THE WORLD OF
MARKETING
SECTION 2.1 MARKETING PLANNING
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.
THE MAIN IDEA
A company looks at itself and the
world around it to create a
marketing plan for reaching
goals.
SWOT
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.
COMPANY ANALYSIS
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).
MARKETING MIX: PRODUCT
Choosing what products to make
and sell
Product
Product
Product
Product
development
design
features
improvements
MARKETING MIX: PRICE
What is exchanged for the
product?
What are customers willing to pay?
Consumer prices versus reseller
price.
What does the competition charge?
MARKETING MIX: PLACE
The means of getting the product
into the consumers’ hands.
Which geographic areas?
Which channels of distribution?
Sold directly or through
intermediaries?
MARKETING MIX: PROMOTION
How customers will be told about
a company’s products.
Advertising, personal selling, sales
promotions, and publicity.
The message and media selected.
CUSTOMER ANALYSIS
Customers are a great source of
information.
Studying their buying habits reveals
patterns that offer insights into
product offerings and pricing
strategies.
COMPETITIVE ANALYSIS
A company may find that it
has certain strengths and
weaknesses when compared
to its competitors.
EXTERNAL OPPORTUNITIES AND
THREATS
Companies must always look
for opportunities to create
competitive advantage due to
external factors.
Competition
PEST ANALYSIS
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
WRITING A MARKETING PLAN
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.
ELEMENTS OF THE MARKETING PLAN
Executive summary
Situation analysis
Objectives
Marketing strategies
Implementation
Performance standards and evaluation
Appendix
EXECUTIVE SUMMARY
An executive summary is
a brief overview of the
entire marketing plan.
SITUATION ANALYSIS
Situation analysis is the
study of the internal and
external factors that affect
strategies.
OBJECTIVES
Objectives let everyone know
what the marketing plan will
accomplish.
Marketing objectives must be in
line with the organization’s goals
and mission.
MARKETING STRATEGIES
A marketing strategy
identifies target markets and
sets marketing mix choices
that focus on those markets.
IMPLEMENTATION
Implementation is
putting the marketing
plan into action and
managing it.
EVALUATION AND CONTROL
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.
PERFORMANCE STANDARDS
A performance standard is
an expectation for
performance that reflects
the plan’s objectives.
APPENDIX
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.
MARKET SEGMENTATION
EQ’S
Explain the concept of market
segmentation.
Analyze a target market.
Differentiate between mass
marketing and segmentation.
THE MAIN IDEA
The key to marketing is to know
your customer or target market.
Market segmentation helps
identify the target market .
IDENTIFYING AND ANALYZING MARKETS
Market Segmentation- the
process of classifying people
who form a given market into
even smaller groups.
GATHERING DATA
Private
Research
Government
Data
Gathering
Data
Company
Research
Trade
Associations
T YPES OF SEGMENTATION
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.
T YPES OF SEGMENTATION CONT’D
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.
MASS MARKETING VS SEGMENTATION
Mass marketing involves using a single
marketing strategy to reach all customers.
Advantages
Disadvantages
• Economies of scale• Competitors can identify
Companies can produce
unmet needs and wants
more products at lower
and then steal customers
costs because their
product, promotion,
pricing, or distribution
does not change.
• Simplified marketing plan
MASS MARKETING VS SEGMENTATION
 Niche marketing narrows and defines a market with
extreme precision, which increases the chances of a
product’s success.
Advantages
• Extremely precise
• Increased chance for
success
Disadvantages
• Cost
– Research
– Production
– Packaging
– Advertising