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Welcome to the The Marketing Source e-newsletter! Our goal is to provide you with real-world marketing tips.If you have any ideas for articles, please send them along.
SWOT: Powerful Analysis Made Simple
Your inbox and mailbox are undoubtedly crowded with flyers, articles and ads for the latest and greatest analytical tools. New models. Improved software. Innovative research techniques.
We're all for learning new approaches and broadening horizons, but sometimes the tried and true work just fine. Take our friend the SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). You may have used it before, but don't overlook this simple, powerful (and free!) tool that can give you a new perspective on old problems and open your eyes to challenges headed your way.
Do It Right
Be brutally honest about what your organization does well (and what it doesn't), as well as the challenges it faces. It's tempting to sugar-coat the negative, but it won't help you in the long run. Keep it short and sweet. Use short, active phrases and save the wordy sentences. Use facts, figures and examples when you can, but don't get stuck on the details. Think now - and later. Consider the current situation, as well as what's likely to happen in the future. Many items can fall into more than one category; a threat might also be a weakness. Don't be too concerned about where things fall, just record them where they seem to fit best.
Take advantage of the power of brainstorming by developing your SWOT with a group of 6 - 8 people. You want the benefits of a group, but not so large that it's hard to keep everyone on track. Appoint someone as facilitator and another as scribe to chart ideas. Try to include a variety of points of view in your group. The perspective of the marketing department will be vastly different than sales, financial or production departments. Even if you want to focus on marketing, having diversity in your group can make your SWOT stronger. You can also include board members, customers and other stakeholders. You don't have to agree on everything. As you brainstorm and discuss, try to get a general consensus but your group doesn't have to agree on every point.
Nuts and Bolts
Whether you are a SWOT veteran or a newcomer, the list below can get you thinking about some key issues you should evaluate. Add your own questions and use your brainstorming session to generate more ideas, thoughts and issues you need to consider. Download our free SWOT worksheet.
Strengths and weaknesses
These are the internal factors that impact your organization - resources, assets, skills, etc. Do you have a great company culture that supports innovation? A weak production department? Loyal employees with tons of experience? Low morale? When identifying strengths and weaknesses, ask yourself how you stack up in these areas:
- Management and organization structure, adequate staff in key positions; outside agencies and vendors
- Ability to quickly implement ideas, products, services
- Brand awareness and perceptions of your brand
- Mission and vision of the organization
- Financial stability and resources, budget constraints, ability to generate revenue or raise money
- Organizational structure, staff experience and competencies and employee morale
- Internal processes, workflow and systems
- Technology tools and systems
- Knowledge about industry, customers and potential customers
- Location and office space
Opportunities and Threats
These are external factors that impact your organization - changes to your industry, competitor activities, new products, changes in demographics, etc. These factors are outside of your control, but create the market environment in which you work.
- Customer needs; demands for new products or services; satisfaction levels
- Customer perceptions of brands and awareness; reputation of you and your competitors in the marketplace
- Share of market; market trends; areas of growth
- Communication trends; methods in which your customers and target audiences get information
- New technology that can change how you and your competitors produce your products/services
- Pricing of products and services
- Competitor strategies and plans; major new initiatives of competitors
- Mergers, alliances and joint ventures -- you or your competition
- Changes in government regulation, taxes, accreditation, etc.
- Patents and exclusive products
Once you have completed your SWOT, it's time to do a little analysis. Looking at your chart, what jumps out at you? Are opportunities - or threats - immediately apparent?
But before you start
Download our free SWOT worksheet and ask yourself or your team these questions. They'll help you hone in on your key strengths, weaknesses, opportunities and threats.
- Do you have opportunities to create new products/services to tap unmet consumer demand?
- Does a competitor have a certain part of the market locked up?
- What weaknesses hinder your ability to move quickly on new ideas or to make changes in marketing or business strategy?
- How is your organization perceived in the marketplace? Do you customers see you the way you want them to?
- Which weaknesses are the biggest obstacles? How can you address them?
- What marketplace trends (more electronic communication, new production technology, changing demographics) will impact the way you do business now? Will they help or harm what you do?
- Are there any regulatory changes or restrictions that impact you or your communications programs? (Do Not Call list, spam e-mail regulations, etc.)
Bottom line: The beauty of a SWOT is its simplicity and the summary it provides. Use your SWOT analysis to refine your marketing strategies, spur action in your organization, be proactive about changes and trends in the marketplace and evaluate where you are relative to your competitors. A good SWOT can help you see where gaps exist in the marketplace, and how you can fill them with the unique strengths of your organization. Good luck!
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