IGCSE Travel and Tourism Practice Exam

What marketing method involves assessing a company's strengths and weaknesses alongside market opportunities and threats?

1. Market segmentation

2. Marketing strategy

3. Market research

4. Product promotion

The correct answer is: Marketing strategy

The correct answer, which focuses on marketing strategy, is integral to developing a comprehensive plan that guides how a company approaches its market. This method involves a thorough analysis of both internal and external factors that influence the company's position in the market. By evaluating the company’s strengths and weaknesses, alongside opportunities and threats present in the marketplace, businesses can formulate strategic plans that capitalize on their strengths and opportunities while mitigating risks associated with their weaknesses and external threats. This approach is commonly known as SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), which is a vital tool in marketing strategy development. By understanding these elements, a company can create tailored marketing strategies that align closely with its unique circumstances and the dynamics of the marketplace, ultimately leading to more effective decision-making and competitive advantage. Market segmentation, on the other hand, involves dividing a broad target market into subsets of consumers who have common needs and priorities. While it's a crucial step in developing a marketing strategy, it does not encompass the overall assessment of strengths and weaknesses. Market research is primarily focused on gathering data and insights about consumer preferences and behaviors rather than assessing a company's internal capabilities. Product promotion deals specifically with the tactics used to communicate the benefits of a product to customers but does not involve a strategic