Text of 3.9 selecting marketing strategies - moodle
1. Do NowWhat do you remember from what we have covered so far in Marketing Strategies.Test what youve learned!
2. Selecting Marketing Strategies 3. 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 Ansoffs Matrix in assessing marketing strategies.3. Assess the suitability of Ansoffs competitive strategies in a given context.4. Evaluate the method, benefit and drawbacks of entering international markets. 4. Marketing Strategies Corporate GoalsWhat are marketingstrategies?Marketing ObjectivesWhat steps need to betaken beforemarketing strategiesAnalysis of the marketcan be introduced? Marketing strategy 5. Low cost Versus Differentiationfor firms that operate in both niche and mass marketsLOW COSTDIFFERENTIATION The purpose is to make oneThis is the option to go product appear differentfor the cheaper end ofand somehow superior tothe market.others in the market.Encouraging customers toAim is to offer products choose that particular make at a lower price thanor model when makingcompetitors.purchase decisions. 6. Ansoffs matrixIgor Ansoffs 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. 7. Ansoffs Matrix Increasing Risk ProductExisting NewMarketExistingMarketProductPenetration DevelopmentNewMarketDiversification Development Increasing Risk 8. Market PenetrationTarget market would consist of existing customersIntroduce new product to this marketE.g. Wii Game Wii Console owners 9. Benefits? brand loyaltyreduce the purchase of substitutesencourage customers to use the product more often 10. 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 11. Market DevelopmentMarket an existing product to a new marketNothing about the product changesE.g. Wii Game UK Wii Game USA 12. Benefits?Risk but security of an established product. 13. Market Development in actionMove abroadTopshop to USPrimark in SpainTesco in China 14. Product DevelopmentDevelop a new product to sell to existing customersCould include and add on or extension packE.g. Wii Console Wii Fit 15. Benefits?Risk but security of its establishedcustomers.Drawbacks? May need extensive R&D. 16. Product development in actionThe sandwich chain Pret A Manger announced a 37% profitincrease, boosted by sales of 50,000 porridge pots a week 17. DiversificationMarket a new product to a new marketRelated or unrelated to previous productE.g. Apple IpadNew market 18. Drawbacks?High risk strategy! 19. Diversification in actionNokiaIn 1990 Nokia made tyres andtoilet rollsMobile Phones 20. Getting to know the Ansoff MatrixDecided how Coca-Cola and Nestlehave used differentgrowth strategies.Feedback yourfindings to the restof the group. 21. National or international?When considering marketingstrategies, why is itincreasing likely that firmswill have an internationalaspect to their plans?What are the benefits ofoperating on an internationalscale? 22. Carry out research onEntering InternationalMarkets and look at thebenefits and drawbacks to different methods.Prepare to feedback to therest of the group. 23. Assessing the effectiveness of marketing strategiesHow can firms assess the effectiveness of marketingstrategies?Has the strategy helped the business to achieve its marketingobjectives and therefore its corporate objectives?Can the strategy be assessed within quadrants within theAnsoffs matrix achieved market penetration, productdevelopment, market development or diversification? 24. FinallyIdentify and explainthree key words fromtodays lesson. 25. Re-cap Learning ObjectivesYou should now be able to:1. Describe a range of marketing strategies.2. Explain the meaning and significance of Ansoffs Matrix in assessing marketing strategies.3. Assess the suitability of Ansoffs competitive strategies in a given context.4. Evaluate the method, benefit and drawbacks of entering international markets.