Marketing Mix: 4P Analysis

Product
Price
Place
Promotion

Product Price

1. Product variety 1. List price

2. Quality 2. Discounts
3. Design 3. Allowances
4. Features 4. Payment period
5. Brand name 5. Credit terms
6. Packaging
7. Sizes
8. Services
9. Warranties
10. Returns

Place Promotion

1. Channels 1. Sales promotion

2. Coverage 2. Advertising
3. Assortments 3. Sales force
4. Locations 4. Public relations
5. Inventory 5. Direct marketing
6. Transport
SWOT Analysis
The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called
SWOT analysis. It is a way of monitoring the external and internal marketing environments.

External environment: Opportunity and Threat Analysis

Internal environment: Strengths and Weaknesses Analysis

Strengths Weaknesses

Each business needs to evaluate its internal strengths. Each business needs to evaluate its internal weaknesses.

Businesses can evaluate their own strengths by using Businesses can evaluate their own strengths by using a
a checklist for Performing Strengths/ Weaknesses checklist for Performing Strengths/ Weaknesses
Analysis. Analysis.

A business should not gloat or be complacent about A business doesn’t have to correct all its weaknesses, but
its strengths. it has to consider those that might require it to find or
develop new strengths
The big question is whether it should limit itself to
those opportunities for which it possesses the
required strength.

A business should have a good research system to

monitor the market changes and competitors
strategies

Opportunities Threats

Good marketing is the art of finding, developing, and An environmental threat is a challenge posed by an
profiting from these opportunities. unfavorable trend or development that, in the absence of
defensive marketing action, would lead to lower sales or
A marketing opportunity is an area of buyer need and profit.
interest that a company has a high probability of
profitably satisfying. The major external threats for any business:

To evaluate opportunities, we can use market
opportunity analysis (MOA) to ask questions like:
1. Can we articulate the benefits convincingly to a
defined target market?
2. Can we locate the target market(s) and reach
them with cost effective media and trade
channels?
3. Does the company possess or have access to the
critical capabilities and resources needed to
deliver the customer benefits?
4. Can we deliver the benefits better than any actu-
al or potential competitors?
5. Will the financial rate of return meet or exceed
our required threshold for investment?
1. Competitor develops better system or at a lower cost
The probability of this occurring is high and it is a
serious threat. Need a good contingency plan,
2. Major or prolonged economic depression. The
probability of this occurring is low, but if it does
occur, it is a serious threat. Need to carefully
monitor, in the event it becomes more serious.
3. Higher costs of material and/ or resources. The
probability of this occurring is high but it is not a
very serious threat. Need to carefully monitor, in the
event it becomes more serious.
4. Political interference or legislation to monitor the
industry. The probability of this occurring is low and
it is not a serious threat, and most of the time can be
ignored.

.
 Checklist for Performing Performance Importance
Strengths/ Weaknesses Major Minor Minor Major
Analysis Neutral High Medium Low
Strength Strength Weakness Weakness
Marketing
1 Company reputation
2 Market share
3 Customer satisfaction
4 Customer retention
5 Product quality
6 Service quality
7 Pricing effectiveness
8 Distribution effectiveness
9 Promotion effectiveness
10 Sales force effectiveness
11 Innovation effectiveness
12 Geographical coverage
Finance
Cost of availability of
13
capital
14 Cash flow
15 Financial stability
Manufacturing
16 Facilities
17 Economies of scale
18 Capacity
19 Able, dedicated workforce
20 Ability to produce on time
Technical manufacturing
21
skill
Organization
Visionary, capable
22
leadership
23 Dedicated employees
Entrepreneurial
24
orientation
25 Flexible or responsive