Why is it important for a business to conduct a situational analysis during the marketing planning process?

To ward off problems

To ward off problems. Businesses conduct situational analyses to obtain information about changes or trends that are beginning to develop in the environment or marketplace. This procedure allows businesses to identify changes at an early stage and ward off potential problems. It is important for businesses to understand changes in their external environment in order to adapt and avoid problems. Without this information, businesses may be unprepared to deal with problems that might cause them to lose their competitiveness or even fail. A business would not conduct a situational analysis to identify customers, forecast expenses, or redesign products. However, a business might redesign products after conducting a situational analysis and finding that they were losing their appeal in the marketplace.