SWOT Analysis – The First steps in building a Marketing Strategy

SWOT analysis in marketing and business will help you decide which marketing strategy you should use to get the best results for your business.

The SWOT strategy helps you capitalise on opportunities by leveraging all your strengths. It will also help to avoid threats and minimise the weaknesses of any plan. Strengths are the factors that will help you achieve better results. Your company will do well if you can base your strategy around these things.

Strengths

So, since strength is an internal factor, you CAN control it. Factors such as resources, investment, and skilled labour are considered strengths. In SWOT analysis, you could consider the following things as your strengths: your Brand Reputation – If your company is well known by the people, then it can act as a strength for your marketing strategy.

Also, the Locations of the business – If your company or shop is located in the city centre, then you are likely to have a very good business.

Then there is Introducing something new – What better way to capture the market than by providing newer products? If your firm can come up with new ideas, then your marketing strategy will be based on innovation and novelty.

Weaknesses

Weaknesses are also internal factors that will derail you from making any progress. When conducting a SWOT analysis, you need to consider what could make your marketing strategy look weak and unconvincing. The following factors can be called;

Not a distinguishable feature – You cannot stand out in the market if your products are no different from competitors’. You need to have your own signature or identity.

Lack of online presence – In the modern era, online marketing is a key way to capture customers’ attention. If you are not doing enough online, you cannot succeed.

Opportunities

SWOT analysis 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.

Advancements in technology will always be an opportunity if your company buys newer technology. Or they come across newer ways to produce goods.

Demand may increase when demand for your goods rises both locally and internationally. If that happens, then you need to seize the opportunity. You can advertise that your goods are in demand abroad and thus build a brand name for yourself. This is smart marketing.

Then there are social events; nothing increases demand for certain goods more than social events.

Threats

Threats develop and come out of nowhere for any business, so it is better to identify them as soon as possible. That way, the SWOT analysis will have a contingency plan to dominate the threat. Threats could be…

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 the less expensive option. However, if your SWOT analysis in marketing notes this, you are likely to have a backup plan for it. Offering better quality or promotional offers may help.

For other analysis and strategic frameworks for business management, check out PEST and PESTLE analysis.