Your first step in analyzing the marketing environment is to examine the competition. What brands and products compete with yours? How strong are these competitors, and what weaknesses do you see? Does your industry have only one competitor (a monopoly) because there are no close product substitutes or because of barriers to market entry? Does your industry have a few competitors with some barriers to entry (an oligopoly)? Or does your industry have many competitors and a lot of product differentiation (monopolistic competition)? How much of a role does competitive pricing play in your market(s)? Identify two specific competitors and look at their strengths and weaknesses. What are the implications for your competitive strategy? Write two paragraphs about competition and the specific rivals you plan to monitor.

 

Find out how local, state, or federal laws and regulations might affect your ability to achieve your marketing objectives. Search the Internet to find at least two federal laws that apply to your product (such as the Nutritional Labeling and Education Act, if you're marketing a food product). Look for a state or local law or regulation that applies to your product, such as needing a license to provide a certain type of service. Finally, conduct a search to see whether any new laws and regulations—or major legal and regulatory changes—are in the works. Write a paragraph about the legal and regulatory climate for your product, including the possible effect on your marketing plan.