Knowledge is power and for any small business the more you know about the environment in which you compete the more successful you will be. Before you start your marketing plan it is important that you conduct a review of your market, competitors, customers and business performance to ensure you make informed decisions throughout the year. Your review will provide the information you need to set your marketing objectives, determine your overall game plan (marketing strategy) and choose the right marketing tactics that will maximise your spend and achieve the results you need to grow your business.

To complete your business and market review, there are 4 pieces of advice that can assist you.

1. Understand Your Market

Your market is the overall industry in which you compete. It is important to analyse your market so you can gain an understanding of your business's full market potential and identify new areas of opportunity. Ask yourself:

• Is my market growing or declining and why?
• Which segment(s) of my market is most advantageous for my business to compete in?
• Which channels of distribution (eg. internet, shop, phone etc) does my business and competitors compete in and which are the most important?
• Which factors are changing my market (eg. seasonality/trends) and how will they affect the future of my business?

Some places to start looking for information on your market include government websites (eg. bureau of statistics), trade websites (conduct a Google search on your market), trade publications, competitor activity and your local government or council.

2. Investigate Your Competition

Investigate your competition and find out their strengths and weaknesses and how they compare to yours. Analysing your competition will enable you to determine what makes you different from your competitors and what you do better. Your key strengths and point of difference can then be communicated to your customers to differentiate yourself in the market.

If you also get to know your current threats now, you can put a plan in place that will make sure they don't become a greater threat in the future.

3. Review Your Current Business

Review, review, review! Reviewing your business on a regular basis and comparing your performance to your market and competitors will help you to identify your current strengths, weaknesses and future opportunities for business growth.

To analyse your business start with your sales figures. Your sales may identify specific products, services or areas of your business which are under performing and may need attention. In turn, your sales will identify areas which are over performing and which may display certain characteristics which you can learn from to improve your business overall.

4. Know Your Customers

Without your customers, you would not have a business. The key to any successful business is knowing who your most profitable customers are, how you can retain and keep these customers loyal and how you can attract new customers with the same or similar profile.

To identify your key customers you will need to understand:

• Which customers provide the most value for your business now and in the future
• The characteristics (demographics, psychographics and geography) of your own customers and the customers in your market
• The attitudes, behaviours and purchasing patterns of your own customers and the customers in your market

If you are a new business a simple way to start your customer analysis is to research your existing customers to determine who they are, where they live, their age, gender, interests, likes and purchasing habits. If you are a new business, look at your competitors' customers as well as the local area demographics in which you compete.

Copyright © Marketing for Business Success Pty Ltd 2007