- Company: Explore existing and potential problems with the company's business; the vision, strategies, capabilities, product line, technology, culture and objectives.
- Customers: This situational analysis involves knowing the target audience, their behaviours, market size, market growth, buying patterns, average purchase size, frequency of purchase, and preferred retail channels.
- Competitors: A competitor analysis is crucial to understanding the external environment in which the firm operates. This involves knowing the competitors' strengths, weaknesses, positioning, market share, and upcoming initiatives.
- Collaborators: Collaborators are otherwise referred to as external stakeholders with a mutually beneficial partnership. Understanding the capabilities, performances, and issues of agencies, suppliers, distributors, and business partners helps to better identify business problems.
- Climate/Context: This is the evaluation of the macro-environmental factors affecting the business. A PESTLE or PEST analysis framework can be used to analyse the economic, social/cultural, technological, environmental, and legal scenarios.
STP Targeted Marketing
- Segmentation: Identify potential market segments you could target in a marketing campaign.
- Targeting: Customise marketing campaigns and communication channels that appeal to each segment.
- Positioning: How a brand or product is aligned within the target market.
PESTLE or PEST Analysis
- Political: Laws, global issues, legislation, and regulations.
- Economic: Taxes, interest rates, the stock markets, and consumer confidence.
- Social: Lifestyle and buying trends, media, major events, ethics, advertising, and publicity factors.
- Technological: Innovations, access to technology, licensing and patents, manufacturing, and global communications.
- Legal: Legislation - both current and potential.
- Environmental: Local and global environmental issues, and their social and political factors.
The Marketing Mix - 7Ps and 4Ps
Porter's Five Forces
- Competitive Rivalry looks at the number and strength of competitors in terms of quality. Fierce rivalry can induce aggressive price wars and high-impact marketing campaigns. Saturated markets allow suppliers and buyers to go elsewhere if they don't perceive enough value.
- Supplier Power is determined by how easily suppliers can increase their prices and how expensive it would be to switch from one supplier to another
- Buyer Power looks at how much power consumers have to drive down prices or switch to a rival. It is better to have many customers then only a few who you rely on.
- Threat of Substitution refers to the likelihood of your customers finding a substitute product or service. A substitution that is easy and cheap to make can weaken your position and threaten your profitability.
- Threat of New Entry concerns how a company's position is affected by the people's ability to enter that market. Strong and durable barriers to entry allow a company to preserve their position in the market.