SWOT
The acronym for strengths, weaknesses, opportunities, and threats
SWOT analysis
The process of analyzing everthing that can foster the business's success and make it fail
Internal factors
Strengths and weaknesses are both ___________ that affect business operations
company, customer, and competition
The internal analysis centers are these; the three Cs
company analysis
The part of a company's internal analysis about what the company does well and what areas are week (including review of staff, the company's financial situation, production capabilities, and each aspect of the marketing mix)
customer analysis
The part of a company's internal analysis about customers' buying habits (including understanding who the customers are, what, when, where and how much do they buy, how satisfied is each customer segment, etc.)
competitive position
A company's strengths and weaknesses when compared to its competitors, based on factors such as market share, core competencies, or reputatation.
external factors
Opportunities and Threats are both _________ that affect business operation.
environmental scan
Part of a company's external analysis that includes four types of factors: political, economic, socio-cultural, and technological (sometimes referred to to with the acronym PEST).
political factors
External factors that involve government involvement in business operations, such as changes in laws and regulations.
economic factors
External factors such as the unemployment rate, inflation, retail sales figures, productivity, and consumer confidence.
socio-cultural factors
External factors that analyze customers and potential customers. This covers changes in all demographic factors, such as age, income, occupation, and marital status, as well as pychographic factors, such as lifestyle and attitudes.
technological factors
External factors that may threat one industry or company, but provide an opportunity for others (such as digital photography).
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.
executive summary
A brief overview of the entire marketing plan; it 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. The information from a company's SWOT analysis and from the environmental scan becomes the basis for this portion of the marketing plan.
marketing strategy
Part of a marketing plan that identifies target markets and sets marketing mix choices that focus on those markets.
sales forecast
The projection of probable, future sales in units or dollars.
market segmentation
The process of classifying people who form a given market into even smaller groups is called __________________.
demographics
Refer to statistics that describe a population in terms of personal characteristics such as age, gender, income, marital status, ethnic background, education, and occupation.
All Eyes On Me Everywhere I Go (demographic factors)
Age
Education
Occupation
Marital Status
Ethnic Background
Income
Gender
disposable income
Money left over after taking out taxes (your net income), this money is spent on basic needs such as food, shelter and clothing.
discretionary income
Money left after paying for basic living necessities such as food, shelter and clothing. (Money available to spend on luxury or premium items).
geographics
Refers to segmentation of the market based on where people live.
psychographics
Involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.
behavioral factors
Segmenting the market based on _____________ involves looking at the benefits desired by consumers, shopping patterns, and usage rate. (For example, many people, regardless of their socio-economic status, desire luxury merchandise).
The 80/20 rule
Means that 80 percent of a company's sales are generated by 20 percent of its loyal customers.
mass marketing
Involves using a single marketing strategy to reach all customers.
niche marketing
The current trend in marketing - markets are narrowed down and defined with extreme precision (as opposed to mass marketing).
performance standard
An expectation for performance that reflects the objectives of a marketing plan.