MKTG 311 1st Edition Lecture 3Outline of Last Lecture I. Business PlanningII. Marketing PlansIII. 3 Levels of Business PlanningIV. Strategic Business/ Planning UnitV. Strategic Planning StepsOutline of Current Lecture I. Diversification AnalysisII. Functional PlanIII. Organizational ForcesIV. Environmental ForcesA. Social ForcesCurrent LectureI. Diversification AnalysisMarket Penetration- Increase sales of existing products in existing markets. Example- A new advertising campaign viral.Product Development- Creating new products in existing markets. Example- New clothing line.Diversification- Emphasize new markets and new products at the same time. Example- Enter Brazilian market and new clothing line.Market Development- Enter new markets with existing products. Example- New geographic market, new target market, Brazilian market.II. Functional Plan1. Customer ValueThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Target Market Process- Segmenting- identify/describe- Targeting- evaluating/selecting markets- Differentiation- unique product- Positioning- how does the product fit?3. 4P’s- Product- Features, variations, branding, packaging- Price- Assignment of value- Place- Where and when the product is delivered- Promotion- Activities the marketer engages in. Example- Advertising, sales promotion and public relations, etc.4. A. Market analysis- Further development of SWOT analysisB. Market planning- Development of the marketing planC. Marketing implementation- Answers specific questions such as when, where, who, and how.D. Marketing control- Retaining customer’s performance to the objectives.*Chapter 3- The marketing environment consists of 2 parts: Organizational Forces (Actors close to the firm) and Environmental Forces (Broader forces that affect the firm in a positive/negative manner)III. Organizational Forces1. Company- Marketing must interact with many departments across the firm.2. Suppliers- Rising cost of suppliers and availability of goods/services.3. Customers (Multiple customer markets)- Consumer market- Personal consumption- Business market- Production of other goods/services- Reseller market- Includes retailers and wholesalers.- Government market- International market4. Marketing Intermediaries- Add value to the product.- Resellers, wholesalers, and retailers- Physical distribution firms- Marketing service agencies. Example- PR firms and Advertising firms- Financial intermediaries. Example- Banks, credit companies, and insurance companies.5. Publics- Internal publics- Employees, volunteers, and Board of directors- Local publics- Concern for the local community- General public (public at large)IV. Environmental ForcesA. Social Forces- Consist of Demographic Shifts and cultural changes.- Demographics- Measurable characteristics pertaining to the human population. Example- Age, gender, race, etc.Age of Consumers- Children 4-12 years- Teens 13-17 years, income (first job)- Generation Y (the millennial generation)o Born between 1977-1994o 72 million consumers- 26% of all US consumerso 1st generation to grow up onlineo Strong willedo Passionate about the environmento Attracted to purposeful work- Generation Xo 1965-1976o 50 million consumers- 15% US consumer marketo Self-reliant, better educated than previous generations. o Supportive of racial and ethnic diversity, not prone to extravagance, but traditionalism and caution- Baby Boomerso 1946-1964o 76 million consumers- 27.5% US consumer marketo Worried about their youthful imageo Concerned about health, fitness, financial and retirement planning- Size and composition of householdo Traditional household- mom, dad, 2 kids is only 20% of all householdso Why?o Generation X- Delay in marriage, having kids, smaller familieso Adult children living with mom and dado Unmarried partnerso Blended families- Divorce and then