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.
- Market Share
- Value drivers
- Decision process
- Concentration of customer base for particular products
- Market position
- Market shares
- Joint Ventures
- Strategic partners
- Opportunities and
Situation Analysis – it matters. Happy Planning!