Transcript Analyzing the Situation, Assessing Opportunities

Analyzing the Situation,
Assessing Opportunities
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
The Purpose of A
SWOT Analysis

To define the main issues that must
be addressed in the strategic plan
Clarifies opportunities
 Identifies problems

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
The Components of A SWOT

A complete SWOT analysis consists of
two components
Strengths/Weaknesses (S/W) Analysis
 Opportunities/Threats (O/T) Analysis

Strengths and Weaknesses

“Internal factors” reflect situationbased considerations within a
company’s control
Key Question:
 What factors internal to the company
influence the current situation?
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.
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.
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?
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.
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.
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.
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
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
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
Problems

Internal and external factors that can
be identified as a weakness or
potential threat to the marketer
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
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