Analyzing the Situation, Assessing Opportunities

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

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

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

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

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

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

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

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

Opportunities Opportunities refer to external factors that may benefit the company if pursued ATM Case: 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.) AutoZone case AutoZone has an opportunity to expand its current outlets through acquisition of small repair shops and independent DIY retailers in Georgia and Oklahoma.

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

SWOT Analysis: “Where Do We Go From 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 Problems & Opportunities Analysis is similar in purpose to a S/W/O/T Its function is to assess and evaluate the objective information uncovered in the Situation Analysis

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

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

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

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