Conduct an environmental analysis to look at and comment on the world in
which you will be operating. Unemployment rates for the past 2 to 5 years and
the impact it has had on sales and the overall customer base is an effective
way of demonstrating the effect of "external" pressures onto your
business.
Threats due to environmental conditions (like unemployment,
layoffs, recession, high interest rates) reduce consumer activity, and should
be explored in your marketing plan.
Political
and Legal
·
Identify the regulations,
permits, insurance, liability, municipal zoning and taxation requirements that
you must follow in order to operate your business.
·
The business climate of your
town, village and surrounding area is an important influence on your day-to-day
operations. Reflect on topics such as taxation, zoning and other factors.
Demographics
·
Describe the population base that
exists to support your product. Identify the market size for your product, and
the people that make up your product/service's consumer group. Provide
information about:
·
Where they live, What products do
they buy, How much they spend on similar products each year,
·
Where they shop for these
products, etc. Indicate whether or not your product is geared towards a
specific age group, with spending patterns and consumer demands. Indicate
whether this group is shrinking, expanding or yet to be tapped into.
Environmental
Analysis - Local Business Environment
Conduct
an environmental analysis that looks at and comments on your local area and
your network of business contacts, competitors and customers.
Suppliers
·
Identify your sources for direct
purchasing by describing their locations, the frequency of your orders and the
type and amount of supplies you will be ordering.
Social/Cultural
·
Explain any particular client
support or other specialized consumer groups that can be identified apart from
the general public. Describe the spending and product requirements of these
groups and the characteristics of your company that support the product and
services they are demanding. Indicate whether your product is part of the day
to day activities of a specific group or the general public. Identify the
influence this will have on your projected sales. Identify your networking
contacts in the community, and the overall atmosphere surrounding your
business. Identify the influence this will have on your projected sales.
Predict the receptiveness of your product concepts, and how the community
perceives your business.
·
Describe the expected response to
your advertising, and how this will boost sales. Indicate what overall market
trends you will be following in order to stay current and "in touch"
with the public. What special techniques will you be employing in order to
match consumer demands.
Competition
·
Identify your direct competition
by naming their business, describing their facilities and operations,
identifying their share of the consumer market, realizing support for their
product and by reviewing the weaknesses of their approach.
Consumer
Analysis
·
Identify your target market,
describing how your company will meet the needs of the consumer better than the
competition does. List the expectations consumers have for your type of
product. Since demands may be different, products and services will vary
between competitors. Quality, price and after sales service are just some of
the areas where this difference occurs.
·
Identify the segment of the
market that will benefit from your product and area of expertise as well as
your approach to selling your product or service.
·
Predict the sales potential that
may be realized by tapping into and holding onto your target market, and
attracting others through different strategies and approaches. These different
approaches can be all done at the same time or be more incremental - obtaining
a core audience for your product or service first, then expanding into the rest
of the market. Identify the sales potential for each of these target groups.
