The Marketing Plan

Chapter 2

A. SWOT Analysis

A company’s planning begins with a critical look at itself and the market in which is operates.

Analyze the company’s:Strengths and weaknessesOpportunities and threatsAlso called the SWOT analysis

Example

Internal Strengths and Weaknesses

Revolve Around:CompanyCustomersCompetition

Must be fair and objective

Internal Strengths and Weaknesses

Company Analysis Includes a review of staffCompany’s financial situationProduction capabilitiesMarketing Mix

Sample Questions P. 27

Internal Strengths and Weaknesses

Competitive PositionMarket ShareAdvantages over the competitionCore competencies - better reputation, own

a patent, have special resources, better distribution capabilities

Are competitors taking business away? How? New product? Better promotion?

External Opportunities & Threats

Competition Changes in competitors financial situation Problems in the marketplace

Environmental Scan - Outside influences Political Economic Socio-Cultural Technological

Writing a Marketing Plan

Formal document that directs company activities for a specific period of time.

Review P. 34

2.2 Market Segmentation

Demographic

Geographic

Psychographic

Behavioral

Demographics

Age

Gender

Income

Marital Status

Ethnic Background

Geographics

Children Utah, Alaska, Texas, Arizona, California, Idaho

Seniors California, Florida, New York, Texas, Pennsylvania

Behavioral

How consumers use the productWays they shop / decide to buy the

productHow often they use the product80/20 Rule = 80 percent of the

company’s sales are generated by 20 percent of its loyal customers

Niche Marketing

New….Niche Marketing - Defining the target market narrowly

Old….Mass Marketing - using a single marketing strategy to reach all customers

Questions

Page 43#8, 11-15

Page 44#19