Topic > The Role of Situation Analysis in Marketing Plan

The Role of Situation Analysis in Marketing Plan Faced with more complex business environments, systematic marketing plans are important for organizations in terms of maintaining a high level of operational efficiency and complete achievement of objectives. According to Sally and John (1996:3), marketing plans are “the written document or blueprint for implementing and controlling an organization's marketing activities related to a particular marketing strategy” (Sally, D., Lyndon S ., & John, B. , 1996: 3). A successful marketing plan can improve the profits and growth of organizations, uses goal setting and monitors results (Subash Jain, Michael D. Clemes, Gregory Brush, 2008: 5) To achieve a marketing plan successful, it is important marketing decision makers to understand the current situation comprehensively and the trends that influence the future of the organization. There are two main reasons as to why situation analysis plays a vital role in developing a marketing plan. First, a dynamic marketing environment will lead to uncertainties, threats and opportunities for marketers. Marketing managers who can learn about changes in the environment through situation analysis can lead their companies to exploit the opportunities and address the threats created by the changes. Hence, systematically analyzing situational environments is a crucial way for organizations to identify their customers and understand their needs. As Peter (1998: 23) stated, “The success of any marketing plan depends on the ability to identify customer needs and marshal your resources to satisfy them profitably” (J. Paul Peter, James H. Donnelly, JR, 1998)Here is an example of how Brumby's has adapted to the marketing environment. As Australians are looking to make lifestyle changes and are conscious of what they eat, Brumby's has launched a low carb white bread and highlights that its bread contains no preservatives to respond to these changes (S. Rundle- Thide, D.Waller, G. Elliott, A. Paladino, 2007: 64) Brumby not only seizes the opportunity but also satisfies the complex customer demand. Compared to its competitors, it has a better chance of retaining its customers in order to develop its sustainable competitive advantages. Therefore, situation analysis is a key and basic function of the marketing plan, which provides complete and accurate information to the plan. Furthermore, through detailed situation analysis, managers can identify some key performance issues that go unnoticed in daily operations. Based on these issues, managers can come up with a plan to address such weaknesses for organizations to survive and achieve their long-term goals. Factors in Situation AnalysisBased on the factors of the marketing environment, situation analysis consists of reviewing the organization's internal environment and external environment.