A situation analysis plays a pivotal role in shaping a marketing plan by providing a comprehensive understanding of both internal and external factors impacting your business and its marketing endeavors.
This crucial process involves assessing current market conditions, competitive landscape, customer behavior, and internal capabilities to uncover opportunities and challenges that will shape your marketing strategies. By grasping the key objectives, methodologies, and benefits of conducting a situation analysis, you will gain invaluable insights, empowering you to make well-informed decisions and devise effective marketing strategies that resonate with your target audience.
In this guide, we will walk you through how to write a situation analysis and provide you with an example that you can use to craft your own situation analysis for a marketing plan.
A situation analysis summarizes where you stand today—internally and externally—so your next marketing moves are fact-based. Define scope, gather internal/external data, analyze company and market factors, synthesize 5–7 key insights, list issues and opportunities, then prioritize recommendations with owners and timelines.
1. Define the scope and objective
State the decision this analysis will inform (annual plan, product launch, market entry) and the time frame you'll review.
2. Assemble your data sources
Gather internal performance (traffic, leads, pipeline, revenue, retention) and external intel (market size and trends, competitors, customers, regulations). Note any data gaps you'll need to close.
3. Conduct the internal analysis (company)
Performance: What's trending up/down by product, segment, and channel?
Capabilities: Strengths and weaknesses in people, process, tech, and budget.
Positioning: Unique value, proof points, and brand perception
4. Conduct the external analysis (market & competition)
Customers: Priority segments, needs, buying triggers, and objections
Competitors: Who you face, their offers/claims, and gaps you can exploit
Competitors: Who you face, their offers/claims, and gaps you can exploit.
Macro factors: PESTLE scan—policy, economy, social, technology, legal, environment.
5. Synthesize key insights
Boil findings into 5–7 “so-what” bullets. Label each as internal or external to keep lines clear.
6. State the strategic issues and opportunities
List the few issues that must be solved and the few opportunities worth pursuing next (one line each).
7. Prioritize and recommend next steps
Rank by impact and effort, then propose 3–5 recommendations with owners and timelines. These feed the goals/tactics section of your marketing plan.
This is a situation analysis example for a manufacturing company. To make it your own, insert your industry, products, and services to tailor the situation analysis to your company.
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