The document discusses SWOT analysis and its application in marketing strategy. It defines SWOT analysis and explains its key elements - strengths, weaknesses, opportunities, and threats. It also discusses how to conduct a SWOT analysis, including developing a SWOT matrix and examining internal/external factors from the customer's perspective. The document provides tips for making SWOT analysis more productive, such as focusing analysis on specific products/markets, collaborating across business functions, and separating internal vs. external issues. The overall goal of SWOT analysis is to help identify competitive advantages and inform the strategic focus of a company's marketing efforts.

1. Chapter 5
Presented by : Ashraf Hatem Hlouh
Course name: Marketing Management
strategy

2. o Introduction
o The definition of SWOT analysis.
o Major Benefits of SWOT Analysis
o The Elements of a SWOT Analysis
o The SWOT Matrix
o Making SWOT Analysis productive.
o SWOT-Driven Strategic Planning.
o Developing Marketing Goals and Objectives.
o Establishing a Strategic Focus
o Some definitions
o Developing Marketing Goals and Objectives.

3.  Something that places a product, company,
service or person above the competition

4.  A SWOT analysis (strength and weakness,
opportunities and threat).
 A SWOT analysis encompasses both the
internal and external environment of the firm.
 A SWOT analysis is one the most effective tools
in the analysis of marketing data and
information. For development the competitive
advantage.

5.  The advantage of using SWOT analysis is :
1. Is a analysis that widely used framework for organizing and
utilizing the pieces of data and information gained from the situation
analysis…”
2. Encompasses both internal and external environments
3. One of the most effective tools in the analysis of environmental data
and information
 The criticism leveled against SWOT analysis are:
1. It allows the firm to create lists without serious consideration of the
issue.
2. It often became a sterile academic exercise of classifying data and
information

6.  Simplicity
 Lower Costs
 Flexibility
 Integration and Synthesis
 Collaboration
EXHIBIT 5.1

7.  Strengths and Weaknesses
◦ Scale and Cost Economies
◦ Size and Financial Resources
◦ Intellectual, Legal, and Reputational Resources
 Opportunities and Threats
◦ Trends in the Competitive Environment
◦ Trends in the Technological Environment
◦ Trends in the Sociocultural Environment.

8.  A four-cell array used to categorize information at the
conclusion of a SWOT analysis.
EXHIBIT 5.5

9.  It is not mandatory SWOT matrix be assessed
quantitatively, but it can be informative to do so.
 Should be based on customer perceptions, not the
perceptions of the analyst.
 Elements with the highest total ratings should have the
greatest influence in marketing strategy.
 Focus on competitive advantages by matching strengths
with opportunities.
 EXHIBIT 5.6

10.  Four issues the marketing manager must
recognize:
(1) The assessment of strengths and weakness should look beyond
products and resources to examine processes that meet customer
needs. Offer solutions to customer problems instead of specific
products.
(2) Achieving goals and objectives depends on transforming strengths into
capabilities by matching them with opportunities.
(3) Weaknesses can be converted into strengths with strategic
investment. Threats can be converted into opportunities with
the right resources.
(4) Weaknesses that cannot be converted become limitations which
must be minimized if obvious or meaningful to customers.

11.  If you done SWOT correctly and smartly, SWOT
analysis can be a viable mechanism for
development of marketing plan, but if not done
correctly it can be a great waste of time.
 Direction to make SWOT analysis more productive
and useful.
EXHIBIT 5.2

12. 1.Stay focus
 In the most firms, there should be a series of
analysis, each focusing on a specific product/market
combination.
 The only time a single a SWOT analysis would be
appropriate is when an organization has only one
product/market combination.

13. 2.Search extensively for competitors
 The firm must watch for any current or potential
direct substitutes for its product.
 Even the industry giants can lose sight for their
potential competitors by focusing exclusively on
brand competition.

14. 3.Collaborate with other functional area
 Managers in sales, advertising, promotion research
and development, finance, customer service, inventory
control, quality control and other area should learn
what the mangers and the other mangers see as the
firm’s weakness, opportunities and threats.
 Moreover, researcher should show the success of
introducing a new product, especially a radically new
product, is extremely depend on the ability of different
functional areas to collaborate and integrate their
differing perspective

15. 4.Examine issue from the customers’ perspective
 In the initial stage of SWOT analysis, it is
important to identify issue exhaustively.
To do this, the manager must constantly ask
question such as these:
 What do customers (non customers) believe about
us as a company?
 What do customers (non customers) think of our
product quality, customer service …in comparison to
our competitors?

16.  Which our weaknesses translate into decrease
ability to serve customers?
 How do trends in the external environment effect
customers (and non customers) ?
 What is relative importance of these issues, not as
we see them but as customers see them?
Examining issues from the customers also
includes internal customers its employees,
they are also valuable source of
information on strength, weakness and
threat that management may have never
consider.
Taking customer perspective is
cornerstones of a well-done SWOT

17. 5.Look for causes, not characteristics
 It provides a level of detail that is often very descriptive but
not very constructive.
 From a resource –based viewpoint, every organization can
be considered as a unique bundle of tangible and
intangible resources.

18. Major types of these resources include the following:
 Financial Resources.
 Intellectual Resources.
 Legal Resources.
 Organizational Resources.
 Informational Resources.
 Relational Resources.
 Reputational Resources

19. 6. Separate internal issues from external issues
 The failure to understand the difference between
internal and external issue is one of the major
reasons for poorly conduct SWOT analysis.
 The managers’ options, strategies, or tactics should
be based on what the firm intends to do about its
opportunities and threats relative to its own strength
and weakness.
 If the managers find it difficult to make an honest
and realistic assessment of these issue, they should
recognize the need to bring in outside experts or
consultant to oversee the process.

20.  The role of SWOT analysis then is to help the
marketing managers make the transition from a
broad understanding of the marketing environment
to the development of a strategic focus for the firm`s
marketing efforts.
 EXHIBIT 5.4

21.  Strength and weaknesses exist either because of
resources possessed (or not possessed) by the firm, or
in the nature of relationship between the firm and its
employee, or outside organization.
 Marketing manager can then develop marketing
strategies that leverage these capabilities in the form of
strategic competitive advantage, also develop strategy to
overcome the firms’ weaknesses or find ways to
minimize the negative effect of these weaknesses.

22.  Opportunities and threats typically occur within
the competitive, customers, economic,
political/legal, technological, and social culture
environment.

23.  Competitive advantage is advantages can arise from
many external or internal sources and refer to real
differences between competing firms.
 The key strength most likely to be converted into
capabilities will be those that have a compatibility with
important and sizable opportunities.
EXHIBIT 5.7
 Competitive advantages can arise from many external
or internal sources.
 Competitive advantages refer to real differences
between competing firms.

24. Three basic strategies for competitive
advantage:
(1) Operational Excellence
(2) Product Leadership
(3) Customer Intimacy
EXHIBIT 5.8

25.  At the conclusion of SWOT analysis, marketing
managers turn his or her attention toward establishing
the strategic focus of the firms marketing program.
 Using the result of SWOT analysis as a guide, a firm
might consider

26.  Four general directions for its strategic
efforts:
 Aggressive (many internal strength/many external strength
opportunities).
Expansion and growth, with new product and new market, is the
key to an aggressive approach. Google vice, YouTube.
 Diversification (many internal strength/many external threats) firms
in this position have a great deal to offer, but external factors
weaken their ability to pursued aggressive strategy.
Marlboro, Virginia, Prince Albert
 Turnaround (many internal weaknesses/many external
opportunities) in this case, firms typically have to put their own
house back in order before looking beyond.
GM AND Saab
 Defensive (many internal weaknesses / many external threats)
Merck

27.  Competitors: Any person or entity which is a rival against another.
In business, a company in the same industry or a similar industry
which offers a similar product or service.
 Capability: its Measure of the ability of
an entity (department, organization, person, system)
to achieve its objectives, especially in relation to its overall mission.
 Competitive advantage: its advantages can arise from many
external or internal sources and refer to real differences between
competing firms.
 Competitive strategy: Long-term action plan that is devised to
help a company gain a competitive advantage over its rival. This
type of strategy is often used in advertising campaigns by somehow
discrediting the competition's product or service.
 Cooperative strategy : A strategy in which firms work together to
achieve a shared objective

28.  We reiterate that marketing goals and objective must
be consistent with overall mission and vision of the
firms.
1. Developing Marketing Goals
As statement of broad, desired accomplishments, goals
are expressed in general terms and do not contain
specific information about where the organization
presently stands or where it hope to be in the future.

29. Goals should be :
Attainability: setting realistic goals is important because the
key parties involved reaching them must see each goal as
reasonable.
Real goals motivate employee toward becoming “number
one” , and unrealistic goals can be demotivational because
they show employee that management is out of touch.
Consistency: management must work to set goals that are
consistent with another.
Comprehensiveness: this means that each functional area
should be able to develop its own goals that related to
organizational goals. (goals should help clarify the roles of
all parties in the organization)
Intangibility: intangibility associated with the use of terms
such as best trained most creative, and most effective.

30. 2. Developing Marketing Objectives
 Goals without objective are essentially meaningless because
progress is impossible to measure.
 Objectives involve measurable, quantitative outcomes, with
specifically assigned responsibility for their accomplishment
and definite time period for their attainment.
 Developing discontinuous objective is one of major benefits a
company can gain from applying for the Malcolm Baldrige
Quality Award.
 Moving Beyond Goals and Objectives
 Organizational goals and objective must lead to the
establishment of consistent goals and objective for each
functional area of the firm.

31. Objective should be
Attainability: A good objective is one that is attainable with
reasonable amount of effort.
 Continuity: the need for realism bring up a second
consideration, that of continuity. Marketing objectives can
be either continuous
A. Continuous objective: that are identical, or slightly modified, from
period to period often do not need new strategies.(Employees
naturally tend to be objective oriented).
B. Discontinuous objective: significantly elevate the level of
performance on a given outcome factor or bring new factors into
the set of objectives
EXHIBIT 5.10

32. Time Frame: companies often establish marketing
plans or an annual basis, marketing objective may
different from this period in their time frame.
Sales volume, market share, customer service and gross margin
objectives.
For the objective with longer time frames, it’s important to remind
employees of the objective on a regular basis and to provide
feedback on progress toward its achievement.
Assignment of Responsibility: the final aspect of
objectives that sets them apart from goals is that the
marketing manager must identify person, team, or unit
responsible for achieving each objective.