We blogged yesterday about how important it is to analyse your market, create a clear marketing strategy and organise your thoughts into a marketing plan.
Today we take a look at two analytical tools that marketers often use to assess how their business fits into the industry and the social environment as a whole.
The SWOT test discovers your businesses Strengths and Weaknesses and uses them to identify Opportunities and Threats. The PEST test looks at factors external to your business, enabling you to adapt your business to either take advantage of opportunities or limit the damage from unfavourable circumstances.
SWOT: The Internal Business Test
The SWOT test was developed by Albert Humphreys in the 1960s and involves assessing a business from the inside out. For example, a new Street Fit® Instructor might note down that their strengths include youth, enthusiasm and the brand strength of the Street Fit® name. This could translate to an opportunity to appeal to a young, image-conscious target market who might be expected to relate well to someone of their own age group.
In terms of weaknesses, this same Instructor might be new to the industry and have a problem with travelling outside of their home town. The threats to her business are from a lack of experience and restriction to where she can teach classes. Being aware of these threats will enable her to mitigate them by, for example, partnering up with a more experienced FitPro and broadening her view of what constitutes a venue (perhaps the local church or school could be approached).
PEST: The External Business Test
The PEST test divides the social environment into four areas: Political/legal, Economic, Social and Technological. The political/legal environment changes whenever a relevant policy or law is introduced that affects the industry. Perhaps a future government will insist that all dance instructors have a basic fitness qualification or tax reporting procedures might change. This might affect how you run your business and how much you need to charge customers to remain profitable.
Likewise, the shape of the economy will have a profound effect on business. Should the economy recover (we can but hope!), there will be more cash in circulation and people might feel able to spend more on a quality product. This might be a good time to raise your rates to keep demand manageable.
Social factors are largely behind the success of Street Fit®, with the public appetite for street dance high. If a particular street dance move or style becomes popular, you could capitalise by incorporating it into your routine.
Finally, technology is changing almost daily, particularly in the area of social media. Street Fit® Instructors today could take advantage of the popularity of Pinterest by pinning plenty of motivational images to their boards. Tomorrow, there could be something else on the scene.
Make a SWOT and PEST analysis part of your ongoing business analysis, and position your businesses to thrive.
Maximise your potential earnings but first become part of the StreetFit family! –http://streetfit.tv/become-an-instructor