Chapter 9: Selecting Marketing Strategies
Part 1 of Chapter 9
- Created by: humbuggirl
- Created on: 22-12-14 20:50
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- Selecting Marketing Strategies
- Ansoff's Matrix
- Diversification
- creating a new product and selling it to a new market
- most risky strategy
- Product Development
- introducing a new product to existing customers
- assessing effectiveness of Ansoff's
- used to assess the degree of risk involved in a particular marketing strategy
- can oversimplify risk
- does not take into account competitors
- Market Development
- selling existing products to a new market
- Market Penetration
- promoting growth in existing markets with existing products
- least risky strategy
- Diversification
- Porter's Generic Strategies
- Diffferntiation
- based upon number of characteristics
- superior performance
- product durability
- after-sales service
- design, branding, packaging to improve attractiveness of product
- different distribution methods
- clever promotional/ advertising to boost sales and image
- based upon number of characteristics
- Cost Leadership
- producing on a large scale and gaining economies of scale
- introduction of new method of producition
- discovery of new source of supply that is cheaper than competitors
- new technology allowing business to cut costs
- new method of distribution that lowers transport costs
- improvement in productivity
- having a patent helps to allow permanent cost leadership
- achieving economies of scale allows permanent cost leadership
- creating barriers to entry for other firms allows for permanent cost leadership
- Focus
- can be applied to mainstream markets
- take segment poorly served by one of the main players and then adopt a strategy that targets that particular niche or market
- assessing effectiveness of Porter
- used to assess possible effectiveness of a strategy involving low cost, differentiation or focus
- model will be used to examine
- whether strategy provides significant advantage to business through much lower level of costs in comparison to competitors, clear differentiation or successful focus not enjoyed by rivals
- whether strategy can be maintained over a long period of time
- whether strategy appeals to sufficient numbers of customers to allow business to reach its targets
- Diffferntiation
- Ansoff's Matrix
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