unit 8 Flashcards
what is a business strategy
refers to how the objectives will be achieved, firms may set corporate as well as functional strategies.
what is the hierarchy of objectives
aim
mission
corporate objectives
functional objectives
business unit/individual targets
what is ansoff matrix
a marketing planning model that helps a business determine its product and marketing strategy
what are on the axis of ansoff matrix
y markets
x products
what is in existing markets and existing products
market penetration
what is in a new market and existing products
market development
new product existing markets
product development
new product new markets
diversification
what is market penetration
a growth strategy where a business aims to sell existing products into existing markets
how would you sell more of your existing products to your existing customers
gain market share from competitors
encourage more consumption
-change elements of the marketing mix
5 ps
people, price, promotion, place product
examples of market penetration strategies
rapid growth in the UK targeting the same customer base with new stores
evaluating market penetration
business focuses on market and products
can exploit insights
what is product development
a growth strategy where a business aims to introduce new products into existing markets
examples
brand extensions are common examples e.g coke life
technological innovation
benefits
great way of exploiting the existing customer base
strength to an established business with loyal fans base
market penetration
a growth strategy where a business aims to sell existing products into existing markets,
approaches to market development
new geolographical markets
-new distribution channels
-different pricing policies
examples of market penetration
John Lewis prices appeal to new markets
filed attempts include Tescos
Starbucks expansion into china I a classic example
diversification
the growth strategy where a business markets new products in new markets.
examples of diversification
virgin- Atlantic
virgin- mobile
what was porters suggested approach to strategic positioning
-porter suggested two overall business strategies that could be followed in order to gain competitive advantage
-differentiation and low cost are effective strategies for firms to gain competitive advantage
what is competitive advantage
an advantage over competitors gained by offering consumers great value, either buy means of lower prices and service the justifies higher prices
what is a low cost strategy
the objective is to become the lowest-cost operator, typically involving production on a large scale which enables the business to exploit economies of scale
how is low cost a source of competitive advantage
offer lowest prices
