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MKT 850 Study Guide
Chapter 5
* SWOT Analysis:
* One of the most useful tools in analyzing marketing data and information * Links company’s situation analysis and development of marketing plan * Uses structured information to uncover competitive advantages and guide selection of the strategic focus of the marketing strategy. * Broken down into:
* Strengths, Weaknesses, Opportunities & Threats * Productive SWOT (manager should…) :
* Use a series of SWOT analyses focusing on specific product/market combinations * Search for competitors both present and future
* Collaborate with other functional areas by sharing information and perspectives * Examine issues from the customers perspective by asking employees: * What do customers believe about us as a company?
* Which of our weaknesses translate into a decreased ability to serve customers? * Looks for causes not characteristics considering the firms resources for each part * Separate internal and external issues using this key test: * Would this issue exist if the firm did not exist? * If yes, issue classified as external
* Strengths & Weaknesses:
* Exist because of resources by the firm, or due to the nature of key relationships between the firm and its customers/employees/outside organizations * May be leveraged into capabilities (strengths) or overcome (weaknesses) * Meaningful only when they assist or hinder the firm in satisfying customer needs * Opportunities & Threats:
* Not potential marketing actions. Issues/situations that occur in the firm’s external environments. * Not ignored as the firm gets caught up in developing strengths and capabilities for fear of creating an efficient, but ineffective organization. * Stem from changes in the competitive, customer, economic, political/legal, technological, and sociocultural environments. * SWOT Matrix:
* Allows marketing manager to visualize the analysis
* Serves as a catalyst to guide the creation of marketing strategies that will produce desired results. * Allows manager to see how strengths and opportunities might be connected to create capabilities that are key to meeting customer needs * Assesses the magnitude and importance of each strength/weak/opp/threat. * Competitive Advantage:
* Capabilities in relations to those held by the competition * Based on both internal and external factors
* Based on reality and customer perception
* Based on the basic strategies of operational excellence, product leadership, and customer intimacy. * Strategic Focus Establishment
* Based on developing an overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy * Tied to firm’s competitive advantage
* Use results of SWOT as firm considers four directions of strategic efforts: * Aggressiveness
* Diversification
* Turnaround
* Defensiveness
* Ensures the firm does not step beyond core strengths to consider opportunities outside its capabilities * Visualized through the use of a strategy canvas where the goal is to develop a value curve that is distinct from the competition * Downplay traditional industry competitive factors in favor of new approaches * Lays groundwork for development of marketing goals and objective, connects SWOT outcomes to the rest of the marketing plan. * Marketing Goals:
* Broad, desired accomplishments started in general terms. * Indicate the direction the firm attempts to move in, as well as the set of priorities will use in evaluating alternative and making decisions. * Should be attainable, realistic, internally consistent, comprehensive, and clarify the roles of all parties in the organization. *...
Chapter 5
* SWOT Analysis:
* One of the most useful tools in analyzing marketing data and information * Links company’s situation analysis and development of marketing plan * Uses structured information to uncover competitive advantages and guide selection of the strategic focus of the marketing strategy. * Broken down into:
* Strengths, Weaknesses, Opportunities & Threats * Productive SWOT (manager should…) :
* Use a series of SWOT analyses focusing on specific product/market combinations * Search for competitors both present and future
* Collaborate with other functional areas by sharing information and perspectives * Examine issues from the customers perspective by asking employees: * What do customers believe about us as a company?
* Which of our weaknesses translate into a decreased ability to serve customers? * Looks for causes not characteristics considering the firms resources for each part * Separate internal and external issues using this key test: * Would this issue exist if the firm did not exist? * If yes, issue classified as external
* Strengths & Weaknesses:
* Exist because of resources by the firm, or due to the nature of key relationships between the firm and its customers/employees/outside organizations * May be leveraged into capabilities (strengths) or overcome (weaknesses) * Meaningful only when they assist or hinder the firm in satisfying customer needs * Opportunities & Threats:
* Not potential marketing actions. Issues/situations that occur in the firm’s external environments. * Not ignored as the firm gets caught up in developing strengths and capabilities for fear of creating an efficient, but ineffective organization. * Stem from changes in the competitive, customer, economic, political/legal, technological, and sociocultural environments. * SWOT Matrix:
* Allows marketing manager to visualize the analysis
* Serves as a catalyst to guide the creation of marketing strategies that will produce desired results. * Allows manager to see how strengths and opportunities might be connected to create capabilities that are key to meeting customer needs * Assesses the magnitude and importance of each strength/weak/opp/threat. * Competitive Advantage:
* Capabilities in relations to those held by the competition * Based on both internal and external factors
* Based on reality and customer perception
* Based on the basic strategies of operational excellence, product leadership, and customer intimacy. * Strategic Focus Establishment
* Based on developing an overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy * Tied to firm’s competitive advantage
* Use results of SWOT as firm considers four directions of strategic efforts: * Aggressiveness
* Diversification
* Turnaround
* Defensiveness
* Ensures the firm does not step beyond core strengths to consider opportunities outside its capabilities * Visualized through the use of a strategy canvas where the goal is to develop a value curve that is distinct from the competition * Downplay traditional industry competitive factors in favor of new approaches * Lays groundwork for development of marketing goals and objective, connects SWOT outcomes to the rest of the marketing plan. * Marketing Goals:
* Broad, desired accomplishments started in general terms. * Indicate the direction the firm attempts to move in, as well as the set of priorities will use in evaluating alternative and making decisions. * Should be attainable, realistic, internally consistent, comprehensive, and clarify the roles of all parties in the organization. *...
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