How does the traditional view of the business mission differ from the new approach - Book Report/Review Example

Traditional Approach According to Levit (1960, as cited in Drejer, 2002, p. 36), the traditional business mission approach is fundamentally anchored on defining what the business is and what is the future of the business. Therefore, the goal set in this type of mission is towards the product-market. Furthermore, Drucker (1973, as cited in Drejer, 2002, p. 37) cited that a business starts with a mission and a philosophy, which is similar with the traditional approach. It mainly focuses on the customers, and in meeting and satisfying their needs and wants.

New Approach The new approach is characterized on three dimensions, and these include customer groups, customer functions and the technologies used. For example, a watch company wherein the customer groups may involve individual customers or industrial users; the customer functions could be utilized for determining or recording the time or as an accessory and the alternative technologies may come from mechanical, digital or analogue types (Kazmi, 2008, p. 42). On the other hand, the contemporary strategies, as developed by Porter (as cited in Dess & Davis, 1984, p. 469) include the differentiation strategy where a product or service has a unique character which is valued by the customer, which must be established with research and marketing.

The second type is the focus strategy within a specific market segment, while the firm utilizes high level of loyalty from its customers, which could create hindrance for competition (SlideShare Inc. 2012). Lastly, the undifferentiated strategy assumes a mass-market principle, wherein a firm uses a single marketing mix for an entire market, and that customer needs are similar, which could be addressed in one marketing mix (Lamb, Hair, & McDaniel, 2012, p. 274). Analysis The traditional view of business mission mainly dwells on the mission and the philosophy of the company towards the unsegmented consumers.

It mainly focuses on consumers and why they exist in the market. The consumers’ satisfaction is the core of the tradition business mission and is the benchmark to gauge the success of the company. Other external and internal factors of the business are not considered in the traditional business mission. On the other hand, the new approach of the business mission is composed of three parts, the customers, the function and the technology. It does not only aim in satisfying the customers, but also it involves other factors that involve the integration of the product and the customers.

Unlike the traditional mission, which considers the customers as one group, the new approach segments the customers into three groups with different purchasing power, strategy used and principles. The first strategy is the focus strategy which is exemplified in the Pepsico, where it has gained a competitive advantage in the food and beverages industry (SlideShare Inc. 2012). The second customers’ strategy is the differentiated strategy, which is manifested in McDonald’s, where it has all types of customers from all ages whose purchasing decision is mostly based on price, which is just right for the customer (SlideShare Inc. 2012). The last customer strategy is the undifferentiated strategy which is used by Coca-Cola in their single product and size of its bottle, and also some marketers of commodity products like flour and sugar are most