3.9 selecting marketing strategies - moodle

What do you remember from what we have covered so far in Marketing

Strategies….

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Selecting Marketing Strategies

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.

Learning Objectives

Marketing Strategies

What are marketing strategies?

What steps need to be taken before marketing strategies can be introduced?

Corporate Goals

Marketing Objectives

Analysis of the market

Marketing strategy

Low cost Versus Differentiationfor firms that operate in both niche and mass markets

LOW COSTThis is the option to go for the cheaper

end of the market. Aim is to offer

products at a lower price than

competitors.

DIFFERENTIATIONThe purpose is to make one product appear

different and somehow superior to others in the

market. Encouraging customers to choose that particular

make or model when making purchase decisions.

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.

Ansoff’s Matrix

Existing New

Existing

New

Market Penetration

Product Development

Market Development

Diversification

Increasing Risk

Incre

asin

g R

isk

Product

Market

Market Penetration

Target market would consist of existing customers

Introduce new product to this market

E.g. –

Wii Game Wii Console owners

Benefits?brand loyalty

reduce the purchase of substitutes

encourage customers to use the product more

often

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

Market Development

Market an existing product to a new market

Nothing about the product changes

E.g. –

Wii Game UK Wii Game USA

Benefits?Risk but security of an established

product.

Market Development – in action

Move abroad Topshop to US Primark in Spain Tesco in China

Product Development

Develop a new product to sell to existing customers

Could include and add on or extension pack

E.g. –

Wii Console Wii Fit

Benefits?Risk but security of its established

customers.

Drawbacks?May need

extensive R&D.

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

Diversification

Market a new product to a new market

Related or unrelated to previous product

E.g. –

Apple Ipad New market

Drawbacks?High risk strategy!

Diversification – in action

Nokia In 1990 Nokia made tyres

and toilet rolls Mobile Phones

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.

National or international?

When considering marketing strategies, why is it increasing likely that firms will have an international aspect to their plans?

What are the benefits of operating on an international scale?

Carry out research on ‘Entering International

Markets’ and look at the benefits and

drawbacks to different methods.

Prepare to feedback to the rest of the

group.

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?

Assessing the effectiveness of marketing strategies

Identify and explain three key words from todays lesson.

Finally

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.