The first job of a marketer before designing a business plan is to closely analyze the environment in which the business is to work in. If the marketer knows the target audience then he can design the ways to accomplish the task.
SWOT which stands for strengths, weaknesses, opportunities and threats is a simple yet excellent tool to achieve a better understanding of the business environment. With a good SWOT analysis, a business can easily make a place in the market and create opportunities for growth and expansion.
Read further to find how SWOT analysis can prove beneficial for a good business marketing planning.
1. Finding Strengths of the Business:
The ‘S’ of SWOT analysis stands for strengths which means recognizing what keeps your business ahead of other competitors of the market. Identifying strengths can help in doing a better groundwork for targeting the right audience, improving sales and providing quality services.
It is very necessary to find out strengths as it will help differentiate the business from other competitors and also strengthen those areas of expertise.
2. Working on Weak Areas:
If a business is lacking good marketing or providing good quality services then figuring out such weaknesses can help to improve upon these areas. This can help marketers to design strategies accordingly.
Gaps in a business, unnecessary expenses and other fixes can be recognized by finding weaknesses.
3. Finding Opportunities for Increasing Profits:
After recognizing the business’ strengths and weaknesses, next thing is to work on maximizing profits. Strengths and weaknesses give a real picture about where the business stands and opportunities are about external openings for growth. Opportunities include many things, like identifying the needs of the client which no other business is working for.
A good marketer will discover new opportunities and correlate them with strengths of the business to generate more revenue.
4. External Challenges:
The last thing about SWOT analysis is recognizing the challenges or threats to a business. Although it is not possible to eliminate the threats completely but if we are aware of the challenges we can adopt counter measures to tackle them.
This can also help in avoiding mistakes common to new businesses such as selling a product in a crowded marketplace.