DECA Chapter 2

SWOT Analysis

1. Prepares a company for competition or a changing marketplace

2. Provides guidance and direction for future marketing strategies

• external and internal

The 3 C’s

Three C’s

• costumer

• competitor

• company

PEST (external)

Political

Economic

Socio-culture

Technological

Political (PEST)

Government effects buisness

Economic (PEST)

Recession, unemployment, import pricing

Socio-cultural (PEST)

Changes in attitudes, lifestyles, and opinions

Technological (SWOT)

Companies must embrace technology and innovative to stay competitive

Markets create a marketing plan to communicate things like:

• Analysis and research

• Goals 

• Objectives (specific, single mindset, time framed and measurable)

• Strategies

Elements of Market Planning

Executive summary

• Situation Analysis (SWOT)

• Objectives

• Marketing Strategies (4 P’s)

• Implementation

• Evaluation and Control

Situation Analysis (SWOT)

provides an examination of factors and trends that affect marketing strategies

Objectives

describes what the plan will accomplish

Marketing Strategies (4P’s)

Identifies target markets and marketing mix choices focused on those markets

Implementation

outlines how implementation will be accomplished and provides sales forecast

Evaluation and Control

Explains how objectives will be measured and who will evaluate

Implementation

• Schedule of activities 

• Job assignments

• Sales forecast- Projection of probable, future sales in units or dollars

• Budgets 

• Details of each activity (the breakdown)

• Who is responsible for each activity

Performance Standard

an expectation for performance that reflects the plan’s objectives.

Writing a Marketing Plan

Performance Standards help assess

• Marketing objectives

• Financial Objectives

• Marketing Mix Strategies

Market Segmenation

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

• Age

• Price

• Desired Features

80/20 Rule

80% of a company's sales are generated by 20% of its loyal customers

A company gathers data from multiple sources

Government Data

Private Research

Trade Associations 

Company research

4 areas of market segmentation

Demographic

geographic

phycographic

behavioral

Demographic

Age  Gender Income Marital status Ethnic Background

Geographic

Local  State Regional National Global

Phycographic

Attitudes Opinions Interests Activities Personality Values (how you think)

Behavioral

Shopping patterns Decision-making Process (actions)

G.I Generation (1900-1924)

• veterans who fought in WWII

• Lived through two World Wars, the Great Depression and many other advances

• They are conservative savers, hard-working, high sense of moral obligation, patriotism and respect for authority

• Two overlapping group: The Depression Era (1912-1921) and World War II (1922-1927).

• The parents of the baby boomers

Silent Generation (1925-1945)

current age 80-100

• Born between WWI but many of them were too young to join the service.

• “The lucky few”

• Conservative, rational savers, hard-working, patriotic members that fight for security and stability.

Baby Boomers (1946-1964)

Current age 62-80

-76 million born during 18 year span

• their parents are G.I. and Silent Generation 

• Focused on civil rights and cultural development

•  vietnam war, MLK, and Kennedy assassination, the Nixon resignation

• Came of age in the 60s with the hippie movement (weed and drugs in general), Woodstock and college rages

• Baby Boomers embraced more conservative behaviors, eventually gave birth to Generations X and Y

Generation X (1965-1980)

Current age 46-61

• Came of age in 80s and 90s with the Reagan era, Challenger explosion, fall of Berlin Wall, Persian Gulf War, economic recession

• lots of debt

• “latchkey “ kids, exposed to daycare and divorce (shaped how they raised their kids and how they educate gen Y).

Generation Y (1981-1996)

Current age 30-45

• Millennials

• children of baby boomers

• rise of mass communication, technological advances

• better education and has the ambition and desire to change the world

•  immune to traditional ways from marketing to sociology

• Average length of time at a job is three years

Generation Z (1997-2012)

Current age 14-29

• 49% of births were hispanic this changes the american melting pot

• iGenration, Gen Tech, Gen Wii, Net Gen, Gen Next, Post Gen

• Main communication channel is internet

• Volatile environment of terror threats, possible nuclear or biological attacks

• Family stability and moral values put aside, heightened sense of self

Generation Alpha (2014-2024)

• Digital natives, growing up with pervasive technology, smart devices, and streaming services from birth- significantly shapes their experiences with learning, entertainment, and their connection to the world.

Generation Beta (2025-2039)

• Continues to use greek alphabet ( alpha to beta)

• Most are born to older millennials and younger Gen Z

Disposable income

•  money left after taking out taxes

Discretionary income

• Money left after paying for basic living necessities such as food, shelter, and clothing

Mass marketing

 using a single marketing strategy to reach all customers 

Advantages of Mass Marketing

• Economy of scale ( you can reach more people)

• Simplifies marketing plan

• quicker

disadvantages of Mass Marketing

• Message is too vague

• Not a lot of relationship building

Niche Marketing

 most specific form of marketing

Advantages of Niche Marketing

• Extremely precise

• Increased change for success 

Disadvantages of Niche Marketing

• Cost 

  • Research 

  • Production

  • Packaging

  • advertising

SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats