Mission Statements Marketing Plans and Strategic Planning Paper Questions Please answer questions in apa format and total word count should be 1500 words o

Mission Statements Marketing Plans and Strategic Planning Paper Questions Please answer questions in apa format and total word count should be 1500 words or more. This word count does not include references at the end. Please cite with scholarly sources.Preferred organizations Baxter Pharmaceuticals or Hikma Pharmaceuticals .If you have any questions or any needed materials please let me know. 1. Mission statements guide an organization’s decisions and strategic plans. Locate an organization’s mission statement. Evaluate the effectiveness of the organization’s mission statement. What changes would you propose the organization make to the mission statement? 2. Marketing plans propose a marketing strategy that details the chosen marketing mix (product, place, price, and promotion). Distinguish the specific elements of the organization’s marketing mix and evaluate the extent to which the strategy reflected in these elements is aligned with the organization’s mission statement. What recommendations would you make to better align the organization’s marketing strategy with its mission? 3. Analyze the current and future situation with respect to the organization’s target market using the 5W Model for Customer Analysis. 4. Examine the organization’s external environment and make inferences as to the impact these external factors may have on the organization’s current and future marketing planning. 5. Identify the organization’s competitive advantage. Is the competitive advantage durable and valuable? Defend or critique the organization’s competitive advantage based upon your earlier analyses. Developing Competitive
Advantage and
Strategic Focus
CHAPTER
4
G
A
INTRODUCTION
T
Situation analysis, as discussed in Chapter 3, can generate a great deal of data and
information for marketing planning. But information, E
in and of itself, provides little
direction to managers in preparing a marketing plan. S
If the analysis does not structure the information in a meaningful way that clarifies both present and anticipated
,
situations, the manager will be unable to see how the pieces fit together. This synthesis of information is critical in developing competitive advantages and the strategic
focus of the marketing plan. As illustrated in Beyond the Pages 4.1, this synthesis
D
often comes from enhanced innovation, a stronger focus on customer needs, and
tighter integration within the firm. Understanding the E
connectedness of the external
environment is vital to enhanced innovation across A
a number of industries. How
should the marketing manager organize and use the information collected during
the situation analysis? One widely used tool is SWOT N
analysis (strengths and weakboth the internal and
nesses, opportunities and threats). A SWOT analysis encompasses
D
external environments of the firm. Internally, the framework addresses a firm’s
strengths and weaknesses on key dimensions such R
as financial performance and
resources, human resources, production facilities andAcapacity, market share, customer perceptions, product quality, product availability, and organizational communication. The assessment of the external environment organizes information on the
market (customers and competition), economic conditions,
social trends, technol1
ogy, and government regulations.
1 most effective tools in the
Many consider SWOT analysis to be one of the
analysis of marketing data and information. SWOT analysis
is a simple, straightfor2
ward framework that provides direction and serves as a catalyst for the develop3
ment of viable marketing plans. It fulfills this role by structuring the assessment
of the fit between what a firm can and cannot do T(strengths and weaknesses),
and the environmental conditions working for and against the firm (opportunities
S
and threats). When performed correctly, a SWOT analysis not only organizes data
and information, but also can be especially useful in uncovering competitive
advantages that can be leveraged in the firm’s marketing strategy. These competitive advantages help establish the strategic focus and direction of the firm’s
marketing plan.
As a planning tool, SWOT analysis has many benefits, as outlined in Exhibit 4.1.
In fact, SWOT analysis is so useful and logical that many underestimate its value
in planning. However, this simplicity often leads to unfocused and poorly
conducted analyses. The most common criticisms leveled against SWOT analysis
are that (1) it allows firms to create lists without serious consideration of the
89
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90
Chapter 4 • Developing Competitive Advantage and Strategic Focus
BEYOND THE PAGES 4.1
Innovation: The Key to Success1
Innovation is the buzzword of business in the
twenty-first century. Of course, innovation has
always been important, especially with respect
to developing new products. What has changed,
however, is the focus of innovation in most companies. The twentieth-century model of innovation was about quality control, cost cutting,
and operational efficiency. Today, innovation is
more about reinventing business processes,
collaborating and integrating within the firm,
and creating entirely new markets to meet
untapped customers’ needs. Increasing globalization, the growth of the Internet, and more
demanding customers are forcing marketers to
find innovative ways of conducting business.
An important lesson that many companies
have learned is that innovation is not always
about technology or offering the latest geewhiz product. Differences in innovation style
are apparent in Business Insider’s most recent
list of the World’s Most Innovative Companies.
The top 20 companies on the list include both
cultural icons and manufacturing giants (U.S.
companies except where noted):
Rank
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Company
Apple
Google
Samsung (South Korea)
Microsoft
IBM
Amazon
Tesla Motors
Toyota (Japan)
Facebook
Sony (Japan)
Hewlett-Packard
General Electric
Intel
Cisco Systems
Siemens (Germany)
Coca-Cola
LG Electronics (South Korea)
BMW (Germany)
Ford Motor
Dell
Several types of innovation are evident in
this list. For example, in launching the iPod,
iPhone, iPad, and the App Store, Apple combined innovations in product design, branding,
strategic alliances, and business model to create
a cultural phenomenon. Innovation at Google is
based on applications such as Google Now and
Google Drive that are not related to its ubiquitous search engine. Toyota makes the list due to
relentless manufacturing expertise, tight integration within the firm, and advancements in hybrid
technology. Asian companies (Samsung, Sony,
and LG) and German companies (Siemens and
G BMW) made a strong showing in the list as
A well.
One thing that all innovative companies
T have in common is a laser-like focus on cusE tomer needs. Innovative companies find new
ways of learning from customers in addition
S to traditional methods. For example, many
, companies closely watch blogs and online
communities to learn what customers are
thinking. Focusing on customers may not
D sound innovative, but increasing competition
shorter product cycles are forcing marketE and
ers to shift away from the price- and efficiencyA driven approaches of the past. To escape from
hell, marketers must find innovaN commodity
tion in unfamiliar places. For example, Procter
D & Gamble (number 31 on the list) launched
R Tide Pods after 8 years of research and 6,000
consumer tests. Tide Pods are ball-shaped,
A premeasured packages of detergent and fabric
softener that consumers simply toss into
the wash. A lot of the research for Tide
1 Pods was conducted at P&G’s Beckett Ridge
1 Innovation Center just outside of the company’s Cincinnati headquarters. There, P&G’s
2 researchers watched consumers to learn how
3 to make a laundry detergent that was easier
use, less confusing, and more convenient to
T to
carry.
S Innovation is also good for the bottom line.
Through increased growth, better collaboration,
and a broader product mix, the most innovative
companies are able to pull their products out of
commodity status and increase their operating
revenue. It is clear that innovation has become
a key driver of competitive advantage and
success in today’s market.
9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell – © Cengage Learning.
All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240
Chapter 4 • Developing Competitive Advantage and Strategic Focus
EXHIBIT 4.1
Major Benefits of SWOT Analysis.
Simplicity
SWOT analysis requires no extensive training or technical skills to be used successfully. The analyst
needs only a comprehensive understanding of the nature of the company and the industry in which it
competes.
Lower Costs
Because specialized training and skills are not necessary, the use of SWOT analysis can
actually reduce the costs associated with strategic planning. As firms begin to recognize this
benefit of SWOT analysis, many opt to downsize or eliminate their strategic planning
departments.
Flexibility
SWOT analysis can enhance the quality of an organization’s strategic planning even without extensive marketing information systems. However, when comprehensive systems are present, they
G
can be structured to feed information directly into the SWOT framework.
The presence of a comprehensive information system can make repeated SWOT A
analyses run more smoothly and
efficiently.
T
E
SWOT analysis gives the analyst the ability to integrate and synthesize diverse information, both of a
Sis widely known, as well as inforquantitative and a qualitative nature. It organizes information that
mation that has only recently been acquired or discovered. SWOT, analysis can also deal with a wide
Integration and Synthesis
diversity of information sources. In fact, SWOT analysis helps transform information diversity from a
weakness of the planning process into one of its major strengths.
D
E between different functional
SWOT analysis fosters collaboration and open information exchange
areas. By learning what their counterparts do, what they know, A
what they think, and how they feel,
the marketing analyst can solve problems, fill voids in the analysis, and eliminate potential disagreeN
ments before the finalization of the marketing plan.
D
R
A
Collaboration
issues and (2) it often becomes a sterile academic exercise of classifying data and
information. It is important to remember that SWOT analysis, by itself, is not inherently productive or unproductive. Rather, the way that
1 one uses SWOT analysis
will determine whether it yields benefits for the firm.
1
2
MAKING SWOT ANALYSIS PRODUCTIVE 3
Whether a firm receives the full benefits of SWOT analysis
T depends on the way the manager uses the framework. If done correctly and smartly, SWOT analysis can be a viable
mechanism for the development of the marketing plan.SIf done haphazardly or incorrectly, it can be a great waste of time and other valuable resources. To help ensure that
the former, and not the latter, takes place, we offer the following directives to make
SWOT analysis more productive and useful. Exhibit 4.2 outlines these directives.
Stay Focused
Marketing planners often make the mistake of conducting one generic SWOT analysis for the entire organization or business unit. Such an approach produces stale,
9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell – © Cengage Learning.
All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240
91
92
Chapter 4 • Developing Competitive Advantage and Strategic Focus
EXHIBIT 4.2
Directives for a Productive SWOT Analysis.
Stay Focused
A single, broad analysis leads to meaningless generalizations. Separate analyses for each product–
market combination are recommended.
Search Extensively for Competitors
Although major brand competitors are the most important, the analyst must not overlook product,
generic, and total budget competitors. Potential future competitors must also be considered.
Collaborate with Other Functional Areas
SWOT analysis promotes the sharing of information and perspective across departments. This crosspollination of ideas allows for more creative and innovative solutions to marketing problems.
Examine Issues from the Customers’ Perspective
Customers’ beliefs about the firm, itsG
products, and marketing activities are important considerations
in SWOT analysis. The views of employees and other key stakeholders must also be considered.
A
Look for Causes, Not Characteristics
T
Rather than simply list characteristics of the firm’s internal and external environments, the analyst
E
must also explore the resources possessed by the firm and/or its competitors that are the true
causes for the firm’s strengths, weaknesses,
opportunities, and threats.
S
Separate Internal Issues from ,External Issues
If an issue would exist even if the firm did not exist, the issue should be classified as external. In the
SWOT framework, opportunities (and threats) exist independently of the firm and are associated with
D
characteristics or situations present in the economic, customer, competitive, cultural, technological,
E the firm resides. Marketing options, strategies, or tactics are
political, or legal environments in which
not a part of the SWOT analysis. A
N
D
R
meaningless generalizations that
A come from the tops of managers’ heads or from
press release files. Although this type of effort may make managers feel good and
provide a quick sense of accomplishment, it does little to add to the creativity and
vision of the planning process.1
When we say SWOT analysis, we really mean SWOT analyses. In most firms,
1
there should be a series of analyses, each focusing on a specific product/market
combination. For example, a 2single SWOT analysis for the Chevrolet division of
General Motors would not be focused enough to be meaningful. Instead, separate
3
analyses for each product category (passenger cars, trucks, SUVs) or brand
T
(Silverado, Tahoe, Corvette, Impala)
in the division would be more appropriate.
Such a focus enables the marketing
manager to look at the specific mix of
S
competitors, customers, and external factors that are present in a given market.
Chevrolet’s Tahoe, for example, competes in the crowded SUV market where competitors release new models and competing crossover vehicles at a staggering
pace. Consequently, market planning for the Tahoe should differ substantially
from market planning for Chevrolet’s Corvette. If needed, separate product/market analyses can be combined to examine the issues relevant for the entire strategic business unit, and business unit analyses can be combined to create a
complete SWOT analysis for the entire organization. The only time a single
SWOT analysis would be appropriate is when an organization has only one
product/market combination.
9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell – © Cengage Learning.
All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240
Chapter 4 • Developing Competitive Advantage and Strategic Focus
Search Extensively for Competitors
Information on competitors and their activities is an important aspect of a wellfocused SWOT analysis. The key is not to overlook any competitor, whether a current rival or one on the horizon. As we discussed in Chapter 3, the firm will focus
most of its efforts on brand competition. During the SWOT analysis, however, the
firm must watch for any current or potential direct substitutes for its products. Product, generic, and total budget competitors are important as well. Looking for all four
types of competition is crucial because many firms and managers never look past
brand competitors. Although it is important for the SWOT analysis to be focused, it
must not be myopic.
Even industry giants can lose sight of their potential competitors by focusing
exclusively on brand competition. Kodak, for example, had always taken steps to
maintain its market dominance over rivals Fuji, Konica, and Polaroid in the film
industry. However, the advent of digital photography added Sony, Nikon, Canon,
and others to Kodak’s set of competing firms. And, as digital cameras became inteG Motorola, LG, and Samgrated into wireless phones, Kodak was forced to add Apple,
sung to its competitive set. Given the significant increase
A in competitive pressures
facing the firm, it is of little surprise that Kodak was forced to declare bankruptcy.
A similar trend has occurred in financial services as T
deregulation has allowed brokers, banks, and insurance firms to compete in each
E other’s traditional markets.
State Farm, for example, offers mortgage loans, credit cards, mutual funds, and traS
ditional banking services alongside its well-known insurance
products. This shift has
forced firms such as Charles Schwab and Wells Fargo, to look at insurance companies in a different light.
D
E
One of the major benefits of SWOT analysis is that it generates information and perA
spective that can be shared across a variety of functional
areas in the firm. The
SWOT process should be a powerful stimulus for communication
outside normal
N
channels. The final outcome of a properly conducted SWOT analysis should be a
D
fusion of information from many areas. Managers in sales, advertising, production,
research and development, finance, customer service, R
inventory control, quality control, and other areas should learn what other managers see as the firm’s strengths,
A
weaknesses, opportunities, and threats. This allows the marketing manager to come
Collaborate with Other Functional Areas
to terms with multiple perspectives before actually creating the marketing plan.
When combining the SWOT analyses from individual
1 areas, the marketing manager can identify opportunities for joint projects and cross-selling of the firm’s products. In a large firm, the first time a SWOT analysis 1
takes place may be the initial
point at which managers from some areas have ever2formally communicated with
each other. Such cross-pollination can generate a very conducive environment for cre3 the success of introducing a
ativity and innovation. Moreover, research has shown that
new product, especially a radically new product, is extremely
T dependent on the ability
of different functional areas to collaborate and integrate their differing perspectives.
Srelocate 200 to 300 engineerFor example, every time BMW develops a new car, they
ing, design, production, marketing, and finance employees from their worldwide locations to the company’s research and innovation center in Munich, Germany. For up to
three years, these employees work alongside BMW’s research and development team
in a manner that speeds communication and car development.2
Examine Issues from the Customers’ Perspective
In the initial stages of SWOT analysis, it is important to identify issues exhaustively.
However, all issues are not equally important with respect to developing competitive
9781337669078, Marketing Strategy: Text and Cases, Seventh Edition, O.C. Ferrell – © Cengage Learning.
All Rights Reserved. No distribution allowed without express authorization. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-240
93
Chapter 4 • Developing Competitive Advantage and Strategic Focus
G
A
T
E
S is a necessary ingredient in a well-crafted SWOT analysis.
Collaboration with other functional areas
,
Syda Productions/Shutterstock.com
94
advantages and strategic focus for the marketing plan. As the analysis progresses,
the marketing manager should identify the most critical issues by looking at each
D
one through the eyes of the firm’s customers. To do this, the manager must constantly ask questions such as: E
•
•
•
•
•
A
What do customers (and noncustomers)
believe about us as a company?
What do customers (and noncustomers)
think of our product quality, customer
N
service, price and overall value, convenience, and promotional messages in comD
parison to our competitors?
Which of our weaknesses R
translate into a decreased ability to serve customers
(and decreased ability to convert noncustomers)?
A
How do trends in the external environment affect customers (and noncustomers)?
What is the relative importance of these issues, not as we see them, but as customers see them?
1
1 gauge the perceptions of each customer segment that
Marketing planners must also
the firm attempts to target. For example, older banking customers, due to their reluc2
tance to use ATMs and online banking services, may have vastly different perceptions
3 customers. Each customer segment’s perceptions
of a bank’s convenience than younger
of external issues, such as the economy
or the environment, are also important. It matT
ters little, for example, that managers think the economic outlook is positive if custoSbecause they think the economy is weak.
mers have curbed their spending
Examining issues from the customers’ perspective also includes t…
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