Situation Analysis in Social Enterprise Marketing Plan

“The aim of situation analysis is to understand the current and future environment in which the company operates in order that the strategic objectives are realistic in light of what is happening in the marketplace.” – Dave Chaffey

Situation analysis helps define the context for a marketing plan by looking at trends, customer preferences, competitor strengths and weaknesses, and anything else that may impact sales. The question traditional situation analysis must answer is, “What’s happening in the marketplace?”

The question that the commonweal marketing situation analysis must answer is “What’s happening in the social and environmental sustainability setting in the marketplace”.

In a Social Enterprise Marketing Plan, situation analysis is looking not only at the profit-making part of the business but where is the company situated according to its social and/or environmental sustainability objectives.

Where is the company currently in its support to the cause it has pledged to and how it is affecting the business?

This we can find out by looking at:

  • Present impact of the social and environmental sustainability activities of the enterprise and how it affects sales and other business activities. Remember, because of the current economic situation social enterprises need to make a profit as well as being socially active in order to survive in the current market environment. We cannot concentrate solely on commonweal marketing if it contradicts with profit growth, otherwise, there is the risk of bankruptcy and closure of the business.
  • Trends and relative growth rates. What are the current social and environmental sustainability trends that might affect future business and shift in consumer behaviour? Looking at specific products this might impose changes in product development, packaging, and distribution.
  • Are there any changes that are happening within the organisation that might affect future commonweal development? This could be new ownership or major shakeup in the board.
  • Customer Demand analysis. Understanding consumers demand for social and environmental sustainability products and services.
    • What percentage of customer businesses are socially and environmentally aware?
    • What percentage of customers are prepared to purchase your social or environmentally sustainable product?
    • What percentage of customers are not ready to purchase but might be influenced if made aware of the social and environmental impact of the product or service?
  • Competitor analysis and their approach to social and environmental sustainability development of their own business strategy

As you have might probably already noticed these questions and tactics are not much different than in the traditional and digital marketing analysis, only this time we concentrate on the commonweal values and how they affect the business.

When doing situation analysis in the commonweal marketing plan, we need not forget the traditional and digital marketing situation analysis. They should complement one another and give a more detailed and comprehensive result that can then help the commonweal marketing strategy.

Two of the most popular and effective tools when it comes to situation analysis are the SWOT analysis and Porter’s Five Forces. Each of the models seeks to define the company’s position in the market. Porter’s 5 Forces are generally more of a micro tool, while SWOT analysis is comparatively macro.

In the coming weeks, I will be looking at how these models can be used to help in the commonweal marketing plan. Stay in touch and sign-up to our newsletter.    

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preferences
When you visit our website, it may store information through your browser from specific services, usually in form of cookies. Here you can change your privacy preferences. Please note that blocking some types of cookies may impact your experience on our website and the services we offer.