The Role Of Situation Analysis For A Marketing Plan

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Situation analysis becomes increasing important for a marketing plan development. This essay aims to explain why it is so important and what factors it focus on and finally, a guild list is present and justify for the construction of an effective situation analysis for a Marketing Plan of J Boag & Son Brewery.

Analyzing situation prior a strategic decision is critical for generating or sustaining competitive advantages, especially when facing the dynamic environmental trend which can affect corporations’ performance positively or negatively. The main task for a situation analysis is to explore the external factors (that can imply what opportunities a firm should seize and what threats it has to pay caution to) and internal factors (that can tell what a firm can do to develop its strengths and to avoid its weaknesses). And as Sally, Lyndon & John (1996: 3) defined, the terminal object of a marketing plan is to achieve particular marketing strategy. And a marketing strategy, which expressed clearly by Subash (2004: 26), requires a corporation using its relative corporate strengths to better satisfy customer needs and finally achieve maximum positive differentiation over its competitors in a numbers of internal and external variables. While Malcolm (2006: 376) concluded that the main concern of a strategic marketing plan is to establish, defend and maintain competitive advantage. However, the market environment today is changing quickly, followed by the increasing keen competition. To maintain a certain competitive advantage is impossible in such situation and the only way to earn above-average return is to react rapidly with updated information from environmental scanning. Thus, no matter what the purpose of a marketing plan is, situation analysis is crucial to provide an overall understanding of existing competitive position, organizational capabilities and market trends which is ever-changing.

For example, soused from Malcolm (1989: 75), a company found itself competing unsuccessfully and unprofitably in motor components market in Europe. Its strategy is to compete against a European giant on price, which had been implemented for a while without analyzing its market situation previously. The fact in such market is that only can a firm focus on investing certain equipments thrive. That is, when there was a strong competitor who dominated major market shares with a strategy of cost leadership, it is not wise to beat it on price. And if this company could firstly conduct a situation analysis, it would found that there were many opportunities for motor-products manufactured to very high technical specifications where technical reputation, rather than price, was the major concern.

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