Conceptual Models of How Advertising Works to Persuade Individuals SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Conceptual Models of How Advertising Works to Persuade Individuals
This note provides a brief overview of some important perspectives on how advertising messages "work" to persuade consumers. The note reviews the traditional hierarchy of effects, cognitive dissonance, lower involvement, and elaboration by aspects models of consumer behavior.
Authors :: Paul W. Farris, Tania de la Pena Calderon
Swot Analysis of "Conceptual Models of How Advertising Works to Persuade Individuals" written by Paul W. Farris, Tania de la Pena Calderon includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Persuade Dissonance facing as an external strategic factors. Some of the topics covered in Conceptual Models of How Advertising Works to Persuade Individuals case study are - Strategic Management Strategies, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Conceptual Models of How Advertising Works to Persuade Individuals casestudy better are - – wage bills are increasing, increasing government debt because of Covid-19 spendings, technology disruption, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion,
there is backlash against globalization, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Conceptual Models of How Advertising Works to Persuade Individuals
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Conceptual Models of How Advertising Works to Persuade Individuals case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Persuade Dissonance, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Persuade Dissonance operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Conceptual Models of How Advertising Works to Persuade Individuals can be done for the following purposes –
1. Strategic planning using facts provided in Conceptual Models of How Advertising Works to Persuade Individuals case study
2. Improving business portfolio management of Persuade Dissonance
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Persuade Dissonance
Strengths Conceptual Models of How Advertising Works to Persuade Individuals | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Persuade Dissonance in Conceptual Models of How Advertising Works to Persuade Individuals Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Persuade Dissonance are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Persuade Dissonance has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Conceptual Models of How Advertising Works to Persuade Individuals Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Persuade Dissonance is one of the most innovative firm in sector. Manager in Conceptual Models of How Advertising Works to Persuade Individuals Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High switching costs
– The high switching costs that Persuade Dissonance has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Highly skilled collaborators
– Persuade Dissonance has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Conceptual Models of How Advertising Works to Persuade Individuals HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Persuade Dissonance is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Persuade Dissonance is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Conceptual Models of How Advertising Works to Persuade Individuals Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Persuade Dissonance digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Persuade Dissonance has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Operational resilience
– The operational resilience strategy in the Conceptual Models of How Advertising Works to Persuade Individuals Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Effective Research and Development (R&D)
– Persuade Dissonance has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Conceptual Models of How Advertising Works to Persuade Individuals - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Persuade Dissonance in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Persuade Dissonance is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Persuade Dissonance is one of the leading recruiters in the industry. Managers in the Conceptual Models of How Advertising Works to Persuade Individuals are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Conceptual Models of How Advertising Works to Persuade Individuals | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Conceptual Models of How Advertising Works to Persuade Individuals are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals, it seems that the employees of Persuade Dissonance don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High cash cycle compare to competitors
Persuade Dissonance has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Persuade Dissonance is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Conceptual Models of How Advertising Works to Persuade Individuals can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Persuade Dissonance products
– To increase the profitability and margins on the products, Persuade Dissonance needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Persuade Dissonance 's lucrative customers.
Slow to strategic competitive environment developments
– As Conceptual Models of How Advertising Works to Persuade Individuals HBR case study mentions - Persuade Dissonance takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Low market penetration in new markets
– Outside its home market of Persuade Dissonance, firm in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
No frontier risks strategy
– After analyzing the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Conceptual Models of How Advertising Works to Persuade Individuals, in the dynamic environment Persuade Dissonance has struggled to respond to the nimble upstart competition. Persuade Dissonance has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Persuade Dissonance is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Persuade Dissonance needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Persuade Dissonance to focus more on services rather than just following the product oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals, is just above the industry average. Persuade Dissonance needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Conceptual Models of How Advertising Works to Persuade Individuals | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Conceptual Models of How Advertising Works to Persuade Individuals are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Persuade Dissonance can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Conceptual Models of How Advertising Works to Persuade Individuals, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Persuade Dissonance in the consumer business. Now Persuade Dissonance can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Persuade Dissonance can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Persuade Dissonance to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Persuade Dissonance can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Persuade Dissonance has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Building a culture of innovation
– managers at Persuade Dissonance can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Using analytics as competitive advantage
– Persuade Dissonance has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Conceptual Models of How Advertising Works to Persuade Individuals - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Persuade Dissonance to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Persuade Dissonance has opened avenues for new revenue streams for the organization in the industry. This can help Persuade Dissonance to build a more holistic ecosystem as suggested in the Conceptual Models of How Advertising Works to Persuade Individuals case study. Persuade Dissonance can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Persuade Dissonance can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Persuade Dissonance is facing challenges because of the dominance of functional experts in the organization. Conceptual Models of How Advertising Works to Persuade Individuals case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Persuade Dissonance to increase its market reach. Persuade Dissonance will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Persuade Dissonance can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Conceptual Models of How Advertising Works to Persuade Individuals External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Persuade Dissonance in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Persuade Dissonance needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Consumer confidence and its impact on Persuade Dissonance demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Persuade Dissonance business can come under increasing regulations regarding data privacy, data security, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Persuade Dissonance needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Conceptual Models of How Advertising Works to Persuade Individuals, Persuade Dissonance may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
High dependence on third party suppliers
– Persuade Dissonance high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Persuade Dissonance in the Sales & Marketing sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Persuade Dissonance will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Technology acceleration in Forth Industrial Revolution
– Persuade Dissonance has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Persuade Dissonance needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Persuade Dissonance is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Persuade Dissonance can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Conceptual Models of How Advertising Works to Persuade Individuals .
Weighted SWOT Analysis of Conceptual Models of How Advertising Works to Persuade Individuals Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Conceptual Models of How Advertising Works to Persuade Individuals needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Conceptual Models of How Advertising Works to Persuade Individuals is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Conceptual Models of How Advertising Works to Persuade Individuals is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Conceptual Models of How Advertising Works to Persuade Individuals is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Persuade Dissonance needs to make to build a sustainable competitive advantage.
