PLAN

16. An executive summary is a brief overview of the entire marketing plan. EXECUTIVE SUMMARY

17.  Situation analysis is the study of the internal and external factors that affect strategies. SITUATION ANALYSIS

18.  Objectives let everyone know what the marketing plan will accomplish.  Marketing objectives must be in line with the organization’s goals and mission. OBJECTIVES

19.  A marketing strategy identifies target markets and sets marketing mix choices that focus on those markets. MARKETING STRATEGIES

20.  Implementation is putting the marketing plan into action and managing it. IMPLEMENTATION

21.  In the evaluation section of the marketing plan, measures that will be used to evaluate the plan are discussed.  It is important to explain exactly how a specific objective will be measured and who will be responsible for providing that evaluation. EVALUATION AND CONTROL

22.  A performance standard is an expectation for performance that reflects the plan’s objectives. PERFORMANCE STANDARDS

23.  The appendix is the section of the marketing plan that includes supplemental materials such as financial statements, sample ads, and other materials that support the plan. APPENDIX

24. MARKET SEGMENTATION

25.  Explain the concept of market segmentation.  Analyze a target market.  Differentiate between mass marketing and segmentation. EQ’S

26.  The key to marketing is to know your customer or target market. Market segmentation helps identify the target market. THE MAIN IDEA

27.  Market Segmentation- the process of classifying people who form a given market into even smaller groups. IDENTIFYING AND ANALYZING MARKETS

28. Gathering Data Private Research Trade Associations Company Research Government Data GATHERING DATA

29.  Demographic- Statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, and ethnic background.  Geographic- Segmentation of the market based on where people live. TYPES OF SEGMENTATION

30.  Psychographics- Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.  Behavioral-Segmenting the market based on purchasing-related behavior involves analyzing your customers with regard to sales generated, shopping patterns, and purchase decision-making processes. TYPES OF SEGMENTATION CONT’D

31.  Mass marketing involves using a single marketing strategy to reach all customers. MASS MARKETING VS SEGMENTATION AdvantagesDisadvantages Economies of scale- Companies can produce more products at lower costs because their product, promotion, pricing, or distribution does not change. Simplified marketing plan Competitors can identify unmet needs and wants and then steal customers

32.  Niche marketing narrows and defines a market with extreme precision, which increases the chances of a product’s success. MASS MARKETING VS SEGMENTATION AdvantagesDisadvantages Extremely precise Increased chance for success Cost – Research – Production – Packaging – Advertising