Distribution Channels

THE SOSTAC MODEL
The marketing plan could be broken down into six element as for the SOSTAC Model developed in the 1990’s by PR Smith

SOSTAC is an Acronym for the 6 basic elements of the Marketing Plan:

Situation
Objectives
Strategy
Tactics
Actions
Control
SITUATION ANALYSIS
The situation analysis consists in two kind of analysis:  

?    internal and external audits
?    market analysis

The first type of research is used by the company to examine its strengths in relation to its current and potential market looking at both macro and micro environment factors.

The macro environment factors are those  factors which affect the company's planning and performances, and are beyond its control and they are identify with the acronym  PESTEL while the micro environmental factors are those internal factors close to the company that have a direct impact on the organization’s strategy.

To analyze the situation we can use either primary sources -more expensive but more updated and accurate or secondary sources such as trade publications, census statistics, published surveys and the Internet are a very good way to discover information about the size of a market
In this way we can segment the market categorizing groups of users  portions of users with some common characteristics relevant to their response to our product .
Segmenting the marketing the  company recognizes that there are different  customers with  different needs, and that  it is  almost possible to satisfy all customers by treating them alike while mass marketing treats the market as a homogenous group and offers the same marketing mix to all customers ignoring th ...
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