Marketing plans use the SWOT analysis to detail critical strengths, weaknesses, opportunities and threats of a business. The marketing manager can use this decision making tool to identify areas where the company has competitive advantages, such as low cost strategy or differentiation strategy, managers, would then look in detail across the organization to find the strengths of the business and where the company can build upon these strengths. The strengths might include such as product ranges with unique selling points, low cost of sales, and good market share. For example the marketing manager here would look at finding ways to build upon success with these points and make a marketing plan strategy to increase market share.
Weaknesses is the organizations knowledge and skills that have to be improved by the business owner or marketing executive. The ways in which the marketing plan can be used, is that work practices could be improved, or the way in which the product is advertised could be made better. The weaknesses can come from any department or area of the organization.
Opportunities are areas that a business can use to make the business better in the future. This can involve making a take over bid for another business if there are adequate funds available, increasing market share by having an advertising campaign. Companies could move into new markets and product areas if they decide upon a more dynamic strategy, or consumers could be targeted better if the product meets new and exciting consumer requirements. This is especially the case with the use of digital electronic equipment such as camera's, televisions and mobile phones as even the mobile phones these days have added features such as camera facilities, applications for a wide ranging consumer need. The television screens are now built with free view channels, as well as a much flatter screen as well as utilizing the latest technology which makes the end product far more appealing and targets a wider range of customer.
Threats are the areas the areas of the business that could take place where the company for example lost a patent rights over a particular product, or where the market in the future for a particular product might be substituted for something else. Take for example the replacement of video tapes which where replaced largely by compact discs as well as DVDs. Levels of competition should also be considered as a threat as the competition might be taking away some sales revenue as well as market share. Other threats include consumers wanting better quality products and this should also be included in a marketing plan. Global recession is an example of the threats to businesses.
Companies on the whole must take data and information from around the departments and use some form of performance appraisal to use this information into a marketing plan. Companies who have threats will want to change these factors into opportunities by developing better products that have more uses. Similarly companies with opportunities can exploit these if they have good levels of financing available and if the product and or service is already well established. Businesses can use the SWOT analysis though they should also consider the political, economic, social and technological factors (PEST analysis) as well as the SWOT decision making tool
Weaknesses is the organizations knowledge and skills that have to be improved by the business owner or marketing executive. The ways in which the marketing plan can be used, is that work practices could be improved, or the way in which the product is advertised could be made better. The weaknesses can come from any department or area of the organization.
Opportunities are areas that a business can use to make the business better in the future. This can involve making a take over bid for another business if there are adequate funds available, increasing market share by having an advertising campaign. Companies could move into new markets and product areas if they decide upon a more dynamic strategy, or consumers could be targeted better if the product meets new and exciting consumer requirements. This is especially the case with the use of digital electronic equipment such as camera's, televisions and mobile phones as even the mobile phones these days have added features such as camera facilities, applications for a wide ranging consumer need. The television screens are now built with free view channels, as well as a much flatter screen as well as utilizing the latest technology which makes the end product far more appealing and targets a wider range of customer.
Threats are the areas the areas of the business that could take place where the company for example lost a patent rights over a particular product, or where the market in the future for a particular product might be substituted for something else. Take for example the replacement of video tapes which where replaced largely by compact discs as well as DVDs. Levels of competition should also be considered as a threat as the competition might be taking away some sales revenue as well as market share. Other threats include consumers wanting better quality products and this should also be included in a marketing plan. Global recession is an example of the threats to businesses.
Companies on the whole must take data and information from around the departments and use some form of performance appraisal to use this information into a marketing plan. Companies who have threats will want to change these factors into opportunities by developing better products that have more uses. Similarly companies with opportunities can exploit these if they have good levels of financing available and if the product and or service is already well established. Businesses can use the SWOT analysis though they should also consider the political, economic, social and technological factors (PEST analysis) as well as the SWOT decision making tool