Photo AI
Analyse how a situational analysis (SWOT, product life cycle) may affect marketing strategies. - HSC - SSCE Business Studies - Question 26 - 2021 - Paper 1
Question 26
Analyse how a situational analysis (SWOT, product life cycle) may affect marketing strategies.
Worked Solution & Example Answer:Analyse how a situational analysis (SWOT, product life cycle) may affect marketing strategies. - HSC - SSCE Business Studies - Question 26 - 2021 - Paper 1
Step 1
SWOT Analysis
Answer
A SWOT analysis evaluates a company's Strengths, Weaknesses, Opportunities, and Threats. \n\n- Strengths refer to internal attributes that support a successful outcome. For instance, a strong brand reputation can enhance customer loyalty.\n- Weaknesses are internal factors that can hinder success, such as limited resources or poor location.\n- Opportunities identify external factors that could be leveraged for growth, like emerging markets or technological advancements.\n- Threats highlight external challenges, such as economic downturns or increased competition.\n\nBy conducting a SWOT analysis, marketers can strategically position their products and services, target appropriate markets, and develop campaigns that emphasize their strengths.
Step 2
Product Life Cycle (PLC)
Answer
The Product Life Cycle describes the stages a product goes through: Introduction, Growth, Maturity, and Decline.\n\n- Introduction: Strategies may focus on building awareness through promotions and pricing strategies that encourage trial.\n- Growth: Marketing strategies shift to differentiation and increasing market share through competitive pricing and targeted advertising.\n- Maturity: Strategies aim to defend market share through brand loyalty and possibly modifying the product.\n- Decline: Decisions are made on whether to rejuvenate the product, reduce costs, or discontinue it.\n\nUnderstanding where a product stands in its lifecycle helps marketers allocate resources effectively and tailor their messages accordingly.
Step 3
Conclusion and Integration
Answer
Integrating SWOT with the PLC framework provides a comprehensive approach to understanding the market position and planning marketing strategies effectively.\n\nFor example, during the Growth stage, a company might leverage its Strengths identified in the SWOT to maximize the opportunities presented, as well as develop responses to potential threats. This cohesive approach ensures that marketing strategies are aligned with the product’s market dynamics.