Analyzing the Situation, Analyzing the Situation, Assessing OpportunitiesAssessing Opportunities

Situation Analysis (Just the Situation Analysis (Just the Facts)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 AThe Purpose of A SWOT Analysis SWOT Analysis

To define the main issues that must be addressed in the strategic planClarifies opportunitiesIdentifies problems

The Purpose of AThe Purpose of A SWOT Analysis 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 SWOTThe Components of A SWOT

A complete SWOT analysis consists of two components

Strengths/Weaknesses (S/W) AnalysisOpportunities/Threats (O/T) Analysis

Strengths and WeaknessesStrengths 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?

StrengthsStrengths

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.

WeaknessesWeaknesses

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 ThreatsOpportunities 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?

OpportunitiesOpportunities

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.)Opportunities (cont.)

AutoZone caseAutoZone has an opportunity to expand

its current outlets through acquisition of small repair shops and independent DIY retailers in Georgia and Oklahoma.

ThreatsThreats

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 SWOT Analysis: “Where Do We Go From Here?”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 & OpportunitiesProblems & 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 & OpportunitiesProblems & 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

ProblemsProblems

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

OpportunitiesOpportunities

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 P&O Analysis: “Where Do We Go From Here?”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