situation analysis for marketing plans

The only way to start a business venture with confidence is to develop a good marketing plan—one that's backed up with facts and research. This document clearly shows how you'll attract customers to your product or service and persuade them to buy. The marketing plan also builds confidence with financial institutions, showing lenders that your business has a good chance of being successful.

Contrary to popular belief, a marketing plan is not a one-time effort destined to sit in a binder on your desk. On the contrary, it should be updated on a regular basis to reflect the changing needs of your business and customers.

There are many different models for marketing plans.

 Do a situation analysis

Many companies start with a SWOT analysis, looking at their firm's strengths, weaknesses, opportunities and threats. This involves identifying your competitors, understanding exactly how they operate and becoming familiar with their strengths and weaknesses.

Strengths are any competitive advantage, skill, expertise, proficiency, talent or other factor that improves your company's position in the marketplace and can't be easily copied. Examples are a well-trained sales team, low staff turnover, high consumer retention or low production costs due to superior technology.

Weaknesses are the factors that reduce your company's ability to achieve its objectives independently. Examples include unreliable delivery, outdated production tools, insufficient marketing efforts and a lack of planning.

Opportunities are ways for your business to grow and be more profitable. These can include seeking new markets, managing technological change or addressing new consumer trends. You need to look at how your company's main skills can be used to take advantage of these opportunities.

Threats are barriers to entry in your primary markets, such as a labour shortage, legislative hurdles or detrimental economic or political developments.