LESSON 14: Marketing Analysis - SWOT

One of the skills that a marketer should develop is his or her

ability to manage the various elements in the marketing process.
Marketers should be able to plan systematically and implement the plan
excellently. To do that, marketers should understand the market,
balance the opportunities and challenges, and develop procedures that
is needed to measure and evaluate the marketing programs.
Let’s Start! In this lesson, the marketing process will be the core of the
discussion, specifically market analysis, planning, implementation,
and control. These factors will be distinguished and examine.

Target to Hit!

At the end of the lesson, the learners should be able to:

1. Explain the relationship between market analysis, planning,
implementation, and control
2. Analyze the company’s situation, markets, and
environment (the marketing audit and SWOT analysis)
ABM_PM11-IIf-20

Let’s Test the Market!

Directions: Read the pretest carefully. Try to assess your prior

knowledge about the topic. Choose the best answer. (Note: Your scores here
will not be recorded since it is a diagnostic test/pretest only.)
1. In SWOT, what do you call to the edge of an organization in the market?
A. Strengths B. Weaknesses C. Opportunities D. Threats
2. In SWOT, which of the following refers to qualities that can spell trouble for the
organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
3. In SWOT, which of the following refers to the outside elements that can be useful
to the organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
4. In SWOT, which of the following refers to the unfortunate truth about any
organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
5. Which of the following refers to the process by which firms assess the effects of
their marketing activities and programs and make necessary changes and
adjustments?
A. Marketing Analysis C. Marketing Planning
B. Marketing Implementation D. Marketing Control
 Let’s Do This!

Activity No. 1: Are They Related?

Analysis Planning Implementation Control

n
Explain in your own words the relationship of these four elements.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Activity No. 2: Analyze thru SWOT!

We are in the pandemic situation. That’s why your school was decided to continue
your studies through distance learning. Conduct a SWOT analysis of your school
in terms of distance learning. Enumerate the strengths, opportunities, weaknesses
and threats of the program in your school setting.
Strengths Weaknesses
• •

Opportunities Threats
• •
 Let’s Explore!

Market Analysis
Market Analysis recognizes the opportunities and risks in a particular market
for a particular product. It plays critical role in strategic media management and goes
hand in hand with planning and marketing research (Sylvie, 2008).
With today’s highly dynamic nature of the market, daily monitoring and analysis have
become a requirement to avoid falling behind the competition. Only through constant
study and evaluation can a company keep up with the times.
This comprehensive process examines the market by considering three (3) key
variables according to Stevens, Sherwood, & Dunn, 1993.
Inside factors that may
Outside factors that affect the company like
may affect the faulty services offered,
External Conditions management issues
company such as
competitions,
natural disasters,
economic declines Internal Conditions
The budget or
monetary capability of
Financial Conditions the company

Figure 14.1. External, Internal and Financial Conditions in Market Analysis

Marketing Planning
Marketing Planning is defined as a systematic process involving assessing
marketing opportunities and capabilities, determining marketing objectives, agreeing
target market and brand positioning strategies, seeking competitive advantage, creating
marketing programs, allocating resources and developing a plan for implementation and
control (Didd & Simkin, 2008).
PHASE 1. Goal Setting
According to Antoine De Saint-Exupéry, “ A goal without a plan is just a wish.”
Though, a plan deprived of a strong goal just doesn’t make sense. This is why the first
phase of the marketing planning strategy is setting the organizational mission trailed by
having a clear perception of corporate objectives. These two will serve as the market
plan’s symbols of victory.
PHASE 2. Situation Review
Phase 2 deals with empirically swotting the existing state of the organization
through marketing audit and SWOT analyses. SWOT stands for Strengths,
Weaknesses, Opportunities, and Threats. It is a instrument established by the
Stanford Research Institute for Fortune 500 companies to measure the state of their
businesses or projects.
 The Process of Marketing Planning The Strategic Plan
(Output of the planning process)
• Mission Statement
• Financial Summary
1.Mission • Market Overview
• SWOT Analysis
Phase 1 • Assumptions
Goal Setting 2. Corporate Objectives • Marketing Objectives and strategies
• 3-year forecast and budgets
--------------------------------------------------------------------
3. Marketing Audit

4. SWOT Analysis

Phase 2
5. Assumptions
Situation Review
-----------------------------------------------------------------------------------------------
- 6. Marketing Objectives and strategies

7. Estimated expected results

Phase 3
8. Identify alternative plans and mixes
Strategy Simulation
---------------------------------------------------------------------------------------------------
-- 9. Budget Measurement
& Review
Phase 4
Resource allocation and monitoring 10. 1st Year detailed implementation programme

Figure 14.2. Four (4) Phases of Marketing Planning

Helpful Harmful
To achieving the objective To achieving the objective
Internal
Origin
External
Origin

Figure 14.3. SWOT Analysis Model

Strengths – refer to the edge of an organization in the market. It can be a flagship product, a
unique service, or resources, anything that is internal in nature and has positive
influence on the organization or its plans.
Weaknesses – are another internal factors like Strengths. These refer to qualities that can spell
trouble for the organization such as financial crisis, faulty services being offered, and
management issues.
CUSTOMER CUSTOMER
– refer to outside factors that can be useful to theSATISFACTION
OpportunitiesVALUE organization. Be it a shift in
market trends or a decline in a competitor’s patronage, it is important to note them in
the analysis so the organization can take advantage of them.
Threats – refer to the external factors that can be harmful to one’s organization. Some of them
are competition, natural disasters and economic declines. By anticipating these
threats in the SWOT Analysis, necessary precaution can be taken to address them.
 According to Kansas University, the SWOT Analysis guides you to identify your
organization’s Strengths and Weaknesses (S-W), as well as broader opportunities and
threats (O-T). Developing a fuller awareness of the situation helps with both strategic
planning and decision -making. Hence providing a good foundation for your strategy,
business proposition, the position of your company, the direction of your company, and
even discover which ideas are worth pursuing. (Fine, 2009)
PHASE 3. Strategy Formulation
The marketing planning will now move to the third phase depending on the
situation review. Marketing objectives and strategies will be formulated. An estimated
expected result will then be calculated based on the strategies developed from the
previous step. To ensure that the market plan will not be interrupted, alternative plans
and mixes must be established. This way, should strategy A fail, strategy B would be
ready for the next course of action.
The marketers should identify the target market for the brand. To be more strategic,
the marketers must describe their target market by identifying the following:
1. Geographic characteristics
2. Demographic characteristics
3. Psychographic characteristics
4. Behavioral characteristics
Positioning is also part of the strategy formulation. Here are additional market
positioning strategies that marketers may use:
1. Brand positioning strategy
2. Product positioning strategy
3. Competitive pricing strategy
4. Competitive positioning strategy
Designing marketing mix is also considered in development strategy plan in marketing.
In developing a plan, it is important for the marketers to think the following:
1. Development of product and services
2. Setting the price with utmost consideration of the affordability
3. Using the appropriate promotion to reach the target audience and persuade
them to purchase and patronize the product.
4. Finding means of distribution that will reach the target audience.
PHASE 4. Resource Allocation and Monitoring
Assigning the budget to carry out would be the next step, once the strategy is
set. This will be the operating fund for the first-year detailed implementation program.
An evaluation will be conducted to assess the effectiveness of the marketing plan. The
data from this review will then be used in starting the process again from Phase 2. This
continuous cycle ensures that the areas for improvement will be covered while taking
advantage of the efficient strategies.
 The Value of Marketing Audit
According to Kotler, a marketing audit is comprehensive, systematic,
independent, and periodic examination of a company’s or business unit’s marketing
environment, objectives, strategies, and activities, to determining problem areas and
opportunities and recommending a plan of action to improve the company’s marketing
performance. Kotler characterize it by the following:
➢ Comprehensive – the marketing audit covers all the major marketing activities
of business, not just a few trouble spots as in a functional audit.
➢ Systematic – the marketing audit is an orderly examination of the organization’s
macro- and micromarketing environments, marketing objectives and strategies,
marketing systems, and specific activities. It identifies the most-needed
improvements and incorporates them into a corrective-action plan with short-
and-long run steps.
➢ Independent – self-audits, in which managers rate their operations, lack
objectivity and independence. Outside consultants bring the necessary
objectivity, broad experience in some industries, familiarity with the sector being
audited, full time and attention.

➢ Periodic – Firms typically initiate marketing audits only after failing to review
their marketing operations during good times, with resulting problems. A periodic
marketing audit can benefit companies in good health as well as those in trouble.

The SWOT Analysis and Marketing Audit consider both the internal and external factors
for the impartial assessment. Based on the data from the evaluation, critical and key
assumptions are then formulated.
Marketing Implementation
Marketing Implementation is the process that turns marketing plans into
action assignments and ensure that such assignments are executed in a manner that
accomplishes the plan’s stated objectives. While marketing strategies address the
“what” and “why” of marketing activities, implementation addresses the “who”, “where”,
“when”, and” how”. (Kotler, 1997)
In implementing the marketing plan, marketers must bear in mind the following points:
1. Communication – Marketers should clearly communicate the marketing plan
to all the divisions and staff. They should know and understand their roles in
attaining the marketing goals.
2. Direction & Motivation – Marketers must take the lead in implementation.
Motivation is the key to high performance. Direct and motivate them.
3. Monitoring – It is vital to do oversight in the implementation stage. It is the
marketer’s way of determining the implementation is in sync with the marketing
plan.
4. Weighing Alternatives – Marketers must review the monitoring results
constantly. The marketers must have alternative plans if the first plan didn’t
work. It is important to develop a contingency plan.
 Marketing Control
Marketing Control is the process by which firms assess the effects of their
marketing activities and programs and make necessary changes and adjustments.
(Kotler, 1997). It ensures that everything is on the right tract during implementation.
Steps in this process are:
1. Identifying what needs to be attained or goal setting.
2. Performance measurement to assess what is happening.
3. Performance diagnosis to figure out why it is happening.
4. Corrective action must be developed to address the performance.
Four (4) Types of Marketing Control:
Type of Control Prime Purpose of Control Approaches
Responsibility
I. Annual-plan control Top management To examine whether the planned results • Sales analysis
Middle are being achieved. • Market share Analysis
Management • Sales-to-expense ratios
• Financial Analysis
• Market-based scorecard
analysis
II. Profitability Control Marketing To examine where the company is Profitability by:
Controller making and losing money • Product
• Territory
• Customer
• Segment
• Trade channel
• Order size
III. Efficiency Control Line and staff To evaluate and improve the spending Efficiency of:
management efficiency and impact or marketing • Sales force
Marketing expenditures • Advertising
controller • Sales promotion
• distribution
IV. Strategic Control Top management To examine whether the company is • Marketing effectiveness
Marketing Auditor pursuing its best opportunities with rating instrument
respect to markets, products, and • Marketing audit
channels • Marketing excellence
review
• Company ethical and
social responsibility review

Figure 14.4. Marketing Management by Kotler, Philip and Kevin Lane Keller

Bear in Your Mind!

Summary of Key Ideas:

1. Market Analysis recognizes the opportunities and risks in a particular market for a particular
product.
2. Marketing Planning is defined as a systematic process involving assessing marketing
opportunities and capabilities, determining marketing objectives, agreeing target market and
brand positioning strategies, seeking competitive advantage, creating marketing programs,
allocating resources and developing a plan for implementation and control.
4. Four Phases of Marketing Planning:
1.) Goal Setting
2.) Situation Review
3.) Strategy Formulation
4.) Resource Allocation and monitoring
5. SWOT Analysis stands for Strengths, Weaknesses, Opportunities and Threats
6. Strengths – the edge of an organization in the market.
7. Weaknesses – internal qualities that can spell trouble for the organization.
8. Opportunities – the outside element that can be useful to the organization.
9. Threats – external factors that can be harmful to one’s organization.
10. Characteristics of Marketing Audit:
1. comprehensive
2. systematic
3. independent
4. periodic
11. Marketing Implementation is the process that turns marketing plans into action assignments and
ensure that such assignments are executed in a manner that accomplishes the plan’s stated objectives.
12. Pointers in Marketing Implementation:
1. Communication
2. Direction and motivation
3. Monitoring
4. Weighing alternatives
13. Marketing Control is the process by which firms assess the effects of their marketing activities and
programs and make necessary changes and adjustments.
14. Four Types of Marketing Control:
1. Annual-plan control
2. Profitability control
3. Efficiency control
4. Strategic control

Check What you Know!

The latest research on consumerism shows that more and more Filipinos resort to
malls for entertainment and recreation. Perhaps, this is a result of the mushrooming
of different entertainment and leisure establishments that can be found in malls.
There are karaoke bars, state-of-the-art movie houses, spas, arcade centers,
cafés, and resto bars present in almost every mall. A newly formed Filipino
company is planning to establish a mall somewhere in North EDSA. You are hired
to conduct a market analysis for their mall.
Follow the SWOT analysis guidelines in developing market analysis:
1. Enumerate all the internal factors and external factors that will affect the
establishment and operation of the mall.
2. Examine the identified factors and determine if it is a strength, weakness,
opportunities, and threats.
3. Write the analysis and recommendation.
 Strengths Weaknesses
Internal Factors Internal Factors

Opportunities Threats
External Factors External Factors

Reflect with it!

“Marketing is the lifeblood of the business. A thorough planning

and execution is needed to ensure success in marketing.”

Write your reflection about the quote written above. Three to five sentences are
enough.
________________________________________________________________
______________________________________________________________________
______________________________________________________________________
__________________________________________________________________

Challenge Yourself!

Conduct a SWOT Analysis of your favorite drinks.

Strengths Weaknesses

Opportunities Threats
 Assess What You Have Learned!

Directions: Read the test carefully. Choose the best answer.

1. In SWOT, what do you call to the edge of an organization in the market?
A. Strengths B. Weaknesses C. Opportunities D. Threats
2. In SWOT, which of the following refers to qualities that can spell trouble for the
organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
3. In SWOT, which of the following refers to the outside elements that can be useful to the
organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
4. In SWOT, which of the following refers to the unfortunate truth about any
organization?
A. Strengths B. Weaknesses C. Opportunities D. Threats
5. Which of the following refers to the process by which firms assess the effects of
their marketing activities and programs and make necessary changes and
adjustments?
A. Marketing Analysis C. Marketing Planning
B. Marketing Implementation D. Marketing Control
6. Which of the following terms refers to the process that turns marketing plans into
action and accomplishes the plan’s stated objectives?
A. Marketing Analysis C. Marketing Implementation
B. Marketing Planning D. Marketing Goal
7. Which of the following Marketing Audit characteristics identifies the most-needed
improvements and incorporates them into a corrective-action plan with short and
long run steps?
A. Comprehensive C. Independent
B. Systematic D. Periodic
8. Which of the following pointers in marketing implementation is crucial to perform
oversight in the implementation stage to determine if it is in sync with the
marketing plan?
A. Communication C. Monitoring
B. Direction & Motivation D. Weighing Alternatives
9. Which part of managing marketing efforts, the who, where, when and how
questions are being addressed?
A. Marketing Analysis C. Marketing Implementation
B. Marketing Planning D. Marketing Goal
10. Which of the following phases of the marketing analysis is being addressed when
you want to ensure that the market plan will not be interrupted, alternative plans
and mixes must be established?
A. Phase I-Goal Setting C. Phase III – Strategy Formulation
B. Phase II – Situation Review D. Phase IV – Resource Allocation and Monitoring
 What You Have Got!

ACTIVITY ITEM YOUR SCORE

Let’s Do This!
Check What You Know!
Reflect with It!
Challenge Yourself!
Assess What You Have Learned!
TOTAL

Student’s Signature over Printed Name

Parent’s Signature over Printed Name

Teacher’s Signature over Printed Name

Date

References:
• Camilar-Serrano, Angelita Ong, Principles of Marketing, Unlimited Books Library
Services & Publishing, Inc., 2016
• Gonzales, Edward D., Principles of Marketing, JFS Publishing Services,
Manila, Philippines, 2016
• https://www.google.com/search?source=univ&tbm=isch&q=images+related+to+education+blac
k+and+white&sa=X&ved=2ahUKEwjl4NzKmIrrAhWHwZQKHYb5BFEQsAR6BAgKEAE&biw=1280&
bih=690#imgrc=gxJliGPRGNuckM
• https://images.app.goo.gl/7YDa4918vVHqkSYv7
• https://images.app.goo.gl/8NS8XyWigBW8sJnx5
• https://images.app.goo.gl/RQUB95D26nYqRiXF7
• https://images.app.goo.gl/MsDdJ88Uw6SAKNH39
 Answer Key:

➢ Let’s Do This! - Answers may vary.

• Activity No. 1
• Activity No. 2.
➢ Check What You Know – Answers may vary.
➢ Reflect with It! – Answers may vary.
➢ Challenge Yourself – Answers may vary.
➢ Assess What You Have Learned:
1. A 6. C
2. B 7. B
3. C 8. C
4. D 9. C
5. D 10. C

Prepared by:
Emerita “Emz” J. Esteleydes
T-III - Pag-asa NHS, Bansud