Marketing - Lec 3

Increase access, lower costs, improve the quality of care.

The business portfolio is the collection of businesses and products that make up the company.

To understand the role of marketing, one must first understand the organization’s overall strategic planning process.

They deal with the company’s current businesses and how to keep them going.

Adapting the firm to take advantage of opportunities in its constantly changing environment.

A company's mission should not be stated as making more sales or profits.

Setting objectives provides direction and measurable targets for the organization to achieve during the strategic planning process.

Annual plans, long-range plans, and strategic plans.

Mission statements should be meaningful, specific, yet motivating.

Performance is monitored through regular reviews and evaluations against the set objectives and goals to ensure the plan is on track.

The two key dimensions are market growth rate and relative market share.

Microsoft's mission statement is 'To empower every person and every organization on the planet to achieve more', which emphasizes customer empowerment rather than just software.

The best business portfolio is the one that best fits the company’s strengths and weaknesses to opportunities in the environment.

Can be a company division, a product line within a division, or sometimes a single product or brand.

McDonald's mission is 'to be our customers' favorite place and way to eat.'

Implementing a strategic plan involves putting the developed strategies into action to achieve the set objectives.

They prefer more customized approaches that better suit their specific situations.

It serves as a measure of company strength in the market.

By including tailored advising to customers managing chronic and specialty health conditions.

By skillfully engaging customers and delivering superior customer value.

To turn the company's mission into actionable steps that guide management decisions.

SWOT analysis is a tool used to identify the Strengths, Weaknesses, Opportunities, and Threats of an organization.

It evaluates a company’s SBUs in terms of market growth rate and relative market share.

Starbucks sells 'The Starbucks Experience' rather than just coffee.

The attractiveness of its various SBUs.

A portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

Marketing provides a guiding philosophy, inputs for identifying attractive market opportunities, and helps design strategies for individual business units.

Engaging customers through sensory experiences, such as the smell of coffee.

Through the products it sells at its retail pharmacies and taking a more active role in overall healthcare management.

A company should invest in 'Stars' to maintain their growth and market leadership.

It provides a measure of market attractiveness.

Improving customer engagement and raising the company’s share of the health-care market.

Diversification refers to introducing new products into new markets, which can be riskier but offers potential for high rewards.

The marketing mix refers to the combination of elements that a company uses to promote its products or services, typically including product, price, place, and promotion.

Executive summary, current marketing situation, full SWOT analysis, marketing strategy, action programs, marketing budget, and controls.

Many mission statements are written for public relations purposes and lack specific, workable guidelines.

The focus is on evaluating the position of various business units in terms of market growth and relative market share, helping to identify which units should be invested in, maintained, or divested.

The product/market expansion grid helps businesses determine their growth strategies by analyzing existing and new products in relation to existing and new markets.

Conflicts and misunderstandings.

A market segment is a group of consumers who respond in a similar way to a given set of marketing efforts.

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Many managers think that 'doing things right' (implementation) is as important as, or even more important than, 'doing the right things' (strategy).

Strategic planning is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities, and its changing marketing opportunities.

1. Define the mission and vision. 2. Conduct a SWOT analysis. 3. Set objectives and goals. 4. Develop strategies. 5. Implement the plan. 6. Monitor and evaluate performance.

1. Hold the SBU’s share at the current level. 2. Invest more to build its share. 3. Harvest the SBU for short-term cash flow. 4. Divest the SBU by selling it or phasing it out.

Market growth rate and relative market share.

CVS MinuteClinic locations.

A value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system.

Certified Organic. Guaranteed Delicious.

Calculating ROMI is important because it helps businesses assess the success of their marketing strategies and determine how to allocate future marketing budgets more effectively.

A market-oriented mission statement defines an organization's purpose in terms of satisfying basic customer needs rather than focusing solely on products or technologies.

A chain of retail pharmacies selling prescription and over-the-counter medicines, personal care products, and convenience items.

The process by which management evaluates the products and businesses that make up the company.

It recently stopped selling tobacco products.

Making more sales without changing its original product.

Within individual business units, marketing designs strategies for reaching the unit’s objectives.

An integrated marketing mix is a strategy that combines various marketing tools and channels to create a cohesive marketing plan that promotes a product or service effectively.

The first step is to analyze the current business portfolio to determine investment priorities. The second step is to shape the future portfolio by developing strategies for growth and downsizing.

Identify strategic business units (SBUs).

The categories are Stars, Question Marks, Cash Cows, and Dogs.

The Boston Consulting Group.

Company growth through starting up or acquiring businesses outside the company’s current products and markets.

A value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products.

Most companies enter a new market by serving a single segment; if this proves successful, they add more segments.

NIKE is an example of a company that enters a market by targeting specific segments.

Choosing marketing strategies that help the company attain its overall strategic objectives.

1. Management sets specific marketing goals. 2. Measures performance in the marketplace. 3. Evaluates the causes of differences between expected and actual performance. 4. Takes corrective action to close the gaps.

Decides how much support each SBU deserves.

Difficult, time-consuming, and costly to implement.

Identifying and developing new markets for its current products.

Marketing assists strategic planners by identifying attractive market opportunities and assessing the firm’s potential to take advantage of them.

Adapting the marketing mix is crucial to respond to market changes, consumer preferences, and competitive dynamics, ensuring relevance and effectiveness.

Market segmentation is the division of a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require different marketing strategies or marketing mixes.

To actually differentiate the market offering to create superior customer value.

Developing an integrated marketing mix ensures that all marketing efforts are aligned and working together to reinforce each other, leading to greater efficiency and effectiveness in reaching target audiences.

Companies are generally advised to divest or discontinue 'Dogs' as they neither generate significant cash nor have growth potential.

Managers have access to rich and current data, allowing them to adapt quickly to changing conditions and events in their markets.

Offering modified or new products to current markets.

Market development involves introducing existing products to new markets, whereas market penetration focuses on increasing sales in current markets.

Marketing plays a leading role but cannot produce engagement and superior value for customers alone.

The four elements of the marketing mix are product, price, place, and promotion.

Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

The marketing mix is the set of controllable, tactical marketing tools — product, price, place, and promotion — that the firm blends to produce the response it wants in the target market.

Sheer driving pleasure.

Because benefits like advertising impact aren’t easily quantified in dollar returns, requiring a leap of faith to estimate a number.

Management should take corrective action to close the gaps.

Companies must develop strategies for downsizing because they may have grown too fast, entered unfamiliar areas, faced changing market conditions, or have products or units that age and die.

Market penetration involves increasing sales of existing products to existing markets.

Due to the negative impacts of marketing actions on their operations.

The marketing mix helps businesses tailor their offerings to meet consumer needs and preferences, ultimately guiding their overall marketing strategy.

It is the net return from a marketing investment divided by the costs of the marketing investment, measuring the profits generated by investments in marketing activities.

It helps management identify issues and take corrective actions to ensure that marketing objectives are achieved.

The four strategies are market penetration, market development, product development, and diversification.

They must work together to accomplish strategic objectives.

They can increase purchasing costs, disrupt production schedules, increase inventories, and create budget headaches.

Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives.

The goal of product development is to create new products for existing markets.

Pricing affects demand, profitability, and market positioning, making it a critical component of the marketing mix.

SWOT analysis is used to evaluate a company's strengths, weaknesses, opportunities, and threats.

Critics argue that the four Ps may omit or underemphasize certain important activities and take the seller’s view of the market, not the buyer’s view.

To match the company’s strengths to attractive opportunities while overcoming weaknesses and minimizing threats.

Management sets specific marketing goals.

They should work in harmony to produce value for consumers.

ROMI measures the effectiveness of marketing expenditures in generating revenue, indicating how much return is gained for every dollar spent on marketing.