MARKETING STRATEGY EVALUATION—PART 2
For this Assignment, you will continue to take on the role of a marketer for a large corporate company that currently sells high-end products or services. Your task will continue to be to assess the possibilities of selling a less expensive product/service to boost sales while maintaining the quality expectations of your consumer base. The challenge will be to not tarnish your brand while bringing in new customers that will boost sales for the company.
To complete this Assignment, you will continue to develop and present an assessment overview of a high-end brand that is planning to incorporate the possibility of selling a lower-end product or service to a new market. A big consideration is evaluating brand value. Your continued task will be to evaluate your current high-end brand and compare it to the potential new low-cost product/service and assess the real value aspect in order to make an impact on customer buying decisions and perceived value from the overall customer base, all while keeping your current customer base. Last week, you selected a company, and you will continue using that company for this week’s Assignment.
The product of your evaluation will be a report that you could deliver to the company’s CEO and senior leadership team for review. In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in the Learning Resources, or those in the Walden Library.
Note: Last week, you submitted Parts 1 and 2. This week, you will continue building your report, to include any revisions needed to Parts 1 and 2, as well as your newly developed Part 3 and an executive summary.
RESOURCES
Be sure to review the Learning Resources before completing this activity.
Click the weekly resources link to access the resources. 
WEEKLY RESOURCES
To prepare for this Assignment:
Return to the Module 2 Assignment Template you utilized in Week 4. With the research and readings from Week 4 in mind, incorporate any feedback, as needed, into your report as you complete Part 3 and the executive summary.  
BY DAY 7
Submit Part 3 of your report, as well as the executive summary, to include the following:
PART 3: INCORPORATING MARKET SHARE CAPTURING (APPROXIMATELY 2 PAGES)
Summarize how market share approach can lead to consumer confidence.
Synthesize your market share analysis for the new strategy and its impact on the organization.
To conclude your evaluation for the CEO, defend how your market share strategies will support your overall marketing strategy for both products and capture market share for the company.

EXECUTIVE SUMMARY (PAGE 1 OF YOUR REPORT)

Provide the CEO with an executive summary of your evaluation of the opportunities for the brand. This will serve as the first page of your report. Be sure to address the following in your executive summary:
Clearly state the purpose of the report.
Concisely summarize the results of your evaluation of how the company could expand its brand to include a lower-cost version of a product/service that would retain existing customers while capturing additional market share.
Module 2 Assignment:
Marketing Strategy Evaluation
Prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
WMBA 6060: Marketing for Competitiveness
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Executive Summary
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Part 1: Incorporating the Marketing Mix
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Part 2: Incorporating Creative Value
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Part 3: Incorporating Market Share Capturing
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References
[Please delete this note before submitting your Assignment. For more information about
formatting your reference list, please visit the following site:
https://academicguides.waldenu.edu/writingcenter/apa/references.]
Include appropriately formatted references to support your Assignment. Refer to the
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Module 2 Assignment:
Marketing Strategy Evaluation
Prepared by: Annet Castillo
Date: 03/31/2024.
Walden University
WMBA 6060: Marketing for Competitiveness
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Part 1: Incorporating the Marketing Mix
Philips, a leading healthcare technology company, is renowned for its premium healthcare
equipment and solutions, ranging from advanced medical imaging systems to sophisticated
patient monitoring devices. However, Philips could potentially introduce lower-cost medical
devices or healthcare solutions tailored for emerging markets or budget-conscious consumers.
Importance of the 4 Ps in Marketing Analysis
For Philips, understanding and effectively implementing the 4 Ps is crucial for market success
and sustainable growth.
Product
Philips’ diverse portfolio of healthcare products is meticulously designed and engineered
to meet the highest standards of quality, safety, and performance (Philips, n.d). To broaden its
market appeal, Philips could expand its range by offering entry-level options tailored to specific
demographics or regions. For instance, simplified versions of medical equipment targeting
resource-constrained settings could enhance accessibility while upholding Philips’ commitment
to innovation.
Price
Dynamic pricing strategies are essential for Philips to navigate diverse economic
landscapes. While premium pricing may be justified for advanced devices, exploring value-based
models ensures affordability (Costello et al., 2022). Moreover, Philips can leverage pricing as a
strategic tool to stimulate demand and capture market share. Costello et al. (2022) further
indicate that promotional pricing during seasonal events or special occasions can incentivize
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purchase decisions, while volume discounts for bulk orders may appeal to institutional buyers
such as hospitals and clinics.
Place
Distribution channels are vital for Philips to reach customers efficiently. Prioritizing
digital channels and e-commerce platforms taps into the growing trend of online shopping (Farsi,
2021). By establishing a robust online presence, Philips can enhance accessibility and
convenience for consumers while reducing overhead costs associated with physical retail outlets.
Furthermore, strategic partnerships with local healthcare providers, community organizations,
and government agencies can facilitate market penetration in underserved regions. Collaborative
initiatives aimed at improving healthcare infrastructure and promoting health awareness not only
expand Philips’ reach but also contribute to positive social impact and brand reputation.
Promotion
Effective promotion is essential for building brand awareness, generating consumer
interest, and driving sales. Philips’ multi-channel marketing approach, encompassing digital
advertising and social media engagement, maximizes consumer engagement (Jeyaraman et al.,
2023). However, Philips should prioritize educational initiatives aimed at empowering
consumers with knowledge about healthcare technology and best practices for health
management (Nuseir & Madanat, 2015). Webinars, workshops, and online resources can serve as
valuable tools for customer education and relationship-building, positioning Philips as a trusted
advisor and thought leader in the healthcare industry.
Proposed New Selling Strategy for Philips
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In response to changing customer needs, Philips can enhance its selling strategy by
prioritizing market segmentation and customization. By segmenting customers, Philips can
customize products, pricing, and marketing to match preferences, driving sales and satisfaction.
Moreover, embracing an omnichannel distribution model maximizes reach and accessibility by
combining offline and online channels, enhancing convenience, and driving sales (Jeyaraman et
al., 2023). Pricing strategies should balance premium pricing for advanced medical devices with
competitive pricing for entry-level options, with flexible models such as subscriptions or
installment plans accommodating diverse budgets and purchasing preferences. Innovative pricing
strategies, such as outcome-based or pay-per-use models, can further align pricing with customer
value and optimize revenue generation.
Analysis of How Persuasion Can Influence Consumer Behavior.
Persuasion is vital in healthcare consumer behavior, where trust and credibility are key.
Philips can employ persuasion techniques like social proof, utilizing testimonials and
endorsements from professionals and satisfied customers (Shah & Asghar, 2023). Showcasing
real success stories builds confidence, encouraging consumers to choose Philips. Moreover,
deploying scarcity techniques strategically generates excitement and prompts quick action.
Emotional appeal is another potent strategy, emphasizing human-centric benefits like improved
health outcomes and peace of mind, fostering strong emotional bonds with consumers (Shah &
Asghar, 2023). By utilizing these techniques effectively, Philips can influence consumer
behavior, driving purchasing decisions and fostering long-term loyalty.
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Part 2: Incorporating Creative Value
Value Creation and Value Capture
Value creation is the generation of benefits or utility for customers through products,
services, or experiences. This includes benefits such as quality, functionality, convenience,
emotional resonance, brand perception, and social status. Value capture, on the other hand,
involves capturing a portion of the value created in the form of revenue or profit for the business.
For Philips, value creation entails developing innovative healthcare solutions that address unmet
needs, improve patient outcomes, and enhance quality of life (Philips, n.d). Philips strives to
deliver value by combining cutting-edge technology with user-centric design and superior
performance. Value capture for Philips involves monetizing its offerings through various revenue
streams, including product sales, service contracts, licensing agreements, and subscription-based
models.
Applying a Value Proposition to a Brand
A value proposition captures the unique value that a brand promises to deliver to its
customers. According to Payne et al. (2017), it succinctly communicates why customers should
choose a particular brand over competitors and how they stand to benefit from the brand’s
offerings. Philips’ value proposition centers on empowering individuals to lead healthier lives
through cutting-edge healthcare technology that is dependable, user-friendly, and readily
available. The company sets itself apart through its unwavering dedication to innovation, quality,
user-centric design, and accessibility. As a result, maintaining rigorous standards of quality and
reliability ensures customers can rely on the performance and longevity of Philips’ products.
Prioritizing user-centric design, Philips develops intuitive, easy-to-use products that seamlessly
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integrate into users’ lives, enhancing overall satisfaction (Philips, n.d). Furthermore, Philips is
committed to making healthcare accessible to all, whether through affordable consumer health
products or advanced medical devices in professional settings.
Synthesizing Customer Value, Business Value, and Cultural Value
Philips’ value proposition synthesizes customer, business, and cultural values. Customers
enjoy improved health outcomes and convenience, while Philips ensures sustainable growth and
competitiveness through quality and innovation. Philips (n.d) highlights how this commitment
aligns with societal values, advancing healthcare technology and promoting healthier lifestyles.
By addressing these dimensions, Philips challenges the marketing environment, underscoring the
significance of holistic value creation and alignment with cultural trends. According to Payne et
al. (2017), this necessitates a strategic approach that integrates customer satisfaction, business
success, and societal impact throughout the marketing process. Such an approach acknowledges
the interconnectedness of these dimensions and emphasizes the importance of meeting customer
needs while contributing positively to society.
How Philips’ value proposition challenges the marketing environment
While Philips’ value proposition offers significant benefits to customers, businesses, and
society at large, it also presents challenges within the marketing environment. In a competitive
healthcare market, Philips faces intense competition from both traditional players and emerging
disruptors. As Rintamäki and Saarijärvi (2021) affirm, to maintain a competitive edge,
organizations must continuously innovate, differentiate their offerings, and effectively
communicate their value proposition to stand out amidst competitors. Healthcare technology is
subject to stringent regulations and standards to ensure safety, efficacy, and ethical compliance.
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Therefore, Philips must navigate complex regulatory frameworks across different markets,
ensuring that its products meet regulatory requirements while delivering value to customers.
Moreover, Rapid technological advancements necessitate agility to meet evolving customer
needs. Also, operating in diverse cultural contexts requires tailored value propositions and
localization strategies for effective engagement across markets. Thus, Philips must navigate
these complexities to maintain its competitive edge and relevance amidst changing landscapes.
Strategic Marketing through Porter’s Five Forces
Porter’s Five Forces theory offers a robust framework for shaping Philips’ marketing strategy
Threat of New Entrants: For its existing brand, Philips can leverage its established
reputation and extensive distribution network to create barriers for potential new entrants. By
investing in continuous innovation and R&D, Philips can maintain technological superiority and
deter new competitors (Hamdan, 2017). For example, Philips’ dominance in the healthcare
technology sector is fortified by its extensive patent portfolio and strategic partnerships, making
it challenging for newcomers to penetrate the market.
Bargaining Power of Buyers: Understanding customer preferences and needs is crucial.
By offering differentiated products and services tailored to specific market segments, Philips can
mitigate the bargaining power of buyers. For instance, Philips’ focus on personalized healthcare
solutions, such as its consumer health devices and professional medical equipment, ensures
customer loyalty and reduces price sensitivity. Moreover, Philips’ direct-to-consumer initiatives,
like online sales platforms and subscription-based services, empower customers with more
options and flexibility, enhancing brand loyalty and reducing the bargaining power of buyers.
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Bargaining Power of Suppliers: Philips can strategically manage supplier relationships
to minimize the impact of supplier power on its operations. By diversifying its supplier base,
negotiating favorable terms, and fostering long-term partnerships, Philips can mitigate the risk of
supply chain disruptions and price fluctuations. Additionally, vertical integration and backward
integration strategies can provide Philips with greater control over critical inputs and reduce
dependency on external suppliers (Hamdan, 2017). For instance, Philips’ strategic alliances with
leading semiconductor manufacturers ensure a stable supply of components for its electronic
devices, mitigating the bargaining power of suppliers and enhancing operational efficiency.
Threat of Substitute Products or Services: Philips must continuously innovate and
differentiate its offerings to mitigate the threat of substitutes. By investing in research and
development, Philips can develop unique features and functionalities that set its products apart
from substitutes (Hamdan, 2017). Philips’ focus on advanced imaging technologies and
diagnostic solutions in the healthcare sector ensures that its products offer superior performance
and accuracy compared to alternative options. Moreover, Philips’ emphasis on ecosystem
integration and interoperability enables seamless connectivity and compatibility across its
product portfolio, reducing the likelihood of customers switching to substitutes.
Competitive Rivalry: Philips faces intense competition in the healthcare technology
market from both established players and emerging startups. To maintain its competitive edge,
Philips must differentiate its offerings through superior quality, innovation, and customercentricity. Thus, by continuously monitoring competitor strategies and market trends, Philips can
identify opportunities for differentiation and capitalize on its strengths. For example, Philips’
emphasis on sustainability and environmental responsibility resonates with consumers who
prioritize eco-friendly products, setting it apart from competitors who lack similar initiatives.
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References
Costello, L., Dare, J., Dontje, M., Lambert, C., & Straker, L. (2022). Applying the 4PS of social
marketing to retain and engage participants in longitudinal cohort studies: Generation 2
Raine study participant perspectives. BMC Medical Research Methodology, 22(1).
https://doi.org/10.1186/s12874-022-01778-4
Farsi D. (2021). Social Media and Health Care, Part I: Literature Review of Social Media Use by
Health Care Providers. Journal of medical Internet research, 23(4), e23205.
https://doi.org/10.2196/23205
Hamdan, A. (2017). Porter’s Strategies in Healthcare. In: Strategic Thinking in a Hospital
Setting. SpringerBriefs in Public Health. Springer, Cham. https://doi.org/10.1007/978-3319-53597-5_3
Jeyaraman, M., Ramasubramanian, S., Kumar, S., Jeyaraman, N., Selvaraj, P.,
Nallakumarasamy, A., Bondili, S. K., & Yadav, S. (2023). Multifaceted Role of Social
Media in Healthcare: Opportunities, Challenges, and the Need for Quality Control.
Cureus, 15(5), e39111. https://doi.org/10.7759/cureus.39111
Nuseir, M.T. & Madanat, H. (2015) ‘4Ps: A strategy to secure customers’ loyalty via customer
satisfaction’, International Journal of Marketing Studies, 7(4). doi:10.5539/ijms.v7n4p78.
Payne, A., Frow, P. & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. J. of the Acad. Mark. Sci. 45, 467–489.
https://doi.org/10.1007/s11747-017-0523-z
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Philips. (n.d). Innovating meaningful healthcare. https://www.philips.co.ke/healthcare
Rintamäki, T. & Saarijärvi, H. (2021) ‘An integrative framework for managing customer value
propositions’, Journal of Business Research, 134, pp. 754–764.
doi:10.1016/j.jbusres.2021.05.030.
Shah, S. S., & Asghar, Z. (2023). Dynamics of social influence on consumption choices: A social
network representation. Heliyon, 9(6), e17146.
https://doi.org/10.1016/j.heliyon.2023.e17146
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Module 2 Assignment:
Marketing Strategy Evaluation
Prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
WMBA 6060: Marketing for Competitiveness
Page 1 of 6
Executive Summary
Replace this text with your executive summary.
Page 2 of 6
Part 1: Incorporating the Marketing Mix
Replace this text with introductory information. Add or remove headings as necessary.
[Heading]
Replace or remove this text. Add or remove headings as necessary.
[Sub-Heading]
Replace or remove this text. Add or remove headings as necessary.
Page 3 of 6
Part 2: Incorporating Creative Value
Replace this text with introductory information. Add or remove headings as necessary.
[Heading]
Replace or remove this text. Add or remove headings as necessary.
[Sub-Heading]
Replace or remove this text. Add or remove headings as necessary.
Page 4 of 6
Part 3: Incorporating Market Share Capturing
Replace this text with introductory information. Add or remove headings as necessary.
[Heading]
Replace or remove this text. Add or remove headings as necessary.
[Sub-Heading]
Replace or remove this text. Add or remove headings as necessary.
Page 5 of 6
References
[Please delete this note before submitting your Assignment. For more information about
formatting your reference list, please visit the following site:
https://academicguides.waldenu.edu/writingcenter/apa/references.]
Include appropriately formatted references to support your Assignment. Refer to the
Assignment guidelines for further information on the requirements.
Page 6 of 6