Marketing Chapter 2 The Marketing Plan

What are the basic elements found in a marketing plan?

The basic elements found in a marketing plan is executive summary ,situation analysis,objectives,marketing strategies,implementation,evaluation and control,peformance standards, and appendix.

mass marketing

involves using a single marketing strategy to reach all customers

key points of difference/competitive advantage

key point of difference is the advantage of a company, product, or service has over its competition such as quality, distribution, creative ad, or pricing structure

Evaluation and Control

measures that will be used to evaluate the plan are discussed, explains exactly how a specific objective will be measured and who will be responsible for providing that evaluation

discretionary income

money income left after necessities have been bought

Implementation

process of putting the marketing plan into action and managing it, obtaining financial resources, management, and staffing necessary to put a plan in action, SCHEDULE OF ACTIVITIES + JOB ASSIGNMENTS

Why does the United States conduct a census every ten years?

reveals how many people there are and makes it easier to group them. They use age, gender,income levels, buying behavior, interests, and activities.

demographics

statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, education, occupation and ethnic background

market segmentation

the process of classifying people who form a given market into smaller groups

sales forecast

the projection of probable future sales in units or dollars

situation analysis

the study of internal and external factors that affect marketing strategies. It takes stock of where the company is now, where it was before, and where it wants to be in the future. Contains information from a SWOT and PEST analysis

Marketing Plan

A formal, written document that directs a company's activities for a specific period of time. It details analysis and research efforts and provides a road map on how the product will enter the market, be advertised, and sold Also communicates the goals and objectives and strategies of a company's team. It lets managers know their responsibilities , budget, and timelines, helps monitor a company's performance.

target market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

How can a business use a SWOT analysis and an environmental scan to create an effective marketing plan?

An environmental scan takes other outsider businesses to account while the SWOT analysis takes the inside of the business into account.

Which type of income , disposable or discretionary, is more important to businesses that sell expensive watches or financial services?

Discretionary income for expensive watches because that is the spending money after you bought all your necesites. Disposable income for financial service because the services could have a higher tax because it is a government service.

What five factors make the marketing plan objectives useful?

Five factors that make the marketing plan objectives useful are

Explain how segmentation can help a company increase is market share.

Market segmentation allows a company to more accurately target potential customers, thereby taking customers away from competitors who may not have done as good a job of meeting the needs of the targeted market segment.

What are the four variables of market segmentation? Explain each and provide examples.

Four variables of Market Segmentation are Demographics, Geographics, Psychographics, and Behavioral Factors. Demographics:statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, education, occupation and ethnic background Geographics:Segmentation of the market based on where people live such as local, state, regional, national, and global markets. Also can include population density and climate. Psychographics:Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions. Behavioral Factors:analyses customers based on shopping patterns,sales generated, and purchase-decision making process. 80/20 rule

Psychographics

Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.

Why are evaluation and control important elements of an effective marketing plan?

It is important because it explains exactly how a specific obejective will be measured and who will be responsible for providing that evaluation.

What is the difference between mass marketing and segmentation? Of the two, which method do marketers use more today? why?

Mass marketing targets a wide variety of people into one group while segmentation separates a big group into smaller groups to better have better aim at their target market. Marketers today use Market Segmentation the most because it is more specific to target their market and gets more customers instead of being less general which has less customers.

What four areas are investigated in the PEST analysis and explain why the knowledge gained can be valuable to a company

PEST Analysis -the scanning of outside influences on an organization Political Economic Socio-cultural Technological 1. Political Issues -center around gov't involvement in business operations -companies must be alert to changes in laws and regulations -global companies need to understand the political structure and regulations of each foreign country they have business with ex: Do not call registry -this legislation requires telemarketers to drop home and cell phone numbers of registered consumers -forced many businesses to change their marketing strategies Downloading music from the internet -illegal downloading of music created an industry o companies that provided legal downloading for a fee -reduced revenue for traditional music stores but made opportunities for other internet retailers 2. Economic Factors -if the economy is robust businesses are more likely to invest in new products and markets -an economy in recession has the opposite affect -upcoming marketing programs may be altered or scrapped in a weak economy a. unemployment b. inflation c. retail sales figures These are tools to estimate d. productivity the current status of the economy e. consumer confidence -value of the dollar to foreign currencies affects imports and exports -these prices affect how a company sells to a global market -have to analyze form local, national and international perspectives so they can adapt changes in their markets **economic factors marketers would consider as opportunities or threats** Recession -threat -companies slow or stop plans for new facilities -reduce research and development (R&D) efforts Unemployment -unemployment figures decrease, consumer confidence increases, companies may see this as an opportunity to grow their business Currency Rates -changes in foreign currency rates could be seen as a threat or opportunity -this depends if the company's products are cheaper or more expensive in their foreign markets Import Pricing -illegal dumping (selling imported products at a very low price) in a given market is a threat to all businesses in that industry Trade Restrictions -Lowering or raising tariffs on imported goods could be both a threat or opportunity depending where a company does business -these economic factors cannot be controlled 3. Socio-Cultural Factors -based on customers and potential customers -changes in attitudes, lifestyles and opinions provide a multitude of opportunities and threats -socio cultural analysis examines changes in all demographic factors such as a. age b. income c. occupation d. education level e. marital status ex of changes: diversity-USA is becoming more diverse health-obesity has become an issue in the USA—healthier options 4. Technology -can be a threat or opportunity -make companies go out of business or expand ideas of old companies Marketing plan-a formal written document that directs a company's activities for a specific period of time. It details analysis and research efforts and provides a roadmap for how a product will enter the market, be advertised and sold. -communicates the goals objectives and strategies of a company's management team -helps to monitor a company's performance

How can a country's current economic situation impact a business's marketing plan?

People are more likely to invest in new products and markets recession- people cut back and reduce spending

geographics

Segmentation of the market based on where people live such as local, state, regional, national, and global markets. Also can include population density and climate.

The results of a swot analysis are reported in what section of a marketing plan?

Situation Analysis

List and describe the three key internal areas involved in an internal company analysis

The three C's are company analysis, customer analysis, and competitive position. Company Analysis -what a company does well in and what areas its weak -review of staff -financial situation -production capabilities -each aspect of the marketing mix (4 P's—product, promotion, price, place) Customer Analysis -studying a customer's buying habits reveals insight into product offerings and pricing strategies -catalog companies use database technology to analyze buying patterns -technology gives a major advantage over their competitors b/c they can structure the product selection, pricing, promotional message to specific target markets -using surveys helps collect data Competitive Position -helps to analyze internal components ex: changes in a competitor's financial situation and problems I nthe marketplace can provide opportunities

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

There is a bigger population for African American, Hispanic, and Asian Americans than caucasian population. It makes for a bigger target market.

Executive Summary

a brief overview of the entire marketing plan, it addresses each topic in the plan and gives an explanation of the costs involved in implementing the plan, used to provide information to people outside the organization such as investors or business consultants

80/20 rule

a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers

environmental scan

an analysis of outside influences that may have an impact on an organization

Explain the purpose of a SWOT analysis and why it is helpful.

an assessment that lists and analyses the company's strengths and weaknesses. It also includes the opportunities and threats that surround it.

SWOT analysis (strengths, weaknesses, opportunities, threats)

an assessment that lists and analyses the company's strengths and weaknesses. It also includes the opportunities and threats that surround it.

performance standard

an expectation for performance that reflects the plan's objectives, can help assess marketing objectives financial objectives, and marketing mix strategies. MEASURING STICK

appendix

includes supplemental materials in the marketing plan such as financial statements and sample ads

disposable income

income (after taxes) that is available to you for saving or spending

marketing strategy

identifies target markets and sets marketing mix choices that focus on those markets. Takes customers needs and wants in account with the objectives of the marketing plan. Should be focused on the key points of difference