Every marketing plan needs to include industry analysis. Why? Because it is critical to understand your industry, and to identify and track your performance by the key factors of your organization’s business success (KSF).
Understanding your industry and identifying your KSF will help you create a successful marketing plan. One that is based on measurement progress and results. A key factor in success is the aggregate factor that affects your business’s ability to perform well in your market.
Most businesses focus on between three and five of the most important (to their business) success factors. From time to time, or year after year, these key factors of success may change, as industry or market changes.
15 examples of key business success factors (And this is not a comprehensive list):
- Number of new users each year;
- The number of lost users or retained users each year (it is important to understand and measure the lifetime value of a potential user for each user on a regular basis);
- Hire and retain the best employees (measured by employee turnover, job vacancies, customer satisfaction);
- Successful new product introduction (measured by sales and cost)
- Successful promotional programs (in terms of sales and prices)
- Good / healthy financial indicators: for example, working capital, acceptable ratio (especially debt on equity ratio), profit margin, cash flow, recovery and much more.
- If in the manufacturing industry, the use of high operating capacity.
- Strong supplier network.
- Strong distribution network or channel;
- Successful product positioning;
- Low cost structure;
- Niche Product / Service – Find out the number of competitors entering and / or leaving Niche Is the market entry price high or low?
- Market leader or follower or challenger, and is your market relative and why? Can you support this attack?
- Product Distinction: Do you have the benefits of a technology or service that people can’t easily replicate? How unique and different is your product or service?
- Marketing time: Can your product or service be delivered quickly and easily? Sent from the first point of contact and then invoiced?
Once you have identified your specific KSF, develop strategies around these factors and integrate them into your marketing and business plans to ensure business success. Develop measurement programs to help track your progress against success factors. You also need to review your competition and see if your competitors’ success factors are similar or different from yours (depending on your strengths and weaknesses and your marketing and business strategies. Depending, they can be very different). One way to compare and estimate is to analyze the competitiveness. Find out what your competitor’s strengths and weaknesses are and tailor your competitive strategy accordingly. (A sample suit analysis can show you how to analyze the vulnerabilities, opportunities, and risks your business faces.)
For example, if retaining your existing customers is a key factor in success, your business goal will be to increase sales with your existing customers. How do you do that First, survey customer satisfaction to gauge how satisfied (or not) your current customers are. Then decide what you need to change and what you need to focus on. Make sure you understand how your customers have chosen between competitors: is it price, service, quality, knowledge, reliability, relationships or all these factors? Which product or service attributes are most important to your customers? What is the unique difference between your product or service and your competing product or service (from your user’s point of view)?
After identifying your key factors of success; Built-in measuring instruments were developed to track them. KSF – and industry evaluation and comparison of competitors. Build your strategy and goals into your marketing and business plans (Pew!). You need to act! Build your business on these key factors of success.