WEBVTT 1 00:00:01.650 --> 00:00:05.490 Hello and welcome to Situational Analysis 2 00:00:05.490 --> 00:00:07.173 video lecture part one. 3 00:00:11.282 --> 00:00:13.440 So the agenda for this three part video is, 4 00:00:13.440 --> 00:00:15.720 first we're gonna talk about what is marketing. 5 00:00:15.720 --> 00:00:18.540 We're gonna run through situational analysis, 6 00:00:18.540 --> 00:00:21.210 and then we're gonna talk about how to find 7 00:00:21.210 --> 00:00:23.760 and evaluate an opportunity 8 00:00:23.760 --> 00:00:27.093 for your business or organization. 9 00:00:28.770 --> 00:00:30.532 So let's start with this. 10 00:00:30.532 --> 00:00:31.365 What is marketing? 11 00:00:31.365 --> 00:00:34.110 It's part of the title of this class. 12 00:00:34.110 --> 00:00:38.560 I like to think of it as the activities which create 13 00:00:39.516 --> 00:00:42.150 and retain customers, 14 00:00:42.150 --> 00:00:46.080 and that it's not just selling products. 15 00:00:46.080 --> 00:00:48.363 There's so much more to it than that. 16 00:00:52.426 --> 00:00:55.290 The marketing scholar, Frederick Crane 17 00:00:55.290 --> 00:00:57.600 talks about how it's delivering value 18 00:00:57.600 --> 00:01:00.393 and managing customer relationships. 19 00:01:03.630 --> 00:01:07.890 And for me, it's like the old saying, make new friends, 20 00:01:07.890 --> 00:01:09.902 but keep the old. 21 00:01:09.902 --> 00:01:14.463 That it's important to bring new customers to yourself. 22 00:01:15.428 --> 00:01:18.550 But maintaining and taking good care of the old ones 23 00:01:19.585 --> 00:01:22.983 is at least as important, if not more than finding new ones. 24 00:01:28.260 --> 00:01:33.260 Good marketing means creating and articulating value. 25 00:01:33.510 --> 00:01:36.660 And this is a very simple equation 26 00:01:36.660 --> 00:01:38.200 where you can think about 27 00:01:39.533 --> 00:01:41.440 the value being equal 28 00:01:42.577 --> 00:01:45.210 to on the top perceived benefits. 29 00:01:45.210 --> 00:01:46.383 What's good about you? 30 00:01:47.247 --> 00:01:48.210 How do you create value? 31 00:01:48.210 --> 00:01:50.190 How do you solve a need? 32 00:01:50.190 --> 00:01:51.390 How do you solve a want? 33 00:01:51.390 --> 00:01:52.620 How do you make 'em happy? 34 00:01:52.620 --> 00:01:54.123 How do you do things better, 35 00:01:56.228 --> 00:01:57.243 versus the cost? 36 00:01:58.170 --> 00:02:01.292 Both, what does it cost them in money, 37 00:02:01.292 --> 00:02:04.680 but in time, in effort, in search, in lots of other ways. 38 00:02:04.680 --> 00:02:07.530 So think broadly about what can be benefits 39 00:02:07.530 --> 00:02:09.993 and what can be costs within this model. 40 00:02:15.750 --> 00:02:18.910 One word, one set of words of wisdom I have 41 00:02:19.875 --> 00:02:22.020 is that if you ask an entrepreneur 42 00:02:22.020 --> 00:02:24.780 who will buy your product? 43 00:02:24.780 --> 00:02:29.670 And they say, everyone, maybe that sounds great, 44 00:02:29.670 --> 00:02:33.750 but in fact it's a sign of a great danger. 45 00:02:33.750 --> 00:02:35.373 There are very few, 46 00:02:36.697 --> 00:02:37.860 if any products, 47 00:02:37.860 --> 00:02:39.843 that everyone buys. 48 00:02:41.049 --> 00:02:42.399 That good marketing implies 49 00:02:44.973 --> 00:02:46.173 putting your advertising 50 00:02:47.760 --> 00:02:49.620 and such in front of the right folks, 51 00:02:49.620 --> 00:02:50.980 people that are likely 52 00:02:52.364 --> 00:02:54.810 to buy it so you don't spread yourself too thin. 53 00:02:54.810 --> 00:02:57.510 And we're gonna talk about that a lot more later 54 00:02:57.510 --> 00:02:59.103 on in the class. 55 00:03:01.350 --> 00:03:04.023 In fact, you wanna find a target market, 56 00:03:06.220 --> 00:03:10.260 that group that's going to to be interested 57 00:03:10.260 --> 00:03:12.070 and likely to buy 58 00:03:14.253 --> 00:03:15.086 or support you. 59 00:03:15.086 --> 00:03:17.313 And another way of thinking about it is, 60 00:03:18.465 --> 00:03:21.420 if you chase too many rabbits, 61 00:03:21.420 --> 00:03:23.208 you may not, 62 00:03:23.208 --> 00:03:26.250 you'll lose the trail and won't get any rabbits. 63 00:03:26.250 --> 00:03:29.013 So it's important to find the right one. 64 00:03:32.640 --> 00:03:34.570 One of the models 65 00:03:35.618 --> 00:03:38.176 that we'll be using throughout this class 66 00:03:38.176 --> 00:03:40.620 is the classic 4P marketing mix. 67 00:03:40.620 --> 00:03:44.730 The the four Ps are product, place, price, and promotion. 68 00:03:44.730 --> 00:03:46.600 And in fact, we will spend 69 00:03:48.300 --> 00:03:50.850 one week in the second half 70 00:03:50.850 --> 00:03:53.670 of the class on each of these things. 71 00:03:53.670 --> 00:03:56.650 And I have these photos 72 00:03:57.798 --> 00:03:58.680 here as a joke 73 00:03:58.680 --> 00:04:02.183 that one time I talked to a farmer, well, 74 00:04:02.183 --> 00:04:04.184 "What are your four Ps?" 75 00:04:04.184 --> 00:04:05.580 And he said, "Well, let's see. 76 00:04:05.580 --> 00:04:07.773 Shell peas, snap peas, 77 00:04:08.760 --> 00:04:11.467 sugar peas, 78 00:04:11.467 --> 00:04:12.447 and world peas?" 79 00:04:15.751 --> 00:04:18.903 Here again, is this graphic where we're thinking about, 80 00:04:19.800 --> 00:04:22.590 now what are the external forces 81 00:04:22.590 --> 00:04:26.350 and what are the opportunities that will help 82 00:04:27.591 --> 00:04:30.003 to define your marketing plan. 83 00:04:32.400 --> 00:04:35.973 So I wanna jump now to situational analysis, 84 00:04:36.900 --> 00:04:37.840 and that is 85 00:04:40.298 --> 00:04:41.580 the collection of data 86 00:04:41.580 --> 00:04:45.910 and trends that will help you 87 00:04:45.910 --> 00:04:50.040 to better understand how your business will perform. 88 00:04:50.040 --> 00:04:52.470 And we're gonna think about both 89 00:04:52.470 --> 00:04:54.391 the internal environment. 90 00:04:54.391 --> 00:04:56.640 That's what you have a good deal of control over, 91 00:04:56.640 --> 00:04:59.610 as well as the external environment, 92 00:04:59.610 --> 00:05:01.650 the world in which you operate, 93 00:05:01.650 --> 00:05:05.703 over which you have very little control. 94 00:05:09.368 --> 00:05:12.390 So again, one way of thinking about it 95 00:05:12.390 --> 00:05:16.050 is to do a rich description of both the internal 96 00:05:16.050 --> 00:05:17.820 and external environments. 97 00:05:17.820 --> 00:05:20.760 And here are a few things that you can think of 98 00:05:20.760 --> 00:05:22.950 as you go through it. 99 00:05:22.950 --> 00:05:25.860 On the internal side, whether your strengths and assets, 100 00:05:25.860 --> 00:05:28.500 what are your partnerships? 101 00:05:28.500 --> 00:05:29.853 What are the weaknesses? 102 00:05:31.783 --> 00:05:33.450 And then on the external, well, what are the opportunities? 103 00:05:33.450 --> 00:05:34.650 What are the threats? 104 00:05:34.650 --> 00:05:35.763 What are the dangers? 105 00:05:39.540 --> 00:05:40.953 I think it's important. 106 00:05:42.285 --> 00:05:43.517 So the last box 107 00:05:43.517 --> 00:05:45.600 that you can't see there is performance. 108 00:05:45.600 --> 00:05:48.750 I took this from one of my mentors, 109 00:05:48.750 --> 00:05:52.203 from my former job at Michigan State, 110 00:05:54.323 --> 00:05:57.060 and he talked about how important it is 111 00:05:57.060 --> 00:05:58.860 that when you begin 112 00:05:58.860 --> 00:06:01.590 or operate a business, how important it is 113 00:06:01.590 --> 00:06:05.010 that you start from a realistic 114 00:06:05.010 --> 00:06:07.620 and accurate view of the world. 115 00:06:07.620 --> 00:06:12.420 What are the assumptions and beliefs that you believe 116 00:06:12.420 --> 00:06:15.153 underpin your business? 117 00:06:16.170 --> 00:06:17.343 Because, 118 00:06:19.290 --> 00:06:22.893 too often we jump right to operations, 119 00:06:24.030 --> 00:06:26.760 but if you have the the right assumptions, 120 00:06:26.760 --> 00:06:29.520 then you can develop strategies, 121 00:06:29.520 --> 00:06:31.083 sort of big picture, 122 00:06:33.364 --> 00:06:36.030 how you do things which you then translate 123 00:06:36.030 --> 00:06:38.883 into the details, the operations. 124 00:06:40.063 --> 00:06:41.301 And if all goes well, 125 00:06:41.301 --> 00:06:43.140 you'll get the performance that you want. 126 00:06:43.140 --> 00:06:47.970 Sadly, when people don't get the performance that they want, 127 00:06:47.970 --> 00:06:51.210 they tend to look only at operations, 128 00:06:51.210 --> 00:06:54.210 sort of tweak how you do things 129 00:06:54.210 --> 00:06:58.353 instead of looking at the overall strategies, 130 00:06:59.688 --> 00:07:01.870 which may be based on a faulty 131 00:07:02.775 --> 00:07:04.920 set of assumptions and beliefs. 132 00:07:04.920 --> 00:07:07.450 And no amount of operations 133 00:07:10.950 --> 00:07:14.760 can overcome flawed strategies, 134 00:07:14.760 --> 00:07:18.333 which are based on flawed assumptions and beliefs. 135 00:07:20.460 --> 00:07:23.133 So we're gonna look at two models of this, 136 00:07:24.750 --> 00:07:26.410 one being internal 137 00:07:27.789 --> 00:07:30.570 and the rest being a combination 138 00:07:30.570 --> 00:07:32.850 of in internal and external. 139 00:07:32.850 --> 00:07:34.250 So I'll go through each one. 140 00:07:38.140 --> 00:07:41.310 The first one just asks thar the five, 141 00:07:41.310 --> 00:07:44.010 the W and one H question, 142 00:07:44.010 --> 00:07:46.170 who, what, where, when, why, and how. 143 00:07:46.170 --> 00:07:47.670 And we'll go through each one. 144 00:07:50.160 --> 00:07:52.320 The first slide looks at who. 145 00:07:52.320 --> 00:07:54.708 Who is the entrepreneur? 146 00:07:54.708 --> 00:07:55.560 Who are you? 147 00:07:55.560 --> 00:07:57.150 What drives them? 148 00:07:57.150 --> 00:07:58.260 What are their passions? 149 00:07:58.260 --> 00:07:59.130 What are their motives? 150 00:07:59.130 --> 00:08:01.233 Why are they in this business? 151 00:08:03.126 --> 00:08:05.471 And then what are their strengths and weaknesses? 152 00:08:05.471 --> 00:08:07.943 What are their skills and assets? 153 00:08:07.943 --> 00:08:09.870 What are some things where they will need team members 154 00:08:09.870 --> 00:08:12.483 to shore up the weaknesses? 155 00:08:13.500 --> 00:08:17.523 Another who question is, who is the customer? 156 00:08:18.717 --> 00:08:22.203 Both the target ones as well as the current ones. 157 00:08:26.370 --> 00:08:28.630 What questions 158 00:08:30.390 --> 00:08:31.677 are, 159 00:08:31.677 --> 00:08:32.510 what do you sell? 160 00:08:32.510 --> 00:08:34.173 What's your product or service? 161 00:08:38.010 --> 00:08:38.843 Where can I have two meanings? 162 00:08:38.843 --> 00:08:40.560 First, where are you located? 163 00:08:40.560 --> 00:08:42.330 What is your geography? 164 00:08:42.330 --> 00:08:43.680 And what advantages 165 00:08:43.680 --> 00:08:47.520 or disadvantages does this pose 166 00:08:47.520 --> 00:08:49.050 as well as where. 167 00:08:49.050 --> 00:08:52.039 How do the goods and services 168 00:08:52.039 --> 00:08:55.320 get from you to the people who buy them? 169 00:08:55.320 --> 00:08:58.066 Do you sell them directly? 170 00:08:58.066 --> 00:09:00.453 Do or do you use intermediaries. 171 00:09:03.450 --> 00:09:08.280 When question, or how long have you been in the business? 172 00:09:08.280 --> 00:09:09.360 How's it changed? 173 00:09:09.360 --> 00:09:12.153 And what stage of the business are you in? 174 00:09:15.090 --> 00:09:15.940 Why 175 00:09:18.269 --> 00:09:19.469 is a very important one? 176 00:09:20.805 --> 00:09:22.260 What drives them? 177 00:09:22.260 --> 00:09:24.810 What motivates them? 178 00:09:24.810 --> 00:09:26.803 And what we learned about mission 179 00:09:26.803 --> 00:09:28.620 and vision last week will probably 180 00:09:28.620 --> 00:09:30.963 inform a lot of why as well. 181 00:09:32.910 --> 00:09:36.810 How looks at their performance. 182 00:09:36.810 --> 00:09:38.310 How are they doing? 183 00:09:38.310 --> 00:09:41.920 How are they operationalizing these goals? 184 00:09:41.920 --> 00:09:44.590 And one of the key concepts that we're going 185 00:09:46.870 --> 00:09:48.979 to be discussing throughout class 186 00:09:48.979 --> 00:09:51.270 is the position in the marketplace. 187 00:09:51.270 --> 00:09:54.213 What is their marketing position? 188 00:09:59.370 --> 00:10:01.120 Another model looks more broadly 189 00:10:02.445 --> 00:10:03.450 at both the internal and external. 190 00:10:03.450 --> 00:10:07.020 And it looks at these five Cs that you see here. 191 00:10:07.020 --> 00:10:09.153 And again, I'll go through each one. 192 00:10:11.903 --> 00:10:15.243 So when you describe the company, 193 00:10:16.300 --> 00:10:18.060 you can look at its goals, mission, and vision. 194 00:10:18.060 --> 00:10:19.440 What does it do? 195 00:10:19.440 --> 00:10:23.373 What's its position, what's its performance? 196 00:10:25.290 --> 00:10:29.403 It's very important to look at the competitors. 197 00:10:30.315 --> 00:10:31.515 So what are their goals? 198 00:10:32.552 --> 00:10:33.385 What are their strengths? 199 00:10:33.385 --> 00:10:34.260 What do they do well? 200 00:10:34.260 --> 00:10:35.670 Well, what's their output? 201 00:10:35.670 --> 00:10:39.450 Where are they weakness and where are they vulnerable? 202 00:10:39.450 --> 00:10:43.743 And where does it, how does that make space for you? 203 00:10:46.080 --> 00:10:47.100 We want to think too, 204 00:10:47.100 --> 00:10:50.193 and we're gonna spend a whole week on this, 205 00:10:52.022 --> 00:10:53.253 but who buys your stuff? 206 00:10:54.300 --> 00:10:58.473 What do they want and how, why, when and where do they buy? 207 00:11:01.290 --> 00:11:02.370 We can think about, 208 00:11:02.370 --> 00:11:05.070 and again, we're gonna spend a whole week on that. 209 00:11:05.070 --> 00:11:06.990 How do we break up 210 00:11:06.990 --> 00:11:11.990 this sort of everyone into segments? 211 00:11:12.082 --> 00:11:14.550 And we do do that in at least three key ways, 212 00:11:14.550 --> 00:11:18.090 demographic, geographic, and psychographic. 213 00:11:18.090 --> 00:11:19.540 And I'll talk about each one. 214 00:12:05.124 --> 00:12:08.343 And then thinking about how and when do folks buy? 215 00:12:09.688 --> 00:12:12.660 When, is it for special occasions? 216 00:12:12.660 --> 00:12:14.043 How much do they buy? 217 00:12:14.986 --> 00:12:16.036 Do they buy often or, 218 00:12:19.680 --> 00:12:22.080 sort of big trips all at once. 219 00:12:22.080 --> 00:12:23.643 And how do you reach them? 220 00:12:26.250 --> 00:12:28.350 Next is collaborators. 221 00:12:28.350 --> 00:12:31.530 Those people that will help you do your job. 222 00:12:31.530 --> 00:12:34.980 Who do you buy your inputs from? 223 00:12:34.980 --> 00:12:37.890 Do you work with distributors? 224 00:12:37.890 --> 00:12:40.780 Are they sort of strategic allies 225 00:12:42.115 --> 00:12:45.513 or do you only have a buy and sell relationship? 226 00:12:48.471 --> 00:12:50.723 And how do these either create or impede value? 227 00:12:53.340 --> 00:12:56.760 You can also think of what are the networks that you use. 228 00:12:56.760 --> 00:12:59.700 Maybe those that you're not directly engaged 229 00:12:59.700 --> 00:13:04.195 in transactions with, but that you learn with, 230 00:13:04.195 --> 00:13:06.750 that you collaborate with 231 00:13:06.750 --> 00:13:09.120 and maybe people that you either get 232 00:13:09.120 --> 00:13:13.173 or gained technical assistance from. 233 00:13:14.280 --> 00:13:16.293 So that is the end of part one. 234 00:13:17.580 --> 00:13:18.413 Thank you.