EP2250 Small Business DevelopmentUnit 2 - Secondary Research Analysis

Define the geographic area of marketIdentify & use economic indicators

Analyze the market area’s economyEvaluate economy within market

Define the geographic area of market

The feasibility of most businesses is tied to their location.

Should be as close to customers as possible There should be enough customers

Key Steps in the Marketing Plan1 & 2 A Situational Analysis & SWOT

Asks: What is the current situation with the market or the product?

There are many internal and external sources from which to draw this information.

The SWOT analysis is a key tool to determining the answer to: What is the current situation with the market or the product?

SWOT AnalysisA Strategic planning tool used to detect key

opportunities.Analysis of key:

Internal Strengths (Within the orgs. control)Internal Weaknesses (Within the orgs. control)External Opportunities (Can be acted upon)External Threats ( Things to be watched)

From the SWOT process plans can be made to build on/improve strengths, detect and fix weaknesses, seize opportunity, and be aware of potential threats.

SWOT Analysis

SWOT Analysis

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Key Steps in the Marketing Plan3 Set Marketing Objectives

Marketing objectives must be clear, attainable and measurable targets.

Key objectives centre around Sales, Market Share and Customer satisfaction.

4 Develop a Strategy to achieve the marketing objectives.

Key strategies centre around reducing cost or increasing revenues.

Key Steps in the Marketing PlanTypical Marketing strategies in order to

increase revenues Product Development: Develop a new product for an

existing market. Market Development: Enter a new market with an

existing product. Market Penetration: Sell more of a current product to

your existing market. Diversification: Sell a new product to a new market.

Key Steps in the Marketing Plan5 Adjust the Marketing Mix to suit the

Strategy. Determine the best product, the best price, the best

promotion and the best distribution methods to meet the objectives.

6 Set the Budget Plan for the costs of implementing the strategy

7 Hire the right people for the job and assign their roles.

Key Steps in the Marketing Plan8 Control the Strategy implementation and

Evaluate the Strategies effectiveness in achieving the set objectives.Sometimes, especially if the time from

situational analysis to planning to implementation is long there will be a gap created into what is sold versus what could have been sold if the required changes (implementation) could have been made sooner. This situation is known as the Planning Gap.

Define the geographic area of market

Identify & use economic indicators

Analyze the market area’s economy

Evaluate economy within market