How To Do SWOT Analysis In Marketing?
What is SWOT?
SWOT is basically the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is a very effective tool used in the business industry to form strategies. You synthesize the data from internal factors to find out your strengths and weaknesses. You use the external factors to identify the threats and opportunities.
SWOT Analysis in Marketing
SWOT analysis in marketing is almost the same thing as a normal SWOT analysis. In this case, you do the analysis to form marketing strategies. SWOT analysis in marketing will help you decide which marketing strategy you should use to get the best result for your business. The strategy will help you to capitalize on the opportunities using all the strengths. It will also help to avoid the threats and minimize the weaknesses.
Strengths are the factors that are going to help you get better results. Your company will do well if you can base your strategy around these things. Strength is an internal factor. This means you can control it. Things like resources, investment, and skilled labor are considered as strengths. In SWOT analysis in marketing, you will consider the following things as your strength:
- Brand recognition – If your company is well known by the people then it can act as strength for your marketing strategy. You can use its name and recognition to advertize your products for sale.
- Locations of the business – If your company or shop is located in the city center then you are likely to have a very good business. It makes it convenient for your customers to be able to visit your shop. This is a big strength that you may have over your competitors.
- Specialist in marketing expertise – When you have an expert in marketing then you can develop a marketing strategy quite easily. He/she will have the required experience to form strategies based on experience. This is a massive boost when doing a SWOT analysis in marketing.
- Introducing something new – What better way to capture the market than providing newer products? If your firm can come up with new ideas, then your marketing strategy will be based on innovation and novelty.
Weaknesses are also internal factors that will derail you from making progress. When doing a SWOT analysis in marketing, you need to consider which things will make your marketing strategy look weak and unconvincing. The following factors can be called weaknesses:
- Poor distribution – If you have a poor distribution channel for your products then you are likely to suffer. If the customers are not getting your products on time or even on the market, then that’s an obstacle for your marketing strategy.
- Not distinguishable feature – You cannot stand out in the market if your products are no different from the rest of the competitors. You need to have your own signature or an identity.
- Lack of online presence – In the modern era, online marketing is a key way to grab the customer’s attention. If you are not doing enough online, then you cannot succeed well.
SWOT analysis in marketing will look at almost everything as an opportunity. This is because you never know what events or situations you can use as a marketing weapon. Things such as:
- Advancement in technology – If your company buys newer technology. Or they come across newer ways to produce goods then that can be termed as an opportunity. This will help the company to strategize on a different way.
- Increase in demand – A situation may arise when the demand for your goods may increase both locally and internationally. If that happens, then you need to seize the opportunity. You can advertize the fact that your good are wanted abroad and thus create a brand name for yourself. This is smart marketing.
- Social Events – Nothing increases the demand for certain goods like social events. Gift items become hot in demand during Christmas. Fireworks are sold every minute day before New Year’s Eve. So when such an opportunity is opened up, the marketing strategy should be to take full advantage of the situation. Offer those discounts and other benefits so that your product is sold more.
While doing a SWOT analysis in marketing, you have to be very careful regarding the situations that will hamper your marketing strategy. These situations are known as threats. Threats develop come out of nowhere. So it is better to identify them as soon as possible. That way the SWOT analysis in marketing will have a contingency plan to thwart the threat. The following conditions can be considered as a threat:
- Competitors lower price -This has to be the toughest threat to deal with. If your competitor lowers the price of their product, then there are very few things you can do about it. People are always likely to go for things that are less expensive. However if your SWOT analysis in marketing has this noted down, then you are likely to have a backup plan for it. Offering better quality or promotional offers may help.
- Changes in consumer choice – If your consumers all of a sudden decide to change their choice then you are likely to be in trouble. Fashion trends are always going to change, and this becomes a threat if you are producing the same kind of goods or services.
- Economic condition – Inflation, exchange rates, taxes and so on are all economic factors. If these things change too often, then your company will be affected in the negative way. Doing a SWOT analysis in marketing will require you to keep such things on mind and come up ways to avoid them.
Recommended read: How SWOT analysis helps with branding and marketing.