What Is The SOSTAC Model Of Marketing?
SOSTAC Model was invented by Paul Smith, who is a best selling marketing author, international speaker and consultant. He is the originator of SOSTAC ® Planning System used by organisations around the world. Visit: http://www.prsmith.org/
SOSTAC focuses on the six most important elements of any business SOSTAC is an acronym for these six elements: That may look intimidating at first glance. But, each element asks a simple question and provides an easy starting point.
- Situation analysis, asks what the current state of the business is.
- Objectives, helps list an overview of goals for the business.
- Strategy helps provide a “big picture” plan to achieve the goals
- Tactics breaks down the “big picture” strategy into smaller details
- Action helps assign responsibility and deadlines for certain tasks
- Control offers an easy way to track the progress of the plan
Each of these six elements contributes an essential piece of the overall marketing plan. We can also look at it in another manner:
SOSTAC is an Acronym for the 6 basic elements of the Marketing Plan:
- Situation Where are we now?
- Objectives Where do we want to get to?
- Strategy How are we going to get there? – The Big Picture
- Tactics How are we going to get there? – The Detail
- Actions Who is going to do what and when?
- Control How can we control, measure and develop the process?
Each element relates to a key step in the process. Simply work through the Pro-Forma on the following pages step by step and fill in the gaps to suit your business and your goals.
One thing you need to be aware of:
Often people deal with the SOS as a wish-list of achievements and then fail to develop and implement a detailed, controllable & measurable action plan (the TAC). This leads to a statement of great goals with no clear idea of how – or even if you can achieve them. We will be looking specifically at Action Planning in a future issue of News & Views If however you would like some help in developing and, more importantly IMPLEMENTING, a marketing plan, we would be delighted to talk to you.
Lets see them now one by one and try to cover what exactly we need to do:
STAGE 1 SITUATION ANALYSIS WHERE ARE WE NOW?
- How are we performing?
- What are our distinctive competitive (marketing) advantages?
- How effective is our Marketing Mix?
- Are we focusing on the best segments with the right type of customer?
- Are we using the most appropriate channels for communication and distribution?
- What uncontrollable event(s) or trend(s) can impact my business?
STAGE 2 SET OBJECTIVES WHERE DO WE WANT TO GO?
- Business Mission?
- Business Objectives?
- Marketing Objectives – Business Development?
- Marketing Communication Objectives?
- The SMART Test for Objectives
- Make sure your objectives are practical and measurable. Do they fit the following criteria?
- Specific (with numbers)
- Measurable (to monitor progress and confirm achievement)
- Actionable (can we do it?)
- Reasonable (realistically attainable)
- Timed (incorporate deadlines)
STAGE 3 STRATEGY HOW DO WE GET THERE?
- Segmentation – How do we want to divide up the market(s)?
- Targeting – Which segments of the market do we wish to focus upon?
- Positioning – How do we want to be perceived in each different target segment?
STAGE 4 TACTICAL PLAN HOW DO WE IMPLEMENT THE STRATEGY?
- Which Communication Tools are we going to use?
- How are we going to use them?
- What message(s) do we wish to communicate?
- Are we being consistent across different tools and messages?
- Do we have the necessary resources/budgets?
STAGE 5 ACTION PLAN WHO, WHAT, WHEN?
- Who is going to do what?
- When are they going to do it?
- What is the resource allocation for the action?
- What are the key performance measurements?
- How is performance going to be recorded?
STAGE 6 CONTROL KEEPING TRACK OF PROGRESS
- Do action performance measurements relate to objectives?
- Responsibility for measurement?
- Frequency of measurement?
- Resources for measurement?
- Review of measurements?
- Actions on variance?
If you are able to answer and work towards finding the answers to all the questions discussed above you are bound to have a perfect working plan which now needs implementations and team work. We have seen that SOSTAC not only works for marketing purposes but it is a very important and quick Project Management tool.
So in siutations where you have to do a quick project plan and there is too much info flowing around and you cant focus SOSTAC can be your rescuer.