1. 3 MARKETING STRATEGY O.C. FERRELL • MICHAEL D. HARTLINE
Situation Analysis
Collecting and Analyzing
Marketing Information

2. Issues to be Considered in a Situation Analysis
Exhibit 3.1

3. Conducting a Situation Analysis (1 of 2)
Analysis Alone is Not the Solution
Data and Information are Not the Same
Data: A collection of numbers or facts that have the potential to inform
Information: Data that has been transformed or combined with other data in a manner that makes it useful to decision makers

4. Conducting a Situation Analysis (2 of 2)
The Benefits of Analysis Must Outweigh the Costs
Conducting a Situation Analysis is a Challenging Exercise
One of the most difficult parts of the marketing plan
Should provide a complete picture of three key environments: (1) Internal, (2) Customer, and
(3) External

5. The Relationships Among Environments in a Situation Analysis
Internal Environment
Customer Environment
Culture Competition Economy Politics Legal Technology
Exhibit 3.2

6. The Internal Environment (1 of 2)
Review of Current Objectives, Strategy and Performance
An important input to later stages in the planning process
Poor or declining performance must be the result of:
(1) Goals or objectives that are inconsistent with
customer or external environments
(2) Flawed marketing strategy
(3) Poor implementation
(4) Changes in the customer or external environment
beyond the control of the firm

7. The Internal Environment (2 of 2)
Availability of Resources
Includes review of financial, human and experience resources as well as resources from key relationships
Financial resources tend to get most attention
Labor shortages are expected to be a major problem in the coming years
Organizational Culture and Structure
Problems can arise when marketing does not hold a prominent position in the political hierarchy
Culture and structure are relatively stable but can be affected by mergers

8. The Customer Environment
Who are our Current and Potential Customers?
What do our Customers do with our Products?
Where do Customers Purchase our Products?
When do Customers Purchase our Products?
Why (and How) do Customers Select our Products?
Why do Potential Customers not Purchase our Products?

9. The External Environment (1 of 2)
Competition
(1) Brand competitors
(2) Product competitors
(3) Generic competitors
(4) Total budget competitors

10. Major Types of Competition
Exhibit 3.6

11. Stages of Competitive Analysis
(1) Identify all current and potential competitors.
(2) Assess each key competitor.
(3) Assess each key competitor’s strengths and
weaknesses.
(4) Focus the analysis on each key competitor’s
marketing capabilities.
(5) Estimate each key competitor’s most likely
strategies and responses under different
environmental situations.

12. The External Environment (2 of 2)
Economic Growth and Stability
Political Trends
Legal and Regulatory Issues
Technological Advancements
Sociocultural Trends
Demographic Trends
Lifestyle Trends
Trends in Cultural Values

13. Examples of Trends in the Sociocultural Environment
Demographic Trends
Aging of the American population
Increasing population diversity
Population growth in the Sun Belt states
Lifestyle Trends
Clothing has become more casual, especially at work
Growing focus on health and nutrition
Time spent watching television has declined
Trends in Cultural Values
Less focus on “me-oriented” values
Increasing importance of family and children
Greater focus on ethics and social responsibility
From Exhibit 3.7

14. Collecting Environmental Data and Information (1 of 2)
Secondary Information Sources
Internal Data Sources
Government Sources
Periodicals/Book Sources
Commercial (Fee-Based) Sources

15. Collecting Environmental Data and Information (2 of 2)
Primary Data Collection
Direct Observation
Focus Groups
Surveys
Experiments
Overcoming Problems in Data Collection