The Metrics That Marketers Muddle SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Metrics That Marketers Muddle
A big challenge for marketing is demonstrating its business value. As the finance function becomes more powerful within companies, some see marketing's influence as declining. One major reason is the difficulty of measuring its impact. The article has two purposes, the authors say: First, to clarify marketing metrics so that managers select the right metrics and use them appropriately; and second, to help senior managers understand when marketers are cherry-picking the data or using inappropriate metrics. The authors assess five popular marketing metrics:market share, net promoter score, the value of a "like,"customer lifetime value, and return on investment. They conducted interviews with marketers and administered formal surveys to managers. They found that popular marketing metrics are regularly misunderstood and misused. The authors'goal is to encourage appropriate and consistent use of popular marketing metrics. Market Share: If the aim is to maximize the returns to shareholders, the authors argue, increased market share offers no benefit unless it eventually generates profits. Still, in a survey the authors conducted, they found that more marketing managers prioritized maximizing market share than prioritized maximizing profitability. Although, they note, companies with superior products tend to have high market share and high profitability, this does not necessarily mean that increasing market share will increase profits. Using market share as a metric of success simply because other marketers do it can be counterproductive. Net Promoter Score: Companies in a variety of industries have embraced net promoter score as a way to monitor their customer service operations. One of NPS's strongest selling points, the authors write, is its simplicity: It's easy for managers and employees to understand the goal of having more promoters and fewer detractors. However, they note weaknesses in how the theory has been presented to managers. Value of a "Like"The authors caution that managers shouldn't automatically assume that differences in value between social media fans and nonfans are caused by social media marketing activity. When there are differences, managers need to investigate whether they existed prior to the social media marketing effort. Customer Lifetime Value: Marketers often use CLV to help them decide whom to target in acquisition campaigns. The authors recommend basing CLV on the value of the customer relationship -- not the value of the customer relationship minus the acquisition costs. Return on Investment: Although ROI may not be a perfect metric, the authors concede, it can facilitate communication with nonmarketing colleagues. But to communicate effectively, marketers must use the term in ways that nonmarketers can understand. In order to calculate ROI, there must be a return (profit associated with an investment) and an investment. Unless you have both, you cannot calculate ROI.
Swot Analysis of "The Metrics That Marketers Muddle" written by Neil Bendle, Charan K Bagga includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Marketers Authors facing as an external strategic factors. Some of the topics covered in The Metrics That Marketers Muddle case study are - Strategic Management Strategies, and Sales & Marketing.
Some of the macro environment factors that can be used to understand the The Metrics That Marketers Muddle casestudy better are - – technology disruption, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion,
supply chains are disrupted by pandemic , there is backlash against globalization, etc
Introduction to SWOT Analysis of The Metrics That Marketers Muddle
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Metrics That Marketers Muddle case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Marketers Authors, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Marketers Authors 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 The Metrics That Marketers Muddle can be done for the following purposes –
1. Strategic planning using facts provided in The Metrics That Marketers Muddle case study
2. Improving business portfolio management of Marketers Authors
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 Marketers Authors
Strengths The Metrics That Marketers Muddle | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Marketers Authors in The Metrics That Marketers Muddle Harvard Business Review case study are -
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Marketers Authors digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Marketers Authors 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.
Training and development
– Marketers Authors has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Metrics That Marketers Muddle 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.
Strong track record of project management
– Marketers Authors is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Marketers Authors
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Marketers Authors does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Marketers Authors 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 The Metrics That Marketers Muddle - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Marketers Authors is one of the most innovative firm in sector. Manager in The Metrics That Marketers Muddle Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Marketers Authors 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 Marketers Authors is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in The Metrics That Marketers Muddle Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Marketers Authors 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.
Highly skilled collaborators
– Marketers Authors 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 The Metrics That Marketers Muddle HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Marketers Authors has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Marketers Authors has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Sales & Marketing field
– Marketers Authors is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Marketers Authors in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Low bargaining power of suppliers
– Suppliers of Marketers Authors in the sector have low bargaining power. The Metrics That Marketers Muddle has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Marketers Authors to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses The Metrics That Marketers Muddle | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Metrics That Marketers Muddle are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Metrics That Marketers Muddle, in the dynamic environment Marketers Authors has struggled to respond to the nimble upstart competition. Marketers Authors has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Marketers Authors has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
No frontier risks strategy
– After analyzing the HBR case study The Metrics That Marketers Muddle, 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.
Low market penetration in new markets
– Outside its home market of Marketers Authors, firm in the HBR case study The Metrics That Marketers Muddle needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High cash cycle compare to competitors
Marketers Authors 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Marketers Authors needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Slow decision making process
– As mentioned earlier in the report, Marketers Authors has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Marketers Authors even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Marketers Authors products
– To increase the profitability and margins on the products, Marketers Authors needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study The Metrics That Marketers Muddle that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Metrics That Marketers Muddle can leverage the sales team experience to cultivate customer relationships as Marketers Authors is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Marketers Authors supply chain. Even after few cautionary changes mentioned in the HBR case study - The Metrics That Marketers Muddle, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Marketers Authors vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Neil Bendle, Charan K Bagga suggests that, Marketers Authors is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities The Metrics That Marketers Muddle | 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 The Metrics That Marketers Muddle are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Marketers Authors 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, The Metrics That Marketers Muddle, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Marketers Authors has opened avenues for new revenue streams for the organization in the industry. This can help Marketers Authors to build a more holistic ecosystem as suggested in the The Metrics That Marketers Muddle case study. Marketers Authors 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
– Marketers Authors 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.
Building a culture of innovation
– managers at Marketers Authors 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Marketers Authors is facing challenges because of the dominance of functional experts in the organization. The Metrics That Marketers Muddle 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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Marketers Authors can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Marketers Authors can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Marketers Authors can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. The Metrics That Marketers Muddle suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Marketers Authors to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Marketers Authors to hire the very best people irrespective of their geographical location.
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 Marketers Authors 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.
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 Marketers Authors in the consumer business. Now Marketers Authors can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Marketers Authors 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.
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. Marketers Authors can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats The Metrics That Marketers Muddle External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Metrics That Marketers Muddle are -
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 Marketers Authors in the Sales & Marketing sector and impact the bottomline of the organization.
Environmental challenges
– Marketers Authors needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Marketers Authors can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Increasing wage structure of Marketers Authors
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Marketers Authors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Marketers Authors with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Metrics That Marketers Muddle, Marketers Authors 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Marketers Authors 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.
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. Marketers Authors 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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Marketers Authors.
High dependence on third party suppliers
– Marketers Authors 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.
Shortening product life cycle
– it is one of the major threat that Marketers Authors is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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. Marketers Authors needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of The Metrics That Marketers Muddle 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 The Metrics That Marketers Muddle 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 The Metrics That Marketers Muddle 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 The Metrics That Marketers Muddle 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 The Metrics That Marketers Muddle 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 Marketers Authors needs to make to build a sustainable competitive advantage.
