MKT 407 Lecture Notes - Lecture 3: Guidant, Pampers
Document Summary
Johnson & johnson"s cordis division- made cordis" stent revolutionary by making it the first to be drug-coated. This drug coating improved performance dramatically, reducing post-operative clogging and therefore the need for a person with a stent to undergo a second operation to change out stents. Competitor guidant could use the fact that some surgeons were concerned with. Cordis" safety to focus on its marketing activities on preventing current users from switching to the cordis stent. Guidant faced a choice between focusing on acquiring new physicians to its product franchise, or retaining its existing physicians in the face of cordis" new product. Acquired and retained customers are the source of all marketing revenues. By monitoring the relationship between investment and revenue vis a vis retention and acquisition, the firm can better assess the true impact of its marketing efforts. This relationship reflects the firm"s goals and position in the marketplace.
