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Marketing 3rd Edition by Dhruv Grewal,Michael Levy
Edition 3ISBN: 978-0077622114Marketing 3rd Edition by Dhruv Grewal,Michael Levy
Edition 3ISBN: 978-0077622114 Exercise 1
Assume you have been hired into the marketing department of a major consumer products manufacturer, such as Nike. You are having lunch with some new colleagues in other departments-finance, manufacturing, and logistics. They are arguing that the company could save millions of dollars if they just got rid of the marketing department. Develop an argument that would persuade them otherwise
Explanation
Verified
Verified
The firm has to develop various growth strategies in order to survive in the market and to face the competition. After the analysis the strength, weakness, opportunity and threats, the firm has to decide where there is opportunity for growth and threat is less. The firm then develops strategies either short term or long term as per the market situation and internal environment as well.
The various growth strategies used by the firm are as follows:
1. Market Penetration strategy:
This strategy focuses on the existing customers and offers those existing products and services. It requires greater marketing and sales promotion efforts in the area where the products and services are going to be sold.
2. Market development strategy:
It means offering existing products and services to the new market domestic or international. International expansion is riskier but can create more opportunity in the future.
3. Product development strategy :
It refers to offering new products and services to the existing market segments. It refers to creating new offers and innovation in the products as per the demand of the existing customers.
4. Diversification strategy:
It refers to offering new products to the new market segments. It can be related or unrelated diversification. In the related diversification the new offers will have something in common. It can be distribution channel, packaging etc. But in the unrelated diversification the current offering is no where related to the existing one.
The most risky growth strategy is the Diversification strategy as the customer segment is completely new, the company doesn't have much experience about them and the product and service which they are offering is also new. The company will have to make proper analysis and research before jumping into the market.
The easiest growth strategy is the Market penetration strategy because the company already know about the market segment, the product is already familiar the customers. Only the promotions need to be conducted strategically.
The various growth strategies used by the firm are as follows:
1. Market Penetration strategy:
This strategy focuses on the existing customers and offers those existing products and services. It requires greater marketing and sales promotion efforts in the area where the products and services are going to be sold.
2. Market development strategy:
It means offering existing products and services to the new market domestic or international. International expansion is riskier but can create more opportunity in the future.
3. Product development strategy :
It refers to offering new products and services to the existing market segments. It refers to creating new offers and innovation in the products as per the demand of the existing customers.
4. Diversification strategy:
It refers to offering new products to the new market segments. It can be related or unrelated diversification. In the related diversification the new offers will have something in common. It can be distribution channel, packaging etc. But in the unrelated diversification the current offering is no where related to the existing one.
The most risky growth strategy is the Diversification strategy as the customer segment is completely new, the company doesn't have much experience about them and the product and service which they are offering is also new. The company will have to make proper analysis and research before jumping into the market.
The easiest growth strategy is the Market penetration strategy because the company already know about the market segment, the product is already familiar the customers. Only the promotions need to be conducted strategically.
Marketing 3rd Edition by Dhruv Grewal,Michael Levy
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