PartII—ANALYZINGMARKETINGOPPORTUNITIES

Chapter4—WinningMarketsThroughMarket-OrientedStrategicPlanning

Overview

Amajorchallengeformarketing-orientedcompaniesastheyrespondtotherapidlychangingmarketplaceistoengagecontinuouslyinmarket-orientedstrategicplanning.Theymustlearnhowtodevelopandmaintainaviablefitamongtheirobjectives,resources,skills,andopportunities.Thestrategicplanningprocessiscarriedoutatthecorporatelevel,businesslevel,andproductlevel.Theobjectivesdevelopedatthecorporatelevelmovedowntolowerlevelswherebusinessstrategicplansandmarketingplan

XE"marketingplan"

sarepreparedtoguidethecompany’sactivities.Strategicplanninginvolvesrepeatedcyclesofplanning,implementation,andcontrol.

Corporatestrategicplanninginvolvesfourplanningactivities.Thefirstistodevelopaclearsenseofthecompany’smissionintermsofitsindustryscope,productsandapplicationsscope,competencescope,marketsegmentscope,verticalscope,andgeographicalscope.Awell-developedmissionstatementprovidesemployeeswithasharedsenseofpurpose,direction,andopportunity.

Thesecondactivitycallsforidentifyingthecompany’sstrategicbusinessunits(SBUs).Abusinessisbestdefinedbyitscustomergroups,customerneeds,andtechnologies.SBUsarebusinessunitsthatcanbenefitfromseparateplanning,facespecificcompetitors,andbemanagedasprofitcenters.

ThethirdactivitycallsforallocatingresourcestothevariousSBUsbasedontheirmarketattractivenessandbusinessstrength.Severalportfoliomodels,includingthosedevelopedbytheBostonConsultingGroup

XE"BostonConsultingGroup"

andGeneralElectric,areavailabletohelpdeterminewhichSBUsshouldbebuilt,maintained,harvested,ordivested.

Thefourthactivitycallsforexpandingpresentbusinessesanddevelopingnewproductstofillthestrategicplanninggap.Thecompanycanidentifyopportunitiesbyconsideringintensivegrowth(marketpenetration,marketdevelopment,andproductdevelopment),integrativegrowth(backward,forward,andhorizontal),anddiversificationgrowth(concentric,horizontal,andconglomerate).

EachSBUconductsitsownbusinessstrategicplanningthatconsistsofeightsteps:definingthebusiness’smission,analyzingtheexternalenvironment,analyzingtheinternalenvironment,choosingbusinessobjectivesandgoals,developingbusinessstrategies,preparingprograms,implementingprograms,andgatheringfeedbackandexercisingcontrol.AllofthesestepskeeptheSBUclosetoitsenvironmentandalerttonewopportunitiesandproblems.Furthermore,theSBUstrategicplanprovidesthecontextforpreparingmarketplansforspecificproductsandservices.

Marketingplan

XE"Marketingplan"

sfocusonaproduct/marketandconsistofthedetailedmarketingstrategiesandprogramsforachievingtheproduct’sobjectivesinatargetmarket.Marketingplansarethecentralinstrumentfordirectingandcoordinatingthemarketingeffort.Thedistinctionbetweenthestrategicandtacticalmarketingplansandeffortsisveryimportant,becauseifthefirmanditsmarketingorganizationfailtorecognizetheinterdependentyetseparateactivitiesinvolvedinthestrategicandtacticalmarketingefforts,theresultswillbelessthanexpected.Withouteffectivevaluedevelopmentinthestrategyplanning,whichcomefromthefirm’sresearchandanalysisprograms,thetacticalmarketingactivitieslikelywillnotbeassuccessfulaswhenthecoordinationeffortstartsfromthebeginning.

Themarketingplan

XE"marketingplan"

ningprocessconsistsoffivesteps:analyzingmarketopportunities;researchingandselectingtargetmarkets;designingmarketstrategies;planningmarketingprograms;andorganizing,implementing,andcontrollingthemarketingeffort.

Marketingplan

XE"Marketingplan"

ningresultsinamarketingplan

XE"marketingplan"

documentthatconsistsofthefollowingsections:executivesummary,currentmarketsituation,opportunityandissueanalysis,objectives,marketingstrategy,actionprograms,projectedprofitandlossstatement,andcontrols.

Toplaneffectively,marketingmanagersmustunderstandthekeyrelationshipbetweentypesofmarketing-mixexpendituresandtheirsalesandprofitconsequences.

LearningObjectives

Afterreadingthischapterstudentsshould:

Knowthecharacteristicsofhighperformancebusiness

Understandwhatismeantby“strategic〞planning

Knowthemajorstepsinstrategicplanningandtheircontributiontodevelopmentofa

successfulstrategy

Understandthestrengthsandweaknessesofthebusinessportfoliotechniques

Understandthedifferencebetweenstrategicandbusinessunitplanning

Understandthecontributionofthestepsofbusinessunitplanningtothedevelopmentofasuccessfulbusinessstrategy

Knowwhatismeantbythe“marketingmanagementprocess〞anditsvarioussteps

Understandthecontentsofamarketingplan

XE"marketingplan"

ChapterOutline

Introduction:strategicplanning:threekeyareasandfourorganizationallevels

Definitionofmarket-orientedstrategicplanning—managerialprocessofdevelopingandmaintainingaviablefitbetweentheorganization’sobjectives,skills,andresourcesanditschangingmarketopportunitiesinordertoyieldtargetprofitsandgrowth

Managingthefirm’sbusinessasaninvestmentportfolio

Assessmentbasedonmarketgrowthandthefirm’scompetitiveposition

Establishingastrategy

Fourorganizationallevelsofcorporate,division,businessunit,andproduct

Themarketingplan(strategicandtactical)

Corporateanddivisionstrategicplanning

Definingthecorporatemission

Whatisourbusiness?Whoisthecustomer?Whatisofvaluetothecustomer?Whatwillourbusinessbe?Whatshouldourbusinessbe?

Missionstatements,basedonlimitedgoals,stressmajorpoliciesandvaluesanddefinethemajorcompetitivescopesforthefirm

Establishingstrategicbusinessunits

Theorganizationshouldbeseenasasatsifierofneedsratherthanaproducerofgoods

Largecompaniesmanagedifferentbusinesses,eachrequiringitsownstrategy

Businessunitscanbedefinedintermsofcustomergroupsserved,customerneeds,andtechnology.Also,theyaredefinedbyuniquebusiness,competitor,andprofitperformancevariables

Bostonconsultinggroup

XE"BostonConsultingGroup"

approach—questionmarks,stars,cashcows,dogs

SBUstrategiesforeachofthecategories

SUBlifecycleandchangingstrategiesovertime

GeneralElectricmodel

Matrixapproach—marketattractiveness

Businessstrength

Critiqueofportfoliomodels

TheArthurD.Littlemodelandtheshelldirectional-policymodelhaveimprovedportfoliomodelcapabilitiesbutstillmustbeusedwithcaution

Planningnewbusinessesordownsizingolderbusinesses

Intensivegrowth(Ansoffmatrix)

Marketpenetrationstrategy—currentproductstocurrentmarkets

Marketdevelopmentstrategy—currentproductstonewmarkets

Productdevelopmentstrategy—newproductstocurrentmarkets

Integrativegrowth—backward,forward,orhorizontalintegration

Diversificationgrowth—newproductstonewmarkets.Threetypesarepossible:concentric,horizontal,andconglomerate

Downsizingolderbusinesses—topursuegrowthcompaniesmustnotonlydevelopnewbusinessesbutalsocarefullydivesttiredoldbusinesses

Businessunitstrategicplanning

Businessmission—eachbusinessunitmustdefineitsspecificmission

SWOTanalysis

Externalenvironmentanalysis(opportunityandthreatanalysis)

Environmentalscanninganalysis—discerningnewmarketingopportunities

Marketingopportunitiesanalysis—classifiedaccordingtoattractivenessandprobabilityofsuccess

Internalenvironmentanalysis(strengthsandweaknessanalysis)

Goalformulation—establishobjectivesthatarespecificwithrespecttomagnitudeandtime

Strategicformulation—gameplanforachievingthestatedobjectives

Threegenerictypesofstrategicthinking

Porter’sgenericstrategies:overallcostleadership,differentiation,andfocus

Operationaleffectivenessandstrategy—basedonstrategicgroupstoachievedistinctivemarketpositions

Strategicalliances

Intheformofmarketingalliances—productorservice,promotional,logistical,pricingcollaborations

Partnershiprelationshipmanagement—tocomplementorleverageexistingmarketingcapabilitiesandresources

Programformulationandimplementation

Developdetailedprogramstosupportthestrategy

Implementation

XE"Implementation"

—McKinsey

XE"McKinsey"

7-Sframework

Feedbackandcontrol—afirmmusttracktheresultsofitsstrategy

Marketingprocess

Value-deliverysequence

Stepsintheplanningprocess(seecharts)

Analyzingmarketingopportunities

Developingmarketingstrategies

Planningmarketingprograms—themarketingmix

Managingthemarketingeffort

Productplanning:thenatureandcontentsofamarketingplan

Contentsofthemarketingplan

Executivesummaryandtableofcontents

Currentmarketingsituation

Opportunityandissueanalysis(opportunities/threatsanalysis,strengths/weaknessesanalysis,issuesanalysis)

Objectives(financial,marketing)

Marketingstrategy

Actionprograms

Financialprojections

Implementationcontrols

Samplemarketingplan—sonicpersonaldigitalassistant

Summary

Lecture—EstablishingaWinningStrategicPlanningFormula

ThislectureisintendedforusewithChapter4,“WinningMarkets:Market-OrientedStrategicPlanning.〞Thefocusisonstrategyinamarket-orientedsettingandspecificallytheroleandvalueofselectingclearandeffectiveapproachesintheoverallmarketingprocessandstrategyforthecompanyororganization.Thediscussionbeginsbyconsideringexamplesofparticularstrategiesasameansofmaintainingorincreasingthefirm’smarketposition.Thisleadsintoadiscussionoftheimplicationsfortheintroductionofrelatedstrategiesforthefirmandtheindustry.

TeachingObjectives

Tostimulatestudentstothinkaboutthecriticalissues,proandcon,forafirmwhenitmovestowardadoptionofamarket-orientedstrategy

Toconsiderandreinforcevariouspointsfromthemarketingenvironmentbeforeproceedingwithspecificstrategyplansandprograms

Todescribeandillustratetheprocessesandpoliciesutilizedinhelpingthefirmachieveabalancedstrategicpositionwithintheindustry

Discussion

Introduction

Intheyearsfollowingtheenergycrisesofthe1970s,ourstyleoflivinghaschangedconsiderably.Mostbusinessestodayareforcedtodealstrategicallywithaglobalworldinwhichmarketsexperiencelittleornorealgrowth.Therehavebeenattemptstofindawayto“re-strategize,〞“restructure,〞and“downsize〞inordertoovercomethismalaise.Unfortunately,virtuallynoneoftheseapproacheshaveworked,andmanyoftheorganizationsthattriedthemarenolongeraround.

Thefirmsthatdowelltendtoemploysimplestrategiesinwhichtheyidentifyrealcustomersandgivethosecustomerswhattheywant.Thesefirmsrecognizethatcustomerschooseoneproductorserviceoveranotherforaverysimplereason:Theybelieveit’sabettervaluethantheycouldexpecttogetfromthealternatives.Amongthemoresuccessfulendeavorsinthisareaarefirmsthatrecognizetheconsumer’sdesireforvalueandhigh-qualityproductsandengageinmarketingstrategyandactivitytoraisetheperceptionoftheirproductfromacommoditytoadifferentiatedproduct.Theyalsopursueapolicydesignedtoofferacombinationof“high-tech〞and“high-touch,〞dependingontheneedsofthetargetmarket(s).

ObsolescenceorSuccess?—Strategy,theCustomer,andCompetitiveAdvantage

Inattemptstoensurethattheirproductorserviceisavalueleader,manyfirmshavegonethewayofthehorseandbuggy,settingthemselvesupforobsolescence.Althoughmostfirmsprofesstofollowacceptedaccountingprinciples,withrelativelyuniformdescriptionsoffinancialgoalsandfinancialmeasurements,fewfirmshaveevermovedtowardasimilaracceptanceofstrategydevelopmentrules.Iffirmsreallybelievedintheconceptsofcustomervaluecreationandincorporatedthemintotheircorporatephilosophies,therewouldbefarfewerbusinessfailures.Therehasbeenlittleagreementonhowthecomponentsofcompetitiveadvantageshouldbepursuedorhowtomeasureprogress.Thishasmadeithardforpeopleinorganizationstoworktogethertoachievecompetitivesuccess.

Theobjectiveineffectivestrategicplanningshouldbebasedontherecognitionthatcompaniessucceedbyprovidingsuperiorcustomervalue.Ofcourse,valueissimplyquality,howeverthecustomerdefinesit,offeredattherightprice.Thisclearstrategicprincipleisbothsimpleandpowerfulbecausesuperiorcustomervalueisthebestleadingindicatorofmarketshareandcompetitiveness.And,marketshareandcompetitivenessinturndrivetheachievementoflong-termfinancialgoalssuchasprofitability,growth,andshareholdervalue.

Manycorporations,includingGeneralElectric,AT&T,andothers,havedevelopedstrategy-makingprogramstoprovethatthesestrategyconsiderationsarevalid.Technicalimprovementinthequalityofproductstendstobefollowedinthreetosixmonthsbychangesintheconsumerperceptionofthequalityofthoseproducts.Changesinperceivedquality,ontheotherhand,arefollowedameretwomonthsafterwardbychangesinmarketshare.

Thefirststeptowardachievingleadershipinmarket-perceivedqualityandvalueistounderstandwhatcausescustomersinthetargetedmarkettomaketheirdecisions—todecidethatoneproductoffersbettervaluethananother.Thisunderstandingisthemostimportantobjectiveofacustomervalueanalysis.

Thefactorsthatcontributetoqualityinthecustomer’smindarenotmysteries.Customerscanreadilytellaresearcherwhatthecriticalvaluefactorsaretohimorher.Acustomervalueanalysisusesconsumervalueandpurchasinginformationtoshowhowconsumersmakedecisionsinthemarketplace.Withthisinformation,managersshouldbeabletounderstandwhatchangesshouldbemadetoensurethatmoreoftheircustomerswouldbuyfromthefirm.

Thesimplestcustomervalueanalysisconsistsoftwophases.First,thefirmshouldcreateacustomervalueprofilethatcomparestheirperformancewiththatofoneormorecompetitors.Thiscustomervalueprofileitselfusuallyhastwoelements:amarket-perceivedqualityprofileandamarket-perceivedpriceprofile.Theformersummarizestheaspectsofthemarketplacethatareusuallyeasiesttochangetoimprovethebusiness.Inmanymarkets,market-perceivedpricemaybeagreaterdriverofcustomerdecisionsthanmarket-perceivedquality;however,cuttingpriceswon’tusuallyimprovethebottomlineforthefirm,despitesomecommonmisconceptions.

Developingaqualityprofile.Themarket-perceivedqualityprofile.Thischartdoesthreethings:

Itidentifieswhatqualityreallymeanstocustomersinthemarketplace.

Ittellswhichcompetitorsareperformingbestoneachaspectofquality.

Itprovidesoverallqualityperformancemeasuresbasedonthedefinitionofqualitythatcustomersactuallyuseinmakingtheirpurchasedecisions.

Theprocessofcreatingamarket-perceivedqualityprofileisrelativelysimple.Herearethesteps:

Askpeopleinthetargetedmarket,boththefirm’scustomersandthoseofthecompetitors,tolistthefactorsthatareimportantintheirpurchasedecisions.Thiscanbedoneinfocusgroupsorindividually.

Usingeitherapproachitispossibletoestablishhowthevariousqualityattributesareweightedinthecustomer’sdecision.

Customersalsomaybeaskeddirectlyhowtheyweightthevariousfactors.

Also,customersmaybeabletorate,onascaleof1to10,theperformanceofeachbusinessoneachcompetingfactor.

Multiplyeachbusiness’sscoreoneachfactorbytheweightofthatfactorandaddtheresultstogetanoverallcustomersatisfactionscore.

CustomerValueAnalysis

Thesecondphaseofthecustomervalueanalysisfollows:Oncethecustomervalueprofilehasbeenestablished,itispossibletodrawacustomervaluemap(seeKotlertext).

Veryfewcompanieshavedevelopedcustomervalueanalysis/profilesandfewerstillhavecustomervaluemaps,butexecutivesoftenarguethatmostoperatingmanagershavean“implicitmodel〞intheirheads.Managerssupposedlyhavea“feel〞forwhotheircompetitorsare,forwhatisimportanttopurchases,andforhowtheircompanyperformsversuscompetitors.

Sometimesinorganizationswithexceptionallygoodleadership,theseimplicitmodelsworkwellandaretrulyalignedtotherealneedsofcustomers.Butmarketersshouldcheckthesituationintheirorganizations.ThiscanbedoneviatheDelphitechniquebysimplyaskingtop-rankingmembersofthemanagementteamtoproduce,individually,apictureofthecustomervalueprofileforthebusinessanditskeycompetitors.

Ifitisdeterminedthatalltopmanagershavesimilaropinions,thereisareasonablechancethattheimplicitmodelsintheirheadsareaccurate.Thisisparticularlytrueifseveralmembersofthetop-managementteamspendmostoftheirtimewithcustomers.Butthefirmshouldcheckmanagementperceptionscarefullytoensurethatthepurchase-selectioncriteria,weights,andrelativeperformancescoresareappropriatelyalignedwithinthemanagementgroup—andwithcustomersinthetargetedmarket.

Mostorganizationsfindthatwhentheymakethisimplicitmodelcheckthereismuchlessalignmentwithintheorganizationthanwasexpected.Thus,ifthemanagerscan’tagreeamongthemselvesaboutthepurchasecriteriaanddesiresofthecustomers,itisunlikelytheycanachieverapidprogresstowardfulfillingthoseneeds.

Conclusion

Akeyimplicationisthatfirmsthattendtobasetheirbusinessstrategymoreonthebasisofaccountingprinciplesalonefundamentallyhamstringtheirefforts.Anincomestatementprovidesonlyafinancialhistory.Ittellsmuchaboutthecomponentsofsalesandcostsandtheamountofresultingprofit,buttheaccountingdatawillnottellmuchaboutwhysalesaregrowingorshrinking.

Bycontrast,thecustomervaluemapshowswherethefirmrankswiththecustomer,comparedtothecompetition.Thecustomervalueprofileshowswhycustomersrankonefirmhigherorlowerthanthecompetitors.Thus,theincomestatementlooksatthepastwhilecustomervaluemapsandcustomervalueprofileslooktothefuture.

MarketingandAdvertising

1. Strategicalliancesareextremelycommonintheairlineindustry.TheadinFigure1,whichappearedinabusinessmagazine,promotestheNorthAmericanalliancebetweenAeroMexicoandDeltaAirlines.ThisallianceallowsbusinesstravelersandvacationerstoconvenientlyflybetweenmanydestinationsinMexicoandtheUnitedStates.

Inwhichofthefourmajorcategoriesdoesthisstrategicalliancefit?

Whatbenefitsdoesthisallianceofferthetwopartners?Whatbenefitsdoesitofferthepartners’customers?

Whatthreatsandopportunitiesmightconfrontthepartnersinthisalliance?

Answer

ThealliancebetweenAeroMexicoandDeltaisaservicealliance,withthegoalofencouragingtravelerstouseoneoftheairlinestoconnecttoflightsontheother.Theirserviceareasarecomplementary,sothealliancewillbenefittheairlinesaswellastheircustomers.Thisissecondarilyapromotionalalliance,becausethetwoairlinesadvertisejointlyandtravelerscanchoosetohavefrequent-flyermiles(apromotionaldevice)creditedandredeemedoneitherofthetwoairlines.

ThetwopartnersbenefitfromtheincreasedpatronageofcustomerswhowantasimpleandconvenientwaytoflyfromtheUnitedStatestoMexicoorviceversa.Theyalsobenefitfromlowercostsbecauseofsharedpromotionalexpensesandfromtheabilitytoreachamuchlargeraudiencethroughtheirjointmarketingcommunications.Thecustomersbenefitbecausetheycanbookmoreconvenientflightsfromalocationinonecountrytoalocationintheother.Theyalsobenefitfrombeingabletoearnandredeemfrequent-flyermilesoneitherairline,offeringmoreflexibilityinchoosingrewardsforloyalty.

TwothreatsthattheallianceofDeltaandAeroMexicomayhavetoconfrontinclude:lowerdemandfortravelbetweentheUnitedStatesandMexicoandthepossibilitythatoneairline’sproblems(suchasacrash)mayaffectcustomers’perceptionsoftheotherpartner.Twoopportunitiesare:ChangesinU.S.orMexicanimmigrationpoliciescouldstimulatehigherdemandforairtravelbetweenthetwocountriesandrisingincomeamongMexicanfamiliescouldencouragemorepeopletotraveltotheUnitedStatestoseefriendsandrelatives.Again,studentswillhavemanyideasaboutthreatsandopportunities.

2. Ernst&Young’sspecialistsareequippedto“morethanjustadviseonthetaximplicationsofdoinginternationalbusiness,〞astheadinFigure2explains.Intoday’sglobaleconomy,moreandmorecompaniesneedprofessionalhelptobesuretheiraccountingandfinancialactivitiescomplywiththeregulationsofeverycountrywheretheydobusiness.

a. IsthestrategybeingusedbyErnst&Youngoneofcostleadership,differentiation,orfocus?Howdoesthisadsupportthecompany’sstrategy?

WhatfeedbackmechanismsmightErnst&Youngusetolearnabouttheeffectofthecampaignthatincludesthisad?

WhichfactorsinthemacroenvironmentmightexertthemostinfluenceonErnst&Young’splanstomarketitsforeigntaxservices?

Answer

a. Ernst&Young’sstrategyappearstobeoneoffocus,herecenteringonthespecificsegmentofbusinessesthatneedforeigntaxadvice.Ernst&Youngisusingdifferentiationinitsfocusstrategy.Thisadsupportsthecompany'sstrategybygraphicallyandverballysuggestingthatErnst&Younghasmanyforeigntaxspecialists—whoknowmoreaboutglobalbusinessandtaxissues—keyattributesthatdifferentiatethisfirmfromcompetitors.

b. TwofeedbackmechanismsErnst&Youngmightusetolearnaboutmarketreactiontothisadare(1)solicitcustomer/prospectcommentsonitsWebsiteand(2)conductmarketingresearchtogatherfeedbackfrombusinessesinthetargetedsegment.Studentsmaysuggestadditionalmethods.

c. Twomacroenvironmentalforcesthatmayparticularlyaffectthefirm’splanstomarketforeigntaxservicesareeconomicforces(whichinfluencesales,profits,and—often—cost-consciousnessofprospects)andpolitical-legalforces(becauselegal,regulatory,orpoliticalchangesmaypromptaprospectivecustomertoconsiderusingErnst&Youngratherthanhandlingitsownforeigntaxreportingorusingadifferentfirmtodoso.Studentsmaymakeconvincingcasesforothermacroenvironmentalforces,aswell.

3. **BONUSAD--SeeCompanionWebsite!Gillettekeepsitscompetitiveedgebyinvestinginresearchanddevelopmenttocreatenewrazorsandbladeslaunchedwiththesupportofmassivemarketingcampaigns.TheMach3featuredintheadinFigure1looksabitdifferentthanmostmen’srazorsbutpromisesthecovetedbenefitofacloseshave.

a. Isthisproductanexampleofamarket-penetration,product-development,market-development,ordiversificationstrategyforgrowth?

b. WhatinternalstrengthshasGilletteappliedtodevelopandmarketthisproduct?

c. WhatexternalthreatsmightGillettewanttomonitorinmarketingthisproduct?

Answer

a. Thisisanexampleofproduct-developmentstrategy,becauseitisanewproductforacurrentmarket(themarketformen'sshavingproducts).

b. Gilletteisclearlyapplyingitsinternalstrengthsinshavingtechnology,newproductdevelopment,andmarketing(includingtargetingandpromotion).Studentsmaysuggestotherstrengths,aswell.

c. Studentsmaycitevariousthreats,includingcompetitiveresponsestothisproductintroduction,changesincustomerpreferencesandbuyingpatterns,anddistributors’reactiontocarryingmoreinventoryofthisandothernewproducts.

OnlineMarketingToday

Reflect,setupbyProcter&Gamble(P&G),isapplyingcustomizationtotakeadvantageofaNewEconomyopportunityinbeautyproducts.Insteadofsellingstandard,brandedproducts,Reflectinvitescustomerstologon,getbeautyadvice,andthenclicktocustomizecosmeticsandfragrancesfortheirindividualneedsandtastes.Thecompanyevenallowscustomerstopersonalizethepackagingandchoosefromdifferentlogos.AP&GmanufacturingplantinNewYorkformulatesproductsaccordingtocustomerspecifications,andaservicecenterinOhiohandlescustomerinquiries.VisitReflect(fle)andfollowthe“AboutUs〞linktoreadaboutthecompany’’sabilitytofullyexploititsmarketopportunity?WhatstrengthscanReflectbuildontoovercomethesethreats?WhatweaknessesshouldReflectbearinmindasitformulatesitsmarketingstrategy?

Answer

Reflectcouldhavedifficultyexploitingitsmarketopportunityif’’sstrengthsincopingwiththreatsare:thefinancialstabilityofparentProcter&Gamble,themarketingandproductionsavvyofProcter&Gamble,thecompany’sabilitytocrossgeographicborderstoreachfaster-growingmarketsbyestablishinglocallanguageversionsofReflect.However,P&G’slargesizeandrelativeinflexibilitycouldbeaweaknessindealingwithsuddenthreatsandopportunities.SuggestthatstudentsusetheChecklistforPerformingStrengths/WeaknessesAnalysisinChapter4topromptadditionalideasaboutstrengthsandweaknesses.

You’retheMarketer—SonicPDAMarketingPlan

Everymarketingplanmustincludethecompany’smissionandfinancialandmarketingobjectivestoguidetheimplementationofspecificstrategiesandprogramsduringtheperiodcoveredbytheplan.Themarketingplanshouldalsoindicatethemajorcompetitivescopeswithinwhichthebusinesswilloperate.

Asshowninthesamplemarketingplan,Sonicisastart-upcompanythatwillsoonintroduceanewmultifunctionpersonaldigitalassistant(PDA)tocompetewithproductsmadebyPalm,Handspring,andothers.AsanassistanttoJaneMelody,Sonic’schiefmarketingofficer,youhavebeenassignedtodraftamissionstatementfortopmanagement’sreview.YouarealsoexpectedtosuggesthowSonicshoulddefineitscompetitivescopesandrecommendanappropriategenericcompetitivestrategyforthebusiness.Usingyourknowledgeofmarketing,theinformationyouhaveaboutSonic,andlibraryorInternetresources,answerthefollowingquestions:

WhatshouldSonic’smissionbe?

Inwhatcompetitivescopes(industry,products