Situation

Analysis
MARK5814 Digital Marketing
T2-2024 Week 2 Lecture
Digital Marketing Strategy Development Process

Situation
analysis

Control Objectives

Tactics &
Actions Strategy
Situation Analysis
• Where are we now?

• Current performance

• Opportunities

• Competitor benchmarking
Tools for Situation Analysis
• Macro-environment
Ø PESTLE analysis
• Micro-environment:
Ø Porter’s Five Competitive Forces That Shape Strategy
Ø Customer analysis
Ø Marketplace analysis
Ø Competitor benchmarking
• Business model canvas
• SWOT analysis
• 5 C’s analysis
• Internal review: McKinsey 7-S Framework
Macro-environment
 PESTLE Analysis
Political Economic Social factors Technological Legal factors Environmental
factors factors factors factors

What political What What social What What legal What

factors will economic factors will technological factors will environmental
influence your factors will influence your factors will influence your factors will
chosen influence your chosen influence your chosen influence your
organisation? chosen organisation? chosen organisation? chosen
organisation? organisation? organisation?
Political Forces
• National governments and transnational organisations have
an important role in determining the future adoption and
control of the internet and the rules by which it is governed.

Ø Internet governance

Ø Taxation

Ø Employment law
Economic Forces
• Cause variation in economic conditions and affect trading
opportunities, influence consumer spending and business
performance and have significant implications for digital
marketing planning.

Ø Interest and exchange rates

Ø inflation
Social Forces
• Cultural diversity among digital communities that influences
the use of the Internet and the services businesses provide
online.

Ø Culture

Ø Demographics
https://www.goodthingsfoundation.org.au/wp-
content/uploads/sites/2/2021/08/DigiNation_Infographic_Final_Aug9-accessible.pdf
Technological Forces
• Changes in technology that influence marketing opportunities,
create new product development opportunities, introduce new
ways to access target markets through channel integration
and create new forms of access platforms and applications.

Ø Most marketing technologies (Martech) use ‘Software as a Service’

(SaaS)

Ø Platform features and restrictions

https://www.accenture.com/us-en/blogs/accenture-research/want-to-demystify-the-metaverse-hype-think-of-it-as-an-
internet-evolution
Legal Forces
• Determine the methods by which products can be promoted
and sold online. Laws and ethical guidelines that seek to
safeguard individuals' rights to privacy and businesses' rights
to free trade.

Ø Consumer protection

Ø Regulatory bodies
https://www.ag.gov.au/rights-and-protections/privacy
Environmental Forces
• Identify the general environmental protection requirements if
the product or service provided has implication to the physical
environment.

Ø Climate change

Ø Green energy
https://www.bloomberg.com/news/articles/2022-09-08/australia-passes-first-major-climate-action-reform-since-2011
Porter’s Five Competitive Forces That
Shape Strategy
1. Buyers / customers
2. Suppliers
3. Substitutes
4. New entrants
5. Existing rivals / competitors
Customer Analysis
• Customer segments

• Personas

• Customer journeys include:

Ø Search intermediaries with different keywords
Ø Intermediaries, influencers and media or publisher sites
Ø Destination sites and platforms
Customer Characteristics
• Demographic variables
Ø Age
Ø Gender
Ø Social group
• Psychographic variables
Ø Perceptions
Ø Beliefs
Ø Attitudes
• Behavioural variables
Customer Personas
• Fictional profiles that represent a particular target audience.

• Help understand online customer characteristics and

behaviour to develop customer-centred online strategies,
company presences and campaigns.
Drivers of Digital Experiences
Customer Interactions
Customer Journey Map
Online
Marketplace
Map
Competitor Analysis
• Competitor benchmarking

• Marketing technologies (Martech):

Ø Google Trends

Ø Similarweb
Business Model Canvas
Opportunity Canvas
 Lean Canvas

https://leadflowmethod.com/introduction-lean-canvas
SWOT Analysis
https://my.ibisworld.com/au/en/company-reports/9961/company-details#swot
https://my.ibisworld.com/au/en/company-reports/9961/company-details#swot
5 C’s Analysis

1. Company
2. Customers
3. Competitors
4. Collaborators / Complementers
5. Context / Climate
McKinsey
7-S
Framework

https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/enduring-
ideas-the-7-s-framework
Lecture Summary
• Macro-environment analysis

• Micro-environment analysis

• Internal analysis

• Next week: digital marketing objectives and strategies