Learning ObjectivesBy the end of the lesson you should be able to:1. Describe a range of marketing strategies.2. Explain the meaning and significance of Ansoff’s Matrix in assessing marketing strategies.3. Assess the suitability of Ansoff’s competitive strategies in a given context.4. Evaluate the method, benefit and drawbacks of entering international markets.
Marketing Strategies Corporate GoalsWhat are marketingstrategies? Marketing ObjectivesWhat steps need to betaken beforemarketing strategies Analysis of the marketcan be introduced? Marketing strategy
Low cost Versus Differentiation for firms that operate in both niche and mass markets DEBATE CHALLENGE! DIFFERENTIATION LOW COST your given strategy. Prepare to Research The purpose is to make oneThis is the option to go is the best option. demonstrate which product appear differentfor the cheaper end of of organisations that Discuss examples and somehow superior to have succeeded using these strategies.in the market. the market. others Encouraging customers toAim is to offer products Remember you will need to counter argue so make sure you read up about your particular make choose that at a lower price than competitors strategy. model when making or competitors. purchase decisions.
Ansoff’s matrixIgor Ansoff’s matrix shows the mainstrategic options available to firms. Market Penetration Product Development Market Development DiversificationThe matric allows managers to discussstrategies to achieve corporate aims.Each carries a different level of risk.
Market PenetrationTarget market would consist of existing customers Benefits? brand loyaltyIntroduce new product to this market reduce the purchase of substitutesE.g. – encourage customers to use the product more oftenWii Game Wii Console owners
Market penetration – in actionGiven Americas love of coffee and super-sized portions, it was inevitable thatStarbucks should tie the two together in its latest offering: the massive newTrenta cup size, holding 31 US fluid ounces – thats 917ml, or more than one anda half imperial pints – of beverage
Market DevelopmentMarket an existing product to a new marketNothing about the product changes Benefits?E.g. – Risk but security of an established product.Wii Game UK Wii Game USA
Market Development – in actionMove abroadTopshop to USPrimark in SpainTesco in China
Product DevelopmentDevelop a new product to sell to existing customers Benefits? Risk but security of itsCould include and add established on or extension pack customers.E.g. – Drawbacks? May need extensive R&D.Wii Console Wii Fit
Product development – in actionThe sandwich chain Pret A Manger announced a 37% profitincrease, boosted by sales of 50,000 porridge pots a week
DiversificationMarket a new product to a new marketRelated or unrelated to previous product Drawbacks?E.g. – High risk strategy!Apple Ipad New market
Diversification – in actionNokiaIn 1990 Nokia made tyres andtoilet rollsMobile Phones
Getting to know the Ansoff MatrixDecided how Coca-Cola and Nestlehave used differentgrowth strategies.Feedback yourfindings to the restof the group.
National or international?When considering marketingstrategies, why is itincreasing likely that firms Carry out research onwill have an internationalaspect to International ‘Entering their plans?Markets’ and look at thebenefits and drawbacks to different methods.What are the benefits ofoperating on an to the Prepare to feedback internationalscale? of the group. rest
Assessing the effectiveness of marketing strategiesHow can firms assess the effectiveness of marketingstrategies? Has the strategy helped the business to achieve its marketing objectives and therefore its corporate objectives? Can the strategy be assessed within quadrants within the Ansoff’s matrix – achieved market penetration, product development, market development or diversification?
FinallyIdentify and explainthree key words fromtodays lesson.
Re-cap Learning ObjectivesYou should now be able to:1. Describe a range of marketing strategies.2. Explain the meaning and significance of Ansoff’s Matrix in assessing marketing strategies.3. Assess the suitability of Ansoff’s competitive strategies in a given context.4. Evaluate the method, benefit and drawbacks of entering international markets.