Creating a Marketing Plan Using S.W.O.T. Analysis
So I hear you asking, “What is S.W.O.T. analysis?” Simply put it is analyzing your: Strengths, Weaknesses, Opportunities and Threats. By taking a careful look at these key elements of your business you can identify any missed bases in your marketing plan and strategically create a road map to success.
Strengths
It’s always easiest to start with the simplest tasks. Most companies can easily identify their strengths. Are you the industry leader? Do you provide a good service or product and stand behind your work? Are your customers well taken care of by knowledgeable staff, is your service competitively priced and dependable. The strengths you easily identify are factors you want to be sure your customer can also easily recognize. When you create sales literature, or marketing materials, these are advantages to highlight in your text, or place as bullet points for easy identification. It would be a shame to have the biggest inventory of gizmos kazoos and only your stocking manager knows this fact. True strengths should set you apart from your competition. Sometimes businesses spend energy advertising “strengths” that do not carry much meaning with their customers, such as mentioning past industry awards, years in business or top sales achievements. These are noteworthy, but may not always fall in a prioritized list of mentionable. The truth is many consumers have a “what have you done for me lately” attitude and these “strengths” are not factors that equate to automatic increase in sales or even inquiry. You may have achieved a banner year last year, but more than likely your customer is more interested in knowing that you won’t be undersold, or that you have personalize service. Know your strengths in their prioritized order so that your marketing message is clearly visible to your customers.
Weaknesses
When it comes to weaknesses, you may have to call for reinforcements. It isn’t always so easy to look in the mirror and ask the tough questions. “Mirror, mirror on the wall, what our weakest point of all?” Finding out your weaknesses can actually become a creative way of putting your customer first, but you have to be willing to ask the tough questions. By packaging your question in a statement such as “in an effort to improve our services” you can find out what your business does well, (it may not be all that you think) and what you are doing not so well (it still may not be all that you think). Weakness, are places you have to be aware of. Continue to not ask the tough questions is like leaving lunch for an important meeting and not checking to see that you have food in your teeth. The results can be embarrassing for you and offensive to your customers. Think about it, how often you shop at “that” store that has the terribly long lines, and empty shelves, or the doctor with terrible bedside manner. Does the adage, first time shame on you, second time shame on me ring any bells?
Opportunities
When you compare your business to the industry leader, does your competitor’s pasture look like rolling hills of green grass and dainty daisies? Chances are, if he or she is on your mind they too have probably spent some time and energy strategically marketing their business. So how do you compete with a front runner? If you are observant, and willing to ask questions you can still niche out opportunities by taking advantage of in their weaknesses. Positional marketing puts your business’ edge at the forefront of your message. This is why identifying your true strengths is important. The idea is to compel prospects to come through your doors rather than your competitor based on your solid advantages. For example, if you are a paint store owner, how many colors do you offer, do you have the state of the art color match system, do you offer a hassle free return policies for miss-matched colors, is your staff accessible and more knowledgeable than the big box discount stores? These positions are all promotional points to tout against your competitor. If you know your competitors weakness’ you can niche out opportunities for your business to increase sales.
Threats
Threats do not always mean there is a big bad wolf out there ready to blow your business down. You don’t always have to look over your shoulder to identify a threat. Sometimes the greatest threat to your business’ growth can be your own limitations. Do you have the capitol to expand if “the big account ” knocked on your door tomorrow? If not, do you have a plan that is working toward enlarging the capabilities of your business? What about technology. We live in an ever growing technical and digital world, is your business (if applicable) technically savvy enough to keep or even set the pace into the next 5 years, 10 years or beyond? How long will your product, service or packaging be applicable? Are you willing and able to flow with demanding changes in your industry? If you answer yes to these questions – then you know that you have a marketing plan that can continue to expand with your business. If not, then you have taken the first step of identifying your own limitations. Once you see your threats clearly you can adequately prepare to either ride out your business’ moment in time or you can prepare your business ready for any impending changes the future holds.
A new year seems to strike a new found fervor in most entrepreneurs and business owners. It’s a time to take a look at what has or hasn’t worked to increase sales. As this first month closes out it can become easy to fall back into a rut. However if you are willing to take a look at your business under the S.W.O.T. microscope, you my find ways to improve your business and increase your sales. There are still eleven months left in 2006 to accomplish your business’ banner year. Make sure your business has a S.W.O.T. plan.
