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Marketing 101 - A SWOT For Success!

By: Dennis Nuutinen

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by Dennis Nuutinen

Many business owners and executives believe they have a solid grasp of the business fundamentals within their industry, and how their product/service stacks up against the competition. Some of them have a rock-solid grip, but far too frequently they do not have a clue! Oftentimes their misplaced, over-optimistic faith in their product/service and their abilities to read the market has lead to dire consequences. The current market place is littered with failed business dreams and the carnage within corporate America is no less painful and evident. While I do not have a cure for all business ills, I would like to recommend a useful exercise that can truly open your eyes and help your business!

The exercise is a S.W.O.T. analysis. This strategic planning tool evaluates your Strengths, Weaknesses, Opportunities and Threats related to your business. This analysis is critical to your marketing plan and your business in general. It provides you with insights about your specific market, target audiences, competition and how you should position your product/service within the market place. It will help you identify ways to leverage your strengths against the competition while minimizing the effects of any weaknesses in your business. It will help you develop more effective go-to-market strategies for your product/service.

A SWOT analysis can be used by companies of all sizes, from a 1-person operation to a Fortune 500 corporation. You do not need an MBA or a degree in marketing to conduct the analysis. You do, however, need to follow a process, or you will waste your time. Additionally, you cannot conduct this analysis in a vacuum. Include cross-functional staff members that represent a broad range of perspectives. Invite unbiased outside business professionals whose opinion you respect. It is important that everyone "checks their egos at the door". You want to create an open and collaborative environment where every team member feels "safe" to share their ideas and opinions. I have attended SWOT analysis sessions where the participants would not share perspectives that differed from the CEO. By the way, that Fortune 500 company is no longer in business.

Once you have the right team in place it is time to roll up your sleeves and get to work. Firstly, assign a moderator. It is the responsibility of the moderator to ensure that the team stays on task. Do not try to tackle too much in one sitting. You will not complete the analysis in one day regardless of the size of your company. Make certain that each participant is clearly aware of the objectives of the SWOT analysis. Share all external information you have gathered from 3rd party companies regarding industry & competitive data, as well as customer feedback. Allow the team members time to properly prepare for each session. Some team members will be quick on their feet and share great ideas in the collaborative, brain-storming sessions. Other team members will need more time to think through the ideas. Do not make the mistake of prejudging those who want to "mull over" the ideas. I have seen break-through concepts from both groups. Write all ideas on the white board. It is very important that all the ideas remain visible to every team member throughout the sessions.

A SWOT analysis contains two main categories; internal factors and external factors. The internal factors represent the Strengths and Weaknesses of your product/service/business. The external factors are made up of the Opportunities and Threats currently identified in the market place, or expected within a specified period of time in the future.

Strengths (Internal) - List all the strengths, resources, processes and capabilities that you believe your company / product / service / employees brings to the market. Think about what your company does well. What makes it different? What advantages does your product/service have over the competition? Customer feedback is a great source for unbiased information. Do not concern yourself with prioritization of the ideas at this point. Write every strength on the white board!

Weaknesses (Internal) - List the areas that are a struggle for your company. Take a good look at your company and be honest about the areas that you are weak in. You can be assured that your competition knows them and is leveraging their product against your weaknesses. What are your customers complaining about? Ask your sales team about your product deficiencies. Identifying all your weaknesses will permit you to focus on market opportunities that allow you to leverage your strengths, and mitigate your weaknesses. Write every weakness on the white board!

Opportunities (External) - This is the time to really think outside of the proverbial box. List all the areas that you are currently focused on. Then list all the areas that you are currently not going after. Are there emerging trends that align with your company's strengths? Is there a product/service area that others have not yet discovered? Do not overlook opportunities brought on by new legislation, government stimulus initiatives or other technological advances. Mergers and acquisitions amongst your competitors can present new opportunities for you as a result of the uncertainties that inevitably follows M&A activity. When Oracle bought PeopleSoft, the ensuing period of disharmony between these two companies allowed their competitors to sign up PeopleSoft customers in droves. Try to uncover areas where your strengths are not being fully utilized. Write every opportunity on the white board!

Threats (External) - A traditional SWOT analysis considers threats as external factors. However, assessing all threats to your business, both internal and external, will provide a 360 degree view of the battle field. List all your known competitors. Are they becoming stronger? Or are they losing ground in certain areas. Are you encountering new competitors in certain segments of your business? Why are they choosing those segments? Are there emerging trends that are amplifying your weaknesses? Is there pending legislation or government regulations that could hinder your sales efforts? Are there any other external threats to your company's success? Internally, do you have cultural, financial, morale or other problems? What impact would it have if your top 3 sales performers left for the competition? What if a key, senior executive left your company? I witnessed a small company's foreign sales evaporate after the SVP of sales departed. The foreign sales represented 40% of all revenues. Succession planning was not part of the company's culture. Do you have a client that accounts for more than 20% of your total revenues? Have you assessed the level of damage losing that client would inflict on your business? Write every threat on the white board!

Once you have completed the above exercise It is important to understand that each item listed under their respective columns (S/W/O/T) does not have the same value to your business. However, the importance of each item is revealed by the ideas and strategies it generates. Don't stop here! The next step is to match your strengths with the identified opportunities. What is the level of threat associated with that opportunity? Does a particular strength , or a combination of strengths offset the threat? Do your strengths offset a weakness in a particular opportunity, or a segment within the opportunity? Create a list of ideas and prioritize them. Some of the ideas may reveal "low-lying fruit" amidst emerging trends. Some of them will represent short-term opportunities. Others will be long-term opportunities.

Assessing and prioritizing your opportunities within the context of this exercise will allow you to more effectively develop a strategic marketing plan. The strategic marketing plan will in turn afford you greater visibility and accountability, as well as provide you with a roadmap, and a compass, to ensure you stay on course to sustained business success.

Repeat in 6 months. (or sooner if you experience significant market changes)

Article Source: http://depositarticles.com/

Dennis Nuutinen: Marketing Tweaker( www.marketingtweaker.com ) Twenty years of marketing & sales management success. Extensive industry, competitive, SWOT analysis and go-to-market strategies with Fortune 500/1000 organizations. Raised in Europe, educated in Canada, worked in South & North America, and residing in beautiful, sunny Southeastern US. Avid skier, pilot, sky-diver, white water rafter, mountain hiker, roller-blader and tactical/defensive firearms instructor always looking for a

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