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- [Lecturer] Hello, everyone.

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Welcome to week two.

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And this week we're
going to be talking about

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situational analysis and opportunity.

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So this will be the first chance
for you to get an overview

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of the concept of marketing.

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And there'll be an exercise at the end

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for those of you who haven't thought about

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what your business plan, your
marketing plan will be on,

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help you walk through.

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And I'm hoping, start to
gather and build on ideas

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that you have to write
your final marketing plan.

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Which is due near the end of the semester.

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Here's our agenda.

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Start with announcements.

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And then get into what is marketing.

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And then the bulk of the class
will be situational analysis.

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So looking at the internal environment

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in which your business
or organization works,

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what's the external environment?

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Thinking a lot more about that
for right now and finally,

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to sort of put it together and
do a so-called SWOT analysis,

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which some of you may be familiar with,

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but it may be new to some of you as well.

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And then begin to think
about what is an opportunity?

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So what is a business opportunity

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and how can you meet that opportunity?

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How can you meet and fill a need or a want

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in a way that creates
a viable organization?

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And we're gonna think about some criteria

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that you can use to judge that.

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Two quick announcements.

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You have a homework based
on this week's content

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due next Tuesday.

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And the next topic will be
customers and competitors.

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So know that almost every Tuesday at 10,

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you're gonna have a homework.

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I think the main exception will be

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when we have our midterm exam.

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But basically count on turning
in a homework every Tuesday

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till right near the end of the semester,

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unless you hear otherwise.

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I want you to start to think
about the final project

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for the class, which is
your final marketing plan.

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And that is going to be a
big part of your final grade.

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And we're basically
building toward that now.

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So I wanna give you an
overview of sort of,

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what are some of the ideas
that you may want to consider?

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'Cause the whole point of this class

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is for you to be able to
write a marketing plan

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for an organization or a business.

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So it should be something
that takes in money,

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that incurs costs and provide
some kind of good or service.

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And very soon I will have a
draft of the final assignment

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on Blackboard, just so you can see it.

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So you can begin to build toward it.

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And you'll notice that the
homeworks that we do throughout

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the semester very much are
the building blocks for this.

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So I will have you in the homework

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really start to think about

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a major component of the marketing plan.

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And then at the end, when it is due,

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you won't have to start from scratch.

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That you will have already
written and thought

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and gotten feedback on these parts.

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And while I don't expect
you to just be able to

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cut and paste or copy and paste,

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that you will have
already thought it through

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and really have a good start.

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So that you don't have this
huge assignment at the end,

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that sort of comes out of nowhere.

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And I just think that's
a better way to learn.

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There are many possible ideas.

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So many students do it,
an actual for-profit,

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which provides some
sort of good or service

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or maybe some kind of entertainment.

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But many of them also do
it on a not-for-profit

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that may provide things like education,

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advocacy, entertainment,

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some sort of social club, philanthropy,

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some religious or spiritual
or cultural organization.

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Either that already
exists that you know well,

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or that you may wish to start
once you're done with school

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or maybe wished to start now.

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But there are a lot of options

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and if you're not sure if it's a good fit,

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please feel free to talk to me,

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talk to the TA and we can always
provide you with guidance.

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Just to give you an idea.

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Here are some ideas that
students in the past have done

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and have done very successfully.

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It might be a business that
you would like to start.

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In some cases, students
have done it on a business

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that they had already started.

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It could be your family's business.

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It might be a UVM or other
organization that you belong to.

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It could also be a local
business that you have worked for

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or have an internship with.

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It could also be a non-profit,

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but know that you really have
to have very close knowledge.

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So to just sort of pick a
local business out of the air

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would probably not be a very good idea.

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And to pick a large existing business

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like McDonald's or Walmart
or I don't know what.

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Really that's not what I
would like you to do here.

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Specifically, I want you to do something

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that matters to you.

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I want this organization to be something

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that reflects your
passion and your values,

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something you really care about,

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something that you will really
put the time and effort in

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that hopefully you care about
more than just the grade

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and the credits for this class.

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In addition, I really
want it to be something

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that will or could be used.

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And when I talked about
doing a marketing plan

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for McDonald's or Walmart,
as great as you are,

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and I really do believe
that you are great.

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It's pretty unlikely that
McDonald's or Walmart

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is going to take your marketing
plan and put it into action.

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However, a local business
that you have interned with,

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that you've gotten to know them,

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you understand the marketing
challenges that they face,

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or maybe a new direction
that they wish to take.

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And if you have their
permission and buy-in,

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then I think that would
be an excellent idea.

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And again, because this
is a sustainability class

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in the Community Entrepreneurship major,

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I'm hoping that the
organizations have a commitment

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to the triple bottom
line and sustainability.

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And they are also committed
to building the communities

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in which they operate.

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Just a few don'ts here.

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I really just don't wanna see
anything that has to do with

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anything illegal, that is
based on discrimination

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or exploitation or in any
way sort of dangerous,

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violent, risky behavior.

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I think none of those are a good fit

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for the Community Entrepreneurship major.

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And again, if you're not sure,

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please talk to me and we
can sort of walk through

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what I would think would
be appropriate or not.

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I tend to be pretty open-minded,

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but things that would fall into these,

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I think I would rather you
put your efforts elsewhere.

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So as I said, part of
the motivation for this

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is that your homework assignments

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are building the components.

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You're really creating building blocks

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as you do each homework
and it makes it so that

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you don't have a huge assignment
from scratch at the end.

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You already have the building blocks.

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It's also quite frankly,
evidence of original work.

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That if you're doing
homework on a hamburger stand

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and then suddenly you
upload your marketing plan

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and it is on a shoe store.

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You know, that might make
me a little bit suspicious

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that you might've gone onto the internet

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and found a shoe store one.

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So not that I don't trust you,

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but it just seems like
this is a better fit

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and it really benefits you.

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As always use me, use the TA,

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use other students as resources.

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And if you're encountering any struggles

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or if you have any amazing ideas,

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you'd love to bounce off at me.

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I love to do things like that.

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I always like to talk about
things like that with students.

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So please do and start to think now.

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Start to get those creative
juices flowing now.

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And so that the whole
process will be more seamless

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as we go through.

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I'm going to show you homework two now.

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Again, I like to show it at
the beginning of the lecture

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so that you know what to look for.

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So this is, if you already have an idea.

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And if you do not, then
there's another exercise

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in Environmental Scan
which you'll see soon,

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which will help you generate ideas.

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But once you have an idea
or if you already have one,

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start here.

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so I want you to briefly
describe the business.

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Why did you choose this?

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Why is it a good fit for you?

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Does it meet the hedgehog
model of something

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that you are passionate
about and really good at

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and can drive an economic engine?

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How will it create value?

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How is it a good opportunity?

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How do you anticipate incorporating

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sustainability principles?

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What trade-offs may you need?

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Then I want you to use the five C model,

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which we are about to learn about

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and write a sentence about each C.

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And then I want you to do
some synthesis and analysis

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and identify some of
the key external factors

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and choose one or two.

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And then finally put this all together,

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the five Cs and the external environments

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to create a SWOT analysis.

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So SWOT as you'll learn
stands for strengths,

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weakness, opportunities, threats.

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And to pick out one to
three under each one,

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so one to three strengths,
weaknesses, et cetera.

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And a sentence about
why those are important

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to your business.

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So there's your homework and
that sort of lets you know

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what to look for as we go through.

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If you do not have an idea yet,

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and many of you probably do not,

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then this would be a
good thing for you to do.

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And that is to conduct
an environmental scan.

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And you're gonna learn about that.

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So what I want you to do is
conduct an environmental scan

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of some group that you associated with.

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Your friend, a club, people
that you hang out with,

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your study partners,
what are they reading?

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What do they listen to?

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What kind of music?

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Where are they web surfing?

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What do they eat?

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What are some of the trends
of things that they are doing,

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that you find interesting?

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Make a list of this and think about

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two or three opportunities that emerged.

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So what is a product or
service that you could offer

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that would be timely and relevant

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that there's a need or want for

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and sort of talk to a
few folks about this.

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And see if you can come
up with the best one.

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Now know that, it can
change what you pick now,

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maybe in a week or two,

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you figure out really that
first idea has it worked?

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And I have a great new idea.

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The longer you wait, the harder it will be

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but don't feel like you
absolutely have to choose

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the final decision now.

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And note that I don't need to see this

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as part of your homework.

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So whether you do the
environmental scan or not,

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you don't have to turn anything in.

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Just do the homework based on
the idea that you generate.

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And if you have any questions,

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as always feel free to let me know.

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Now I want to get into the
main theme of this class,

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which is marketing.

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I define it as activities which
create and retain customers.

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And note that I'm not saying
it's just selling stuff.

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It's not just selling a product.

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That so much of marketing is

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finding the right people
who are really interested

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in what you have and
creating value for them

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and communicating the value

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and ensuring the value
of what you are offering.

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So that they will be loyal customers

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that will keep coming back

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and supporting you over time.

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And it's much more than
just getting someone

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to buy something one time.

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Would be sort of the opposite
end of the spectrum there.

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Our textbook author, Crane
gives this definition.

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And basically I bolded these two phrases.

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Delivering value, so it's
all about delivering value

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and to manage relationships.

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Again, to have a really good relationship

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with your customers so
that you really understand

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where the value comes from

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so that you can continue to deliver it.

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And it reminds me of, I
believe this is an old song.

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Make new friends but keep
the old one is silver,

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but the other is gold.

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So getting new customers is great

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and you will have to do that,

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but retaining the ones that you have

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not only probably takes less
effort than finding new ones

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but they're sort of the gold
standard of your business.

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They're the ones that are
really gonna see you through

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and help you to succeed.

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I think this is the only equation

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that I will show you
during the whole class.

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And it is not a very complex one.

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That's the idea of value again,

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that your job as marketing
is to deliver customer value.

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So you can think of it as the ratio

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where on top is the perceived benefits

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and the bottom is the cost.

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So we'll have a brainstorming class,

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but think about some product
or service that you buy.

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What are the benefits that you gain?

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Why do you buy it?

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What value do you derive from it?

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And in the denominator,
what are the kinds of costs,

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not only how much money
that you pay for it,

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but things like inconvenience
and time that you might spend,

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hassles, annoyance, anything like that.

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That you want to minimize.

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So clearly to make the
term on the left side,

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as big as you can.

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You want to make the
numerator as big as you can

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and make the denominator
as small as you can.

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Some early words of wisdom.

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One of the most important
things that you can think about

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early on, and we're gonna
spend a whole week on this,

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is when you ask, who
will buy your products?

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And if the answer is, everyone.

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This is a dangerous sign.

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There are very, very few
products that everyone buys.

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And if they are, they tend to be ones that

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are sort of high volume, low price.

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Where you really only
make your way in the world

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by being the low cost provider of it.

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And it's very hard for a
new business to compete

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in that world.

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So it's much more important
and a lot of this class

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will be finding those folks.

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Getting a really rich, detailed
description of the people

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who are going to gain the most value,

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who will be most interested
and to target them.

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So what we're going to do in a few weeks

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is to come up with a target
market that there's the saying,

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don't chase too many rabbits.

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That if a beagle here I think,

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starts to chase more than one,

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that dog is probably going
to get really confused

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and will not keep track of any of them.

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Whereas if you find that
one segment of the market

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who will become your loyal customers,

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and be able to pay a
lot of attention to them

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and what they want and what they need.

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It's a lot easier to
effectively market to them

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than to try to market to everyone.

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Another thing that we'll be doing

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more toward the end of class

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is the model of the
classical marketing mix,

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the four P's model.

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00:20:03,820 --> 00:20:08,820
So the four P's are product,
place, price and promotion.

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So what do you sell?

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Where do you sell it?

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How much do you charge?

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And how do you tell the story of it?

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And I put this graphic here.

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One of my very first research projects

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when I was a newly minted PhD,

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00:20:29,360 --> 00:20:34,180
was to look at the marketing
practices of organic farmers

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00:20:34,180 --> 00:20:35,660
in the Northeast.

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00:20:35,660 --> 00:20:38,590
And I was doing an
interview of one and said,

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00:20:38,590 --> 00:20:40,920
so what are your four P's?

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00:20:40,920 --> 00:20:45,920
And this farmer said, shell
peas, snow peas, snack peas

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00:20:46,010 --> 00:20:49,070
and world peas.

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00:20:49,070 --> 00:20:51,870
And I had to explain that those are great,

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00:20:51,870 --> 00:20:56,747
but that I was looking for
something slightly different.

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00:21:00,001 --> 00:21:02,390
But anyway, that's what it
always makes me think of

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00:21:02,390 --> 00:21:03,453
and makes me laugh.

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00:21:05,120 --> 00:21:09,430
So here is the diagram that
we've seen a few times now.

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00:21:09,430 --> 00:21:12,070
So you can think about
the two sort of middle

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00:21:12,070 --> 00:21:13,403
horizontal ones.

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00:21:14,720 --> 00:21:16,700
Thinking about our customers,

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00:21:16,700 --> 00:21:19,163
thinking about target and segmentation.

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00:21:20,170 --> 00:21:24,710
Today, we're gonna do
the top middle and right.

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The opportunity and the external forces.

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00:21:27,550 --> 00:21:31,860
And we just touched base
about on the four P's

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00:21:31,860 --> 00:21:35,260
with the main goal
being the downward arrow

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00:21:35,260 --> 00:21:38,110
of creating value and fulfilling therefore

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00:21:38,110 --> 00:21:40,230
the mission of the organization.

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But these are gonna be
both the main topics

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that we will cover.

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And also the parts of the marketing plan

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00:21:50,650 --> 00:21:51,650
that you will write.

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This is the end of the first video.

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And so please, when
you like go to part two

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and continue with this week's topic.

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Thanks.