Factors influencing which market Flashcards
What is strategic direction
business choosing which markets to operate in and what products.
Why is important to know the strategic direction
Because the environment is changing, a business knows it direction to be stronger in the market
What is Ansoff matrix
tool to help choose which market and products they are in
What strategy if business is “existing market - existing product”
Market penetration
How to do market penetration
increase promotion
change price
build brand image
build brand loyalty
What are the Pros of market penetration
low risk
familiar market/product
low investment
What are the Cons of market penetration
limited growth
lots of competitors
not innovative so low demand
What strategy in “New market - existing product”
marketing development
How to do market development
Penetration pricing
promotion to new customer
more distribution channels to new customers
Pros of market development
Growth potential
No expensive r&d of new product
Cons of market development
Limited understanding of customers needs
Competition with established businesses
What strategy is existing market - new product
Product develooment
How to do product development
market research to improve/innovate
fund r&d
Pros of product development
builds on current products
brand loyal
familiar with customers
Cons of product development
product development takes time
expensive
