Case 14 Lecture Notes
Sigma Marketing: Strategic Marketing Adaptation
Case 14 Sigma Marketing: Strategic Marketing Adaptation*
Synopsis: This case reviews the growth of a small, family-owned business, from a regional
provider of generic printing services to a global provider of specialty advertising
products. Throughout its history, Sigma Marketing has exhibited the uncanny
ability to understand market opportunities and to adapt its strategic focus
accordingly. As its marketing environment changes, Sigma Marketing gathers
information from existing and potential customers to develop the most effective
marketing strategy possible. Even in the face of changing technology,
communication, and advertising methods, Sigma Marketing has managed to
reinvent its mindset and strategies in order to remain successful.
Themes: Changing marketing environments, market opportunities, strategic focus, product
strategy, direct marketing, promotion, personal selling, implementation, customer
relationships, family-owned business
Case Summary
This case provides students an opportunity to see both long– and short-range market planning in
a small company. The case also illustrates a strategic shift from a production orientation to a
marketing orientation that is common among small, but growing firms.
Various aspects of the firm’s functions are addressed including personnel, operations, marketing,
and general administration. The story is complete and colorful because the current president of
Sigma Marketing, Mike Sapit, wrote the case. Rarely will students have an opportunity to hear
the inside story of a business like this directly from the owner. Many students may work for a
company the size of Sigma; therefore, this case should provide a look at the more personal side
of working in a small business.
The corporate plan emphasizing marketing is unique for small printers. The marketing plan
focused on building a market for the desktop calendar—a unique product that provided
flexibility in terms of unusual designs, advertising messages, photographic techniques, and other
special requirements. In spite of the success of the calendar marketing programs and attractive
profit levels, Sapit was disturbed by trends in the printing industry that pointed toward a
diminishing market and increased competition for the commercial segment, particularly in
Sigma’s local Rust Belt area.
The case also discusses Sigma’s recent developments. These insights show the need to constantly
innovate, even with products that are successful. Planning keeps the firm in line with the latest
customer needs and provides customers with an even higher level of service. Sigma’s “Total
Service Package” allows customers to localize their orders through the imprints of distributors or
branches. The added value associated with this program has led to the addition of larger
Case 14 Lecture Notes
Sigma Marketing: Strategic Marketing Adaptation
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
customers and an attractive future. The company is an ASI (Advertising Specialty Institute)
dealer and is Chain-of-Custody (CoC) certified—a designation that ensures the integrity of the
paper supply chain (forest to mill) by certifying that the paper used by Sigma comes from
responsibly managed forests. The company is also certified with the Sustainable Forestry
Initiative and the Program for the Endorsement of Forest Certification. Chain-of-Custody
certification is a response to the demands of Sigma’s customers and the company’s own desires
to reduce their environmental impact.
Teaching Overview
A major point in teaching this case is to consider the impact that a formal marketing strategy had
on the small firm. The founder, Don Sapit, was a mechanical engineer with an MBA from the
University of Chicago. Training and background prepared him to effectively use a systematic
approach toward defining markets and developing a marketing strategy. The case also
demonstrates the need to constantly monitor the needs/desires of customers and then adjust the
firm’s marketing plan accordingly (e.g. the Total Service Package).
SWOT Analysis
Internal Strengths
• Ability to understand market opportunities
• Management understands the value of strategic planning and the emphasis on marketing
Internal Weaknesses
• Dependency on one market (commercial printing), although this is improving
External Opportunities
• Stable spending in sales promotion among major companies
External Threats
• State of the economy (sales promotion has weakened in the current economic climate)
Case 14 Lecture Notes
Sigma Marketing: Strategic Marketing Adaptation
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
• Potential technological advancements could eliminate the need for the product or change
supply chain relationships
Problem/Decision Statement
What recommendations would you make for future strategic planning at Sigma Marketing?
Strategy Alternatives
1. Maintain the status quo; sustain current operations and planning activities as best as
Strategy Recommendations
Sigma Marketing should continue to market its calendar lines to full capacity. The desktop
calendar should be explored in specialty markets, so that production activities could be stabilized
Implementation Issues
Sigma is a well-tuned small business that seems to be implementing its existing strategy with no
Teaching Questions
1. Discuss potential key changes in technology, communications, and competition that
Sigma will face in the future. Which will have the most impact on Sigma’s future
marketing strategies?
Case 14 Lecture Notes
Sigma Marketing: Strategic Marketing Adaptation
2. Prepare a SWOT analysis for long-term strategic planning at Sigma Marketing.
A SWOT analysis is provided in that section of this case note.
3. Suggest some possible strategic initiatives that Sigma could pursue to continue its
growth.