Lec 04- Developing Successful Marketing and Organizational Strategies

Summary

This video script introduces marketing essentials, covering organizational types, strategy levels, and core values. It explains the roles of for-profit, non-profit, and industry organizations, and delves into strategic planning, including setting direction, using marketing analytics like dashboards and metrics for performance tracking, and assessing current and future business positions with tools like the BCG Matrix and Ansoff Matrix. The module aims to guide organizations in making informed strategic decisions for growth and success.

Takeaways

• 🏢 Organizations are legal entities with a common mission, creating value for both the organization and its customers through offerings such as products, services, or ideas.
• 💼 There are three types of organizations: for-profit businesses, non-profit organizations including government agencies and social entrepreneurships, and industries which are groups of organizations with similar offerings.
• 📈 For-profit businesses aim to earn a profit as a reward for the risks they take, while non-profit organizations focus on goals other than profit, such as operational efficiency or customer satisfaction.
• 🌐 Social entrepreneurs use business concepts to address social needs and are often structured as non-profit organizations, exemplified by initiatives like Teach for India.
• 🔍 Understanding the industry in which an organization competes is crucial for formulating effective marketing strategies and identifying competitors within that industry.
• 📊 Large organizations typically have three levels of strategy: corporate level, strategic business unit (SBU) level, and functional level, each with its own specific strategic direction and role in creating value.
• 🛣 Strategy is a long-term course of action that helps an organization achieve its goals by focusing efforts and delivering a unique customer experience.
• 📝 Core values, mission, organizational culture, and business goals are fundamental to an organization's foundation and guide its strategic direction.
• 📋 Marketing dashboards and metrics are essential tools for tracking strategic performance, allowing managers to quickly identify deviations from plans and take corrective actions.
• 📈 The BCG Matrix and diversification analysis are techniques used to assess an organization's current situation and identify growth opportunities, categorizing SBUs based on market growth rate and relative market share.
• 🎯 Setting strategic direction involves answering key questions about an organization's current position and desired future state, considering competencies, customers, and competitors.

Q & A

What are the three kinds of organizations discussed in the script?

The three kinds of organizations discussed are for-profit organizations, non-profit organizations, and industries. For-profit organizations are private businesses aimed at earning profits. Non-profit organizations include government agencies and social entrepreneurships that do not aim for profit as their primary goal. Industries are groups of organizations that develop similar offerings.

What is the difference between a for-profit organization and a non-profit organization?

A for-profit organization is a privately owned entity that operates to earn profits, with profit being the reward for the risks taken in business operations. In contrast, non-profit organizations serve their customers or clients without profit as their organizational goal; their goals may focus on operational efficiency, customer satisfaction, or addressing social needs.

What are the three levels of strategy in an organization?

The three levels of strategy in an organization are the corporate level, the strategic business unit (SBU) level, and the functional level. The corporate level involves top managers directing the overall strategy for the entire organization. The SBU level involves managers setting more specific strategic directions for their business units. The functional level involves specialist groups creating value for the organization.

What is a marketing dashboard and why is it used?

A marketing dashboard is a visual computer display of essential marketing information related to achieving a marketing objective. It is used to track strategic performance, allowing managers to quickly spot deviations from plans and take corrective actions.

What is an industry and how does it relate to an organization's marketing strategy?

An industry consists of organizations that develop similar offerings, such as the computer, automobile, or clothing industries. Understanding the industry within which an organization competes is crucial for developing a clear marketing strategy, as it helps to identify the competitive landscape and target market.

What are core values and how do they guide an organization?

Core values are the fundamental, passionate, and enduring principles that guide an organization's actions and decisions. They serve as the foundation for an organization's culture and operations, ensuring consistency in behavior and ethical standards.

What is the role of marketing in setting an organization's strategic direction?

Marketing plays a crucial role in setting an organization's strategic direction by helping to define the long-term course of action that delivers a unique customer experience while achieving the organization's goals. It aids in focusing and directing the organization's efforts.

What is the definition of strategy according to Philip Kotler?

According to Philip Kotler, strategy is a game plan to achieve an organization's goals. It outlines the steps and actions needed to reach the desired objectives.

What are the different types of goals that a business firm can pursue?

A business firm can pursue various types of goals, including profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. These goals can guide the firm's operations and strategic decisions.

What is the BCG Matrix and how does it help in business portfolio analysis?

The BCG Matrix, developed by the Boston Consulting Group, is a tool used for business portfolio analysis. It helps managers quantify the performance measures and growth targets of their strategic business units by plotting them on a matrix with market growth rate on the vertical axis and relative market share on the horizontal axis. The matrix divides the SBUs into four categories: Question Marks, Stars, Cash Cows, and Dogs, indicating their potential for growth and cash generation.

What is diversification analysis and how does it assist in identifying growth opportunities?

Diversification analysis is a technique that helps a firm identify growth opportunities by examining the potential of current and new markets as well as current and new products. It is often visualized using the Ansoff Matrix, which presents four options: market penetration, market development, product development, and diversification, allowing companies to assess their strategic direction for growth.

Outlines

00:00

🏢 Organizational Types and Strategy Levels

This paragraph introduces the concept of different types of organizations, including for-profit businesses, non-profit organizations, and industries. It explains that organizations are legal entities with a shared mission, offering products, services, or ideas to create value for both the organization and its customers. The paragraph also discusses the three levels of strategy within large organizations: corporate level, strategic business unit (SBU) level, and functional level, each with its specific role in directing the overall strategy.

05:01

📈 Understanding Organizational Strategy

The second paragraph delves into the structure of today's organizations, emphasizing the complexity of large entities and the interlinking strategies across different levels. It defines strategy as a long-term course of action aimed at achieving goals and delivering a unique customer experience. The importance of being forward-looking and formulating strategies at the corporate, SBU, and functional levels is highlighted. The paragraph also outlines the steps visionary organizations take to establish a foundation, set direction, and create strategies for successful product development and marketing.

10:04

🛠️ Organizational Foundations and Direction

This paragraph focuses on the foundational elements of an organization, including core values, mission, vision, and organizational culture. It discusses the importance of defining an organization's direction by understanding the underlying industry or market sector and the types of goals an organization may pursue, such as profit, sales, market share, and customer satisfaction. The paragraph also touches on the variations in strategy by different levels within an organization and the use of marketing analytics tools like marketing dashboards and metrics to track performance.

15:06

📊 Marketing Analytics and Strategic Performance

The fourth paragraph introduces marketing analytics as a tool for tracking strategic performance. It describes the use of marketing dashboards to provide a visual display of essential marketing information and marketing metrics to measure the effectiveness of marketing activities. Data visualization is presented as a means for managers to quickly identify deviations from plans and take corrective actions. The paragraph also provides an example of a marketing dashboard, illustrating how it can display website traffic sources and sales performance by SBU.

20:06

🚀 Setting Strategic Directions

This paragraph discusses the process of setting strategic directions for an organization, which involves answering two key questions: 'Where are we now?' and 'Where do we want to go?' It emphasizes the importance of understanding the current situation and future aspirations. The paragraph introduces the concept of competencies, which are the special capabilities that provide a competitive advantage and customer value. It also outlines growth strategies, including business portfolio analysis and diversification analysis, as tools to aid in decision-making for future direction.

25:06

🌐 Business Portfolio and Diversification Analysis

The final paragraph concludes the module by discussing business portfolio analysis and diversification analysis in detail. It explains how the BCG Matrix classifies SBUs based on market growth rate and relative market share, resulting in categories like question marks, stars, cash cows, and dogs. Diversification analysis is presented as a technique for identifying growth opportunities across current and new markets and products. The paragraph also includes the Ansoff Matrix, which outlines four strategies: market penetration, market development, product development, and diversification. The module wraps up with acknowledgments and a thank you note.

Keywords

💡Organization

An organization is defined as a legal entity consisting of individuals who share a common mission and develop offerings that create value for both the organization and its customers. In the video, the concept of an organization is foundational as it sets the stage for discussing different types of entities such as for-profit businesses, non-profit organizations, and industries. The script uses the term to establish the context for marketing strategies and organizational structures.

💡For-Profit Organization

A for-profit organization is a privately owned entity that operates with the primary goal of generating profit by serving its customers. The video script discusses this type of organization in the context of business firms that take risks and reward themselves with profit, which is the money left after expenses are subtracted from total revenues.

💡Non-Profit Organization

Non-profit organizations are entities that operate without the primary goal of making a profit. Instead, they may focus on operational efficiency, customer satisfaction, or other mission-driven objectives. The script mentions non-profit organizations in the context of government agencies and social entrepreneurship, highlighting their role in addressing social needs without profit as the main goal.

💡Social Entrepreneur

Social entrepreneurs are individuals or organizations that aim to solve social issues by applying business concepts to create positive change. The video script provides examples such as 'Teach for India' and 'Next Gen West,' illustrating how these entrepreneurs use innovative approaches to tackle societal challenges.

💡Industry

An industry is a group of organizations that develop similar offerings, such as products, services, or ideas. The script explains that understanding the industry in which an organization competes is crucial for formulating effective marketing strategies, as competition is typically within the industry.

💡Marketing Strategy

Marketing strategy refers to the long-term course of action that an organization takes to deliver a unique customer experience while achieving its goals. The video emphasizes the importance of having a clear understanding of the industry and the organization's position within it to develop an effective marketing strategy.

💡Core Values

Core values are the fundamental, enduring principles that guide an organization's operations and culture. The script identifies core values as a key element of an organization's foundation, which helps in establishing the organization's identity and the standards by which it operates.

💡Mission Statement

A mission statement is a declaration of an organization's purpose, its function in society, and the goals it aims to achieve. The video script discusses the mission statement as part of the organizational foundation, which helps to guide the organization's actions and strategic decisions.

💡Marketing Dashboard

A marketing dashboard is a visual display of essential marketing information related to achieving marketing objectives. The script describes it as a tool that helps managers quickly assess business situations, track performance, and take corrective actions when deviations from plans are spotted.

💡Marketing Metrics

Marketing metrics are measures of the value or trend of a marketing activity or result. The video script explains the importance of these metrics in tracking strategic performance, allowing organizations to quantify and evaluate the effectiveness of their marketing efforts.

💡Competencies

Competencies refer to the special capabilities, skills, technologies, and resources that distinguish an organization from others and provide customer value. The script discusses how identifying and exploiting these competencies can lead to success and provide a competitive advantage in the marketplace.

💡BCG Matrix

The BCG Matrix, developed by the Boston Consulting Group, is a business portfolio analysis tool that helps organizations evaluate the performance and growth potential of their strategic business units. The script uses the BCG Matrix to illustrate how organizations can categorize their SBUs as 'question marks,' 'stars,' 'cash cows,' or 'dogs' based on market growth rate and relative market share.

💡Diversification Analysis

Diversification analysis is a technique used to identify growth opportunities in both existing and new markets, as well as with current and new products. The script introduces the Ansoff Matrix as a tool for diversification analysis, which presents four options: market penetration, market development, product development, and diversification.

Highlights

Introduction to Marketing Essentials covers three kinds of organizations and their strategic levels.

Core values, mission, organizational culture, business goals, and marketing dashboards are essential components of organizational strategy.

For-profit organizations aim to earn profits, while non-profit organizations focus on operational efficiency and customer satisfaction.

Social entrepreneurs address social needs using business concepts, often structured as non-profit organizations.

Industries are formed by organizations that develop similar offerings, which is crucial for understanding marketing strategies.

Organizational structure typically includes corporate, strategic business unit (SBU), and functional levels, each with distinct strategic roles.

Strategy formulation involves setting a direction and developing a game plan to achieve business goals.

Visionary organizations must anticipate future events and respond effectively, establishing a foundation, and setting a clear direction.

Organizational foundations include core values, mission, and culture, which guide an organization's actions and decisions.

Organizational direction involves understanding the underlying industry or market sector and defining business goals and objectives.

Business firms can pursue various goals such as profits, sales, market share, quality, customer satisfaction, and social responsibility.

Strategic performance can be tracked using marketing analytics tools like marketing dashboards and metrics.

Data visualization helps managers quickly spot deviations from plans and take corrective actions in marketing strategies.

Setting strategic directions requires answering where the organization is currently and where it aims to go.

Competencies, including core competencies and special capabilities, are essential for an organization's competitive advantage.

Business portfolio analysis and diversification analysis are techniques to identify growth strategies and future direction.

The BCG Matrix and Ansoff Matrix are tools for analyzing an organization's strategic position and growth opportunities.

The module concludes with an understanding of different organizational types, the importance of strategy, and the use of marketing analytics for strategic direction setting.

Transcripts

foreign

[Music]

introduction to marketing Essentials and

let us look at what are the things that

will be covered in this module so this

module starts with describing the three

kinds of organization and the three

levels of strategy in them

then it describes what are core values

Mission organization culture business

and goals

then we will explain why managers use

marketing dashboards and marketing

metrics and then in the last we will

discuss how an organization assesses

where it is now and where it seeks to be

to start with in studying today's

Visionary organizations it is important

to recognize these three things the

first is

the kind of organizations that exist

today the second is

what strategy is and the third is

how this strategy relates to the three

levels of structure found in many large

organizations now let us try to answer

this question what is an organization

an organization is a legal entity that

consists of people who share a common

Mission they develop offerings

offerings means products services or

ideas that create value for both the

organization and its customers

by satisfying their needs and wants

what are the different types of

organization different kinds of

organization

so first type of organization first kind

of organization is for-profit

organization normal business firms

and the second kind of organizations are

non-profit organizations

that will include government agencies

and social entrepreneurship

and then there is another thing that is

called as Industries

let us look at each one of them so what

is the business form

a business firm is a private privately

owned organization that serves its

customers to earn a profit so that it

can survive profit is the reward to a

business firm for the risk that it takes

to undertake its marketing office

offering

it is the money left after the business

firms total expenses are subtracted from

its total revenues

what are non-profit organizations

they are non-government organizations

they serve

their customers but do not have profit

as an organization goal while business

firm has profit as a organization goal

non-profit organization although they

may be doing the same thing but they do

not have

profit as an organizational goal

its goal may be operational efficiency

or satisfaction of the customers or

client satisfaction social entrepreneurs

like teach for India seek to solve the

Practical needs of society and are

usually structured as non-profit

organizations

how to go about making responsible

decisions

these new types of organizations they

help entrepreneurs Focus

on the passion and purpose so what are

social entrepreneurs

they address important social needs and

issues use business Concepts to change

the world for good for example

next gen West helps Generation Z

navigate navigate financial aid and

student loans

another example of a social entrepreneur

is teach for India now let us understand

what is an industry

organizations that develop similar

offerings

create an industry and recall that

offerings are all those products

services and ideas so organizations that

develop similar offerings they create an

industry such as computer industry or

automobile industry or shoe industry or

clothing industry

much of an organizations marketing

strategy is having a clear understanding

of the industry within which it competes

so this when we talk of competition we

are generally talking of within industry

competition so your marketing strategy

before you go about making a marketing

strategy you should be clear about

the industry in which the this company

your company competes now what is the

structure of today's organization

keep in mind that large organizations

are extremely complex

this usually consist of three

organizational levels whose strategies

are linked to marketing the first level

is the corporate level

the second level is

strategic business unit or sbu level

and the third level is

the functional level

in this functional level you you can

have two different types for one is the

department the second is cross

functional teams

so what is this corporate level at the

corporate level top managers Direct

overall strategy for the entire

organization

so at this level the top management

the top managers they Direct

the overall strategy for whole of this

organization

then what happens at the Strategic

business unit or sbu level

the managers at sbu level set a more

specific strategic Direction

for their businesses to exploit value

creating opportunities

and how this strategy looks like at the

third level that is the functional level

the groups of a specialist actually

create value for the organization

so they at the top level they Direct

now at the SVU level the strategies

become more

they have more specific strategic

Direction and at the functional level

they create value for the organization

so this is what it looks like at the top

is the board of directors

then comes the corporate level

sbu level and then the functional level

at functional level you have all these

departments the information system

Department the finance department r d

Department marketing operations and

human resource department

so strategy you see that strategy is

Flowing from

from the board of directors to the

corporate level to the sbu level and

then to the functional level that is at

that department level and this is where

these departments they create value

now after having understood the three

levels of organization now let us look

at what is strategy

an organization has limited human

Financial technological and other

resources

available to produce and markets is

offering it cannot be all thing to all

people therefore every organization must

develop strategies to help focus and

direct its efforts to accomplish its

goals

all organizations set a strategic

Direction

marketing helps to both set this

direction and move the organization

there so this is how marketing helps the

organization

by setting the direction and taking the

organization

there

and organizations long-term course of

action

that delivers a unique customer

experience while achieving its goals so

that is one concept one definition of

strategy another is goals indicate what

a business unit wants to achieve

strategy is a game plan to get there

that is by Philip kotler

so how this strategy happens in

Visionary organizations

to be successful

today's organizations must be forward

looking they must both anticipate future

events

and respond quickly and effectively

so a visery organization must

specify its foundation why does it exist

that is the first thing second

it should set a direction what will it

do

and third

formulate strategies how will it do that

so the first thing that visually

organization must do is to decide why do

they exist

then they will decide what will it do

and then how will it do it

Visionary organizations use key elements

too

first establish a foundation

and second set a Direction

using

the third one that is strategies that

enable them to develop and Market their

products successfully

so

let us start from here I am writing one

overhead over this organizational

Foundation that is why

why do we exist core values

vision and Mission and the organization

culture

the second is the organizational

Direction what what businesses what

goals and objectives both long term and

short term

and the third is organizational strategy

is how

at various levels that is the corporate

sbu and functional level

and buy a product that is

good services and idea

so now let us look at the organizational

foundations why does it exist so there

are three elements of organizational

foundations which are the first is the

core values

the fundamental passionate and enduring

principles that guide an organization

are the core values

second is the mission a statement or

vision of an organization's function in

society and the third is

organizational culture the set of values

ideas attitudes and behavioral Norms

that are learned and shared among the

members of an organization

next thing that we need to understand is

what is organizational Direction what

will it do

businesses the underlying industry or

Market sector often organizations

offering what do we do what businesses

are we really in so these are the some

of the questions that organizations have

to continuously ask and answer what do

we do

what businesses are we really in

so the questions may seem to be similar

on the face of them but then the answers

can be very thought provoking and it may

take it may take lots of time for the

organization to answer these questions

and thereby clarify their organizational

Direction goals and objectives

targets of performance to be achieved

Often by a specific time

business firms can pursue several

different types of goals

now these are the various types of gold

that any business home can pursue

they can pursue profits sales market

share quality customer satisfaction

employee welfare social responsibility

they are just to name a few

so this is not exhaustive list

some organization May seek to be

technology leader

ah variation by level there can be

variations in the strategy by various

levels the corporate sbu and functional

and there can also be Variations by

product or offering that is product

service or idea how to go about tracking

strategic performance with marketing

Analytics

one such tool is marketing dashboard

this visual computer display of

essential marketing information related

to achieving a marketing objective

second is marketing metrics a measure of

the value or trend of a marketing

activity or result and the third is data

visualization it presents information

about an organization's marketing Matrix

graphically so marketers can quickly

spot deviation from the plans and take

Collective action so the idea of data

visualization is that it becomes easier

for the managers to track

major differences they can spot

deviation from the plans and then

they can timely take corrective actions

and effective marketing dashboard health

manager assess a business situation at a

glance so now this figure shows

the it comes from

Dundas data visualization incorporation

now you see that this is on the left we

have this marketing dashboard as of the

December 2015. so it says about website

traffic sources

and there is this month and last month

now this this circle

this circle it shows

from where the traffic is coming so

there is Google LinkedIn YouTube and

Twitter Facebook and direct traffic

these are the various percentages

then there are various search engines so

there are these are referral sides then

there are some search engines and then

direct traffic now on the right they are

giving this sales performance by sbu

so what is the sales performance of

Hardware sbu what is the sales

performance of electronics sbu

and what is the sales that comes from

software and peripherals and then you

have this grand total now what does this

red means

so

this is for revenues versus targets so

when when they are showing red

in front of Hardware it means that the

revenues

actual revenues they are not meeting the

targets

then this is the third display that is

website visit by the state it tells from

which state websites are their website

are being visited by

so they can understand from which state

people are viewing their website more

and

from which site they are coming to their

site is it through the Facebook Twitter

or through Google or Bing or they come

to their website directly

so this again gives a detailed view

about this data marketing dashboard that

is the website traffic sources

from Facebook it comes 15 percent of it

comes from Twitter the 13 and from

YouTube it is 10 percent from Search

Engine 34 and from being it is three and

from direct traffic it is 16 percent so

approximately it it totals up to 100 so

now you see that in search engine you

see 30 34 percent comes from Google

while only three percent comes from Bing

and

from referral sites Facebook contributes

most to the visit while LinkedIn and

others it has a small share in that

another thing that it it showed was the

sales performance by

the sbu so now on this here you are you

can look at this 13 month trend

it is normal it is it is a straight line

here it goes up and come down

for hardware for electronics it is more

erratic software it is coming down

peripherals again it goes up comes down

and the grand total so this is how this

this revenues and targets they match up

then this third slide it shows marketing

dashboard that is monthly website visit

by the state

so the these white States they where the

the color is white there no visitors are

coming from those States

from Blue

ten thousand from light blue ten

thousand people are visiting and from

black twenty thousand visitors are

visiting their website so now it it

becomes easier for the company to to

Target the states

and it also becomes easier for the

company to look at which sbus are

performing good and which are not

performing good so now this becomes

easier for the managers to just have a

glance and understand what is happening

the then we come to setting strategic

directions

to set a strategic Direction an

organization needs to answer two

difficult question

one is where are we now

and the second is

where do we want to go sorry this is

second

so

when we have to to set a strategic

Direction these are the two difficult

questions that need to be answered where

are we now and from here where do we

want to go so it involves that you

should be first clear that where you are

standing

once that becomes clear

another difficult question is where do

you want to go from here

now if you

get the answer to the first question

wrong then obviously the answer to the

second question will go wrong the first

thing that you do that you need to do is

to answer the first question very

clearly and then the second question

then becomes slightly more easier to

answer

now this involves identifying

competencies that is the competitive

Advantage the competitors and the

customers so in order to answer these

two questions where are we now and where

do we want to go

we have to

identify our competencies that is our

competitive advantage

our customers and our competitors

so what are competencies

competencies are what do we do best and

organizations core competencies are its

special capabilities

the skills Technologies and resources

that distinguish it from other

organizations and provide customer value

and organizations core competencies are

its special capabilities special

capabilities special capabilities may

include the skills

the technologies that they have and

other resources

now these three put together should also

be able to distinguish it from other

organizations

one

from other organizations this is the one

thing that it does and second is it also

should provide customer value so both of

them should be looked after

simultaneously

exploiting these competencies

can lead to success

competencies should be distinct enough

to provide competitive advantage

so one characteristics of

competency is that there should be

distinctive enough or unique strength

relative to competitors that provide

Superior returns often based on quality

time cost or innovation so these

competencies should be distinctive

enough to provide competitive Advantage

how a unique strength that is related to

the competitors and that provides

Superior returns

how they should provide Superior returns

based on quality time cost or innovation

now customers identify

who do we want to serve so who are

customers therefore the answer needs to

be the question needs to be answered is

who do we serve a strategy must provide

genuine value to customers to ensure

that they have a satisfying experience

and who are the competitors

in today Global Marketplace the

distinction be among competitors are

increasingly blurred

firms compete on different channels and

due to advances in internet technology

the competition is increasing another

thing that you need to understand is

where do we want to go

till now we were looking at where are we

we are where are we standing now we are

looking at where do we want to go so

there are these growth strategies so

these two techniques

Aid managers with their decision first

is the business portfolio analysis and

second is diversification analysis these

two analysis

tells a tells us where do we want to go

so what is this business portfolio

analysis it is a technique that manages

use two quantify performance measures

and growth targets of their firms

strategic business unit

the BCG

that is Western Consulting Group

business portfolio analysis requires an

organization to locate the position of

each of its sbu on a growth share Matrix

so a growth share Matrix is made and

each sbu is located on that Matrix

on the vertical axis is the market

growth rate and on the horizontal axis

it is the relative market share keep in

mind we are talking of relative market

share and not just the market share that

BCG Matrix has given specific names and

descriptions to the four resulting

quadrants

these are based on the amount of cash

they generate for or required from the

organization

so these are the four quadrant

first is the question mark that is low

share

of a high growth Market

stars that is high share of a high

growth Market

the third is Cash cows that generate

large amount of cash and dogs low share

of a slow growth markets

this is what this BCG looks like now you

see on this x axis we have this relative

markets here

relative market share means share

related related to the largest

competitor

so we are worried about the largest

competitor and not all the competitors

on this axis we have this market growth

rate that is percent per year this

market growth rate it can go from minus

42 plus 40 or minus 10 to 2 plus 10 Etc

etcetera and on x axis that is relative

market share it is 10x 1X and 0.1 x x is

the share of the largest competitor so

you can be 10 times the share of the

largest competitor or one time or point

one times now if you look at this

quadrant which which is mentioned as one

here so these are

High Mark in the in this quadrant the

market growth rate is high

while the relative market market share

is low

so that is why they are called as

question marks here in cash cows you are

much bigger than the competitors

here in this you are much bigger than

your ah nearest largest competitor but

the growth rate is not there so that is

why they are called as cash cows you can

take lots of money from from this place

while in stars both of them are high

your your market share related to the

competitor is also very high and the

market growth rate is also very high

another

analysis that needs to be done is

diversification analysis

diversification analysis is a technique

that helps a firm

search for growth opportunities from

among current and new markets as well as

from amongst current and new products

now these are the four options that a

company can have the first is Market

penetration

that is increased sales of current

products in current markets

the second is Market development cell

current products to New Markets

third is product development cell new

products to current markets and the

fourth is

diversification develop new products to

sell in New Markets now this is what

this Matrix looks like this is we are

talking of diversification analysis

and this Matrix is called as and soft

Matrix

on one axis you have products

current and new on another axis you have

markets current and new so when the

product is current and the markets are

current it is Market penetration when

the products are new the markets are

current then it is

3.

when the markets are new and the current

and the product is current it is to when

both of them are new then it becomes

diversification so this fourth is

diversification

to conclude

we started this module by introducing

different kinds of organizations

and understanding the concept of

strategy

then we went on to discuss about the

importance of core values Mission

organizational culture business and

goals of an organization

further we have studied the importance

of marketing Analytics

by way of understanding what are

marketing dashboards and marketing

metrics and finally we focused on

setting

strategic directions for the

organization

which included assessing the current

situation and deciding on the future

course of Direction

these are the three books from which

from where the material for this this

module were take was taken thank you

[Music]

foreign

[Music]