Business Plan and Marketing Analysis Notes

Importance of Marketing Mix

  • Essential for developing marketing strategies.

Business Plan Overview

  • A comprehensive document outlining:
    • Marketing
    • Financial strategies
    • Strategic direction
    • Tactics for the business.

Products and Services

  • Both can be perishable.
  • Customer needs and preferences evolve over time.
  • Services may be reusable
  • Influences include consumers' age, culture, and status.

Marketing Process

  • Involves:
    • Identifying and developing the product
    • Pricing strategies
    • Choosing distribution methods
    • Executing a marketing plan.

Definition of Market

  • Refers to a group of consumers or organizations interested in a product and able to purchase it:
    • Needs to satisfy
    • Money to spend
    • Willingness to buy.

Market Segmentation Terms

  • Potential Market: Interested consumers.
  • Available Market: Those with purchasing power.
  • Qualified Available Market: Legally permitted purchasers.
  • Target Market: Segment the business aims to serve.
  • Penetrated Market: Buyers in the target market.

PEST Analysis Overview

  • Strategic tool for evaluating macro-economic factors:
    • Political: Government policies, stability, tax policies.
    • Economic: Income levels, inflation rates, cost of doing business.
    • Sociocultural: Traditions, customs, health consciousness.
    • Technological: Innovations affecting business operations.

Competition Analysis

  • Direct Competition: Rivals targeting the same customers with similar products.
  • Indirect Competition: Different goods targeting the same customer needs.

SWOT Analysis

  • Framework for assessing competitive position:
    • Strengths: Competitive advantages, strong brand, loyal customers.
    • Weaknesses: Areas needing improvement.
    • Opportunities: Favorable trends or changes.
    • Threats: External factors that could harm the business.

Examples of SWOT Analysis

  • Home Depot: Strong brand; risks from competition.
  • Netflix: Global presence; threats from increased competition.
  • Walmart: Huge brand recognition; needs to address labor practices.