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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 and Marketing Strategies
Answer
A SWOT analysis evaluates the internal strengths and weaknesses of a business, alongside external opportunities and threats. Understanding these factors allows businesses to tailor their marketing strategies effectively.
- Strengths: Identifying the unique advantages of the company, such as high brand loyalty or superior technology, allows marketers to leverage these in their campaigns to enhance positioning.
- Weaknesses: Recognizing internal limitations helps businesses address issues and avoids strategies that amplify these weaknesses.
- Opportunities: Identifying market gaps and trends enables marketers to create responsive strategies that capitalize on emerging consumer demands.
- Threats: Understanding competitive pressures can lead the company to adopt protective strategies and proactive adjustments to prevent market share loss.
Step 2
Product Life Cycle and Marketing Strategies
Answer
The product life cycle outlines the stages a product goes through from introduction to decline. Each stage necessitates different marketing strategies:
- Introduction Stage: Focus on building awareness through promotions and advertising. Strategies may include heavy advertising and introductory pricing to attract early adopters.
- Growth Stage: Enhance marketing efforts to capitalize on increasing demand. Strategies could include improved distribution and enhanced product features to differentiate from competitors.
- Maturity Stage: Adjust strategies to defend market share, which might entail competitive pricing and modifying the marketing mix to rejuvenate interest in the product.
- Decline Stage: Businesses may need to reconsider their marketing approach—whether it is to discontinue the product or promote it to niche markets.