Marketing is bound to bring the great results and it’s a knowledgeable good marketing agency that can make successful marketing research plan. For making and executing, the marketing agency has to be well-equipped with the best practices. Among essential market research practices, SWOT is topmost. Let’s see what it is and its benefits.
SWOT can work with all info you’ve about marketing and business. It is useful to consider Strengths, Opportunities, Weaknesses and Threats.
It is a method to examine interaction between characteristics of the business and environment in which it competes.
This analysis has many applications and can be used in different units of analysis such as product, market, human resources, etc. The conclusions found with SWOT analysis will be of great utility in the analysis of the market and sales strategies you should make and avoid.
SWOT consists of two parts i.e. internal to look at the resources and how to do things within the company. The external part considers relations with everything around business i.e. customers, suppliers, government and the like.
The internal part analyzes strengths and weaknesses like the aspects of which have some degree of control.
The external part looks at market opportunities and threats your business may face in market. You have to develop all your abilities and skills to take advantage of these opportunities and minimize or terminate the threats, circumstances over which you have little or no direct control.
It should focus only towards the key factors for the success of business. As a marketing agency, you should highlight the strengths and weaknesses that make your target company different when compared objectively and realistically with its competitors and key opportunities and threats in the environment that can affect its performance.
Identify Strengths & Weaknesses to Participate in a Business
You must identify those internal aspects which give strength to target business to succeed and you must become fully aware of the areas in which the business has weaknesses.
- Trained staff for advice to customers
- Informative advertising
- Existence in the market of other similar businesses
- Strong business promotions by competitors
- Lack of innovation in product designs
Display Opportunities & Threats in the Environment
Opportunities and threats are elements that exist in the environment of a business over which you might not have influence or ability to change.
Opportunities represent favorable circumstances for the success of a business which should be exploited. Threats by contrast are those circumstances which are unfavorable for a business, so you have to avoid them.
To analyze the environment, you we must consider the following;
- The industry in which business operates i.e. suppliers, distribution channels, customers, markets, competitors.
- Stakeholders with whom business interacts on a permanent or occasional basis such as government, public institutions, financial institutions, trade unions, community, media, etc.
- The environment is to be seen more broadly with its characteristics of the local, political, and legislative background.
- Exploit the flaws that leave the competition in the market
- Holidays for the establishment of promotions
- Continuous tenders companies looking to win customer demand
- Entry of new firms
- Uncontrollable external problems such as inflation, political and economic instability.