3.9 selecting marketing strategies - moodle
DESCRIPTION
A2 Business Studies ResourcesTRANSCRIPT
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What do you remember from what we have covered so far in Marketing
Strategies….
Test what you’ve learned!
Do Now
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Selecting Marketing Strategies
Module 1
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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
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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
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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.
DEBATE CHALLENGE!
Research your given strategy. Prepare to demonstrate which is the
best option.
Discuss examples of organisations that have succeeded
using these strategies.
Remember you will need to counter argue so make sure you read up about your competitors strategy.
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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.
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Ansoff’s Matrix
Existing New
Existing
New
Market Penetration
Product Development
Market Development
Diversification
Increasing Risk
Incre
asin
g R
isk
Product
Market
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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
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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
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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.
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Market Development – in action
Move abroad Topshop to US Primark in Spain Tesco in China
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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.
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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
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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!
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Diversification – in action
Nokia In 1990 Nokia made tyres
and toilet rolls Mobile Phones
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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.
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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.
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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
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Identify and explain three key words from todays lesson.
Finally
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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.