CPAS REVIEW
2013-2014
MARKETING
CHAPTER 2—THE MARKETING PLAN
Chapter 2
the marketing plan
Section 2.1
Marketing Planning
Section 2.2
Market Segmentation
Section 2.1
Marketing Planning
• SWOT analysis
• PEST analysis
• marketing plan
• executive summary
• situation analysis
• marketing strategy
• sales forecasts
• performance standard
Section 2.1
Marketing Planning
Marketing Plan
Section 2.1
Marketing Planning
Marketing Plan
Section 2.1
Marketing Planning
SWOT Analysis
prepares a company for
competition or a changing
marketplace
SWOT
Analysis
provides guidance and
direction for future marketing
strategies
SWOT analysis
An assessment of a company’s strengths
and weaknesses and the opportunities and
threats that surround it; SWOT: strengths,
weaknesses, opportunities, threats.
Section 2.1
Marketing Planning
SWOT Analysis
prepares a company for
competition or a changing
marketplace
SWOT
Analysis
SWOT analysis
provides guidance and
direction for future marketing
strategies
Section 2.1
SWOT Analysis
Marketing Planning
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
The three C’s of
internal analysis
C
C
C
ompany
ustomers
ompetition
Strengths and weaknesses
are internal factors that affect
a business’s operation.
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
The three C’s of
internal analysis
C
C
C
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
.
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
.
Section 2.1
Marketing Planning
Internal Strengths and Weaknesses
.
Section 2.1
Marketing Planning
PEST Analysis
Political
Four Factors
of a
PEST Analysis
Economic
Socio-Cultural
PEST analysis
Scanning of outside influences
on an organization.
Technological
Section 2.1
Marketing Planning
PEST Analysis
Political
Four Factors
of a
PEST Analysis
Economic
Socio-Cultural
PEST analysis
Technological
Section 2.1
Marketing Planning
PEST Analysis
Political
Issues
Economic
Issues
Socio-Cultural
Factors
Technology
Government affects business operations
• Recession
• Unemployment
• Currency Rates
• Import Pricing
• Trade Restrictions
Changes in attitudes, lifestyles, and opinions
provide opportunities and threats
Companies must embrace technology and innovate
to stay competitive
Section 2.1
Marketing Planning
PEST Analysis
Political
Issues
Economic
Issues
Socio-Cultural
Factors
Technology
Section 2.1
Marketing Planning
PEST Analysis
Economic Factors
Section 2.1
Marketing Planning
Writing a Marketing Plan
Executive
Summary
Situation
Analysis
Elements
of a
Marketing Plan
Objectives
Marketing
Strategies
executive summary
A brief overview of the
entire marketing plan.
situation analysis
The study of the internal
and external factors that
affect marketing strategies
Implementation
marketing strategies
Evaluation
and Control
Strategy that identifies
target markets and sets
marketing mix choices that
focus on those markets
Section 2.1
Marketing Planning
Writing a Marketing Plan
Executive
Summary
executive summary
Situation
Analysis
Elements
of a
Marketing Plan
Objectives
situation analysis
Marketing
Strategies
Implementation
Evaluation
and Control
marketing strategies
Section 2.1
Marketing Planning
Writing a Marketing Plan
Marketing Plan Objectives
Section 2.1
Marketing Planning
Writing a Marketing Plan
Section 2.2
Market Segmentation
The key to marketing is to know your customer or
target market. Market segmentation helps identify
the target market.
Section 2.2
Market Segmentation
The key to marketing is
Market segmentation helps
Section 2.2
Market Segmentation
• market segmentation
• demographics
• disposable income
• discretionary income
• geographics
• psychographics
• mass marketing
Section 2.2
Market Segmentation
Section 2.2
Market Segmentation
Types of Segmentation
Demographic
Geographic
Psychographic
Age
Local
Attitudes
Gender
State
Opinions
Income
Regional
Interests
Marital status
National
Activities
Ethnic background
Global
Personality
Behavioral
Shopping
Patterns
Decision-making
process
Values
demographic
psychographic
Statistics that describe a population in
terms of personal characteristics such as
age, gender, income, marital status, and
ethnic background.
Grouping people with similar
attitudes, interests, and opinions, as
well as lifestyles and shared values.
Section 2.2
Market Segmentation
Types of Segmentation
Demographic
Geographic
Psychographic
demographic
psychographic
.
.
Behavioral
Section 2.2
Market Segmentation
Types of Segmentation
Labels Used to Segment by Generation
Baby Boom
Generation
Generation X
Generation Y
Section 2.2
Market Segmentation
Types of Segmentation
Labels Used to Segment by Generation
Baby Boom
Generation
Generation X
Generation Y
Section 2.2
Market Segmentation
Types of Segmentation
Income
Disposable
Income
Discretionary
Income
disposable Income
discretionary income
Money left after taking
out taxes.
Money left after paying for basic
living necessities such as food,
shelter, and clothing.
Section 2.2
Market Segmentation
Types of Segmentation
Income
Disposable
Income
disposable Income
Discretionary
Income
discretionary income
Section 2.2
Market Segmentation
Types of Segmentation
80 percent of a
company’s sales...
are generated by 20 percent
of its loyal customers
Section 2.2
Market Segmentation
Types of Segmentation
Section 2.2
Market Segmentation
Mass Marketing Vs. Segmentation
Mass Marketing
Advantages
Disadvantage
• Economics of scale
• Simplified marketing plan
• Competitors can identify
unmet needs and wants
and then steal customers
mass marketing
Using a single marketing strategy to reach
all customers.
Section 2.2
Market Segmentation
Mass Marketing Vs. Segmentation
Mass Marketing
Advantages
Disadvantage
mass marketing
Using a single marketing strategy to reach
all customers.
Section 2.2
Market Segmentation
Mass Marketing Vs. Segmentation
Niche Marketing
Advantages
• Extremely precise
• Increased chance for
success
Disadvantage
• Cost
–
–
–
–
Research
Production
Packaging
Advertising
Section 2.2
Market Segmentation
Mass Marketing Vs. Segmentation
Niche Marketing
Advantages
Disadvantage