Millions of companies all over the world typically have the same goal -increase their profits through selling products or services. Behind a great sales performance is a strong marketing plan that utilized much time and effort from planners. Planning is the first management function that comes before everything else. Everything must begin with a plan.
An organization usually holds strategic analysis to evaluate which direction it is heading. Likewise, the marketing department inside an organization must create a very sensible marketing plan that would detail all of their activities. However, the primary task in creating a sound marketing plan is to make an environmental scan inside and outside the organization. This scan of external and internal environment that an organization has to do is often referred to as a marketing SWOT analysis.
The marketing SWOT analysis is in a way unlike strategic SWOT analysis because the former is only concerned with marketing activities. Because of this, the following discussion only presents the features of a Marketing SWOT analysis.
A marketing SWOT analysis is a useful framework that can guide managers in making decisions especially when launching a new product or service. The tool usually includes four important factors:strengths, weaknesses, opportunities and threats. Essentially, it can also help the marketing team evaluate how an existing product stands against competitors in terms of sales or market share. Hence,several information is required before one can begin creating a marketing SWOT analysis. Sales figures, competitors information ( if possible), secondary sources like surveys and research would be very helpful. Having said that, it must be remembered that the marketing SWOT analysis cannot answer all your questions or solve your concerns. Rather, it acts as an objective assessment of where your current product stands against competitors or how your new product can possibly fare once it has entered the market.
A marketing SWOT analysis can be effectively done by involving key people who make decisions and are well-informed about the situation. Nevertheless, the tool can help you determine potential threats that can be reduced if not altogether eradicated. Plus, a marketing SWOT analysis can equip your business to find opportunities that are available. Indeed, a marketing SWOT analysis is inevitable when designing a marketing plan.