Marketing-Information Management LAP 8

Objectives Explain the reasons for conducting a SWOT analysis. Demonstrate procedures for conducting a SWOT analysis for use in marketing planning.

Explain the reasons for conducting a SWOT analysis. Objective

Carl’s lawn-mowing serviceCarl’s lawn-mowing service Where to go from here?Where to go from here? Needs to see “the whole picture”Needs to see “the whole picture”

 Weakness Discovering SWOT  Strength Any resource or capability your business has that can help you gain a competitive advantage in your industryAny resource or capability your business has that can help you gain a competitive advantage in your industry Any limitation or shortcoming your business has that can keep you from achieving your objectivesAny limitation or shortcoming your business has that can keep you from achieving your objectives  Opportunity Any favorable situation in the environment surrounding your businessAny favorable situation in the environment surrounding your business  Threat Any unfavorable situation in the environment surrounding your businessAny unfavorable situation in the environment surrounding your business

Discovering SWOT  Benefits of SWOT analysis: PrioritizePrioritize Look at your business with the proper perspectiveLook at your business with the proper perspective Discover issues you hadn’t thought of beforeDiscover issues you hadn’t thought of before Filter for a great deal of informationFilter for a great deal of information Insight into competitorsInsight into competitors INFORMATION

Discovering SWOT  Who should be involved in SWOT: Top company executivesTop company executives Employees at every levelEmployees at every level SuppliersSuppliers CustomersCustomers

Discovering SWOT  When to conduct SWOT: Any time!Any time! Especially helpful when you have a limited amount of timeEspecially helpful when you have a limited amount of time

Demonstrate procedures for conducting a SWOT analysis for use in marketing planning. Objective

 First, establish objectives and goals. How to Conduct a SWOT Analysis Should I expand my lawn-mowing business beyond my neighborhood?  For larger businesses, define the scope of the SWOT analysis.

How to Conduct a SWOT Analysis  Strengths Internal organizational factorsInternal organizational factors Questions to help determine:Questions to help determine:  What are our advantages?  What are our assets?  Where are we making money? Don’t downplay strengths.Don’t downplay strengths. Consider them in relation with the competition.Consider them in relation with the competition.

How to Conduct a SWOT Analysis  Weaknesses Internal organizational factorsInternal organizational factors Questions to help determine:Questions to help determine:  What can we improve?  What resources do we lack?  Where are we losing money? Avoid being too negative.Avoid being too negative. Weaknesses are different from mistakes.Weaknesses are different from mistakes.

How to Conduct a SWOT Analysis  Opportunities External organizational factorsExternal organizational factors Determined through environmental scanningDetermined through environmental scanning Helpful questions:Helpful questions:  What new needs of customers can we meet?  What economic trends are beneficial to us?  What niches have our competitors missed?

How to Conduct a SWOT Analysis  Threats External organizational factorsExternal organizational factors Determined through environmental scanningDetermined through environmental scanning Helpful questions:Helpful questions:  What obstacles do we face?  What is our competition doing?  Do we have money problems ?

How to Conduct a SWOT Analysis  Key issues in each category

How to Conduct a SWOT Analysis  SWOT cautions: SWOT is subjective—there isn’t necessarily a right or wrong.SWOT is subjective—there isn’t necessarily a right or wrong. Live in the present—where is your business right now?Live in the present—where is your business right now? Be specific.Be specific. CAUTION