Slide 1. Welcome to Chapter 11. This chapter is called Marketing. The author is Vicente Lluch.

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1 Slide 1 Welcome to Chapter 11 This chapter is called Marketing. The author is Vicente Lluch.

2 Slide 2 In this chapter we will address the learning objectives by answering the following questions: What is marketing and what is selling? How to position a service? What are marketing tools? How can we implement the product, price, place, and promotion strategy in an IVF Clinic? When and how do we use public relations, advertising, and sales promotion? And, how do we design a marketing plan?

3 Slide 3 The content of this lesson covers the topics Definition of marketing, Identification of the target market, Choosing the marketing mix and Designing a marketing plan.

4 Slide 4 As defined by the American Management Association (AMA), Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing is about providing value to customers through products and services and getting the consumer to choose your brand. In marketing it is important to base the decisions on research and analysis.

5 Slide 5 Many people use the term marketing as a synonym for selling. Marketing is more than accomplishing a sale. Sale is a transaction between a seller and a buyer. Marketing is understanding customer needs, satisfying those needs, and developing customer loyalty. Sale is the aim and marketing is the means.

6 Slide 6 Several steps have to be done in order to develop a marketing strategy. The strategic marketing plan details the marketing objectives of a business that fit with the overall strategic objectives of a company or business unit. A basic approach to strategic marketing comprises the following activities: Identify the market, select target markets, and evaluate market demand. Position your brand and the service/s. Develop the marketing mix. Prepare an annual marketing plan and set measurable quantitative goals. During the rest of this presentation we will focus on identifying the target market and marketing tools.

7 Slide 7 Let us at first identify the target market, which normally is a part of the total population. A market is a group of actual or potential customers able and eager to proceed with an exchange that will allow them to satisfy a desire. In marketing, the term market refers to the group of customers that is interested in the product or service and that has the resources to purchase the product. The market definition begins with the total population and progressively narrows as shown in the diagram.

8 Slide 8 Here is an example of how a target market could be estimated in the IVF sector.

9 Slide 9 When the target market is determined, it is crucial to understand how a product or service will be promoted and sold. There are four basic elements of marketing effort, which are often referred to as the Marketing Mix or the four P s (by Jerry McCarthy): Product: Propose a distinctive product Price: Define an attractive and competitive price Place: Develop customers service Promotion: Select the best communication mix activities

10 Slide 10 Number one of the marketing mix is the product or service offering. To manage the product variable of the marketing mix, marketers must decide strategies for developing and adding new products or services, adapting or refining old ones, and taking other steps to ensure that market demand is met. Product decisions will also involve the questions about branding, positioning, key values, packaging, or service features, affecting the product or service offering. Products in IVF clinics are e.g. AI, IVF, ICSI and PGD.

11 Slide 11 The product on the one hand and the brand on the other. One of the most important decisions in the product strategy is the brand. This includes the naming of the clinic brand (e.g. SwissFertilityCenter), the Corporate Identity (letters, envelopes, business cards, etc.), the Clinic corporate design (signage, inside logos, etc.) and the brand positioning. Brand above physician or physician above brand? Clinic brand above the physician is much better in long term!

12 Slide 12 Number two of the four P s in the marketing mix is the price. What is a price? The price represents the value of a good or service for both the buyer and seller. Factors affecting price decisions are all the costs (variable and fixed costs), competitors, consumers, framework of the law, our competitive position, and the product lifecycle.

13 Slide 13 We come to the price strategy. Objectives are to generate revenues that allow organizations to ensure sustainability, to indicate the positioning of a product or service, to face competitors, and to gain customers, as for some products the price can be the primary customer criterion for choice. Very important: Decide your price strategy for a long term, never in a short term!

14 Slide 14 Remember the 4 P s of the marketing mix. Number three is the place. Management of the place variable of the marketing mix involves choosing the distribution channels through which the right product or service reaches the target market at the right time. The place or location is crucial when offering services instead of products. This includes the accessibility by potential consumers, presence or absence of similar competitive businesses in nearby locations, etc. A number of alternative 'channels' of distribution may be available: Direct distribution, may involve an own sales force, mail orders, Internet and telephone sales. Agent, who typically sells direct on behalf of the producer. Distributor (also called wholesaler), who sells to retailers. Retailer (also called dealer or reseller), who sells to end customers, and Advertisement typically used for consumption goods.

15 Slide 15 Last but not least: Number four of the 4 P : The promotion Promotion is any communication used: to inform, convince, and remind people about an organization s or individual s products, services, ideas, or brand. Typical promotional activities are: Advertising: TV, radio, newspapers, magazines, billboards, etc. Public Relations/Publicity Sales Promotion, Personal Selling, Direct Marketing and Online marketing.

16 Slide 16 Communication instruments are essential to realize the promotion strategy. Advertising is paid communication transmitted through TV, radio, billboards, newspaper, magazines, movie theaters, etc., to announce a brand, product, service or company. Public relations include any communication to promote a favorable image for goods, services, organizations, people, places, and ideas among their publics. Public relations cover activities such as: sponsoring, organization of events, press releases, etc. Sales promotion involves paid different activities intended to stimulate purchases. Some sales promotions activities are trade shows, demonstrations, free samples, discounts, etc.

17 Slide 17 This table demonstrates the differences between public relations, advertising, and sales promotion. As an example, we use public relations to build a company image, advertising to build a product or to increase the recognition of a brand, and we use sales promotion to push the sales of some products or to introduce new products. Public relations are long term activities, advertising is short and medium term, and sales promotion is a very short term activity.

18 Slide 18 The six stages of a good communication plan consist of the 6 M s : Market Selecting the target market Mission Identifying objectives, establish the firm s goals Money Investment budget Message What will be said Media The best mix of media Measurement The control of the results

19 Slide 19 To summarize this chapter, marketing is more than just selling. It means understanding and satisfying customer needs and developing customer loyalty. The strategic marketing decisions are identification, evaluation and selection of target market, definition of the company s goals and objectives, positioning of brand and services and choosing the right marketing mix by following the 4 P s of the marketing mix (product, price, place, and promotion). Do not forget the importance of choosing the most appropriate brand strategy.

20 Slide 20 Analyze the factors affecting your price and decide on your price strategy. Choose the distribution channel through which your service shall reach the target market. Select the best communication mix to influence customers to use your services. Finally, design the marketing plan using the 6 M s: Select your Market, identify objectives and establish firm s goals (Mission), decide about the Money you are going to invest, decide the Message you want to communicate, select the best mix of Media and lastly Measure and control your results.

21 Slide 21 This slide shows some recommendations for your further reading.

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