Situation Analysis in Marketing Plan Essay

1585 Words Apr 11th, 2008 7 Pages
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
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Political/legal segment

Political/legal trends have a significant influence on marketing strategy. For example, in order to protect environment and advocate using fabric bag, Chinese government states plastic bag is not free for the public recently. In addition, new trade relationship or barriers affect firm’s volume of trade. With a free trade agreements (FTAs) between Australia and the United States comes into play, most of Australian exports to the United States will be duty free. Hence, the marketing manager needs to reactive the changes in both domestic and foreign policy/trade law, and the industry regulations/agreements favored by elected officials. Furthermore, marketing manager needs to select recent information to keep in touch with political/legal trends.

Technological advancements

With the rapid development of technology, it is found that early adopters of new technology often achieve higher market shares and earn higher returns. (Hanson & Dowling, 2005, p. 58) There is no doubt that if a firm’s technology is superior to anything else on the market, it will be the leader in identifying and introducing new applications for the technology. For instance, Microsoft Company, which is the No.1 Company in IT industry, introduces new system (Windows Vista) to the public last year. The company claims Windows Vista makes it easier to see, hear, and use computer than previous system did, which attracts more
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