Situational Analysis As The Most Important Marketing Research Tool

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Situational Analysis As The Most Important Marketing Research Tool
Situational Analysis As The Most Important Marketing Research Tool

Enterprises of various sizes from time to time face crisis situations, the solution of which requires a deep analysis of the current situation. In such cases, situational analysis is a very effective remedy for ruin. It becomes a good source for the subsequent planning of activities to overcome the crisis and the development of a new company strategy.

Situational analysis as the most important marketing research tool
Situational analysis as the most important marketing research tool

Difficult situations in the activities of any enterprise are inevitable. The volatility of the market environment leaves no hope for the existence of the company without any problems, not to mention ensuring the monthly profit at a constantly high level.

However, the problems that arise should not be fatal to the enterprise. Situational analysis, one of the most reliable and time-tested tools, can largely avoid negative developments.

A situational analysis is a study of the prospects of a firm (or its divisions), identifying strengths and weaknesses. Based on this, some marketers consider SWOT analysis to be a separate lightweight version of situational analysis. However, these techniques are somewhat different when comparing the order and features of the actions for each of them.

Situational analysis procedure

The situational analysis begins with the requirement of the head of the company to his marketers to make a "cut" of the internal and external environment of the organization, as a result of which the management must realize the real positions that the company occupies today.

Research is usually subjected to 4 main areas of activity of any company: production, supply, research and development, sales. However, those spheres of activity that ensure the stable operation of the enterprise can also be carefully studied: information, finance, HR, and more. In practice, they are still limited to areas that are critically important in this situation, because a full range of research (especially for a large company) can be very expensive.

Situational analysis is divided into separate stages, among which the following are usually distinguished:

1. Formulation of the problem situation;

2. Formulation of a unified research concept.

3. The choice of the object of research.

4. Direct analysis.

Often, when conducting research, suitable classical marketing research tools are used: questionnaires, questionnaires, leaflets, advertising brochures distributed among potential consumers of the company's products.

Such an analysis, which comprehensively covers all the activities of the company, is ultimately embodied in a voluminous report, in which you can consider all the strengths and weaknesses of the company, as well as the difficulties and opportunities that you have to face.

The results obtained as a result will make it possible not only to get rid of illusions and conjectures about the situation and prospects of economic activity, but also to rationalize the entire subsequent course of the business process, improving its basic mechanisms. As a result of such an assessment, the management of the organization can outline new strategic and / or tactical prospects in the development and expansion of its activities.

Features of the application of situational analysis

Situational analysis can be used not only as an anti-crisis measure. On the contrary, in international practice it is customary to conduct it 1-2 times a year, regardless of the current state of affairs at the enterprise. Even for a successful firm, the results of a situational analysis can show new opportunities for development, or prevent emerging difficulties.

In addition, the information obtained by this method can be used not only for the best management of the organization, but also in order to monitor the work of its individual divisions.

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