Chapter 9: Selecting Marketing Strategies

Part 1 of Chapter 9

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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
    • 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
      • 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

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