Using a SWOT Analysis to Boost Your Marketing Efforts

Have you ever considered where your company sits within the competition or looked at the external and internal factors that could make or break your business? Well, you should do both of those before you go any further with your business because you can't overlook the importance of gauging the competition and identifying what your company does well and what it does poorly. To think strategically about your business, you should use a SWOT analysis, the best method for an in-depth look at your business, products and services. What's a SWOT analysis? Well, let's get right to it.

A SWOT analysis is a strategic planning tool that should be the first step in any kind of business planning, including marketing. So, what does SWOT mean? It's an acronym meaning Strengths, Weaknesses, Opportunities and Threats, and successful businesses everywhere use it. With a clearly defined objective, the SWOT analysis will make all the difference in the world when you put together any of your marketing materials because you'll know how to focus your marketing message.

Now, keep in mind internal and external factors constantly impact your business, and you should take the time to analyze those factors to get the most out of your business. Using the SWOT analysis, you can pinpoint anything affecting it and react to it so you can change those elements you can. What do I mean by changing those elements you can? You see, you have control over internal factors, the strengths and weaknesses; you can change those. Now, you have no control over external factors, the opportunities and threats your business faces, but that doesn't mean you can't use them to your advantage.

So, before we go any further, let's take a look at each of the pieces of the SWOT, starting with strengths. The strengths show you how to position yourself within the competition and identify your competitive advantage, so let's look at some examples of strengths:

• You have 3 patents
• You have built a strong brand name
• You have a good reputation in your market
• Your direct mail campaign brings in a steady flow of new customers
• You have developed processes that allow you to produce your products for less
• You hire only top-of-the-line, well-trained employees
• Your staff pays special attention to detail

Now remember, you have the power to change strengths, an internal factor. Strengths work to your advantage, so if you see an untapped resource that could benefit your business, use it.

Let's take a look at the next piece of the SWOT analysis: weaknesses. Now, everyone hates admitting their weaknesses, but they're just as important as strengths. If you know your weaknesses, you can work to change them. A few examples of weaknesses include:

• You have no patent protection
• You have a weak brand name
• Your showroom is dark and gloomy
• Your website is not generating any cash flow or hot leads

Remember, though, you have control over internal weaknesses, so you can make changes to improve them.

Let's turn our attention to opportunities, or options for future profit or growth. Think of opportunities as the places you could look for new business. Here are a few examples:

• You may see a new untapped market in need of your product or service
• You may find newer, faster ways of producing your goods
• You may find shifts in marketing that can lower your advertising costs
• You may hear about a new, large prospect planning to open a facility in your area

As much as we'd like to have control over our opportunities, we don't because we have no control over external factors. You can, however, exploit them and profit from them.

Now, let's cover threats. While some people worry about weaknesses, threats pose much more of a danger to any business. Why? Because threats can seriously harm or even cripple your business, and you have little control over them. Let's take a look at some examples:

• New trends in consumer tastes, shrinking your profits
• New products that are emerging that may take customers away
• New government regulations that may tie your hands
• New competition moving into the area
• Competition has lowered their prices
• Competition has offered more value with new improvements
• Competition has stepped up their marketing efforts

You have another uncontrollable external factor with threats, but you can use them to your advantage: When a new competitor moves into the area, why not show your customers why you're better than the new guy?

Here's the kicker with a SWOT analysis: You don't have to use it to only study your own company. You can use it to study your competitors, so you can get a better understanding of their business and products or services. When you complete a SWOT analysis for your competition, you see their weaknesses and can capitalize on them. Think of it like this: If through a SWOT analysis you find your competition has dirty, unprofessional employees while you have a clean, knowledgeable and friendly staff, you see how you can position yourself against your competition?

Now, as I said earlier, the SWOT analysis is really the first step to any successful marketing efforts. In fact, any marketing company worth their weight in gold would start with the SWOT analysis for their client. Red Rocket knows you've got to do the research behind any project so we can guarantee the quality of the work we produce.

You see, Red Rocket, Northern Colorado's fastest growing full-service marketing firm, understands all aspects of successful marketing.  We've done the research behind it, so our clients can rest easily, knowing they've hired a company that will get results. When you're ready to take your marketing to the next level, look no further than Red Rocket.