WEBVTT 1 00:00:00.300 --> 00:00:01.350 Hi, everyone, 2 00:00:01.350 --> 00:00:02.670 and welcome to this week's lecture 3 00:00:02.670 --> 00:00:04.570 on Strategic Management and Marketing. 4 00:00:06.775 --> 00:00:08.250 In this module, we're going to discuss 5 00:00:08.250 --> 00:00:10.473 the key concepts of strategic management, 6 00:00:11.850 --> 00:00:14.280 do an overview of strategic thought in healthcare, 7 00:00:14.280 --> 00:00:17.580 and strategic management instruments in organizations, 8 00:00:17.580 --> 00:00:20.580 learn about marketing and strategic management, 9 00:00:20.580 --> 00:00:23.823 and look at strategy formulation and alternatives. 10 00:00:24.900 --> 00:00:27.420 So to begin with, 11 00:00:27.420 --> 00:00:29.520 what are some key considerations 12 00:00:29.520 --> 00:00:31.570 when we think about strategic management? 13 00:00:32.640 --> 00:00:35.160 So strategic management is important 14 00:00:35.160 --> 00:00:36.810 throughout the continuum of care. 15 00:00:38.220 --> 00:00:40.290 Healthcare organizations work with people 16 00:00:40.290 --> 00:00:44.430 who are being diagnosed, being treated, 17 00:00:44.430 --> 00:00:46.710 going through palliative care, et cetera, 18 00:00:46.710 --> 00:00:49.710 and it's important to manage 19 00:00:49.710 --> 00:00:54.000 all of those different aspects of care strategically, 20 00:00:54.000 --> 00:00:55.950 for lack of a better word. 21 00:00:55.950 --> 00:01:00.950 One way to do this is to utilize a balanced scorecard. 22 00:01:01.020 --> 00:01:02.880 A balanced scorecard is a set of measures 23 00:01:02.880 --> 00:01:04.530 that gives top managers a fast 24 00:01:04.530 --> 00:01:06.900 but comprehensive view of the business. 25 00:01:06.900 --> 00:01:08.580 It includes financial measures that tell 26 00:01:08.580 --> 00:01:10.350 the result of actions already taken, 27 00:01:10.350 --> 00:01:12.750 and it complements those financial measures 28 00:01:12.750 --> 00:01:15.750 with operational measures on customer satisfaction, 29 00:01:15.750 --> 00:01:18.480 internal processes, and the organization's innovation 30 00:01:18.480 --> 00:01:20.160 and improvement activities, 31 00:01:20.160 --> 00:01:21.630 which are all operational measures 32 00:01:21.630 --> 00:01:24.280 that are the drivers of future financial performance. 33 00:01:25.140 --> 00:01:27.390 One way to think of the balanced scorecard is 34 00:01:27.390 --> 00:01:30.450 the dials and indicators in an airplane cockpit. 35 00:01:30.450 --> 00:01:33.390 For the complex task of navigating and flying an airplane, 36 00:01:33.390 --> 00:01:35.430 pilots need detailed information 37 00:01:35.430 --> 00:01:37.650 about many aspects of the flight. 38 00:01:37.650 --> 00:01:39.810 They need information on how much fuel is left, 39 00:01:39.810 --> 00:01:41.160 how fast they're going, 40 00:01:41.160 --> 00:01:43.260 the altitude at which they're flying, 41 00:01:43.260 --> 00:01:44.880 their bearing or direction, 42 00:01:44.880 --> 00:01:47.010 their destination, and other indicators 43 00:01:47.010 --> 00:01:49.920 that summarize the current and predicted environment. 44 00:01:49.920 --> 00:01:51.090 Importantly, it's not just 45 00:01:51.090 --> 00:01:52.800 about what's going on at the moment, 46 00:01:52.800 --> 00:01:54.873 it's also looking to the future. 47 00:01:55.980 --> 00:01:59.460 Relying on only one indicator or instrument 48 00:01:59.460 --> 00:02:02.283 is not able to give this complex picture. 49 00:02:03.210 --> 00:02:04.740 In a similar fashion, 50 00:02:04.740 --> 00:02:07.710 the complex management of organizations today 51 00:02:07.710 --> 00:02:12.240 require many indicators and a comprehensive view 52 00:02:12.240 --> 00:02:13.893 of all of those indicators. 53 00:02:15.030 --> 00:02:17.913 One way to do that is to use a balanced scorecard. 54 00:02:20.340 --> 00:02:22.150 Next, the triple bottom line 55 00:02:24.750 --> 00:02:26.400 describes some of the key outputs 56 00:02:26.400 --> 00:02:29.163 or key indicators of an organization. 57 00:02:30.270 --> 00:02:33.420 How happy are people? 58 00:02:33.420 --> 00:02:35.010 How satisfied are people, 59 00:02:35.010 --> 00:02:37.260 both the people working in the organization, 60 00:02:37.260 --> 00:02:38.820 the people the organization serves, 61 00:02:38.820 --> 00:02:41.280 and other people in the community? 62 00:02:41.280 --> 00:02:42.480 What are the profits? 63 00:02:42.480 --> 00:02:46.263 Financially, how much money is the organization making? 64 00:02:47.580 --> 00:02:49.920 Are there other ways to measure profit? 65 00:02:49.920 --> 00:02:51.330 And, finally, the planet. 66 00:02:51.330 --> 00:02:54.720 Is this organization sustainable 67 00:02:54.720 --> 00:02:56.910 both in terms of the material goods, 68 00:02:56.910 --> 00:02:58.620 but also in terms of longevity 69 00:02:58.620 --> 00:03:00.693 of the venture or of the organization? 70 00:03:02.100 --> 00:03:04.440 Finally, three key aspects 71 00:03:04.440 --> 00:03:07.140 of the organization are the directional strategy, 72 00:03:07.140 --> 00:03:08.640 its mission, its vision, 73 00:03:08.640 --> 00:03:11.400 and its value, which we'll discuss in this module 74 00:03:11.400 --> 00:03:13.023 and also future modules. 75 00:03:14.610 --> 00:03:17.580 So to begin with, there's a couple of different ways 76 00:03:17.580 --> 00:03:22.260 to analyze the operation of an organization 77 00:03:22.260 --> 00:03:24.423 internally and externally. 78 00:03:25.440 --> 00:03:29.130 One is a SWOT analysis where SWOT stands 79 00:03:29.130 --> 00:03:32.700 for the strengths, weaknesses, opportunities, and threats. 80 00:03:32.700 --> 00:03:34.230 It's a planning process that helps 81 00:03:34.230 --> 00:03:36.930 a company or organization overcome challenges 82 00:03:36.930 --> 00:03:38.973 and determine which new leads to pursue. 83 00:03:40.110 --> 00:03:41.790 You should perform a SWOT analysis 84 00:03:41.790 --> 00:03:45.210 before you commit to any sort of organizational action, 85 00:03:45.210 --> 00:03:46.980 whether you're exploring new initiatives, 86 00:03:46.980 --> 00:03:49.110 revamping internal policies, 87 00:03:49.110 --> 00:03:51.210 considering opportunities to pivot 88 00:03:51.210 --> 00:03:54.423 or altering a plan midway through its execution. 89 00:03:56.130 --> 00:03:58.620 The primary objective of a SWOT analysis is 90 00:03:58.620 --> 00:04:01.080 to help organizations develop a full awareness 91 00:04:01.080 --> 00:04:03.980 of all the factors involved in making a business decision. 92 00:04:04.890 --> 00:04:08.370 It's impossible to accurately map out a small business 93 00:04:08.370 --> 00:04:09.930 or a small organization's future 94 00:04:09.930 --> 00:04:13.306 without first evaluating it from all angles, 95 00:04:13.306 --> 00:04:16.430 which includes looking exhaustively at all 96 00:04:16.430 --> 00:04:19.360 of the strengths, weaknesses, opportunities, and threats 97 00:04:20.490 --> 00:04:22.413 that are facing the organization. 98 00:04:23.730 --> 00:04:26.820 Next, we'll discuss Porter's Five Forces, 99 00:04:26.820 --> 00:04:31.530 which this diagram depicts nicely. 100 00:04:31.530 --> 00:04:35.640 So at the center of the diagram is the rivalry 101 00:04:35.640 --> 00:04:37.500 among existing competitors. 102 00:04:37.500 --> 00:04:42.270 It's important to know the other operators in the field 103 00:04:42.270 --> 00:04:45.256 and in that sector to weigh 104 00:04:45.256 --> 00:04:48.030 and consider their strengths and weaknesses 105 00:04:48.030 --> 00:04:49.630 and where you fit in the market. 106 00:04:51.810 --> 00:04:56.810 Other aspects that help to determine this rivalry 107 00:04:57.060 --> 00:04:59.430 include the bargaining power of suppliers, 108 00:04:59.430 --> 00:05:02.190 the threat of substitute products or services, 109 00:05:02.190 --> 00:05:03.840 the threat of new entrants, 110 00:05:03.840 --> 00:05:05.733 and the bargaining power of buyers. 111 00:05:09.600 --> 00:05:11.460 So now when we turn to strategic marketing, 112 00:05:11.460 --> 00:05:14.280 which is closely linked to strategic management, 113 00:05:14.280 --> 00:05:16.140 we'll discuss some of the key aspects 114 00:05:16.140 --> 00:05:19.530 of designing an effective marketing strategy. 115 00:05:19.530 --> 00:05:22.680 The first is having a strong focus on customers. 116 00:05:22.680 --> 00:05:25.590 So who are your customers? 117 00:05:25.590 --> 00:05:26.790 How do you communicate to them? 118 00:05:26.790 --> 00:05:28.590 How do you reach them? 119 00:05:28.590 --> 00:05:29.970 Is it through electronic ads? 120 00:05:29.970 --> 00:05:31.263 Is it through paper ads? 121 00:05:32.310 --> 00:05:34.623 What is your communication strategy? 122 00:05:35.730 --> 00:05:37.830 And then, how are you communicating these messages? 123 00:05:37.830 --> 00:05:40.440 What languages are important? 124 00:05:40.440 --> 00:05:41.850 What level of language? 125 00:05:41.850 --> 00:05:44.340 Are people very educated that you're serving? 126 00:05:44.340 --> 00:05:46.920 Are they less educated? 127 00:05:46.920 --> 00:05:49.230 A common rule of thumb 128 00:05:49.230 --> 00:05:51.570 for designing strategic marketing messages 129 00:05:51.570 --> 00:05:54.630 and communications is that they should use words 130 00:05:54.630 --> 00:05:56.433 that a fifth grader can understand. 131 00:05:58.440 --> 00:06:01.230 Marketing also has a role of achieving buy-in 132 00:06:01.230 --> 00:06:04.980 or helping people buy into the mission of an organization. 133 00:06:04.980 --> 00:06:07.620 And similar to focusing on customers, 134 00:06:07.620 --> 00:06:10.170 it's important to identify your target markets 135 00:06:10.170 --> 00:06:13.050 and describe those markets and understand them 136 00:06:13.050 --> 00:06:16.080 before you can develop an effective communication 137 00:06:16.080 --> 00:06:17.343 or marketing strategy. 138 00:06:18.750 --> 00:06:21.570 Next, we'll turn to the Ansoff Matrix, which is a tool 139 00:06:21.570 --> 00:06:25.050 that can help you to understand messages and markets. 140 00:06:25.050 --> 00:06:29.160 So this matrix compares existing markets 141 00:06:29.160 --> 00:06:30.660 and new markets on one axis, 142 00:06:30.660 --> 00:06:33.543 and existing products and new products on the other axis. 143 00:06:34.560 --> 00:06:38.010 So in the case where you have 144 00:06:38.010 --> 00:06:42.150 an existing product in an existing market, 145 00:06:42.150 --> 00:06:43.440 you're focused on providing more 146 00:06:43.440 --> 00:06:46.530 of an existing product into an existing market, 147 00:06:46.530 --> 00:06:49.710 which is described as market penetration. 148 00:06:49.710 --> 00:06:53.190 In contrast, when you're introducing 149 00:06:53.190 --> 00:06:55.860 an existing product to a new market, 150 00:06:55.860 --> 00:06:58.060 we will describe that as market development. 151 00:07:00.000 --> 00:07:01.890 When you're introducing a new product 152 00:07:01.890 --> 00:07:03.840 into an existing market, 153 00:07:03.840 --> 00:07:06.780 you're participating in product development. 154 00:07:06.780 --> 00:07:09.870 And when you're introducing a new product into a new market, 155 00:07:09.870 --> 00:07:12.273 we describe that process as diversification. 156 00:07:13.110 --> 00:07:14.130 And feel free to read more 157 00:07:14.130 --> 00:07:16.380 about these examples on this slide 158 00:07:16.380 --> 00:07:18.530 and also in the textbook chapter this week. 159 00:07:20.280 --> 00:07:22.110 So now, as we described a little bit 160 00:07:22.110 --> 00:07:23.760 about understanding your market 161 00:07:23.760 --> 00:07:27.543 and understanding your customer base, 162 00:07:28.410 --> 00:07:31.680 here we list some factors that influence buyer behavior. 163 00:07:31.680 --> 00:07:35.100 So the culture of the buyers, their ethnicity or race, 164 00:07:35.100 --> 00:07:37.410 the political system to which they belong, 165 00:07:37.410 --> 00:07:39.450 and their political beliefs, 166 00:07:39.450 --> 00:07:41.490 and their socioeconomic status, 167 00:07:41.490 --> 00:07:43.140 and their gender and age. 168 00:07:43.140 --> 00:07:45.660 There are many other factors that influence buyer behavior, 169 00:07:45.660 --> 00:07:48.393 and this is just a subset or a list of examples. 170 00:07:50.700 --> 00:07:54.693 Next, here are some tips for conducting market research. 171 00:07:55.920 --> 00:07:58.650 It's important to identify a potential need in the market 172 00:07:58.650 --> 00:08:01.470 and to consider competitive dynamics in the market. 173 00:08:01.470 --> 00:08:06.470 And this is where the Ansoff Matrix will come in handy. 174 00:08:09.570 --> 00:08:12.060 It's also important to think about market sizing, 175 00:08:12.060 --> 00:08:13.680 how many buyers there are, 176 00:08:13.680 --> 00:08:15.900 and how much demand there might be? 177 00:08:15.900 --> 00:08:19.530 The competition, who else is providing your product 178 00:08:19.530 --> 00:08:21.280 or a similar product in the market? 179 00:08:22.260 --> 00:08:24.530 Which is related to the substitution 180 00:08:24.530 --> 00:08:27.330 or the alternative choices that a customer may have. 181 00:08:27.330 --> 00:08:29.973 And prices closely related to these too. 182 00:08:31.114 --> 00:08:33.900 Can a customer obtain your product 183 00:08:33.900 --> 00:08:35.760 at an equal or less lesser value 184 00:08:35.760 --> 00:08:38.523 from an existing supplier in that market? 185 00:08:40.890 --> 00:08:43.833 So now when we look at market segmentation and targeting, 186 00:08:44.820 --> 00:08:46.830 we see that market segmentation is described 187 00:08:46.830 --> 00:08:49.920 as breaking the market down into identifiable subgroups. 188 00:08:49.920 --> 00:08:52.500 So there's demographics, psychographics, 189 00:08:52.500 --> 00:08:56.220 geographic or service area, and utilization. 190 00:08:56.220 --> 00:09:00.390 An example of that is demographics, for example. 191 00:09:00.390 --> 00:09:05.130 Are the people participating in the market older, 192 00:09:05.130 --> 00:09:05.963 or are they younger? 193 00:09:05.963 --> 00:09:07.080 What is their age? 194 00:09:07.080 --> 00:09:09.060 Are they children? 195 00:09:09.060 --> 00:09:10.470 Are they less than 18? 196 00:09:10.470 --> 00:09:13.470 Are they between the ages of 18 and 65, 197 00:09:13.470 --> 00:09:15.303 or are they 65 plus? 198 00:09:16.170 --> 00:09:19.410 Similarly, utilization is oftentimes segmented 199 00:09:19.410 --> 00:09:23.433 into high use, medium use, and low use, or no use at all. 200 00:09:25.020 --> 00:09:27.510 Targeting describes the practice 201 00:09:27.510 --> 00:09:31.710 of making goods or services, especially available, 202 00:09:31.710 --> 00:09:33.480 or tailoring goods and services 203 00:09:33.480 --> 00:09:35.670 to one segment of the market. 204 00:09:35.670 --> 00:09:38.790 And it's only beneficial if that segment has unique needs 205 00:09:38.790 --> 00:09:41.260 and is large enough to merit the resources 206 00:09:43.650 --> 00:09:47.520 involved in creating that specialized product 207 00:09:47.520 --> 00:09:50.490 or honing that product 208 00:09:50.490 --> 00:09:52.413 for the specific aspect of the market. 209 00:09:55.680 --> 00:09:58.650 Next, let's dive into the four Ps of marketing. 210 00:09:58.650 --> 00:10:00.213 The first, the product. 211 00:10:01.770 --> 00:10:03.150 Is the product tangible? 212 00:10:03.150 --> 00:10:04.530 Is it concrete? 213 00:10:04.530 --> 00:10:08.583 Is it physical or material, or is it an intangible service? 214 00:10:09.750 --> 00:10:11.880 It's important to assess the strengths and weaknesses 215 00:10:11.880 --> 00:10:13.170 as well as competition, 216 00:10:13.170 --> 00:10:15.029 as we've been mentioning, 217 00:10:15.029 --> 00:10:17.220 looking at the different people in the market. 218 00:10:17.220 --> 00:10:18.810 What is the lifecycle of the product? 219 00:10:18.810 --> 00:10:21.840 Is it something that people use up or is it permanent? 220 00:10:21.840 --> 00:10:23.880 Will people need to replace it over time? 221 00:10:23.880 --> 00:10:26.580 Or is it something they buy once and never need again? 222 00:10:28.050 --> 00:10:30.780 And what's the portfolio of products? 223 00:10:30.780 --> 00:10:33.180 Are there other products like it? 224 00:10:33.180 --> 00:10:37.023 Can it be marketed with another item in the portfolio? 225 00:10:38.670 --> 00:10:40.200 Next, the price. 226 00:10:40.200 --> 00:10:43.110 So it's important to note that the price of an item 227 00:10:43.110 --> 00:10:44.970 both includes the monetary price 228 00:10:44.970 --> 00:10:47.850 as well as any sacrifices a customer 229 00:10:47.850 --> 00:10:50.280 has to make to obtain that product. 230 00:10:50.280 --> 00:10:54.000 So whether that's time, which can include travel time, 231 00:10:54.000 --> 00:10:58.770 or time waiting in line, discomfort, et cetera. 232 00:10:58.770 --> 00:11:00.990 And here we list seven steps 233 00:11:00.990 --> 00:11:03.790 in terms of determining the price 234 00:11:04.920 --> 00:11:07.420 or involved with determining the price of an item. 235 00:11:09.210 --> 00:11:11.280 Next, what's the place? 236 00:11:11.280 --> 00:11:14.010 So we've spoken a lot about this in terms of the market, 237 00:11:14.010 --> 00:11:15.960 but it's also important to think about the place, 238 00:11:15.960 --> 00:11:18.930 the physical place in which this item will be sold. 239 00:11:18.930 --> 00:11:20.310 Will be sold online, 240 00:11:20.310 --> 00:11:23.400 will be sold in a physical brick and mortar store, 241 00:11:23.400 --> 00:11:24.783 at a healthcare facility? 242 00:11:27.240 --> 00:11:29.790 And it's important to remember 243 00:11:29.790 --> 00:11:32.670 that there's complex multilink distribution chains 244 00:11:32.670 --> 00:11:34.290 for most physical goods. 245 00:11:34.290 --> 00:11:37.230 And these distribution chains, as we noticed during Covid, 246 00:11:37.230 --> 00:11:42.230 can easily be impacted due to their multifactorial nature. 247 00:11:42.300 --> 00:11:47.087 So related to container ships, 248 00:11:48.840 --> 00:11:51.960 airplanes, trucking, et cetera, 249 00:11:51.960 --> 00:11:54.330 there are many, many aspects 250 00:11:54.330 --> 00:11:56.313 of the modern transportation system. 251 00:11:57.873 --> 00:12:02.160 And an error or issue with any of those segments 252 00:12:02.160 --> 00:12:04.770 or any of the pieces of that chain can lead 253 00:12:04.770 --> 00:12:07.173 to delays, increased costs, et cetera. 254 00:12:09.120 --> 00:12:11.130 Finally, the promotion. 255 00:12:11.130 --> 00:12:15.090 So what strategies is the organization using 256 00:12:15.090 --> 00:12:18.063 in terms of its public relations policy? 257 00:12:19.380 --> 00:12:20.940 Does it have good publicity? 258 00:12:20.940 --> 00:12:23.100 Are there promotes or are there events 259 00:12:23.100 --> 00:12:25.740 or special promotions for specific items 260 00:12:25.740 --> 00:12:27.123 for the company as a whole? 261 00:12:28.860 --> 00:12:32.010 This is related to the advertising strategy 262 00:12:32.010 --> 00:12:35.310 that the company uses, the marketing integration. 263 00:12:35.310 --> 00:12:37.440 And it's important to remember that it's always important 264 00:12:37.440 --> 00:12:39.063 to evaluate the marketing plan. 265 00:12:40.830 --> 00:12:44.190 So finally, in conclusion, one of the most important things 266 00:12:44.190 --> 00:12:45.900 to do when designing a marketing strategy is 267 00:12:45.900 --> 00:12:48.987 to analyze the internal environment of the organization 268 00:12:48.987 --> 00:12:51.150 and the external environment, 269 00:12:51.150 --> 00:12:54.903 the individuals with which the organization works. 270 00:12:55.800 --> 00:12:57.900 By looking at this environment, 271 00:12:57.900 --> 00:13:00.060 that will help in understanding the needs 272 00:13:00.060 --> 00:13:01.683 of customers and stakeholders. 273 00:13:02.520 --> 00:13:05.610 And then after understanding those needs, 274 00:13:05.610 --> 00:13:07.350 you're able to better allocate resources 275 00:13:07.350 --> 00:13:10.353 to support the organization's goals and objectives. 276 00:13:12.030 --> 00:13:14.730 In this lecture, we presented several tools 277 00:13:14.730 --> 00:13:16.530 and strategies for looking 278 00:13:16.530 --> 00:13:20.073 at marketing strategy, markets, and pricing. 279 00:13:21.120 --> 00:13:23.133 And while these are helpful, 280 00:13:24.240 --> 00:13:26.580 there are others in the textbook, 281 00:13:26.580 --> 00:13:28.680 on the internet, et cetera, 282 00:13:28.680 --> 00:13:30.510 that you might find more useful 283 00:13:30.510 --> 00:13:34.563 for your particular organization or healthcare facility.