Chapter 2 Vocab Flashcards
3 C’s
Company, customers and competition
SWOT analysis
An assessment that lists and analyzes the company’s strengths, weaknesses, opportunities and threats
PEST analysis
Scanning of outside influences on an organization-political, economic, socio-cultural and technological
Political examples
Do not call registry
Downloading music from Internet
Economic examples
Unemployment
Currency rates
Socio-cultural examples
Diversity
Health
Marketing plan
A formal written document that directs a company’s activities for a specific period of time
Elements of a marketing plan
Executive summary, situation analysis, marketing goals/objectives, marketing strategies, and implementation
Executive summary
A brief overview of the entire marketing plan
Situation analysis
The study of the internal and external factors that affect marketing strategies
Goals/objectives of a marketing plan
Are single-minded, specific, realistic, measurable and time framed
Marketing strategy
Identifies target markets and sets marketing mix choices that focus on those markets
Implementation
Is putting the marketing plan into action and managing it
Sales forecasts
The projection of probable of future sales
Performance standards
Is an expectation for performance that reflects the plans objectives
Appendix
Section of the marketing plan that includes supplemental materials such as financial statements, sample ads that support the plan
Marketing audit
Evaluates a company’s marketing objectives, strategies, budgets, organization and performance
Market segmentation
The process of classifying people who form a given market into even smaller groups
4 ways customers can be segmented
Demographics
Geographics
Psychographics
Behavioral characteristics
Demographics
Personal characteristics-age, gender, race, income, martial status
Geographics
Refers to segmentation of the market based on region, rural vs. urban and climate
Psychographics
Involves grouping people with similar attitudes, interests, lifestyles and opinions
Behavioral characteristics
Analyzing your customers with regard to sales generated, shopping patterns and purchase decision making process
Disposable income
Money left after taking out taxes
Discretionary income
Money left after paying for basic needs
Mass marketing
Involves using a single marketing strategy to reach all customers
Niche marketing
Narrows and defines a market with extreme precision
Environmental scan
Internal and external environments
3 phases of the marketing process
Planning, implementation, control
