SWOT (Strength, Weakness, Opportunities, Threats) analysis is one of the structured planning tools used to identify strengths, weaknesses, opportunities and threats to a business. As digital marketing is getting more popular when it comes promoting businesses, it is worthwhile to consider a SWOT analysis. The analysis helps businesses make informed decisions and simplifies decision making. This article deals with SWOT analysis of digital marketing.
- Strengths
- Cost effective: Digital marketing is cost effective when compared to other means of advertising.
- Fast and easy to reach: Advertising businesses happens on the Internet in a short period of time. Your products, services and special offers reach local and global quickly.
- 24/7 operation: Services on the Internet are available 24 hours a day, 7 days a week. This helps the customers purchase products/services at their convenient time whether it is day or night.
- Customer relationship: Digital marketing helps businesses in building relationship with the clients, prospects and new customers by giving auto-response to their queries related to products/services.
- Brand development: Digital marketing enables businesses to spread awareness of their product/service widely to target audience, and in the long run helps build brand image by performing consistently.
- Real time results: You will get to see real time results of transactions by knowing the number of customers visited your website, how many of them have purchased from your site, and what the peak trading times are. It will help you know customers purchasing behavior and you could plan your business accordingly.
- Weaknesses
- Absence of physical presence: Some customers are hesitant to buy products online because they don’t get to check the product physically.
- No direct seller-customer interaction: As transactions in digital marketing happen online without personal interaction between seller and customer, there is no direct interaction.
- Vulnerable to fraudulent transactions: It will be difficult to evaluate the legitimacy of a transaction. Unauthorized people might access credit card, and other information to do online transaction. Of course, it has become foolproof today.
- Opportunities
- Strong online presence: In this digital age, Internet users are rapidly increasing day by day. Users are more comfortable in purchasing products online as it saves their time. They also get good deals when compared to offline purchases.
- Global reach: You can promote your company’s products/services to audiences across the globe without any geographical barriers or constraints.
- Level playing field: Digital marketing opens doors to all businesses irrespective of the size and the type of business.
- Threats
- Entry of competitors: In this competitive world, everyone wants to give their best and apply various Internet marketing strategies to promote their products/services to reach wide audiences. Competition is more intense in digital marketing.
SWOT analysis is an important tool that helps businesses get good insights on business and thus helps them taking optimal measures by focusing on productivity.