Situation Analysis in Marketing Plan
Introduction
Under the competitive and dramatically changing environment, some companies are successful but some are failed. Considering the reasons are various, however, offering the right products for the right growth markets at the right time is the key factor for some of the successful companies. Chinese idiom says ‘know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat’. Hence, the company must make marketing plan systematically, in terms of its objectives and missions, if it pursues maintaining a high level of operating efficiency, and achieving above-average returns.
The role of situation analysis
Situation analysis is an essential first step in the process of marketing plan. Jain (2004) states situation analysis is an important way in terms of forecasting the shape of things, analyzing strategic alternatives and developing greater sensitivity to long-term implications.
Situation analysis takes account of three key forces: the customer, the competition, and the corporation. (Jain, 2004, p25) Jain (2004) explained the role of situation analysis is to (1) make a clear market definition; (2) make a good match between corporate strengths and the needs of the market; and (3) perform superior to the competitions in the key success factors of the business. Based on the three Cs, situation analysis indicates three decisions: where, how, and when to compete. Thus, without the reflection on the changing environment and the developing business system, as well as the ability of coping with three decisions at the same time, no one, including shareholder, will profit in the long run, even if these corporations at one time controlled huge resources, dominated their market, and had the high-skill workers. Hence, the situation analysis plays a key role in the successful business. It is the process that firm can match its own capabilities with the opportunities in order to fulfill customers’ needs better than the
Under the competitive and dramatically changing environment, some companies are successful but some are failed. Considering the reasons are various, however, offering the right products for the right growth markets at the right time is the key factor for some of the successful companies. Chinese idiom says ‘know the enemy and know yourself, and you can fight a hundred battles with no danger of defeat’. Hence, the company must make marketing plan systematically, in terms of its objectives and missions, if it pursues maintaining a high level of operating efficiency, and achieving above-average returns.
The role of situation analysis
Situation analysis is an essential first step in the process of marketing plan. Jain (2004) states situation analysis is an important way in terms of forecasting the shape of things, analyzing strategic alternatives and developing greater sensitivity to long-term implications.
Situation analysis takes account of three key forces: the customer, the competition, and the corporation. (Jain, 2004, p25) Jain (2004) explained the role of situation analysis is to (1) make a clear market definition; (2) make a good match between corporate strengths and the needs of the market; and (3) perform superior to the competitions in the key success factors of the business. Based on the three Cs, situation analysis indicates three decisions: where, how, and when to compete. Thus, without the reflection on the changing environment and the developing business system, as well as the ability of coping with three decisions at the same time, no one, including shareholder, will profit in the long run, even if these corporations at one time controlled huge resources, dominated their market, and had the high-skill workers. Hence, the situation analysis plays a key role in the successful business. It is the process that firm can match its own capabilities with the opportunities in order to fulfill customers’ needs better than the