Chapter 2 (The Marketing Plan)

SWOT analysis
strengths, weaknesses, opportunities, threats
environmental scan
analysis of outside influences that may impact
marketing plan
a formal, written document that directs a company’s 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
identifies target markets and sets marketing mix choices that focus on those markets
sales forecasts
projection of probable, future sales in units or dollars
performance standard
an expectation for performance that reflects the plan’s objectives
market segmentation
The process of classifying people who form a given market into even smaller groups
demographics
statistics that describe a population in terms of personal characteristics, such as age, gender, income, ethnicity, or education
disposable income
the money left to spend or save after taxes have been paid
discretionary income
the money left over from a consumer’s income after paying for basic living necessities such as food, shelter, and clothing.
geographics
segmentation of the market based on where people live.
psychographics
Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values
mass marketing
using a single marketing strategy to reach all customers
3 Cs of internal analysis
company, customer, competition
Do Not Call Registry
FTC prohibits telemarketers from calling telephone numbers listed here
7 parts of marketing plan
executive summary, situation analysis, objectives, marketing strategies, implementation, evaluation and control, appendix
baby boomers
people born between 1946-1964; income and spending has increased as they have gotten older; prime market for technological gadgets, cosmetics, and products that enhance their lifestyle
Generation X
group of people born roughly between the years of 1965 and 1980 (following the baby boomers); generally children of dual income parents or divorced parents; savvy and skeptical consumers who respond to sharp images, music and a sense of humor
Generation Y
mini population explosion from the children of later baby boomers; this population is more racially and ethnically diverse; they respond to electronic communication
behavioral segmentation
Dividing a market into groups based on consumer knowledge, attitude, use, or response to a product
80/20 rule
a marketing rule of thumb that 80 percent of a product’s sales are generated by 20 percent of its loyal customers
census
a periodic and official count of a country’s population
implementation
The process That turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plans objectives
PEST
acronym used in marketing that means the analysis of outside influences that may have an impact on an organization; includes Political, Economic, Socio-cultural, Technological
marketing mix
The blending of four marketing elements-product, distribution, price, and promotion
marketing myopia
defining a business in terms of goods and services rather than in terms of the benefits that customers seek; short-sighted management that focuses on the product rather than the customer