34 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
SEMESTER PROJECT
As outlined in Chapter 2, the strategic planning process begins with an assessment of the organization’s
current state. This task is generally accomplished through a SWOT analysis. In order to plan a successful
career, you too must understand your strengths and weaknesses. This exercise is designed to help you
conduct a personal SWOT analysis.
Step 1: Internal Assessment
The first step is to begin with a self-assessment. There are many tools available to help you identify your
own strengths and weaknesses. The following website contains a wide variety of tools to assist you in
Step 2: External Assessment
Personality testing is used to help you identify careers which make best use of your personality type.
Organizations also use personality testing to identify ideal job candidates, testing applicants to determine
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 35
CHAPTER QUIZ
1. A long-term view, or vision, of what an organization wants to become is called a
a. vision statement.
b. purpose statement.
c. mission statement.
d. marketing plan.
e. strategic vision.
2. ______ refers to the coordination of internal exchanges between the organization and its employees
to better achieve successful external exchanges between the organization and its customers.
3. The questions “Who are our customers?” and “What is our core competency?” are answered in the
firm’s
a. business plan.
b. strategic window.
c. mission statement.
d. market opportunity statement.
e. marketing plan.
4. Products that have a relatively low market share and low prospects for growth are considered by the
Boston Consulting Group to be ___________.
a. dogs
b. cash cows
c. stars
d. cash contributors
e. question marks
36 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. Identify the major components of strategic planning, and explain how they are interrelated.
The major components of strategic planning include analysis of the organization’s strengths and
2. Explain how an organization can create a competitive advantage at the corporate strategy level
and at the business unit strategy level.
A competitive advantage exists when an organization matches its core competency to opportunities it
has discovered in the marketplace. One way a firm can achieve a competitive advantage at the
3. What are some issues to consider in analyzing a firm’s resources and opportunities? How do
these issues affect marketing objectives and marketing strategy?
The strategic planning process begins with an analysis of the marketing environment, including
4. What is SWOT analysis and why is it important?
A SWOT analysis outlines the internal strengths and weaknesses of a firm and the external
5. How can an organization make its competitive advantages sustainable over time? How difficult
is it to create sustainable competitive advantages?
A sustainable competitive advantage is one that the competition cannot copy in the foreseeable future.
6. How should organizations set marketing objectives?
A marketing objective states what is to be accomplished through marketing activities. These
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 37
7. What are the two major parts of a marketing strategy?
The two major parts of a marketing strategy are selecting a target market and creating a marketing
8. When considering the strategic planning process, what factors influence the development of a
marketing strategy?
A marketing strategy should match the organization’s corporate strategy and help the organization to
9. Identify and explain the major managerial actions that are a part of managing the
implementation of marketing strategies.
The implementation of marketing strategies requires managers to organize the marketing department
10. Which element of the strategic planning process plays a major role in the establishment of
performance standards? Explain.
As part of the strategic planning process, marketers set marketing objectives that indicate what a
11. When assessing actual performance of a marketing strategy, should a marketer perform
marketing cost analysis? Why or why not?
Marketers should perform marketing cost analysis to get a complete picture of marketing activities. A
12. Identify and explain the major components of a marketing plan.
The major parts of a marketing plan include the executive summary, which provides an overview of
the entire marketing plan; the environmental analysis, which supplies information about the
company’s current situation with respect to the marketing environment, the target market, and the
38 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 39
ANSWERS TO APPLICATION QUESTIONS
1. Contact three companies that appear to be successful. Ask one of the company’s managers if he
or she would share with you the company’s mission statement or organizational goals. For
many companies, the mission statement and organizational goals can also be found on the
company’s webpage. Obtain as much information as possible about the mission statement and
organizational goals. Discuss how the statement matches the criteria outlined in the text.
2. Assume you own a new, family-style restaurant that will open for business in the coming year.
Formulate a long-term goal for the restaurant, and then develop short-term goals to help you
achieve the long-term goal.
Students should focus on setting realistic goals and getting regular feedback on performance to ensure
3. Amazon.com identified an opportunity to capitalize on a desire of many consumers to shop at
home. This strategic window gave Amazon.com a very competitive position in a new market.
Consider the opportunities that may be present in your city or your region. Identify a strategic
window, and discuss how a company could take advantage of this opportunity. What types of
core competencies are necessary?
4. Marketing units may be organized according to functions, products, regions, or types of
customers. Describe how you would organize the marketing units for the following:
a. A toothpaste with whitener; a toothpaste with sensitivity protection; a toothpaste with cinnamon
5. Create a SWOT analysis for Ford based on Case 2.2. Rank each of the strengths, weaknesses,
opportunities, and threats from 1 to 10 depending on how significant you feel they are to the
company. Do you feel Ford has a high competitive position relative to other automobile
companies?
Student responses will vary for each part of the question, but they short support each of their answers
40 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
ANSWERS TO INTERNET EXERCISE
Sony
Internet analysts have praised Sony’s website as one of the best organized and most informative on the
Internet. See why by accessing www.sony.com.
1. Based on the information provided on the website, describe Sony’s SBUs. Does Sony have SBUs
that are divisions, product lines, or some other profit center structure within the parent
company Sony?
Sony’s SBUs are first divided by global regions. It’s U.S. businesses are divided into the following
units:
2. Based on your existing knowledge of Sony as an innovative leader in the consumer electronics
industry, describe the company’s primary competitive advantage (i.e., what makes Sony
strategically unique?). How does Sony’s website support this competitive advantage?
Sony’s consumer electronics set the standard for many consumers. Students may cite the PlayStation3
or BluRay players as examples of industry-leading products. However, these products are successful
3. Assess the quality and effectiveness of Sony’s website. Specifically, perform a preliminary
SWOT analysis comparing Sony’s website with other high-quality websites you have visited.
Students should asses all aspects of the website, including ease of use, content, interactivity, and how
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 41
ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The Interactive Marketing Plan exercise can be found at www.cengagebrain.com.
1. Can you identify the core competencies of your company? Do they currently contribute to a
competitive advantage? If not, what changes could your company make to establish a
competitive advantage?
Students should identify the core competencies of the company they selected. As an example,
2. Conduct a SWOT analysis of your company to identify its strengths and weaknesses. Continue
your analysis to include the business environment, discovering any opportunities that exist or
threats that may impact your company.
In order to answer this question, students are required to provide a SWOT analysis of their selected
3. Using the information from your SWOT analysis, have you identified any opportunities that are
a good match with your company’s core competencies? Likewise, have you discovered any
weaknesses that could be converted to strengths through careful marketing planning?
Students are required to discuss whether they have identified any opportunities that are a good match
42 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
COMMENTS ON THE CASES
VIDEO CASE 2.1: WHITE ROCK’S SPARKLING PAST POINTS THE
WAY TO ITS MARKETING FUTURE
Summary
This case describes the marketing strategies that White Rock used to revitalize its brand and grow in a
highly competitive beverage industry. Although White Rock sparkling water was once popular, by the
end of the 20th century, the company’s growth had stagnated. To bring its brand back from the brink,
White Rock changed several elements of its marketing mix. The company’s branding focuses on its rich
history as well as the nutritional benefits of its products. White Rock introduced new packaging by
changing its containers and is diversifying its product mix by acquiring other brands with high growth
potential. The company also uses a hybrid distribution system and quality customer service to
differentiate its brands from competitors. With this new marketing mix, White Rock plans to expand its
market and increase sales.
Questions for Discussion
1. How would you describe White Rock’s strengths, weaknesses, opportunities, and threats?
Students may want to answer this question in a SWOT matrix (see Figure 2.4). Student answers will vary,
but some answers may include:
2. What do you think White Rock should do to gain competitive advantage?
Students may have different solutions for this question. Students may suggest that White Rock expand its
3. What elements of the marketing mix could White Rock change to improve its marketing
strategy?
The third question asks students to consider what elements of the marketing mix that White Rock could
change to improve its marketing strategy. Technically, White Rock could change all elements of the
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 43
CASE 2.2: FORD’S HARD-DRIVING STRATEGY FOR COMPETITIVE
ADVANTAGE
Summary
This case discusses how Ford’s “One Ford” strategy is creating a competitive advantage and helping the
company to recover from the recession. This strategy reduces costs while maintaining a focus on
customers as the foundation for everything the company does. Ford changed several parts of its marketing
Questions for Discussion
1. What is Ford’s corporate strategy? Describe Ford’s marketing strategies. How should Ford
alter its corporate and marketing strategies?
“One Ford” summarizes Ford’s corporate strategy of meeting the needs of customers across world
2. What are Ford’s core competencies, and how is the company using these in its “One Ford”
program?
Ford’s core competencies are its engineering and manufacturing expertise and its in-depth understanding
3. How can Ford use performance evaluation to stay on course toward the goals it seeks to
achieve?
Ford can use performance evaluation to compare its performance before and after the “One Ford” strategy
44 Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
STRATEGIC CASE 1: CONSUMERS TAKE A SHINE TO APPLE INC.
Summary
This case discusses how Apple Inc. uses its marketing mix to inspire intense customer loyalty and
create a strong brand. Although students may be familiar with Apple’s innovative products, the
company’s pricing, distribution, and promotion strategies are also cutting–edge and designed to
Questions for Discussion
1. How has Apple implemented the marketing concept?
According to the marketing concept, a firm should try to provide products that satisfy customers’
2. Describe the role of Apple stores as an important part of its marketing strategy.
Apple stores allow Apple to control the distribution element of the marketing mix. Everything in the
3. What will Apple need to do to maintain product innovation and customer loyalty?
Student answers may vary, but they will probably focus on the changes at Apple after Steve Jobs’
Chapter 2: Planning, Implementing, and Controlling Marketing Strategies 45
INSTRUCTIONS FOR ROLE-PLAY TEAM CASE
ROLE-PLAY TEAM CASE EXERCISE 1: BIRMINGHAM HILL
CHEESE COMPANY
This role-play team case exercise is designed to simulate actual marketing decision making in the real
world. Students take on assigned roles and then participate in a team discussion of the case.
Preparation
Break the class into teams of 5. The entire team should read the Background section.
Each student will take on a role of a particular employee within the organization. Even though all of the
The roles for Birmingham Hill Cheese Company are:
• Ted Yancey, Co-Owner
Team Meeting
Students should try to accurately represent the motivations and interests of their individual roles during a
team discussion (15-45 minutes depending on class activities). Teams should discuss each of the issues in
the case and complete any activities mention in the Background section.
The issues for Birmingham Hill Cheese Company include:
• A rival cheese maker may be coming out with a cheese identical to what Birmingham Hill
was selling.
This case will require students to complete the following activities:
• Complete a SWOT analysis to identify at least two strengths, opportunities, weaknesses, and
threats
This may be used solely as an in-class activity, or students can finalize reports outside of class.
Class Discussion (optional)
After the team meetings, instructors may choose to have teams discuss their findings and solutions
with the class. Students may also want to talk about some of the interpersonal dynamics in their
teams and their experiences as they worked toward a solution.