8.1 Strategic Direction Flashcards
What is strategic direction?
Deciding the direction in which a business should move and the methods to use in doing so
What is the Ansoff matrix?
A long term business strategy
What does the Ansoff matrix represent?
The different options open to a marketing manager when considering new opportunities for sales growth
What is on the Y axis of the Ansoff matrix?
Existing
New
Market
What is on the X axis of the Ansoff matrix?
Existing
New
Product
What is in the top left hand corner?
Market Penetration
What is in the bottom left corner?
Market Development
What is in the top right hand corner?
Product Development
What is in the bottom right hand corner?
Diversification
What are the two types of diversification?
Related
Unrelated
What are the strategies involved in market penetration?
Reduce prices Promote product range Sales force push Altering products - ie different sizes Increase buying options - online
What are the strategies involved in product development?
New products to replace current products
New innovative products
Product improvements
Product line extensions
New products to complement existing products
Products at a different quality level to existing products
What are the strategies involved in market development?
New distribution channels(e-commerce and mail orders)
Different pricing policy
New promotional strategy to attract different types of customers
New product dimensions (sizes and flavours)
