Analyzing the Situation, Assessing Opportunities

1. Analyzing the Situation, Assessing Opportunities

2. 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

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

4. 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

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

6. 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?

7. 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.

8. 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.

9. 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?

10. 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.

11. 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.

12. 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.

13. 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

14. 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

15. 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

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

17. 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

18. 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