Planning a marketing strategy is essential for companies to grow their business. Marketing means specifying the process of providing what products and services to whom and by what method, and creating more effective measures. In order to develop an effective strategic plan, it is important to accurately understand the environment surrounding your company and clarify the elements necessary to reach your goals.
While being aware of your company’s current location, we will reconfirm environmental analysis, which is a basic
marketing process
, and also explain three frameworks such as PEST analysis, 3C analysis, and SWOT analysis.
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What is environmental analysis? Understand the business status of your company and competitors using a framework [Introduction for novice marketers]
Grasp trends with PEST analysis
To put it simply, analyzing your company’s environment means knowing the environment inside and outside the company. This is a process of understanding the current business situation and deciding on the direction from a multifaceted perspective.
First of all, “PEST analysis” is required from an outside perspective (external environment). This is situational analysis, also known as macroenvironmental analysis. Here, you will understand the environment surrounding your company in terms of politics, economy, society, and technology. This is an important analysis item that predicts what is happening now and what will happen in the future based on the impact it will have on the company. It will also help you avoid crises that may befall your company and discover great opportunities.
Understand the environment with 3C analysis
The second perspective from the outside (external environment) is “3C analysis.” It is used as a framework to fully understand the environment when formulating a company’s strategy. Accurately collect information on the market, customers, competitors, and your company, and accurately grasp and analyze the necessary points. In order to create a better strategy, it is important to clarify your objectives and understand and organize your company’s strengths, things that only your company can do, etc. Here, you will need to understand the size of the market and customer needs (market/customer), understand information about other companies (competitors), and assess your position (your company).
Identifying issues with SWOT analysis
Next, I will explain “SWOT analysis”, which is an internal perspective (internal environment).
A SWOT analysis is the process of clarifying your company’s challenges by listing positive and negative points such as strengths, weaknesses, opportunities, and threats. Factors that can be considered from an internal perspective can be improved, and in some cases may even be able to be turned into positives. We will consider how the issues identified through SWOT analysis can be brought closer to a better state or positively changed.
In building a basic strategy, strengthen the positives (strengths), supplement what is lacking (weaknesses), select markets that your company can target (opportunities), and avoid or eliminate those that require attention (threats). The key is to control the four elements in combination.
summary
Environmental analysis is an important process that can be said to be the basis for developing marketing strategies. By understanding the environment correctly, you can not only gain an advantage in business, but also be able to accurately understand the situation when a once-in-a-lifetime opportunity arises for your company, or when an unforeseen situation arises that exceeds your expectations. will be able to respond quickly. It is important for marketers to gather accurate information from both external and internal environmental perspectives, and to constantly review their analyzes to help grow their business.