1. Basic Information Required for Marketing Decisions2. Purpose of Each Information Foundation Component3. Steps in Conducting a Situation AnalysisMKT 327: CLASS NINE “SITUATION ANALYSIS”Theme: “Seeing the Future First: Wide World of Sports 2030”Pre-Class Tasks:1. Read Chapter 3 LO to LO2. Complete Quiz 7 on Connect3. Complete Extra Credit Exercise Two on Connect (it is due by midnight 2/7/14)Learning Objectives:1. Basic Information Required for Marketing Decisions2. Purpose of Each Information Foundation Component3. Steps in Conducting a Situation AnalysisKey Terms:1. Marketing Environmenta. Micro-environmenti. Action group (public)ii. Intermediaryiii. Supplieriv. Stakeholderv. Substitutesb. Macro-environmenti. Technological environment- Market spaceii. Economic environment- Disposable Income- Discretionary Incomeiii. Demographic environment- Boomers- Generation X- Generation Yi. Cultural environment- Multi-cultural Marketingii. Legal/regulatory environmentiii. Ethical environment2. Environmental ScanningSituation Analysis – This is the first class of part two of the course. This part of the course deals with understanding the collection and analysis of the information critical to marketing decisions. The last class of part one of the course emphasized the very important role information plays in the marketing planning process, and the importance of marketing managers to master the knowledge generation process. ALL MARKETING DECISIONS BEGIN WITH AND DEPEND ON INFORMATION! This part of the course focuses on what questions (queries) need to be asked, to obtain what data in order to develop the information and knowledge required for effective marketing plans. Part One (items in boxes) and Part Two of the course fit together as shown below. Marketing Survival Adaptability Strategy‘Ultimate Goal’ ‘Key to Survival’ ‘GuidesAdaptabilityMarketing Strategy Has3 Core ComponentsPositioning Competitive Advantages AdaptabilityTarget Market Competitor, Firm and Environmental Analysis S.W.O.T. Analysis ScanningAre We On Can We Are We On CODE COMPETE COURSEA marketing plan answers three very basic questions with respect to an organization and its strategic actions: “are we on course”; are we on code”; and “can we compete”. There are four critical areas of information required to answer these questions and make marketing decisions. They are: the organization itself, the environment, competitors, and the market (potential customers).The purpose or application of the first three steps in the marketing planning process is to provide these critical areas of information. Thus they form an informational foundation for the market plan. Step one, the situation analysis section, provides information on the organization’s environment and competitors. Given this environment and competitive conditions Step two, S.W.O.T. analysis provides information on the organization itself with respect to its strengths, weaknesses, and its goals and strategic direction. It places these strengths, weaknesses, goals and strategic direction in the context of the environment and competitive conditions to identify opportunities and threats. Finally Step three, the Market/Buyer Behavior analysis section, obtains information on the organization’s market and potential customers.A Situation analysis has two steps or components, an environmental scan, and a competitor analysis. The purpose of an environmental scan is to identify trends that may have a positive or negative impact on the organization in time enough to adjust to them. In short is the organization on the right course.Role of Information Continued 1. Marketing Strategy” Guides Adaptability”2. Adaptability “Key to Survival”3. Survival “Ultimate Goal”Has 3 Core Elements: Positioning (on code?), Advantages (Can compete), AdaptabilityMarketing Planning ProcessIncludesSoSituation & Competitor AnalysisOn course? Can Compete?S.W.O.T. AnalysisTarget Market Analysis on code?Situation Analys:Managers must either see opportunities First; or exploit opportunities FUTURE found at Intersection of Environmental changes; And customer Unspoken Wants.Enables Manager To see Future FirstSituation Analysis: An analysis process that acquires information on organization’s environment and competitors in order to identify trends that may have a positive or negative impact on the organization in time enough to adjust to them2 Separate Analyses 1. Environ, ScanAn Environment Scan has four steps: 1) define industry; 2) analyze macro-environment; 3) analyze micro-environment; and) project future trends. The data needed by these steps are as follows:- The data needed to define industry is those products used as substitutes or with similar technology, or addresses similar needsand wants.- The data needed to analyze macro-environment are demographics and social forces, the state of the economy, technology, culture, legal/regulatory conditions, and ethics.- The data needed to define micro-environment is the state of stakeholders (owners, employees, intermediaries, and action group); and competitive industry (competitors, substitute producers, and power of supplies and buyers).- The data needed to project trends is estimates of which macro or micro elements will change, the direction of those changes and the forces driving the change.2. Competitor Marketing EnvironmentAll factors that affect a business Global Macro Environment Micro Environment (Competitor Analysis)Customer Demand (Target)Environmental ScanningCollecting and analyzing information about the Marketing EnvironmentIn order to detect important changes or trends that can affect a company’s strategyRequires Large time commitment Research suggests most spend <3% of time---Should be 20% or moreSteps in Environmental Scanning1. Define Industry2. Analyze macro- environment3. Analyze micro-environment4. Project future trendsStep 1: Define Industry- Use similar Technology- Address Similar Needs &Wants- Customer Uses As SubstituteIndustry Description - Size & Growth- Competitive Intensity- Demand CharacteristicsLife CycleCycle & SeasonalityFinancial CharacteristicsSuccess RequirementsStep 2: Measure Elements of the Macro EnvironmentTechnological EnvironmentEconomic