Why a Gambling Marketing Strategy Always Starts With A Situation Analysis
Any full-fledged marketing plan is ambiguous in the absence of a comprehensive situational analysis that predicts the prospective impact of marketing strategy after making a rigorous analysis of the micro and macro environment.
It is imperative to carry out a scientific study of various factors that have a bearing on the organization’s capacities and capabilities, either directly or indirectly. Situation analysis makes you understand where and how different forces in the environment can propel or dispel your marketing ideas.
Internal factors affecting marketing management
The micro environment, in the marketing context is the sum of all those factors that affect marketing potential from within an organization like Pathwwway. These are factors that the business can control.
- Organizational culture, workforce capabilities and competencies, business policy and strategy.
- Organizational efficiency and alignment to mission
- Financial, human and technical resources, their availability, abundance or paucity
- Pricing and promotional mix, leadership effectiveness
The micro environment within which a business operates consists of various opportunities and threats that must be identified in time and acted upon.
External factors affecting marketing management
The macro environment is one on which little to no control is wielded by the business. The marketing game plan must deftly take cognizance of these forces that determine the marketing climate.
- Technological changes such as new technology development, the innovation ecosystem, information and mobile technology, technological obsolescence.
- Legal factors such as changes in Federal policy, tax regulation, labour and employment laws.
- Environmental factors such as ecosystem balance, regulations on preservation of ecological balance.
- Socio-economic factors such as GDP, growth of employment opportunities, income distribution, inflation, social mobility and lifestyle factors.
- Political and Ethical environment
Questions that must be answered by a marketing situation analysis
Any situation analysis in terms of estimating the surplus-deficiency quotient in marketing must consider and answer the following questions:
- What are the industry trends that can create or liquidate market share?
- How can political stability/instability affect product placement and marketing?
- What technological advances can enable businesses to answer the pinpoints of the target market?
- What is the product to market fitment in terms of geography? Is globalization or localization the key growth factor in the current scenario?
- Are the present sales and distribution channels efficient to put market opportunities to their fullest use?
- Where is your business today in terms of market, competition and customer perceptions of value?
- How to measure the market share of your product in quantifiable terms?
- What trends do you anticipate in the market for the next few years and do they represent positive or negative growth?
- What is the pricing and marketing strategy of competitors?
- IS your go-to-market strategy effective and contain pivotal control mechanisms?
- Does your marketing plan have provision for inflation and other economic weaknesses?
- Will your marketing plan handhold the business in fulfilling its social responsibilities?
Some popular models of situation analysis
Every model of marketing situational analysis, by whatever name called, will seek the listing out various considerations that affect the marketing capabilities of the business. Some of the widely used marketing situational analysis methods include:
- SWOT Analysis – An analysis of organizational Strengths, Weaknesses, Opportunities and Threats.
- TOWS Analysis – Preference is given to the analysis of Threats and Opportunities and turning them to Strengths before they become weaknesses.
- Porter’s Five Forces Analysis – 3 horizontal forces namely threat from substitutes, established rivals and new entrants, juxtaposed with 2 vertical forces namely, negotiating power of customers and suppliers.
- Pestel analysis – scanning of the macro environment comprising of environmental, legal, technical, political, economic and social forces that affect organizational performance.
- STEEP and STEEPLE Analysis – In addition to various internal and external factors, these analyses take into account ethical factors and more advanced statistical tools in marketing analysis.
Uses of marketing situation analysis
Situation analysis is an eye-opener and points out the deficiencies in your marketing plans and can call for timely action, when it becomes evident that the plan cannot weather the marketing ecosystem storms. The analysis can help in:
- Understanding customer demographics, expectations and buying patterns and their reactions to competitor’s product.
- Conducting customer defection analysis to understand churn and attrition that may pose as serious threats to sustenance.
- Understanding your product, its positioning and fitment into the target market, as well as the risks involved in acclimatizing the product into new markets.
- Evaluating the marketing mix consisting of Pricing, Packaging, Promotions and Publicity
- Banking on precious opportunities while treading cautiously on threats. Capacity analysis will ensure that your marketing management is equipped to meet the volatility of marketing climate.
- Taking advantage of favourable terms with suppliers, vendors and other key stakeholders in the supply chain.
Possible flaws in situation analysis
Like any other statistical tool, the success or failure of situation analysis is highly dependent upon the quality of data collected and how far can data be quantified. This is because marketing strategy is a blend of many qualitative forces that are a challenge to quantify and measure. To rule out these issues, there must be provision within the situation analysis framework to accommodate and factor qualitative factors. Further the realistic impact of marketing forces can stand over-simplified when they are compartmentalized into categories that they may not correlate to.
Situation analysis is the gateway to marketing plan formulation and it envisions strategists to view the SBU (Strategic Business Unit) under multiple perspectives. The role of the analysis does not stop with goal formulation and can be effectively used in implementation and control of strategy as well. Any marketing plan must necessarily start with a situation analysis so that the business can be clear and confident in rolling out its portfolio of offerings to the target market, unaffected by major controlling forces.