2. Using Secondary Research to Understand the Situation

3. Situation Analysis: Purpose  Recall: “Why are we there?”  The situation analysis provides a background on the factors that influence the company’s business.

4. Sections Included in The Situation Analysis  Situation Analysis Industry Analysis Company Analysis Consumer Analysis Product Analysis Competitive Analysis Market Analysis Other Considerations

5. Problem Identification A brief statement that summarizes the core dilemma and/or challenge a company must overcome In Advertising Research, we conclude the Situation Analysis with a recommendation of the identified problem

6. Industry Analysis  Industry/Category* size of the market in general growth trends

7. Company Analysis  Company Analysis what the company is concerned with What it represents

8. Company Analysis  Company Mission  History  Sales and profits (annual reports)  Market standing/category share  Product Offerings  Key personnel  Capital Resources

9. Product Analysis  Focuses on the abstract and concrete qualities of the company’s products Product Attributes/Functions Positioning/Brand personality Cost/Margins Price Packaging Distribution Promotions used Media spent

10. The Competitive Analysis  Considers all options consumers might consider in their purchasing decisions Direct competitors (same category) Indirect competitors (different category)

11. The Competitive Analysis  In what category does the product compete?  Who are the brand’s major direct competitors? Indirect competitors?  What is the competitor’s brand position?  What is the price of their product?

12. Competitive Analysis  What is their respective market share?  What is their communication strategy? [recent ad campaigns]  How much do they spend on media? (LNA)  Where is competitive media spending concentrated?

13. Consumer Analysis  Information that helps us gain a grasp on the (present or potential) consumer Who are they? What motivates them to buy? How do they use the product? What is important to them in a product? How do they look at life? Where are they?

14. The Market Analysis  The market analysis helps planners identify which geographic areas are key  These areas are important either due to The strong position the advertiser enjoys in the region (e.g., Maverick in the SE U.S.), or The problems associated with doing business in the region

15. Macro-environmental Considerations Demographic Trends Economic Trends Technological Issues Political/Legal Issues Social/Cultural Trends

16. After the Situation Analysis…

17. Problems & Opportunities Analysis  Where are the internal and external “trouble spots?”  Where are the “untapped” chances to improve the situation?

18. Problems & Opportunities Analysis  Not recommendations of what should be done to solve the problem  Rather, objective observations of past facts and future opportunities

19. Research Problem  The research problem defines the mission and objectives behind conducting primary research (See pg. 23 of Davis)

20. Research Problem A comprehensive problem statement that includes:  Problem definition  Justification for research  Specification of informational needs