What Is Situation Analysis
This is generally a marketing terminology used in evaluating the trends and condition of a particular market. It is sometimes also called the three ‘C’s that include customers our king, companies and competitors. This analysis is taken by all marketing companies to be successful in their business. It also provides the company the background and awareness of planning. It helps in understanding the organization’s competitiveness, financial position and its general activities.
Generally a SWOT analysis is done as a part of situation analysis. This refers to strengths, weakness, opportunities and threats. Before a firm develops a marketing strategy it has to first analyze the situation. Not only this, it has to reviewed and updated from time to time. Many things will actually go into the situation analyzes, what is the product of the company, the need for the product, what type of customers does the market have etc.
There are some elements that need to be considered for situation analysis:
Product Situation: as discussed above the first situation that needs attention is the product. There may be some primary and secondary products that the company may be planning to produce. So a detail analysis of the kind of product is to be made first. A discussion about client’s need for the product will also be made here.
Competitive Situation: this is very important for any marketing firm, since competition is very high these days. The firm should make a clear analysis of who are there competitors, how do they compare products of other firms, what is there competitive advantage when compared to our own company.
Allocation Situation: here comes the question of distribution of products of the company. A well knit distribution strategy must be made for the product to be marketed. The firm also needs to find the best channel of distribution, whether they need direct distributors or go through intermediaries.
Ecological Factors: this is a great concern for any organization, internal and external environmental factors need to be studied properly. This will also include economic factors like pricing, demand and supply, inflation and deflation etc. Hence the marketing firm should analyze these factors with utmost care.
SWOT Factor: as mentioned earlier this factors covers major elements required for situation analysis. The firm makes a study of what are the opportunities available to them, the threats that it might face in the future days ahead. It can make a detail write out on its strengths against the competitors and in the same way its weaknesses that might be an advantage to its competitors and how to overcome it so that it can be successful to survive the market.