SlideShare a Scribd company logo
1 of 25
Situational Analysis
 collection of methods that managers use to
analyze an organization's internal and external
environment to understand the organization's
capabilities, customers, and business
environment
 It clearly identifies a business's capabilities,
customers, potential customers and business
environment, and their impact on the company. A
situation analysis is an essential part of any
business plan and should be reviewed
periodically to ensure that it is current.
 Various techniques utilized in the evaluation of
the micro and macro environments of the firm to
understand all the factors affecting the company
in the two settings.
 These factors include customers and competitors.
 Situational analysis can also be defined as
systematic collection and assessment of past and
present data of factors that affect the firm.
Methods
 5 C’s
 SWOT
 Porter Five forces model
5 C’s
 Company
 assessment of the vision and mission of the
organization
 Customers
 Competitors
 Collaborators
 Climate/Context
Example
 To develop multi grain flour based on a new
principle that appears to offer several advantages
over the ordinary wheat flour. The chief executive
of the firm needs information about where and
how to market the multigrain flour.
 Who are the buyers ?
 What is the total current demand for ordinary wheat flour?
 How is the demand distributed temporally (pattern of sales
over the year) and geographically?
 What is the break – up of demand for multigrain flour of
different proportions?
 What price will the customers be willing to pay for the
multigrain flour?
 How can potential customers be convinced about the
superiority of the multigrain flour?
 What price will ensure its acceptance?
 What channels of distribution are most suited for the
multigrain flour? What trade margins will induce
distributors to carry it?
 What are the prospects of immediate sales?
 Suppose that a small but technologically
competent firm has developed an improved air
cooler based on a new principle.
 Objectives of market and demand analysis to
answer the following question:-
 Who are the buyers of air cooler?
 What is the total current demand for air coolers?
 What price will the customer be willing to pay for
the improved cooler?
 What price and warranty will ensure its
acceptance?
 What are the prospects of immediate sales?
Importance of Situational
Analysis
 Enables the firm to know its strengths and
weaknesses.
 Enables the firm to determine how the
stakeholders view it with regards to its operation
 Situational analysis makes it possible for the
business to identify opportunities arising thus
leading to sustainable profitability and competitive
advantage.
 It is a significant step in the planning process to
enable the firm select strategies that will enable it
achieve its objectives.
Conduct of Market Survey
Characteristics of Market
 Effective demand in the past and present
 Breakdown of demand
 Price
 Methods of distribution and sales promotion
 Consumers
 Supply and competition
 Government Policy
Effective Demand in the Past and
Present
 Consumption=Production +Imports-Exports-
Changes in stock level
Breakdown of demand
 Nature of Product
 Consumer groups
 Geographical Division
Price
 Free on Board price
 CIF price
 Landed price for imported goods
 Average wholesale price
 Average retail price
Demand Forecasting
 Methods
 Qualitative methods
 Time series Projection methods
 Causal Methods
Qualitative Methods
 Jury of Executive Opinions
 Delphi method

More Related Content

What's hot

RETAIL SALES FORECASTING : CONCEPT AND ISSUES
RETAIL SALES FORECASTING : CONCEPT AND ISSUESRETAIL SALES FORECASTING : CONCEPT AND ISSUES
RETAIL SALES FORECASTING : CONCEPT AND ISSUESromeo_reet
 
measures and forecasting marketing
measures and forecasting marketingmeasures and forecasting marketing
measures and forecasting marketingpaschal marandu
 
Turnaround management presentation for WMU
Turnaround management presentation for WMUTurnaround management presentation for WMU
Turnaround management presentation for WMUDhamo Srinivasan
 
Analysing the competition
Analysing the competitionAnalysing the competition
Analysing the competitiontutor2u
 
1.2 science and scientific research
1.2 science and scientific research1.2 science and scientific research
1.2 science and scientific researchtellstptrisakti
 
Market Appraisal
Market AppraisalMarket Appraisal
Market AppraisalROXYMAX
 
Strategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisStrategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisDr. Parveen Kaur Nagpal
 
BCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisBCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisKiritKene
 
The strategy tools used in industry analysis
The strategy tools used in industry analysisThe strategy tools used in industry analysis
The strategy tools used in industry analysisThiago Magalhães
 
Swot & porter
Swot & porterSwot & porter
Swot & porterRbk Asr
 
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-new
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-newEco 561-week-3-assignment-research-analysis-for-business- game-stop_-new
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-newIsabeedd
 
Situation Analysis
Situation AnalysisSituation Analysis
Situation AnalysisRich Kohler
 
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--new
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--newEco 561-week-3-assignment-research-analysis-for-business- general-motors--new
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--newIsabeedd
 

What's hot (19)

Competitive advantage in service marketing by suman saha
Competitive advantage in service marketing by suman sahaCompetitive advantage in service marketing by suman saha
Competitive advantage in service marketing by suman saha
 
RETAIL SALES FORECASTING : CONCEPT AND ISSUES
RETAIL SALES FORECASTING : CONCEPT AND ISSUESRETAIL SALES FORECASTING : CONCEPT AND ISSUES
RETAIL SALES FORECASTING : CONCEPT AND ISSUES
 
Foundations
FoundationsFoundations
Foundations
 
measures and forecasting marketing
measures and forecasting marketingmeasures and forecasting marketing
measures and forecasting marketing
 
201091917261814
201091917261814201091917261814
201091917261814
 
Turnaround management presentation for WMU
Turnaround management presentation for WMUTurnaround management presentation for WMU
Turnaround management presentation for WMU
 
Retail Forecasting
Retail ForecastingRetail Forecasting
Retail Forecasting
 
Analysing the competition
Analysing the competitionAnalysing the competition
Analysing the competition
 
1.2 science and scientific research
1.2 science and scientific research1.2 science and scientific research
1.2 science and scientific research
 
industrial analysis
industrial analysisindustrial analysis
industrial analysis
 
Market Appraisal
Market AppraisalMarket Appraisal
Market Appraisal
 
Strategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic AnalysisStrategy Implementation, Tools and Techniques of Strategic Analysis
Strategy Implementation, Tools and Techniques of Strategic Analysis
 
BCG Matrix & SWOT Analysis
BCG Matrix & SWOT AnalysisBCG Matrix & SWOT Analysis
BCG Matrix & SWOT Analysis
 
MU 29th oct 2010 - Business case study analysis approach
MU  29th oct 2010 - Business case study analysis approachMU  29th oct 2010 - Business case study analysis approach
MU 29th oct 2010 - Business case study analysis approach
 
The strategy tools used in industry analysis
The strategy tools used in industry analysisThe strategy tools used in industry analysis
The strategy tools used in industry analysis
 
Swot & porter
Swot & porterSwot & porter
Swot & porter
 
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-new
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-newEco 561-week-3-assignment-research-analysis-for-business- game-stop_-new
Eco 561-week-3-assignment-research-analysis-for-business- game-stop_-new
 
Situation Analysis
Situation AnalysisSituation Analysis
Situation Analysis
 
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--new
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--newEco 561-week-3-assignment-research-analysis-for-business- general-motors--new
Eco 561-week-3-assignment-research-analysis-for-business- general-motors--new
 

Similar to Situational analysis

Strategic Planning For Managers
Strategic Planning For Managers   Strategic Planning For Managers
Strategic Planning For Managers Yodhia Antariksa
 
Sales forecasting
Sales forecastingSales forecasting
Sales forecastingWish Mrt'xa
 
Situational analysis, Business strategy and BCG matrix
Situational analysis, Business strategy and BCG matrixSituational analysis, Business strategy and BCG matrix
Situational analysis, Business strategy and BCG matrixPinnakk Paul
 
Business Strategy LO3.PPTX
Business Strategy LO3.PPTXBusiness Strategy LO3.PPTX
Business Strategy LO3.PPTXRuhDil
 
The Competitive Intelligence Continuum - Taking Wisconsin to the World
The Competitive Intelligence Continuum - Taking Wisconsin to the WorldThe Competitive Intelligence Continuum - Taking Wisconsin to the World
The Competitive Intelligence Continuum - Taking Wisconsin to the WorldArik Johnson
 
Guide to Business Planning
Guide to Business PlanningGuide to Business Planning
Guide to Business PlanningSayeed Alam
 
CI 2.0 - Competitive Innovation Intelligence
CI 2.0 - Competitive Innovation IntelligenceCI 2.0 - Competitive Innovation Intelligence
CI 2.0 - Competitive Innovation IntelligenceArik Johnson
 
product devlopment process.pptx
product devlopment process.pptxproduct devlopment process.pptx
product devlopment process.pptxRenu Lamba
 
The process of change in marketing approaches
The process of change in marketing approachesThe process of change in marketing approaches
The process of change in marketing approachesbabar mushtaq
 
Before 1900, despite its weaknesses in effective management of worke.pdf
Before 1900, despite its weaknesses in effective management of worke.pdfBefore 1900, despite its weaknesses in effective management of worke.pdf
Before 1900, despite its weaknesses in effective management of worke.pdfarishaenterprises12
 
Presentation on corporate
Presentation on corporatePresentation on corporate
Presentation on corporateshreyajain294
 

Similar to Situational analysis (20)

Understanding Your Business
Understanding Your BusinessUnderstanding Your Business
Understanding Your Business
 
Sales forecasting
Sales forecastingSales forecasting
Sales forecasting
 
Strategic Planning For Managers
Strategic Planning For Managers   Strategic Planning For Managers
Strategic Planning For Managers
 
Sales forecasting
Sales forecastingSales forecasting
Sales forecasting
 
Complete CS.pdf
Complete CS.pdfComplete CS.pdf
Complete CS.pdf
 
Situational analysis, Business strategy and BCG matrix
Situational analysis, Business strategy and BCG matrixSituational analysis, Business strategy and BCG matrix
Situational analysis, Business strategy and BCG matrix
 
Business Strategy LO3.PPTX
Business Strategy LO3.PPTXBusiness Strategy LO3.PPTX
Business Strategy LO3.PPTX
 
The Competitive Intelligence Continuum - Taking Wisconsin to the World
The Competitive Intelligence Continuum - Taking Wisconsin to the WorldThe Competitive Intelligence Continuum - Taking Wisconsin to the World
The Competitive Intelligence Continuum - Taking Wisconsin to the World
 
Guide to Business Planning
Guide to Business PlanningGuide to Business Planning
Guide to Business Planning
 
Marketing
MarketingMarketing
Marketing
 
CI 2.0 - Competitive Innovation Intelligence
CI 2.0 - Competitive Innovation IntelligenceCI 2.0 - Competitive Innovation Intelligence
CI 2.0 - Competitive Innovation Intelligence
 
Advertising and Campaign planning
Advertising and Campaign planningAdvertising and Campaign planning
Advertising and Campaign planning
 
Business plan
Business planBusiness plan
Business plan
 
CHAPTER THREE.pptx
CHAPTER THREE.pptxCHAPTER THREE.pptx
CHAPTER THREE.pptx
 
product devlopment process.pptx
product devlopment process.pptxproduct devlopment process.pptx
product devlopment process.pptx
 
Kn seminar
Kn seminarKn seminar
Kn seminar
 
The process of change in marketing approaches
The process of change in marketing approachesThe process of change in marketing approaches
The process of change in marketing approaches
 
Before 1900, despite its weaknesses in effective management of worke.pdf
Before 1900, despite its weaknesses in effective management of worke.pdfBefore 1900, despite its weaknesses in effective management of worke.pdf
Before 1900, despite its weaknesses in effective management of worke.pdf
 
Presentation on corporate
Presentation on corporatePresentation on corporate
Presentation on corporate
 
Introduction
IntroductionIntroduction
Introduction
 

Recently uploaded

10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROIShamsudeen Adeshokan
 
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATION
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATIONHOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATION
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATIONpratheeshraj987
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendayMaharshBenday
 
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escorts
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency EscortsAligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escorts
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escortsmeghakumariji156
 
SALES-PITCH-an-introduction-to-sales.pptx
SALES-PITCH-an-introduction-to-sales.pptxSALES-PITCH-an-introduction-to-sales.pptx
SALES-PITCH-an-introduction-to-sales.pptx23397013
 
Unlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich ManuscriptUnlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich Manuscriptelizabethella096
 
Enhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San FranciscoEnhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San Franciscosanfranciscoprfirms
 
Martal Group - B2B Lead Gen Agency - Onboarding Overview
Martal Group - B2B Lead Gen Agency - Onboarding OverviewMartal Group - B2B Lead Gen Agency - Onboarding Overview
Martal Group - B2B Lead Gen Agency - Onboarding OverviewMartal Group
 
Discover Ardency Elite: Elevate Your Lifestyle
Discover Ardency Elite: Elevate Your LifestyleDiscover Ardency Elite: Elevate Your Lifestyle
Discover Ardency Elite: Elevate Your LifestyleMy Heart Throw Pillow
 
Alpha Media March 2024 Buyers Guide.pptx
Alpha Media March 2024 Buyers Guide.pptxAlpha Media March 2024 Buyers Guide.pptx
Alpha Media March 2024 Buyers Guide.pptxDave McCallum
 
SP Search Term Data Optimization Template.pdf
SP Search Term Data Optimization Template.pdfSP Search Term Data Optimization Template.pdf
SP Search Term Data Optimization Template.pdfPauleneNicoleLapira
 
Elevating Your Digital Presence by Evitha.pdf
Elevating Your Digital Presence by Evitha.pdfElevating Your Digital Presence by Evitha.pdf
Elevating Your Digital Presence by Evitha.pdfevithatojoparel
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendayMaharshBenday
 
Mastering Affiliate Marketing: A Comprehensive Guide to Success
Mastering Affiliate Marketing: A Comprehensive Guide to SuccessMastering Affiliate Marketing: A Comprehensive Guide to Success
Mastering Affiliate Marketing: A Comprehensive Guide to SuccessAbdulsamad Lukman
 
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leads
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leadsHannah Brady - Powering Up Your Brand with Content @ Force24 All leads
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leadsHannahBrady19
 
Press Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPress Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPR Wires
 
2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.comnmislamchannal
 
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...William (Bill) H. Bender, FCSI
 
The 9th May Incident in Pakistan A Turning Point in History.pptx
The 9th May Incident in Pakistan A Turning Point in History.pptxThe 9th May Incident in Pakistan A Turning Point in History.pptx
The 9th May Incident in Pakistan A Turning Point in History.pptxelizabethella096
 
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfTAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfSocial Samosa
 

Recently uploaded (20)

10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
10 Email Marketing Best Practices to Increase Engagements, CTR, And ROI
 
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATION
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATIONHOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATION
HOW TO HANDLE SALES OBJECTIONS | SELLING AND NEGOTIATION
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh Benday
 
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escorts
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency EscortsAligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escorts
Aligarh Hire 💕 8250092165 Young and Hot Call Girls Service Agency Escorts
 
SALES-PITCH-an-introduction-to-sales.pptx
SALES-PITCH-an-introduction-to-sales.pptxSALES-PITCH-an-introduction-to-sales.pptx
SALES-PITCH-an-introduction-to-sales.pptx
 
Unlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich ManuscriptUnlocking the Mystery of the Voynich Manuscript
Unlocking the Mystery of the Voynich Manuscript
 
Enhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San FranciscoEnhancing Business Visibility PR Firms in San Francisco
Enhancing Business Visibility PR Firms in San Francisco
 
Martal Group - B2B Lead Gen Agency - Onboarding Overview
Martal Group - B2B Lead Gen Agency - Onboarding OverviewMartal Group - B2B Lead Gen Agency - Onboarding Overview
Martal Group - B2B Lead Gen Agency - Onboarding Overview
 
Discover Ardency Elite: Elevate Your Lifestyle
Discover Ardency Elite: Elevate Your LifestyleDiscover Ardency Elite: Elevate Your Lifestyle
Discover Ardency Elite: Elevate Your Lifestyle
 
Alpha Media March 2024 Buyers Guide.pptx
Alpha Media March 2024 Buyers Guide.pptxAlpha Media March 2024 Buyers Guide.pptx
Alpha Media March 2024 Buyers Guide.pptx
 
SP Search Term Data Optimization Template.pdf
SP Search Term Data Optimization Template.pdfSP Search Term Data Optimization Template.pdf
SP Search Term Data Optimization Template.pdf
 
Elevating Your Digital Presence by Evitha.pdf
Elevating Your Digital Presence by Evitha.pdfElevating Your Digital Presence by Evitha.pdf
Elevating Your Digital Presence by Evitha.pdf
 
Social Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh BendaySocial Media Marketing Portfolio - Maharsh Benday
Social Media Marketing Portfolio - Maharsh Benday
 
Mastering Affiliate Marketing: A Comprehensive Guide to Success
Mastering Affiliate Marketing: A Comprehensive Guide to SuccessMastering Affiliate Marketing: A Comprehensive Guide to Success
Mastering Affiliate Marketing: A Comprehensive Guide to Success
 
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leads
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leadsHannah Brady - Powering Up Your Brand with Content @ Force24 All leads
Hannah Brady - Powering Up Your Brand with Content @ Force24 All leads
 
Press Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdfPress Release Distribution Evolving with Digital Trends.pdf
Press Release Distribution Evolving with Digital Trends.pdf
 
2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com2024 Social Trends Report V4 from Later.com
2024 Social Trends Report V4 from Later.com
 
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...W.H.Bender Quote 61 -Influential restaurant and food service industry network...
W.H.Bender Quote 61 -Influential restaurant and food service industry network...
 
The 9th May Incident in Pakistan A Turning Point in History.pptx
The 9th May Incident in Pakistan A Turning Point in History.pptxThe 9th May Incident in Pakistan A Turning Point in History.pptx
The 9th May Incident in Pakistan A Turning Point in History.pptx
 
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdfTAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
TAM_AdEx-Cross_Media_Report-Banking_Finance_Investment_(BFSI)_2023.pdf
 

Situational analysis

  • 2.
  • 3.  collection of methods that managers use to analyze an organization's internal and external environment to understand the organization's capabilities, customers, and business environment
  • 4.  It clearly identifies a business's capabilities, customers, potential customers and business environment, and their impact on the company. A situation analysis is an essential part of any business plan and should be reviewed periodically to ensure that it is current.
  • 5.  Various techniques utilized in the evaluation of the micro and macro environments of the firm to understand all the factors affecting the company in the two settings.  These factors include customers and competitors.
  • 6.  Situational analysis can also be defined as systematic collection and assessment of past and present data of factors that affect the firm.
  • 7. Methods  5 C’s  SWOT  Porter Five forces model
  • 8. 5 C’s  Company  assessment of the vision and mission of the organization  Customers  Competitors  Collaborators  Climate/Context
  • 9.
  • 10. Example  To develop multi grain flour based on a new principle that appears to offer several advantages over the ordinary wheat flour. The chief executive of the firm needs information about where and how to market the multigrain flour.
  • 11.  Who are the buyers ?  What is the total current demand for ordinary wheat flour?  How is the demand distributed temporally (pattern of sales over the year) and geographically?  What is the break – up of demand for multigrain flour of different proportions?  What price will the customers be willing to pay for the multigrain flour?  How can potential customers be convinced about the superiority of the multigrain flour?  What price will ensure its acceptance?  What channels of distribution are most suited for the multigrain flour? What trade margins will induce distributors to carry it?  What are the prospects of immediate sales?
  • 12.
  • 13.  Suppose that a small but technologically competent firm has developed an improved air cooler based on a new principle.  Objectives of market and demand analysis to answer the following question:-
  • 14.  Who are the buyers of air cooler?  What is the total current demand for air coolers?  What price will the customer be willing to pay for the improved cooler?  What price and warranty will ensure its acceptance?  What are the prospects of immediate sales?
  • 15. Importance of Situational Analysis  Enables the firm to know its strengths and weaknesses.  Enables the firm to determine how the stakeholders view it with regards to its operation  Situational analysis makes it possible for the business to identify opportunities arising thus leading to sustainable profitability and competitive advantage.  It is a significant step in the planning process to enable the firm select strategies that will enable it achieve its objectives.
  • 16.
  • 17.
  • 19.
  • 20. Characteristics of Market  Effective demand in the past and present  Breakdown of demand  Price  Methods of distribution and sales promotion  Consumers  Supply and competition  Government Policy
  • 21. Effective Demand in the Past and Present  Consumption=Production +Imports-Exports- Changes in stock level
  • 22. Breakdown of demand  Nature of Product  Consumer groups  Geographical Division
  • 23. Price  Free on Board price  CIF price  Landed price for imported goods  Average wholesale price  Average retail price
  • 24. Demand Forecasting  Methods  Qualitative methods  Time series Projection methods  Causal Methods
  • 25. Qualitative Methods  Jury of Executive Opinions  Delphi method