As we continue our Marketing Plan Series and keep working our way through the Situational Analysis we make a pit stop to talk about the macro-level environments that impact your marketing and your competition. This part of the Situational Analysis is usually called “Environmental Problems and Opportunities” and is about 1-2 pages in length.
This could easily turn into a diatribe about politics and economics so what you need to focus on in this sub-section is how technology, the economy and the socio-political environment affects the marketing of your products/services.
The Technological Environment
When you discuss the technological environment think about how you create/leverage/affect creating new ways of satisfying needs (i.e. using technology to enhance the demand for existing products). Innovation can create or wipe out industries and businesses in less than a year. One example is the popularity and convenience of DVD players all but eliminated the sale of VCRs and seriously depressed the manufacture and sale of video tapes. This is especially important for you if your product is technology based.
The Economic Environment
As I write this, the global economy is in a deep recession and this could either hurt or improve your chances at success. You need to describe how your company will survive and grow in this most challenging of economies. Look at the bright side, if you can find the opportunities and sell successfully in this market you could position yourself as almost recession-proof in the long run.
The Socio-Political Environment
These are governmental policies and regulations that affect the market. It is also the economic environment around your company; which is the business cycle, inflation rate, interest rates, and other macroeconomic issues. For example, here in America there is a sweeping trend to dress more casually, with function and comfort driving new clothing and shoe trends. People are cooking less and are more concerned about nutrition and fat in their diets. And today, American business people are less willing to sacrifice family life for business careers. These types of factors can impact the marketability of your product or service.
NEXT TIME: We move to the next section of the Marketing Plan and deal directly with Problems and Opportunities.
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