Chapter 2

Section 2

Marketing Terms:

SWOT Analysis: An assessment that lists and anaylze the companys strengths and weaknesses

PEST Analysis: The scanning of outside influences on orginzation

Marketing Plan: A formal written document that directs a companys activities for a specific period of time

Executive Summary: A brief overview of the entire marketing plan

Situation Analysis: The study of the internal and external factors that affect marketing strategies

Marketing Strategy: Indentifies target markets and sets marketing mix choices that focus on those markets

Sales Forecasts: Budgets and details of each activity and who will be responsible for each activity

Performance Standard: An expectation for performance that reflects the plans objectivies

Learn how to conduct a SWOT analysis

Internal

Strengths:

*large market share

*reputation for quality

*creative product developers


Weaknesses:

*low profit

*few employees

External

Opportunities:

*competitors going out of buisness

*strong economy

*few direct competitors



Threats:

*legal issues

*decreasing amounts of natural resources

Internal Company: Company, Customers, Competitive Postion

Company: The questions that are part of a companys internal analysis about what a company does well and what areas are weak

Customers: Studying their buying habits reveals patterns that offer insight into the product offerings and pricing strategies

Competitive Position: A company finds that it has certain strengths and weaknesses when compared to its competitors

The 4 P'S

Product: What new products have been successful and why? Does the company own a patent on any of those products? Are any patents expiring in the future?

Price: What are the present pricing strategies? Are the pricing stratigies working?

Place: Do products easily reach customers? Who helps the company distribution?

Promotion: How is the company positioned in the market place? What are the promotional strategies and have they been successful? What is the companys reputation and image among customers?

External Factors

Competition: Companies need to know what their competitors are doing at all times. Changes in comptetitor's financial situation and problems in the marketplace can provide oppurtunities. Conducting an on going SWOT analysis are in better position to react and make adjustments to their marketing mix.

PEST Analysis: the scanning of outside influences on an organization. This is a methodical look at the world that typically includes four factors: political, economic, socio-cultural, and technological.

Factors of an enviormental scan (PEST Analysis)

Political: center around government involvement in buisness operations; they must be aware of changes in laws and regulations that affect their industries.
Example: Do not call registry: this legislation requires telemarketers to drop from their lists home and cell phone numbers of registered consumers. This regulation forced many buissnesses to rethink their marketing strategies. Telemarketing companies hads to adjust data files to comply with the law.


Economic: The current state of the economy is of intrest to all buinesses: If the economy is robust, buissnesses are more likely to invest in new products and markets. An recession economy sends a completely different messgae to the company's decision makers.

Example: Unemployment--If unemployment figures decrease and consumer confidence increases, companies may see an oppurtunity to grow their businesses.


Socio-Cultural: is based on customers and potential customers. Changes in their attitude, life styles, and opinions provide a multitude of oppurtunities and threats.

Example: Diversity--The United States is becoming a more ethnically and racially diverse country. Marketing plans need to meet this change.

Technology: may be a threat for one industry or company, but an oppurtunity for others.

Example: Digital Photography--Some companies are looking for new ways to adapt to this new techonology. Others are capitalizing this technology by developing products such as printers to go with cameras.

Elements of a Marketing Plan

Executive Summary: a brief overview of the entire marketing plan. Briefly addresses each topic in the plan and gives an explanation of the costs involved in implementing the plan.

Situation Analysis: the study of the internal and external factors that affect marketing strategies. (takes stock of where the company or product has been, where it is now, and where it is headed).

Marketing Goals/Objectivies: let everyone know what the marketing plan will accomplish. They are based around the companys mission statement. (single-minded, specific, realistic, measurable, time framed).

Marketing Strategies: indetifies target markets and sets marketing mix choices that focus on those markets. All strategies need to take the customers needs and wants into account as well as the objectives of the marketing plan.

Implementation: putting the marketing plan into action and managing it. Includes obtaining the financial resources, management, and staffing necessary to put the plan into action.

Evaluation and Control: 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.