Transcript Marketing * Chapter 1

Marketing – Chapter 2 - SWOT
What is SWOT and how does it apply to marketing?
Strengths/Weaknesses = Internal
Opportunities/Threats = External
Company Analysis (Internal):
Staffing / Financial / Production Capabilities / Marketing Mix (4
P’s)
Marketing – Chapter 2 - SWOT
Staffing:
Ex “Too much or not enough staff?” “How effective is the staff?”
Financial:
Ex “Is company profitable?” “Are sales increasing or decreasing?”
Production Capabilities
“What technology is needed to be competitive?” “What production
changes are needed if sales increase or decrease?”
Marketing – Chapter 2 - SWOT
Marking Mix
Product – “What products are successful?” “Do we own patents?”
Price – “What’s the pricing strategy? “Is it working?”
Place – “Do products get to customers easily?” Who provides
distribution?”
Promotion – “What are the promotional strategies and are they
working?” “What's the reputation and image?”
Marketing – Chapter 2 - SWOT
Customer Analysis (Internal):
Studying buying habits and customer satisfaction
Product Offerings and Pricing / Interest Specific Options/ Strengths and
Weaknesses
Questions – “Who are the customers? And How do they differ?”
“What, where, and how often do they buy?”
“What’s their view on company quality, service, and value?”
“Is it increasing or decreasing?
Marketing – Chapter 2 - SWOT
Competitive Position (Internal):
Market Share
Questions – “What is the market share?”
“What advantages do we have over the competitors?”
“What are our Core Competencies(Reputation, Patents,
Resources, Distribution)?”
“Are we loosing business to competitors and Why?”
Marketing – Chapter 2
PEST Analysis (External):
What is a PEST analysis?
Outside influences on a company (Opportunities and/or threats)
Consists of what 4 factors?
1. Political
2. Economic
3. Socio-Cultural
4. Technological
Marketing – Chapter 2
PEST Analysis (External):
1. Political – Govt. Involvement - Global (Laws and regulations,
Political structure)
2. Economic – Local/National/International (Can’t Control):
 Recession – Most companies slow or stop productions
 Unemployment – If Decreasing, companies may grow business
 Currency Rate – Can make products more or less expensive on foreign
markets
 Import Pricing – Illegal dumping (Selling imports at very low prices)
 Trade Restrictions – Tariffs (Taxes), Quotas (Number Limits)
Marketing – Chapter 2
PEST Analysis (External):
3. Socio-Cultural Factors – Customs and Potential Customers.
Changes in all Demographic Factors.
Changes in attitudes, lifestyles, and opinions (Psychographics)
 How are customers changing!
4. Technology – Threat to some but Opportunity to others!
 Examples?
Marketing – Chapter 2
Marketing is complicated and it involves MANY different tasks:
To Stay Organized, Marketers create Marketing Plans
Marketing Plan
Document that directs the company’s activities for a specific amount
of time
Road map to how a product will enter the market, be advertised, &
sold
Communicates the goals, objectives, and strategies of a company’s
management team: Responsibilities / Timelines / Budgests
Marketing – Chapter 2
Marketing Plan Elements
1. Executive Summary – Brief Overview
 Used by Investors / Consultants
2. Situation Analysis – Internal & External Factors – SWOT/PEST
 Company, Business Unit, Product Line, or Individual
Marketing – Chapter 2
Marketing Plan Elements
3. Objectives – What the Plan will Accomplish (Match to Mission
Statement)
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Single Minded – Each Topic Must be Separate!!
Specific – No Misunderstandings or Interpretations
Realistic – Achievable – Consider Strengths and Weaknesses
Measurable – Evaluate Results (Ex. Increase sales by 5% from Q1 to Q2)
Time Framed – To know if objective was reached
Marketing – Chapter 2
Marketing Plan Elements
4. Marketing Strategies – Target Market(s) – Sets the Marketing Mix (4P’s)
 Focused on the Key Points of Difference – Advantage over competition
 Quality / Distribution / Creative Promotions / Pricing
5. Implementation – Plan into Action – Communication Key
 Obtaining Resources – Financial / Management / Staffing
 Outlines the Schedule of:
 Activities / Job Assignments / Sales Forecasts (Projection of Future Sales) /
Budgets / Details of All Activities / Responsibilities
Marketing – Chapter 2
Marketing Plan Elements
6. Evaluation and Control – How Objectives will be Measured and by
Whom
7. Performance Standards & Evaluations – Measuring Stick
 Assess Objectives and Marketing Mix Strategies
 Actions to Take if Objectives are NOT Met
 Revisions to Plan
8. Appendix – Supplemental Items
 Financial Statements / Sample Ads / Misc. Items
Marketing – Chapter 2
Identifying and Analyzing Markets
The Best way to connect to customer’s is to KNOW them!
Remember what a Market is?
What is Market Segmentation?
Classifying people who form a given market into smaller groups
More precise clusters
Marketing – Chapter 2
Who do you market to?
To expensive to market to everyone…Where is your advantage?
Gathering Data
Census is one option
Once the data is collected Markets can be segmented into 4 categories
Demographics / Geographics / Pychographics / Behavioral Characteristics
Marketing – Chapter 2
Demographics
Statistics that describe personal characteristics
Age
Baby Boomer Generation – 76million born in US 1946-1964 – Getting Older
Generation X – Dual career household / Divorced Parents – Savvy/Skeptical
Generation Y – Millennium Gen./ Greater diversity– Internet
Gender
Typically a different marketing approach is needed for men and women
Even for the same product – Examples?
Marketing – Chapter 2
Demographics
Statistics that describe personal characteristics
Income
Disposable – Money left after taxes – Necessities bought first
Discretionary – Money left after basic necessities (Food/Shelter/Clothing)
Less discretionary income in tough economic times (Recession/Depression)
Marketing – Chapter 2
Demographics
Statistics that describe personal characteristics
Martial Status
% of Married couples in the US less than 1950’s
Living longer, Re-marrying Less, Divorcing More, Waiting longer to get
married
Family size products
Ethnicity
Multicultural and Ethnically Diverse - Caucasian % Decreasing compared to
Hispanics / African Americans / Asian Americans
Marketing – Chapter 2
Geographics
Where people live – People who live in the same geographic region
typically share similar demographics
Local / State / Regional
Product decisions based upon preferences of the region – Greatest appeal
to the most likely customers
Knowing terms of the region – Ex. Pop, Soda, Coke
Open Google: Search for - Where you live based on the words you say
Click on NYTimes Link - How Y’all, Youse and You Guys Talk - Interactive...
Marketing – Chapter 2
Geographics
Where people live – People who live in the same geographic region
typically share similar demographics
National and Global
Specific products for specific regions of the globe
Information for customer from other countries – Different languages and
images
Ex.
Marketing – Chapter 2
Psychographics
Attitudes, Interests, Opinions, Lifestyles, and Values
How people spend their time and money
Focus Groups
Attitudes and Opinions
Changing times and personal experiences
Trends (Long-Term) vs Fads (Short-Term)
Marketing – Chapter 2
Psychographics
Attitudes, Interests, Opinions, Lifestyles, and Values
Interests and Activities
People who chare common interests and activities typically purchase similar
goods and services
Interests and Activities
Maslow’s Hierarchy of Needs
Marketing – Chapter 2
Maslow’s Hierarchy of Needs
People are motivated to achieve certain needs. When one need is fulfilled a
person seeks to fulfill the next one, and so on
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Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep.
Safety needs - protection from elements, security, order, law, stability, freedom from
fear.
Love and belongingness needs - friendship, intimacy, affection and love, - from work
group, family, friends, romantic relationships.
Esteem needs - achievement, mastery, independence, status, dominance, prestige, selfrespect, respect from others.
Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal
growth and peak experiences.
Marketing – Chapter 2
Maslow’s Hierarchy of Needs
Marketing – Chapter 2
Behavioral Characteristics
Sales generated, Shopping patterns, Purchase decisions making process
Most business identify the 80/20 rule
80% of purchases comes from 20% of loyal customers
Loyalty Programs
Web-Sites and Online Promotions
Marketing – Chapter 2
Mass Marketing vs. Segmentation Marketing
Mass Marketing
Universal appeal – Single marketing strategy to reach all customers
Advantage – Lower Cost – Few differences in product/price/promotion
Disadvantage – Competitors will go after the customer's whose needs are not
met
Niche Marketing
Defines and narrows market with extreme precisions
Advantage – Identify a specific market
Disadvantage – Research needed and COST