Marketing Final Prep

Potential Market Segments

"A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes. Each market segment is unique, and marketers use various criteria to create a target market for their product or service. Marketing professionals approach each segment differently, after fully understanding the needs, lifestyles, demographics, and personality of the target consumer. "A market segment is a category of customers who have similar likes and dislikes in an otherwise homogeneous market. These customers can be individuals, families, businesses, organizations, or a blend of multiple types. Market segments are known to respond somewhat predictably to a marketing strategy, plan, or promotion. This is why marketers use segmentation when deciding a target market. As its name suggests, market segmentation is the process of separating a market into sub-groups, in which its members share common characteristics. "To meet the most basic criteria of a market segment, three characteristics must be present. First, there must be homogeneity among the common needs of the segment. Second, there needs to be a distinction that makes the segment unique from other groups. Lastly, the presence of a common reaction, or a similar and somewhat predictable response to marketing, is required. For example, common characteristics of a market segment include interests, lifestyle, age, gender, etc. Common examples of market segmentation include geographic, demographic, psychographic, and behavioral." -- (Adam Hayes) [1] ---------- Many articles about segmentation combine the discussion of 'identifying viable segments' with 'identifying the target customer'. These activities are different. Viable market segments are customer groups with common needs, lifestyles and behaviors that can be satisfied by an organization. Once identified, these groups are treated as if they are a single target customer. They are profiled based on observable characteristics, such as demographics, geographics and psychographics. In other words, a viable segment must need what the company offers. Once identified, that segment can be profiled using observable characteristics. Begin with the customer needs uncovered in worksheet 2.1.2 Customer Needs. Consider different groups that might have these needs. If you are conducting segmentation research, a block of questions in a survey would ask about these needs with the intent of separating out those with needs. A second block would include profiling questions, such as age, marital status, and income, that are likely to differ those with the needs vs. others. A correlation analysis is then conducted to determine which profiling characteristics are uniquely associated with those feeling the need for the company's offerings. If you are not conducting a survey to identify needs and profiling characteristics, you will likely need to consider both simultaneously. Look for potential market segments who's needs can be met by the company's offerings. At the same time, carefully observe their observable characteristics. These will be used to profile the selected segment in worksheet 3.1.4 Target Customer Profile. For this worksheet, identify several plausible market segments that feel the needs addressed through the company's stated mission (worksheet 1.2 Mission) and achieve its objectives (worksheet 1.3 Goals). Avoid describing these markets using profiling characteristics (e.g., demographics, psychographics, geographics). Instead, choose labels that convey the essence of the market relationship that would exist between these customers and your organization. Use labels that might even infer the underlying needs, wants and demands that are being fulfilled.

Value Lattice

A value chain is used to describe all the business activities it takes to create a product from start to finish (e.g., design, production, distribution, etc.). And a value chain analysis gives businesses a visual model of these activities. With this analysis, you can take steps to create a competitive advantage, improve efficiency, and increase profit margins. Let's take a deeper look into value chain analysis and learn how you can analyze your business activities. Harvard Business School professor, Michael Porter, introduced a simple value chain model in his book, "Competitive Advantage". He developed the steps to perform a value chain analysis and split business activities into two categories: primary and support. There are five primary activities and they include all the actions that go into the creation of a business' offering. 1. Inbound Logistics. This is how materials and resources are gained from suppliers before the final product or service can be developed.2. Operations. Operations are how the materials and resources are produced, resulting in a final product or service.3. Outbound Logistics. Once a product or service is finished, it needs to be distributed. Outbound logistics describes this delivery process.4. Marketing and Sales. This is how your product or service is presented and sold to your ideal target market.5. Services. This is the support a business provides for the customer which can include support and training for the product, warranties, and guarantees.

Customer Needs and Wants

The ultimate objective of marketing is to create, communicate, and deliver customer value. In order to do this, marketers must understand the needs and wants of their target customers, which are generally evidenced through deeply felt desires and/or personal pain. A firm's market offerings are then carefully designed to fulfill these desires and/or alleviate these pains.

Company Profile

professional summary of the business and its activities. You need a company profile if you want to raise capital and win investors, but you can also use it to inform other stakeholders, including clients. You will find many variations and lengths for a company profile. Some businesses may not have grown enough yet and have profiles that are just two pages long. On the other hand, some might include awards, certifications, and a large client portfolio, topping out at 30 pages.

In categories such as luxury and fashion, where customers seek emotional and self-expressive benefits, the _________________ conveyed by the offering is of primary importance. functional value psychological value monetary value physiological value None of the above.

psychological value

One of the main drawbacks of _________________ is the increasing cost of effectively reaching target customers. Customers are constantly bombarded with a multitude of messages, making it difficult to break through the clutter to communicate the company's message and build a meaningful brand image. customer incentives push promotions pull promotions POPs post promotions

pull promotions

____________________ goals include growing sales volume, creating brand awareness, increasing social welfare, enhancing the corporate culture, and facilitating employee recruitment and retention. rapid goals monetary goals strategic goals tertiary goals technical goals

strategic goals

The standard product lifecycle has _______ stages. 3 4 5 6

4

Product Roadmap

A product roadmap is a high-level visual summary that maps out the vision and direction of your product offering over time. A product roadmap communicates the why and what behind what you're building. A roadmap is a guiding strategic document as well as a plan for executing the product strategy. The product roadmap has several ultimate goals: Describe the vision and strategy Provide a guiding document for executing the strategy Get internal stakeholders in alignment Facilitate discussion of options and scenario planning Help communicate with external stakeholders, including customersTimeline Style Roadmap Ideally, your product roadmap should convey the strategic direction for your product. And it should also tie back to the strategy for the company. Within that framework, of course, is the general order of what you'll be building.

Which of the follow is NOT a form of inbound media? Online search Personal interaction Phone communication Online interactive forums Mail and email All of the above are considered forms of inbound media.

All of the above are considered forms of inbound media.

Which of the following statements is NOT true? The product life cycle can be extended through market expansion. The product life cycle can be extended through product innovation. The product life cycle can be extended through diversification. The product life cycle can be extended through market penetration. All of the above are true.

All of the above are true

Product Layers

Consumers often think that a product is simply the physical item that he or she buys. In order to actively explore the nature of a product further, let's consider it as three different products - the CORE product, the ACTUAL product, and finally the AUGMENTED product. This concept is known as the Three Levels of a Product. The CORE product is NOT the tangible physical product. You can't touch it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly. The ACTUAL product is the tangible, physical product. You can get some use out of it. Again with the car, it is the vehicle that you test drive, buy and then collect. You can touch it. The actual product is what the average person would think of under the generic banner of product. The AUGMENTED product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium. So when you buy a car, part of the augmented product would be the warranty, the customer service support offered by the car's manufacturer and any after-sales service. The augmented product is an important way to tailor the core or actual product to the needs of an individual customer. The features of augmented products can be converted in to benefits for individuals.

Demand Function

Demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis. With few exceptions, the demand curve is delineated as sloping downward from left to right because price and quantity demanded are inversely related (i.e., the lower the price of a product, the higher the demand or number of sales). This relationship is contingent on certain ceteris paribus (other things equal) conditions remaining constant. Such conditions include the number of consumers in the market, consumer tastes or preferences, prices of substitute goods, consumer price expectations, and personal income. A change in one or more of these conditions causes a change in demand, which is reflected by a shift in the location of the demand curve. A shift to the left indicates a decrease in demand, while a movement to the right an increase. Compare supply curve.

________________________ is a situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market Indirect competition Horizontal competition Direct competition Vertical competition None of the above

Direct competition

Fabricated names such as Google, Kodak, Xerox, and Häagen-Dazs, that involve words that do not have any particular meaning and have been invented for the sole purpose of serving as a brand name, are void of legal protection. True False

False

Marketing is equivalent to selling True False

False

Goals

Goals are the gaps between the company's actual and desired accomplishments, between what the company is and what it seeks to become. Each goal has a corresponding benchmark and a set of controls within the marketing plan. The SMART acronym can be used to guide the goal setting process. To make goals clear and reachable, each one should be: Specific (simple, sensible, significant). Measurable (meaningful, motivating). Achievable (agreed, attainable). Relevant (reasonable, realistic and resourced, results-based). Time bound (time-based, time limited, time/cost limited, timely, time-sensitive). Professor Rubin also notes that the definition of the SMART acronym may need updating to reflect the importance of efficacy and feedback. However, some authors have expanded it to include extra focus areas; SMARTER, for example, includes Evaluated and Reviewed.

Horizontal Collaborators

Horizontal collaboration—or the process of two or more companies cooperating at the same level on a certain market activity to realize benefits they could not achieve independently—is difficult to accomplish but hugely rewarding for those companies that do it successfully. -- (Maria Jesus Saenz et. al.) [1] Horizontal collaborators are the partners operating in the same value-chain tier as the company. This includes collaborators in manufacturing, logistics, technical support services, marketing, marketing communications, product development, and education. Horizontal collaboration generally occurs when a company lacks necessary resources or gains a strategic advantage in providing an offering to its customer. Horizontal collaborators might include organizations that jointly promote a company's offering, organizations that help service and support a company's offering, and organizations that offer compatible offerings that enhance the value of the company's offering. For example, automobile safety features generally lower insurance rates. Automobile manufacturers and insurance companies are therefore horizontal collaborators because their offerings are connected.

Indirect Competitors

Indirect competition is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need.Depending on whether or not competitive offerings belong to the same industry and product category, competition can be either direct or indirect. Indirect competitors are those with offerings that compete across different industries (product categories) to fulfill the same customer need. For example, Coca-Cola competes with a variety of non-cola beverages, including juices and water. Canon competes with smartphones like iPhone, Pixel, and Samsung Galaxy. Marriott competes with peer-to-peer online apartment rental platforms such as Airbnb. -- (Alexander Chernev) [2] ---------- An Indirect Competitor offers a product substitute that, while different in form and function from the company's offering, addresses the same fundamental customer need and want. Customers seek product solutions that fulfill their needs and wants, often choosing from among fundamentally dissimilar offerings provided by different organizations that fulfill these needs and wants.

Segment Selection Criteria

Market segments should be: Measurable. Substantial. Accessible. Differentiable. Actionable. ---------- Once potential target markets have been identified, marketers must determine which to pursue using criteria consistent with the organization's mission and objectives. For this worksheet, list the potential market segments identified in 3.1.2 Potential Market Segments. These market segments are likely to feel the needs and wants documented in the worksheet 2.1.2 Customer Needs. Next, determine criteria to guide the selection of the first market segment to enter. Build a table similar to the one shown below, listing each of the potential segments in the first column and the segmentation selection criteria along the first row. Add relative weights to each of the selection criteria and rate each of the contending segments using a common scale (e.g., 1-5). Finally, construct a rating score for each segment as the weighted sum of all criteria. The segments with the highest scores should be discussed and a decision made regarding the initial market segment to target. If the final ranking scores do not 'feel right' (e.g., if what would otherwise appear to be the best segment is not given the highest score) it is possible that some criteria might be missing, criteria weights might be inappropriate, or initial perceptions of the 'best' segment might be too high. In any case, the Segmentation Selection Criteria table provides a basis for discussion and adjustment. It offers rationale that can be shared with others (e.g., company executives, sales, channel partners) to tease out information and attitudes that might influence the final selection. It also serves to bring these important stake holders into alignment.

Price Performance Map

One of the key tools for evaluating customer value is the Perceived Value Map, which helps companies quantify and analyse 'soft' value attributes. "Value Maps are often initially produced from internal wisdom, and enable more productive discussions regarding the relative value vs. competitors. Customer research can also be used to verify or inform the value map, allowing you to analyse customers by segment, and track value movements over time."

OVP stands for ___________________. Optimal Value proposal Offered Value Proposal Offered Value Proposition Original Value Proposal Optimal Value Proposition

Optimal Value Proposition

The dimensions of the SWOT Analysis include: (select all that apply) Workplace (Inside, Outside) Technology (Owned, Licensed) Orientation (Internal, External) Factors (Favorable, Unfavorable) Opportunities (Favorable, Unfavorable)

Orientation (Internal, External) Factors(Favorable, Unfavorable)

Perceptual Mapping

Perceptual mapping is a diagrammatic technique used by marketers in an attempt to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition. Some perceptual maps use different size circles to indicate the sales volume or market share of the various competing products. Perceptual maps commonly have two dimensions even though they are capable of having several. For example, in this perceptual map you can see consumer perceptions of various automobiles on the two dimensions of sportiness/conservative and classy/affordable. This sample of consumers felt that Porsche cars were the sportiest and classiest of the ones in the study. They felt that Plymouth cars were the most practical and conservative. Cars that are positioned close to each other were seen as similar on the relevant dimensions by the consumer. For example, consumers saw Buick, Chrysler, and Oldsmobile as similar. They are close competitors and form a competitive grouping. Many perceptual maps also display consumers' ideal points. These points reflect ideal combinations of the two product characteristics as seen by a consumer. This diagram shows a study of consumers' ideal points in the alcohol product space. Each dot represents one respondent's ideal combination of the two dimensions.

Break Even Analysis

The break-even analysis is performed to understand the point at which the expenses related to a product are covered and the company starts to make a profit on it. It takes into consideration the amount of sales that is required to cover the total costs and generate a net income. The analysis consists of three monetary values calculated with respect to the amount of sales. These include: Total Revenue - The total revenue is the income generated by selling the product. It is the product of the price and the units sold. Fixed Cost - Fixed costs are the constant costs which do not change with the number of products sold. For example, the machinery cost, rents, etc. Total Costs - They include the fixed as well as the variable costs ( the costs that change with the number of products sold like raw material costs) Break Even Volume is the amount of volume of products sold to recover the total costs from the revenues Break Even Volume = Fixed Cost / (Price - Variable Cost)

Value Proposition

The brand positioning statement is an internal company document—usually consisting of a single sentence—that outlines the essence of a brand's strategy. The primary purpose of the brand positioning statement is to guide tactical decisions related to managing the brand. Similar to the customer value map, the brand positioning statement aims to succinctly share the essence of a brand's strategy with the relevant entities involved in creating, managing, and supporting the brand. At the same time, the brand positioning statement is much narrower in scope than the customer value map and focuses only on the key aspects of the brand strategy without addressing brand tactics... The positioning statement involves three key components: target customers, frame of reference, and primary benefit(s). These three aspects of the brand positioning statement are outlined below. Target customers are the individuals in whose minds the company aims to establish a meaningful brand image and for whom the brand aims to create value. The frame of reference identifies the reference point used to define the brand. The frame of reference can be either noncomparative or comparative. Noncomparative framing relates the brand to the customer need it aims to fulfill without explicitly comparing it to other brands, whereas comparative framing defines the brand by contrasting it with other brands. The primary benefit identifies the principal reason why customers will prefer the company's brand. Most positioning statements identify a single benefit, although positioning statements featuring multiple benefits are not uncommon. The primary benefit could also involve -- (Alexander Chernev) [1] ---------- The classic brand positioning statement packs considerable information into a single, succinct sentence. In this worksheet, use the template provided below to create a value proposition for the company. Remember that this is an internal company statement designed to guide organizational activities as they consistently clarify the brand's essence and value to the customer.

Product Lifecycle

The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. The life cycle has four stages - introduction, growth, maturity and decline. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales. Additionally, companies use PLC analysis (examining their product's life cycle) to create strategies to sustain their product's longevity or change it to meet with market demand or developing technologies. Generally, there are four stages to the product life cycle, from the product's development to its decline in value and eventual retirement from the market. 1. Introduction2. Growth3. Maturity4. Decline

Three Circles

The simple truth is that your business is more profitable when you lead it with a careful view to customer value. However, there is much lip service given to customer value and customer satisfaction these days because we have few disciplined ways to think about and evaluate it. The 3-Circle model provides such discipline in asking the right questions and providing guidance on the right answers for growth. The key benefits of the framework are the following: Understanding the customer's perspective with a focus on competitive assessment and the deeper values underlying customer decision making Straightforward illustration of principles of competitive strategy and actionable implications for how to improve competitive position An explicit focus on building competitive advantage through both capability development and communications strategy

Target Customer Profile

The point of market research is to gather data and give you a comprehensive picture of your target market. When businesses do this, they create a unique customer profile, sometimes called a persona. This is the ideal customer who wants and needs your products, and it's very detailed. A good customer profile must be as specific as possible. Lots of companies go so far as to give them names and draw images. They may even post pictures of real people who represent their market. -- (Renee Shupe) [2] A good customer profile includes the target markets: Demographic Information Lifestyles and Hobbies Morals and Values Pain Points Shopping Habits Stereotyping Can Be a Good Thing! Isn't all of this stereotyping? Of course it is! But it works. By creating a profile of your ideal customer, you know exactly where to aim your marketing efforts. Without it, you'll cast your net too wide and your message will be irrelevant to many who hear it, wasting your resources and advertising dollars. Create all of your marketing materials and sales copy by speaking directly to this ideal customer and the right people will get the message. [2] ---------- A target segment profile is a detailed description of a typical customer within the target market segment. It is a stereotype. For this worksheet, create both quantitative and qualitative profiles. Begin by creating a table that provides statistical information about each of the market segments considered in 3.1.3 Segmentation Selection Criteria. This table should reveal important segment similarities and differences with respect to gender, marital status, wealth, employment, lifestyles, habits, etc. This quantitative profile can be used to isolate and identify the chosen target market segment. Next, create a written qualitative profile of the selected target market segment; or, in other words, the stereotypical target customer who represents the selected target market segment. This profile is richer in content than a quantitative profile. It tells us more about how the target customer thinks, acts and behaves. It help us understand the motives behind the behaviors.

A company's profit formula can be summarized by the following equation: Profit = Sales volume • Unit price - Variable costs - Prorated fixed costs True False

True

Even mundane products such as toothpaste, soap, and milk are accompanied by a service provided by retailers carrying these products, including sales support and returns. True False

True

With few exceptions, the demand curve is delineated as sloping downward from left to right because price and quantity demanded are inversely related (i.e., the lower the price of a product, the higher the demand or number of sales). True False

True

Vertical Collaborators

Vertical collaborators are partners operating at different levels or tiers of the value-chain, beginning with raw materials and progressing through tiers, such as product manufacturing and retail until it reaches the final customer. Each organization in the chain extracts profits based on its ability to add customer value to the overall process. In many cases, it is not individual product manufacturers that compete to win customer dollars, but value-chains that compete because the ultimate offering received by the customer is a construction of the entire value-chain. Organizations must develop strong trust relationships with vertical partiners in the value-chain, particularly those with whom they have direct dealings.

Price Strategy

What is a pricing strategy? A pricing strategy is the method of pricing a business uses to determine how much to sell their goods or services for. It's one of the most commonly overlooked and undervalued revenue levers in business. Carefully selecting the right pricing strategy takes a deep understanding of your product, your market, and your customers. The three most common pricing strategies are: Value based pricing - Price based on it's perceived worth Competitor based pricing - Price based on competitors pricing Cost plus pricing - Price based on cost of goods or services plus a markup There are many other commonly used pricing strategies that can be employed to separate your company from the competition (e.g. penetration pricing, price skimming, psychological pricing, bundle pricing, economy pricing, premium pricing, etc.), but the three strategies listed above are the bread and butter of most businesses.

Monetary value is a function of _____________________. (select all that apply) equity derived from a particular customer segment costs associated with a particular customer segment goodwill generated by a particular customer segment revenues generated by a particular customer segment profits derived from a particular customer segment

costs associated with a particular customer segment revenues generated by a particular customer segment profits derived from a particular customer segment

Link

https://quizlet.com/726981885/mgmt-62000-final-exam-flash-cards/

Despite their numerous benefits, indirect channels have several important drawbacks. These include _________________. (select all that apply) loss of control increased breakage fewer sales reps channel conflicts lower overall revenue

loss of control channel conflicts

Mission Statement

"Meaningful work" is the new holy grail. The people who work for you want to understand that what they do connects to the company's overarching purpose. And that means they'll give you their precious time as long as you will make sure your organization is a source of personal growth, shared purpose and inspiration. But how? It usually starts with the company's mission. You might think, well of course we have a mission. All companies start with a mission. The problem, though, is that creating a compelling mission that's clear to everyone and instantly resonates isn't easy to do. Your organization's mission must be accessible and inspiring for people at all levels in your organization. And it shouldn't be too long or cumbersome.

Direct Competitors

Direct competition is a situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market. Apple's iPhone, for example, is in direct competition with Samsung's Galaxy in the smartphone market; the company's Macbook line competes directly with Dell's XPS line in the notebook category. Vendors often use competitive differentiation strategies to set their products, services and brands apart from those of its direct competition. The purpose is to convince potential customers not only that your product is different from others in the category but that it is superior to them. Design, quality, price, features and support are among the factors that a vendor might promote as unique selling points (USP). Direct competition contrasts with indirect competition, in which two or more businesses offer products or services that, although different, might fulfill the same consumer need. -- (Margaret Rouse) [1] Depending on whether or not competitive offerings belong to the same industry and product category, competition can be either direct or indirect. Direct competitors are offerings that come from the same industry (or product category) and aim to fulfill the same customer need as the company's offering.

______________________ refer to the tendency of greater manufacturing and sales volume to lead to a decrease in per-unit costs. This relationship between production output and unit costs is closely related to the concept of the experience curve. Economies of scope Economies of scale Economies of skimming Economies of collaboration Economies of cooperation

Economies of scale

Ansoff Matrix

For any company looking to move beyond "business as usual," the Ansoff matrix is an invaluable tool to help analyze and manage risk and strategize growth opportunities. The Ansoff Matrix, also called the product/market growth matrix, is used by the companies to explore product offering expansion strategies. The four quadrants of the Ansoff Matrix are Market Penetration, Market Development, Product Development and Diversification. This is a model used to explore potential growth paths for the company. The four strategies of the Ansoff Matrix are as follows: Market Penetration - This strategy focuses on existing products within existing markets. If the product is still in the growth phase of the market, the company's best strategy may be to pour its resources into garnering additional market share through aggressive marketing communications. Market Development - This strategy takes existing products into fundamentally new markets (e.g., demographically, geographically). The company does not need to invest in new technologies, manufacturing, or development. Instead, they develop new distribution channels, brand positioning and marketing communications to meet the unique needs and interests of a new target customer. Product Development - This strategy introduces new products in existing markets. The company continues to serve the existing target customer through existing channels by offering new products. New skill sets, additional R&D and investments in manufacturing may be required. Diversification - This strategy involves both market development and product development. It is the riskiest strategy wherein the customer has a limited knowledge of the market as it introduces new products and technologies into that market. ---------- The Ansoff Matrix is forward looking. It is used to uncover new opportunities for growth and expansion. Use this worksheet to consider potential growth paths using each of the four strategies, market penetration, market development, product development, and diversification. Describe requirements for the company to successfully pursue each growth paths. Explain why some growth paths might be more logical than others. Consider short-run and long-run strategies.

Product Feature Matrix

How to prioritize features is always a hot topic for product teams. Even the most seasoned product manager struggles with determining which features and initiatives to put on the roadmap and what prioritization frameworks to employ. With so many opportunities competing for scarce resources, how to decide? 7 Popular Strategies and Prioritization Frameworks: Value versus Complexity Quadrant Weighted Scoring Kano Model Buy a Feature Opportunity Scoring Affinity Grouping Story Mapping 2. Weighted scoring With weighted scoring, you can use the Value versus Complexity model, but layer in scoring to arrive at an objective result. Based on dozens of interviews with product managers we arrived at this model for our prioritization model in ProductPlan. By using a scoring method to rank your strategic initiatives and major features, product managers can facilitate a more productive discussion about what to include on the product roadmap. While there are many inputs that ultimately go into a product decision, a scoring model can help the team have an objective conversation. A clear, objective scoring model can inform the initiatives you decide to include on your roadmap, and lend credibility to your product strategy.

SWOT

The SWOT framework offers a straightforward approach for evaluating a company's overall business condition. As implied by its name, the SWOT framework entails four factors: the company's strengths and weaknesses, and the opportunities and threats presented to the company by the environment in which it operates. The four factors are organized in a 2 X 2 matrix based on whether they are internal or external to the company, and whether they are favorable or unfavorable from the company's standpoint. The SWOT framework can also be thought of as a reorganization of the 5-C framework, in which the Five Cs are partitioned into favorable or unfavorable factors. Thus, the analysis of strengths and weaknesses focuses on the company, and the analysis of opportunities and threats focuses on the other four Cs describing the market in which the company operates, defined by customers, collaborators, competitors, and context. (Alexander Chernev) [1] SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The SWOT framework is used to analyze the internal condition of a company and the external circumstances of the company. This aids the company in understanding and taking advantages of its strengths while working on its weaknesses, avoiding potential problems and pursuing new opportunities. Strengths - Strengths are areas in which the organization excels. It represents advantages that the organization has over the competitors in the market. The Points-of-Difference described in the Three Circles of Brand Positioning worksheet are among these advantages. Strengths can be quite diverse, such as company location, brand awareness, patents, workforce capabilities, market positioning, product portfolio depth and breadth, and channel superiority. Weaknesses - Weaknesses inhibit the organization from achieving its mission and effectively serving it's target market. The lack of an important and needed strength may be considered a weakness. Examples of weaknesses include scandalous reputations, poor quality offerings, high employee turn-over and discontent, poor locations, etc. Opportunities - Opportunities represent potential for growth. These are external to the organization. They are a function of the overall market. Opportunities may be uncovered through market research and competitive intelligence. Growth and expansion opportunities are examined in the Ansoff Matrix, including market penetration, new market development, new product development, or diversification. Opportunities are also represented as gaps within Perceptual Space where customer needs have been unmet by market offerings. Threats - Threats are market conditions that can impact the success of a business. Like opportunities, threats are external to the organization. Threats may come in the form of new innovations from competitors or market disruptions. They may precipitated by changes in market context (e.g., Political, Economic, Social, Technological, Legal, Environmental or PESTLE). ---------- A SWOT analysis is represented as a 2X2 Matrix with appropriate labels, axes and cell content. A respective list of Strengths, Weaknesses, Opportunities and Threats are contained within each quadrant of the 2X2. Analysis and recommendations can then be provided below the completed framework.