Analyzing the Situation Assessing Opportunities Situation Analysis Just

Analyzing the Situation, Assessing Opportunities

Situation Analysis (Just the Facts) l The Situation Analysis functions as a ‘gathering point’ for information, facts uncovered about the marketing situation l Data appearing in the situation analysis is largely secondary and objective in nature

The Purpose of A SWOT Analysis l To define the main issues that must be addressed in the strategic plan Clarifies opportunities l Identifies problems l

The Purpose of A SWOT Analysis l Issues identified in the SWOT analysis will be used to define the marketing and IMC objectives, strategies, and tactics

The Components of A SWOT l A complete SWOT analysis consists of two components Strengths/Weaknesses (S/W) Analysis l Opportunities/Threats (O/T) Analysis l

Strengths and Weaknesses l “Internal factors” reflect situationbased considerations within a company’s control Key Question: l What factors internal to the company influence the current situation?

Strengths l Strengths refer to what a company has done well or been successful at to date l Auto. Zone Case: l Auto. Zone has a strong reputation for customer service unequaled to other competitors in the industry.

Weaknesses l l Weaknesses refer to what a company needs to correct OR that has worked to a company’s disadvantage to date Auto. Zone Case: l Auto. Zone’s current distribution is limited to “Sun Belt” states, such as Tennessee and Texas.

Opportunities and Threats l “External factors” reflect situation-based considerations beyond a company’s control l But which have the potential to affect the future of the business Key Question: l What variables in the external environment affect the company’s marketing challenge?

Opportunities l Opportunities refer to external factors that may benefit the company if pursued l ATM Case: l The bank has an opportunity to activate the voice capability in the new ATM in order to better appeal to customers who desire personal service.

Opportunities (cont. ) l Auto. Zone case l Auto. Zone has an opportunity to expand its current outlets through acquisition of small repair shops and independent DIY retailers in Georgia and Oklahoma.

Threats l Threats refer to external variables that may negatively affect the company if ignored l Auto. Zone Case: l Slow growth in the auto parts industry could limit Auto. Zone’s ability to expand quickly beyond the Sun Belt region.

SWOT Analysis: We Go From l “Where Do Here? ” At the conclusion of the SWOT analysis, strategic planners should understand what the company’s alternatives are for solving the marketing challenge

Problems & Opportunities l Problems & Opportunities Analysis is similar in purpose to a S/W/O/T l Its function is to assess and evaluate the objective information uncovered in the Situation Analysis

Problems & Opportunities l Should not attempt to draw conclusions about how to solve issues raised in the Situation Analysis… l But to point out the potential that exists (good or bad) relative to the present situation

Problems l Internal and external factors that can be identified as a weakness or potential threat to the marketer

Opportunities l Untapped chances to grow or develop in a specific business area l Opportunities are “future-oriented” observations that, if implemented, could benefit the brand or brand situation

P&O Analysis: “Where Do We Go From Here? ” l At the conclusion of the Problems & Opportunities Analysis, strategic planners should understand what the company’s alternatives are for solving the marketing challenge