What Does it Matter?

As a small business owner no one better than you can understand your company’s situation.  But do you really?  Believe it or not the situation analysis section of a marketing plan if often ignored. In my experience people do not think it is important.  I think it is a key element to the success if the plan. 

The situation analysis helps you to truly examine where your company (and product) fits into the industry as a whole and in your market.  It helps you to understand your customers, your competition, and your strategic partners.

Just because this information has been included in your business plan, and you have a solid understanding of these areas, does not mean you are not off the hook.  Writing this section should be easier for you but it still needs to be included.  No matter how long you have been in business a key element to success is making sure you understand your company’s situation at any given moment. Competition, you r market position, the industry all change over time – what you did five years ago probably will not work today.

Below is an expanded outline of the situation analysis section of a formal marketing plan (taken from the QuickMBA). The amount of detail you want to include in your plan is up to you.  The better you understand you situation, the more fruitful your marketing efforts will become.

Situation Analysis 

   Company Analysis

  • Goals
  • Focus
  • Culture
  • Strengths
  • Weaknesses
  • Market Share

   Customer Analysis

  • Number
  • Type
  • Value drivers
  • Decision process
  • Concentration of customer base for particular products

   Competitor Analysis

  • Market position
  • Strengths
  • Weaknesses
  • Market shares

   Collaborators

  • Subsidiaries
  • Joint Ventures
  • Distributors
  • Strategic partners

   SWOT

  • Strengths
  • Weaknesses
  • Opportunities and
  • Threats

   PEST

  • Political
  • Economic
  • Social
  • Technological

Situation Analysis – it matters. Happy Planning!

-KK

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About Kerri Karel

Kerri has over 21 years of well-rounded experience in marketing, ecommerce and public relations. She has lead multi-million dollar marketing and ecommerce projects. Additionally she has 10 years of start-up experience. She also has 10 years experience in planning trade shows, special events and conferences. View all posts by Kerri Karel

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