Marketing Planning CHAPTER 2 SWOT Analysis Good marketing

Marketing Planning CHAPTER 2

SWOT Analysis �Good marketing relies on good plans. A company’s panning efforts begin with a critical look at itself and its business environment, or market I which it operates. �SWOT-strengths, weaknesses, opportunities & threats. A business analysis that lists everything that can foster the business’s success and what could make it fail.

Internal Strengths & Weaknesses � The internal analysis centers around three Cs: Company Customers Competition Company Analysis Staff-related questions What is the company’s mission statement? Is everyone following it? How experienced is that company’s executives? Does the company have too much or not enough staff? What is the quality of staff? How effective is its sales force? Financial questions Has the company been profitable? In which areas and why? Are there enough financial resources to achieve the company’s goals? What is the company’s sales history? Are the sales increasing or decreasing?

Internal Strengths & Weaknesses Production capability questions How are adjustments made in production due to an increase or decrease in sales orders? Has the research and development (R&D) department created successful new products? What % of sales come from products that are five years or older? What changes in technology are required to remain competitive?

Internal Strengths & Weaknesses � Marketing mix questions Product What new products have been successful and why? � Does the company own a patent on any of those products? � Are any patents expiring in the future? � Price � What are the present pricing strategies? � Are the pricing strategies working? Promotion � How is the company positioned in the marketplace? � What are the promotional strategies and have they been successful? � What is the company’s reputation and image among consumers? Place � Do products easily reach customers? � Who help the company with distribution?

Internal Strengths & Weaknesses Customer Analysis Customers are a great source of information. Studying their buying habits may reveal patterns that offer insights into product offerings and pricing strategies. Here are some questions that help in the analysis of customers: Who are the customers? � How do groups of customers differ from one another? � What, when, where, and how much do they buy? � How do customers rate the company on quality, service, and value? � How satisfied is each customer segment? � What customer segments are not having their needs meet? � Is the customer base increasing or decreasing? Why?

Internal Strengths & Weaknesses �Competitive Analysis What are the company’s strengths or weaknesses when compared with the competition? What is the company’s market share? Does the company have a better reputation, own a patent, have special resources, or better distribution capabilities? Are competitors taking business away from the company? How? New Products? Better promotion?

External Opportunities and Threats Companies must always look for opportunities to create competitive advantage due to external factors �Competition Know what your competition is doing at all times Look for opportunities Environmental Scan- an analysis of outside influences that may have an impact on an organization. This is a methodical look at the world that typically includes four areas: political, economic, socio-cultural, and technological (PEST).

External Opportunities and Threats �Political- center around govt. involvement in business operations. Companies must be alert to changes in laws and regulations that affect their industries. Ex. Do not call registry, Downloading music from the internet

External Opportunities and Threats �Economic The current state of the economy is of interest to all businesses: If the economy is robust, businesses are more likely to invest in new products and markets. An economy in a recession or slowing down sends a completely different message to the company’s decision makers. Factor, such as the unemployment rate, inflation, retail sales figures, productivity, and consumer confidence are tools to estimate the current status of the economy.

External Opportunities and Threats �Socio-Cultural- based on customers and potential customers. Changes in their attitudes, lifestyles, and opinions provide a multitude of opportunities and threats. Socio-cultural analysis covers changes in all demographic factors, such as age, income, occupation, education level, and marital status. Technological Kodak and digital photography? Did it hurt or help? Computer Automation Satellite Technology