Question

First, what is a situational analysis, goal, objective, and strategy?

Second, what is the relationship between a situational analysis, goal, objective, and strategy within a marketing plan?

Third, can you give an example, using a situational analysis from an e-retailer/e-commerce that results in a specific goal, objective, and strategy?

I’ll offer an oversimplified individual type of example to explain the relationship between a situational analysis which highlights a problem, a goal, an objective, and strategy which are connected and cohesive. A person received a body-mass-index (BMI) of 35% at their latest doctor’s appointment. Specific cultural trends and life circumstances (which I may expand on) have contributed to this person’s recent shift into obesity. The person has determined that their goal is to reach a healthier weight. The objective is to lose enough weight for their BMI to squarely sit within the average range for their height within a year. They will use x and y nutrition and activity strategies to reach these objectives by setting a plan to achieve z each week or month . . .

Answer 1

Part 1:

Situational analysis: Situational Analysis is one of a tool used for conducting strategic planning. In an organization, situational analysis is used to determine the strategic issues and problems that need to be addressed. Situational Analysis is executed at both internal level to identify organizations strengths and weakness as well as external level to identify opportunities and threats present in external environment.

Goal: Goals are defined as general and broad targets that are to be accomplished. In order to achieve them, they should be translated into objectives.

Objective: Objectives are the end results, or the statement of what is to be achieved in measurable and specific terms along with the target date.

Strategy: Once the situational analysis has been conducted and objectives has been set, next step is to develop strategies to achieve set target.

Part 2:

Relationship between a situational analysis, goal, objective, and strategy within a marketing plan:

All the elements namely situational analysis, goal, objective, and strategy are interrelated within a marketing plan. While developing a marketing plan, it is important to first identify the issues and problems and understand what is the need of developing new marketing plan. In order to identify issues and problems situational analysis is conducted, review of marketing goals and objectives, current marketing strategy and performance is conducted. Apart from these other internal and external factors are reviewed and problems are identified. Based on these identified problems, broad goals are set and specific objects to be accomplished within a specific period are set. As per targeted objectives strategies are prepared to accomplish the target goals and objectives.

Therefore, all the components are inter-related and are integral part of strategic planning process. In absence of one or many components, strategic planning will not be successful.

Part 3:

Example: Situational analysis and relationship between situational analysis, goal, objective, and strategy can be better understood by taking a real world example of e-retailer giant Amazon.

• Amazon has identified issues and problems by scanning its internal and external environment.
• Issues like threat from competitors, technological advancements were identified.
• Goal of maintaining its position in market was identified.
• Specific Objective was to promote Amazon Prime membership and capture target domestic market end of 2005 and global market by end of 2007.
• Strategy: Strategy to stay on top position of e-retailer was developed and achieved by introduction and successful promotion of amazon prime membership that ensured free two-day shipping.