Financially Responsible Marketing

What is the Second Step in Developing a Marketing Strategy?

Posted by on Jan 23, 2014

In the last blog we discussed the first step in the planning stage of a strategic marketing plan: defining your business mission and objectives. The next step involves analyzing the marketing environment through a situation analysis.

Step Two

Conduct a situation analysis

This step in a marketing plan is where you determine the size and growth trends of your market, what you face in terms of competition, and what internal and external issues will affect your ability to sell your products and services— both negative and positive.

This is a critical step in the marketing plan process as it lets anyone who reads it know that your ideas are grounded in reality and factual research. It is the groundwork for deciding how you will segment the market and who your target market will be. By conducting a situation analysis properly, you will have a clear idea of opportunities for growth and the implementation process of your marketing mix will prove to be much more successful.

Industry Analysis

o You must start with determining and defining the market your company will serve, potential people who will buy your product or service and whether the number of prospects are growing, steady or declining. You must ask yourself: What industry does your organization consider itself a part of? What is the current status of that industry in terms of its position in the marketplace?

Market Analysis

o Next, you must determine the size of your market. Who are the group of people who are likely to purchase the product or service you have to offer? What are the needs of this group as driven by geographic and psycho-graphic factors?

o By understanding the unique attributes of the market segments you will be targeting you are better able to develop messages that are meaningful, relevant and likely to impact behaviour.

o In addition, careful analysis of the market helps you to identify ways in which you can communicate value to that market more effectively through specifically directed media

Competitive Analysis

o Competitive analysis involves looking at your competition both direct and indirect

o This analysis will help you determine how your organization is doing relative to your competitors, considering a number of factors including: sales and profit figures, price, product attributes, customer service attributes, market position etc.

o You need to explore your competition’s strengths and weaknesses to determine how you might position your product or service to compete most effectively

It is important to give adequate time and attention to the situation analysis as it will provide you with the information and background you need to make strong and appropriate decisions about the marketing mix elements that will drive your marketing activities.

The information you gather through the situation analysis process is used in the development of a SWOT analysis—a look at your organization’s marketing efforts and the strengths, weaknesses, opportunities and threats that you are facing. We will be discussing how to conduct an efficient SWOT analysis in the next blog in this series.

Need support conducting your own situation analysis?  contact us at hello@imaginisbd.com to start the conversation for your financially responsible marketing efforts.