Marketing Plan Project: Phase 3You are continuing to develop your marketing plan project for final delivery in Unit VII. In this portion of the project, you will be addressing the financials, forecast

MBA 5841, Strategic Marketing 1 Cou rse Learning Outcomes for Unit V Upon completion of this unit, students should be able to: 5. Create a budget to include marketing, financial, and production resources. 5.1 Determine the environmental and strategic elements that make up marketing financial resources. 5.2 Create a financial forecast and budget for a specific company’s marketing plan . Course/Unit Learning Outcomes Learning Activity 5.1 Unit V Lesson Chapter 5 Unit V Project 5.2 Unit V Project Reading Assignment Chapter 5 : Environmental and Strategic Analyses Unit Lesson A SWOT ( strengths, weakness, opportunities, and threats ) analysis is a robust tool used in creating business strategies. However, it is not the only tool used by companies in their marketing strategy creation process es . SWOT is a part of a variety of environmental analysis assessments commonly used. These assessments are shown below. How well companies use these assessments in creating their marketing and business strategies can determine the short - and long -term competitiveness of their respective industries. Companies that are disciplined and exceptional in using these environmental analysis planning assessments tend to perform better than those that do not. It is important to use more than one method to analyze the competitive market UNIT V STUDY GUIDE Internal and Environmental Analysis to Optimize Strategy Goal Achievement Environmental analysis (Aaker & Moorman, 2018) MBA 5841, Strategic Marketing 2 UNIT x STUDY GUIDE Title an d industry environment because other industry competitors are attempting to out -plan and out -compete any company that they deem to be a part of their industry. Therefore, it is important and necessary to use, at least, all three environmental analysis asse ssments as effectively as possible and in wa ys that the competition cannot. Creating strategies means collecting as much information as possible to make informed decisions and then using those informed decisions as a platform for investigating what oppor tunities are available, how those opportunities can be effectively met, and what capabilities the company has to successfully meet those opportunities better than its competition. If it can meet any of those opportunities better, cheaper, or faster, then t he company would be said to have a competitive advantage in that specific opportunity area. Therefore, the goal of creating strategies is to have a process for developing those necessary environmental questions that are raised during the information -gather ing stage; effective marketing strategies can then be crafted in order to answer or address any questions or concerns. It is a multi -step process from information gathering (which sho uld be an ongoing activity) and strategy creation to strategy implement ation and strategy implementation assessment. Those strategies implemented that also were effective and successful should be seriously considered for implementation during the next strategy planning and implementation period. The implemen tation period woul d be specific to the strategy and could be any time period that fits that strategy and its implementation. This could be a few months (a seasonal strategy), a year (an annual strategy), or some years (large multiyear strategies). The first environmental a ssessment tool is impact analysis. Firms using impact analysis measure the impact of its perceived threats . Companies have little or no control over threats . Most often, threats are external. Some examples of threats are industry changes due to government fiat. This means if the government decides to change a law essential to an industry or company business model, the change may fundamentally disrupt the industry or company’s business model. Such a change would be an external threat to that industry’s busin esses and even its potential profits (Aaker & Moorman, 2018) . Companies in highly regulated industries, such as the pharmaceutical industry, watch changing or potentially changing government regulations as either a threat or an opportunity in their strate gy formulations. A drug that was once considered illegal but is now becoming legal in more states, marijuana, is creating entrepreneurial business opportunities for growing, manufacturing, distribution, and sales that have never existed before. Federal law s still exist classifying it as an illegal drug, but more and more states are continuing in its legalization. Any movement, changes, or potential changes to the existing regulatory environment on marijuana are being closely monitored by all within its indu stry. Industry strategists would want to prepare an exhaustive impact analysis as a result. Industries also directly interact , through their lobbyists, with lawmakers in drafting complex legislation to ensure a stable competitive environment for their comp lex industries. Scenario analysis helps a company attempt to understand what it does not know. In cutting -edge and high -tech industries, the future is not only uncertain, but the competitive stakes for future market share are high. Creating multiple scena rio analyses are advisable and essential for achieving higher probabilities of success. Each scenario can represent a specific way to meet each expected future, and thus its unmet opportunities. Companies would then measure and estimate the probability of success for each of these scenarios. These multiple scenario analyses can represent how different skills and competitive advantages within the company are to be implemented to the company’s best advantage in achieving their desired results (Aaker & Moorman , 2018) . When Apple computer saw how the Internet was becoming a disruptive force in their industry, Steve Jobs developed a new idea in which to market and sell music using newly and soon -to-be created Apple devices through Apple -managed payment systems. In the previous 100 years, music distribution had been a manufacturing and labor -intensive industry for creating and distributing phonograph records and , later, compact discs. Job s’s vision for Apple was to bypass most of that distribution and manufacturi ng system with its own Internet -based iTunes software. Besides, rather than distributing the whole phonograph or compact disc of songs, Apple would disaggregate these albums and sell and distribute (stream) ea ch song individually and on demand via the Inte rnet. Apple would have a virtual lock Audio (RRZEicons, 2009) MBA 5841, Strategic Marketing 3 UNIT x STUDY GUIDE Title via its iTunes store on all streaming music until the competition was able to catch up years later ( “Apple Launches ,” 2004). There was a critical path element to this strategy, which , unless it was resolved, the pla n could not be successfully implemented. The record companies controlled all of the rights to the nation’s popular music. They did not have a rights pricing model for single album tracks —only the entire album. Apple believed that for its single song pricin g model to be successful , each song needed to be priced at 99 cents per song. The negotiations lasted over a year. Record companies, at first, believed they were giving away their industry, but Steve Jobs was able to convince them they needed to change or face isolation, irrelevance, or even bankruptcy over time if they all failed to agree. Only when this final element of the strategy creation process was resolved was the strategy able to be implemented. In this case, many scenarios were created, but the on ly one that was successfully followed was the one where the record companies allowed for a profitable marketing strategy of 99 cents per song that Apple had envisioned ( “Apple Fights ,” 2005 ). Disciplined companies systematically use the SWOT analysis envi ronmental assessment tool. It is the most popular of the three environmental assessment tools because it begins from a company ’s subjective viewpoint. Planners put their subjective values on each of the elements considered in the four SWOT categories. This is based on their experience and research of their company, industry, competitors, and other external environmental factors. SWOT analysis also can involve all of the major departments of the company. Its strengths, weaknesses, opportunities, and threats planning format ena bles both internal and external departments to significantly contribute based on their information and experience. When combined and analyzed together, the conclusions from these four areas can be a basis for strategic action (Aaker & Mo orman, 2018) . Strengths and weaknesses tend to be internally oriented. Therefore, they can and should be controlled by the company. Threats and opportunities tend to be external to the company and can be potentially seen and felt by all members of the sam e industry. That is how different companies can be locked in competition seeking the same opportunity or target market. The success of a company’s strategies is a good indication of how well it has leveraged its strengths. Operational effectiveness, a cus tomer -oriented workforce generating high levels of customer satisfaction, a strong financial foundation , and visionary leadership can be a few of the strengths that create a highly competitive company that can enjoy a leading market position. Each of these strengths, important on their own, become incredibly important when combined and effectively led along a competitiv e continuum toward a stated goal. Strategies can be developed with this created winning culture as its engine for competitive excellence. Un der different and less inspired leadership, only strategies targeting lesser goals may be deemed feasible. The same can be said for a company’s ability to withstand external threats from changes in government policies to economic downturns. For a compan y to have an effective strategy -creation process, it must first use the best tools for environmental analysis. Together, impact analysis, scenario analysis, and SWOT analysis are effective tools from which research and well -posed marketplace and industry que stions can be raised and answered. These qual ity answers can provide the basi s on which competitive strategies can be formulated, implemented, and measured for their effectiveness. References Aaker, D. A., & Moorman, C. (2018). Strategic market manageme nt (11th ed.). Hoboken, NJ: Wiley. Apple fights higher song prices. (2005, Sep tember 21). Wall Street Journal . Retrieved from https://search - proquest -com.libraryresources.columbiasouthern.edu/docview/398952392?accountid=33337 “To All The Girls I've Loved Before” by Julio Iglesias and Willie Nelson (Reggie3155, 2012) MBA 5841, Strategic Marketing 4 UNIT x STUDY GUIDE Title Apple launches iTunes music store in the UK, France & Germany. (2004, Jun e 15). PR Newswire . Retrieved from https://search -proquest - com.libraryresources.columbiasouthern.edu/docview/444820683?accountid=33337 Reggie3155. (2012). Columbia Records, to all the girls I've loved before - Julio Iglesias & Willie Nelson [Photograph]. Retrieved from https://commons.wikimedia.org/wiki/File:Columbia_Records,_To_All_The_Girls_I%27ve_Loved_Befo re_ -_Julio_Iglesias_%26_Willie_Nelson.jpg RRZEicons. (2009). Audio -itunes [Image]. Retrieved from https ://commons.wikimedia.org/wiki/File:Audio - itunes.svg Suggested Reading In order to access the following resource, click the link below. In order to make accurate marketing budget pr edictions, companies must know their customers and understand the purchase intention of their products. In the end, only what customers actually do (buy the products) concerns companies. This article attempts to fully explore how companies need to know the ir customers’ buying behavior as well as their intentions to purchase. W ith this improved understanding come s more accurate budgets and better marketing strategies. Storbacka, K., Strandvik, T., & Gronroos, C. (1994). Managing customer relationships for p rofit: The dynamics of. International Journal of Service Industry Management, 5 (5), 21. Retrieved from https://search - proquest -com.libraryres ources.columbiasouthern.edu/docview/233658481?accountid=33337 Learning Activities (Nong raded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. Chapter 5 Knowledge Check Complete the Chapter 5 Knowledge Check to gain a better understanding for the lesson. Click here to access the Chapter 5 Knowledge Check.