Introduction to Marketing Assignment comparing the two analytical techniques, SWOT and PEST

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Unit 3: Introduction to Marketing Assignment 1 M2


In this essay I will be comparing the two analytical techniques, SWOT and PEST, in terms of their usefulness in making particular marketing decisions including the most useful for specific decisions.

What were the reasons for the popularity of these two analytical planning tools and techniques?

  • An ever changing and more competitive marketing environment.
  • Higher levels of investment required to develop new products and markets
  • Better trained marketing managers using more sophisticated and powerful marketing tools
  • Recognition of the need for improved coordination and integration of marketing with other company functions.


What is SWOT?

SWOT analyses are done by businesses at the very start of planning; this is to spot the organisation’s strengths, weaknesses, opportunities and threats. The SWOT analysis should never be done as a separate process and it is important that decisions are taken based on the findings. SWOT falls into the situation analysis stage in the marketing planning.

A SWOT starts with an external analysis of the business environment, known as a PEST analysis, and then looks at the businesses’ internal strengths and weaknesses in relation to the external analysis. This is done so that the company can combine analysis internally with external analysis giving a broader outlook on how they can go about marketing decisions.


The strengths are the positive bits of the organisation that help it function; organisations without any strengths the organisations aren’t going to be successful. A strength could be anything from the communication of the employees to the service of the staff in store. You can identify strengths in many ways however the BCG Matrix is an excellent way of determining whether a strategic business unit will do well.

If a SBU has a high market growth with a lot of people buying it and planning on getting it then it is in a good situation. Also if this was still the case and you also had a high market share on top of that then you will be milking the public of money and will be doing well financially, this is known as ‘star’ according to the BCG Matrix.

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The weaknesses are the bad bits about the company that are bringing it down, these need to be identified quickly to ensure that the business doesn’t go bust. A weakness could be poor packaging of products to slow delivery times. Weaknesses of any business are bad and need to be fixed as soon as possible.


Opportunities are areas that the organisation could develop into and expand their entire service or product. This could be anything from creating a totally new product under the same brand name to developing a new database that gives more information about ...

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