This document provides an overview of marketing strategies and Ansoff's Matrix. It introduces marketing strategies, steps for implementing strategies, and Ansoff's four competitive strategies - market penetration, product development, market development, and diversification. Examples are given for each strategy along with benefits and risks. The document also discusses international markets and assessing strategy effectiveness. Learning objectives cover describing strategies, explaining Ansoff's Matrix, assessing strategies, and evaluating international market entry.
A brief explanation of the key elements of a product offer that product managers should think through in order to achieve commercial success with new products.
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Distribution
Direct and Indirect Selling Channels
Types of Intermediaries: Direct Channel
Types of Intermediaries: Indirect Channel
Channel Development
Channel Adaptation
Channel Decisions
Marketing of Industrial Product also called:(B2B)
Definition
Differences Between B2B and B2C
• Products/Services being marketed
• Nature of demand
• How the customer buys
• Communication process
• Economic/Financial factors
• Relationship Marketing
Marketing of Services
What is a service?
Difference between goods and services
Intangibility Inseparability, Heterogeneity and Perishability
Services -
Business Services, Health Services, Professional Services and
Hospitality Services
• The role of marketing in a service firm
Sales and Field Force Management
• Sales Management defined
• Task and goals of the sales
• Sales Management Model
• Sales Management Trends
• Transaction Selling vs Relationship Selling
• Recruiting and Managing the field team
• Time and Territory Management
Personal Selling
The most important promotional tool in B2B marketing
Transaction/relationship is often too complex to consummate without personal interaction between marketer and buyer.
Boundary Spanner
Customers are sophisticated and you need a long-term relationship to be successful.
B2B sales cost more than B2C selling
A brief explanation of the key elements of a product offer that product managers should think through in order to achieve commercial success with new products.
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Distribution
Direct and Indirect Selling Channels
Types of Intermediaries: Direct Channel
Types of Intermediaries: Indirect Channel
Channel Development
Channel Adaptation
Channel Decisions
Marketing of Industrial Product also called:(B2B)
Definition
Differences Between B2B and B2C
• Products/Services being marketed
• Nature of demand
• How the customer buys
• Communication process
• Economic/Financial factors
• Relationship Marketing
Marketing of Services
What is a service?
Difference between goods and services
Intangibility Inseparability, Heterogeneity and Perishability
Services -
Business Services, Health Services, Professional Services and
Hospitality Services
• The role of marketing in a service firm
Sales and Field Force Management
• Sales Management defined
• Task and goals of the sales
• Sales Management Model
• Sales Management Trends
• Transaction Selling vs Relationship Selling
• Recruiting and Managing the field team
• Time and Territory Management
Personal Selling
The most important promotional tool in B2B marketing
Transaction/relationship is often too complex to consummate without personal interaction between marketer and buyer.
Boundary Spanner
Customers are sophisticated and you need a long-term relationship to be successful.
B2B sales cost more than B2C selling
3. Learning Objectives
By 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.
4. Marketing Strategies
Corporate Goals
What are marketing
strategies?
Marketing Objectives
What steps need to be
taken before
marketing strategies Analysis of the market
can be introduced?
Marketing strategy
5. 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 one
This is the option to go is the best option.
demonstrate which
product appear different
for 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 to
Aim 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.
6. Ansoff’s matrix
Igor Ansoff’s matrix shows the main
strategic options available to firms.
Market Penetration
Product Development
Market Development
Diversification
The matric allows managers to discuss
strategies to achieve corporate aims.
Each carries a different level of risk.
7. Ansoff’s Matrix
Increasing Risk
Product Existing New
Market
Existing Market Product
Penetration Development
New Market Diversification
Development
Increasing Risk
8. Market Penetration
Target market would consist of existing customers
Benefits?
brand loyalty
Introduce new product to this market
reduce the purchase
of substitutes
E.g. –
encourage customers
to use the product
more often
Wii Game Wii Console owners
9. Market penetration – in action
Given America's love of coffee and super-sized portions, it was inevitable that
Starbucks should tie the two together in its latest offering: the massive new
'Trenta' cup size, holding 31 US fluid ounces – that's 917ml, or more than one and
a half imperial pints – of beverage
10. Market Development
Market an existing product to a new market
Nothing about the product changes
Benefits?
E.g. – Risk but security of an
established product.
Wii Game UK Wii Game USA
11. Market Development – in action
Move abroad
Topshop to US
Primark in Spain
Tesco in China
12. Product Development
Develop a new product to sell to existing customers
Benefits?
Risk but security of its
Could include and add established
on or extension pack
customers.
E.g. – Drawbacks?
May need extensive
R&D.
Wii Console Wii Fit
13. Product development – in action
The sandwich chain Pret A Manger announced a 37% profit
increase, boosted by sales of 50,000 porridge pots a week
14. Diversification
Market a new product to a new market
Related or unrelated to previous product
Drawbacks?
E.g. – High risk strategy!
Apple Ipad New market
15. Diversification – in action
Nokia
In 1990 Nokia made tyres and
toilet rolls
Mobile Phones
16. Getting to know the Ansoff Matrix
Decided how Coca-
Cola and Nestle
have used different
growth strategies.
Feedback your
findings to the rest
of the group.
17. National or international?
When considering marketing
strategies, why is it
increasing likely that firms
Carry out research on
will have an international
aspect to International
‘Entering
their plans?
Markets’ and look at the
benefits and drawbacks
to different methods.
What are the benefits of
operating on an to the
Prepare to feedback international
scale? of the group.
rest
18. Assessing the effectiveness of
marketing strategies
How can firms assess the effectiveness of marketing
strategies?
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?
20. Re-cap Learning Objectives
You 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.
Editor's Notes
Increased market share/ size.Access to new markets and profit.E-commerce has enabled small to medium sized organisations to do this.