CHAPTER 2

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LEARNING TARGETS

• I can conduct a SWOT analysis

• I can name the three key areas of an internal company analysis

• I can Identify the factors in an environmental scan

• I can explain the basic elements of a marketing plan

• I can explain the concept of market segmentation

• I can analyze a target market

• I can differentiate between mass marketing and market segmentation

TARGET MARKET?

SECTION 2.1

• I can conduct a SWOT analysis

• I can list the three key areas of an internal company analysis

• I can identify the factors in an environmental scan

• I can explain the basic elements of a marketing plan.

SWOT

• Internal•Strengths•Weaknesses

• External•Opportunities•Threats

SWOT Analysis: How to perform one for your organization

• What are your strengths?• What are you doing better

than your competitors?• What can you continue to

improve upon?• What do others perceive as

your strengths?

• What trends or conditions may positively impact you?

• What opportunities are available to you?

• What are your weaknesses?

• What do your competitors do better than you?

• What can you improve, given the current situation?

• What do others perceive as your weaknesses?

• What rends or conditions may negatively impact you?

• What are your competitors doing that may impact you?

• Do you have solid financial support?

• What impact do your weaknesses have on the threats to you?

Opportunities Threats

Strengths WeaknessesInternal

External

Internal 4 P’s

• Profitable• Customer Relationship

Management• Global Brand• Original Dotcom• Original Electronic Book

• Selling Expertise to other companies

• Work with Public Sector• Libraries

• Exclusive Offers from Publishers

• Many other retailers are folding

• Too Many Categories dilutes brand

• Shipping Costs• Too focused on their own

technology• External Fullfillment

• New electronic books• Seasonality• Transportation Costs• Economy• New Countries have

different laws and requirements.

Opportunities Threats

Strengths WeaknessesInternal

External

THREE AREAS OF AN INTERNAL COMPANY ANALYSIS

• Company Analysis Staff Financial Production Capabilities Marketing Mix

Product Price Promotion Place

• Customer Analysis

• Competitive Position

EXTERNAL/ENVIRONMENTAL SCAN

• Competition

• Political

• Economic

• Socio-Cultural

• Technological

Executive Summary

Situation Analysis SWOT analysis Environmental Scan

Objectives Mission Marketing objectives Financial objectives

Marketing Strategies Positioning and points of

difference Marketing Mix

Price Product Place Promotion

Implementation Organization Activities and

responsibilities Timetables

Evaluation and control Performance standards and

measurements Marketing objectives Financial objectives Marketing mix strategies

Corrective action

Appendix

ELEMENTS OF A MARKETING PLAN

SECTION 2.2 MARKET SEGMENTATION

• Explain the concept of market segmentation

• Analyze a target market• Differentiate between mass

marketing and market segmentation

DEMOGRAPHICS: STATISTICS THAT DESCRIBE A POPULATION

• Age

• Gender

• Income• Disposable income• Discretionary income

• Marital Status

• Ethnic Background

GEOGRAPHICS: SEGMENTATION BASED ON WHERE YOU LIVE

PSYCHOGRAPHICS: GROUPING PEOPLE WITH SIMILAR LIFESTYLES

• Activities• Attitudes• Personality & Values

BEHAVIORAL: SEGMENTING BASED ON SHOPPING PATTERNS AND USAGE RATE.

MASS MARKET VS. SEGMENTATION

M A S S M A R K E T

Products have universal appeal

Products have few unique features

S E G M E N T A T I O N

Products have specific uses

Products are unique

Products don’t appeal to everyone.

REVIEW1) Which type of income, disposable or

discretionary is more important to businesses that sell expensive watches, second homes and financial services?

2) Of what significance are the combined African American, Hispanic and Asian-American population to marketers?

3) A recent study shows that teens are drinking more bottled water and reducing the amount of carbonated beverages they drink. Which psychographic or lifestyle trend does this study support?

4) If 93% of the US Population of 290,890,777 (2003 estimate) snacks at lease once a day, how large is the market for snack foods?

5) Why does the United States conduct a census of its residents every ten years?