Business Investigating People
Business 3.4
Internal constraints
SWOT analysis
SWOT analysis is a strategic planning method used by business to determine their strengths, weaknesses, opportunities and threats
Businesses need to consider the financial and practical implications of any marketing mix that they want to implement. Very few businesses are able to operate a marketing mix without considering the costs involved. Typically costs can limit a business’s marketing mix in several ways.
Promotion
The first internal constraint that will affect my product will be price. A business may not be able to set a really competitive price and still make a profit. As my product will be new I will have very limited funds to start off with to help launch my product compared with well established brands that can afford a lot more than me. For example one of my competitors is Ribena they are able to advertise their productions on television and can pay millions of pounds to worth of sponsors to help them raise brand awareness. However when I asked my target audience they stated that advertising through radio would be the best way for me advertise. This is perfect for me as radio play is costly but not as costly as a television ad would be, therefore I would be about to have more radio play for my money then for example paying for one Television ad. This is a strength to my business as this way I would be able to afford more advertising therefore be able to create more brand awareness thus gaining more customers equalling more profit.
Price
Some businesses are unable to develop the products they would like to sell because research, development and production costs are too high. In this situation, a business might find that it could only recoup its costs by setting a price that would be too high for many customers and much higher than all their competitors’ products, therefore customers may just stick to the competitors’ products there used to. This factor my not affect my business as when
Internal constraints
SWOT analysis
SWOT analysis is a strategic planning method used by business to determine their strengths, weaknesses, opportunities and threats
Businesses need to consider the financial and practical implications of any marketing mix that they want to implement. Very few businesses are able to operate a marketing mix without considering the costs involved. Typically costs can limit a business’s marketing mix in several ways.
Promotion
The first internal constraint that will affect my product will be price. A business may not be able to set a really competitive price and still make a profit. As my product will be new I will have very limited funds to start off with to help launch my product compared with well established brands that can afford a lot more than me. For example one of my competitors is Ribena they are able to advertise their productions on television and can pay millions of pounds to worth of sponsors to help them raise brand awareness. However when I asked my target audience they stated that advertising through radio would be the best way for me advertise. This is perfect for me as radio play is costly but not as costly as a television ad would be, therefore I would be about to have more radio play for my money then for example paying for one Television ad. This is a strength to my business as this way I would be able to afford more advertising therefore be able to create more brand awareness thus gaining more customers equalling more profit.
Price
Some businesses are unable to develop the products they would like to sell because research, development and production costs are too high. In this situation, a business might find that it could only recoup its costs by setting a price that would be too high for many customers and much higher than all their competitors’ products, therefore customers may just stick to the competitors’ products there used to. This factor my not affect my business as when