The following is the list (with links) of the knowledge required to succeed in the Unit 10 exam.
Boston Matrix
Ansoffs matrix
Product Life Cycle
Distribution Channels
Primary Vs Secondary Research methods
Sampling Methods
SWOT analysis
PESTLE analysis
Strategic Vs Tactical marketing
27 Apr 2014
28 Nov 2012
Unit 10: Ansoff's martix
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy.
Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy.
The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy.
These are described below:
Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.
Market penetration seeks to achieve four main objectives:
- Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling
- Secure dominance of growth markets
- Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors
- Increase usage by existing customers – for example by introducing loyalty schemes
A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Market development
Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.
There are many possible ways of approaching this strategy, including:
- New geographical markets; for example exporting the product to a new country
- New product dimensions or packaging: for example
- New distribution channels (e.g. moving from selling via retail to selling using e-commerce and mail order)
- Different pricing policies to attract different customers or create new market segments
Market development is a more risky strategy than market penetration because of the targeting of new markets.
Product development
Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.
A strategy of product development is particularly suitable for a business where the product needs to be differentiated in order to remain competitive. A successful product development strategy places the marketing emphasis on:
- Research & development and innovation
- Detailed insights into customer needs (and how they change)
- Being first to market
Diversification
Diversification is the name given to the growth strategy where a business markets new products in new markets.
This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.
For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. However, for the right balance between risk and reward, a marketing strategy of diversification can be highly rewarding.
20 Nov 2012
Unit 10: Product Life Cycle
Remember, you must try and relate all the theory we discuss to 'Tom Hortons'.
19 Nov 2012
Unit 10: PEST Analysis
PEST analysis is concerned with the key external environmental influences on a business.
The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business.
Identifying PEST influences is a useful way of summarising the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences.
The table below lists some possible factors that could indicate important environmental influences for a business under the PEST headings:
Political / Legal
|
Economic
|
Social
|
Technological
|
Environmental regulation and protection
|
Economic growth (overall; by industry sector)
|
Income distribution (change in distribution of disposable income;
|
Government spending on research
|
Taxation (corporate; consumer)
|
Monetary policy (interest rates)
|
Demographics (age structure of the population; gender; family size and composition; changing nature of occupations)
|
Government and industry focus on technological effort
|
International trade regulation
|
Government spending (overall level; specific spending priorities)
|
Labour / social mobility
|
New discoveries and development
|
Consumer protection
|
Policy towards unemployment (minimum wage, unemployment benefits, grants)
|
Lifestyle changes (e.g. Home working, single households)
|
Speed of technology transfer
|
Employment law
|
Taxation (impact on consumer disposable income, incentives to invest in capital equipment, corporation tax rates)
|
Attitudes to work and leisure
|
Rates of technological obsolescence
|
Government organisation / attitude
|
Exchange rates (effects on demand by overseas customers; effect on cost of imported components)
|
Education
|
Energy use and costs
|
Competition regulation
|
Inflation (effect on costs and selling prices)
|
Fashions and fads
|
Changes in material sciences
|
Stage of the business cycle (effect on short-term business performance)
|
Health & welfare
|
Impact of changes in Information technology
| |
Economic "mood" - consumer confidence
|
Living conditions (housing, amenities, pollution)
|
Internet!
|
Unit 10: Tim Hortons
Here is a Prezi discussing the 4P's of Tim Hortons....
Below are several articles about Tim Hortons in Dubai. Take a look at them and think about their Marketing here in Dubai. Specifically, based on your own knowledge and information provided, do you think they should exapand into other Emirates and GCC countries?
The first article is from Tim Hortons own website. It discusses possible 'Strategic Marketing' decisions. Check it out and think about how successful they might be if they follow this straegy here in the UAE.
Tim Hortons Strategic Marketing decisions
Below are several articles about Tim Hortons in Dubai. Take a look at them and think about their Marketing here in Dubai. Specifically, based on your own knowledge and information provided, do you think they should exapand into other Emirates and GCC countries?
The first article is from Tim Hortons own website. It discusses possible 'Strategic Marketing' decisions. Check it out and think about how successful they might be if they follow this straegy here in the UAE.
Tim Hortons Strategic Marketing decisions
14 Nov 2012
Unit 10: Boston Matrix
Introduction to the Boston Matrix
A business with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a business. It must decide how to allocate investment (e.g. in product development, promotion) across the portfolio.
A portfolio of products can be analysed using the Boston Group Consulting Matrix. This categorises the products into one of four different areas, based on:
•Market share – does the product being sold have a low or high market share?
•Market growth – are the numbers of potential customers in the market growing or not
How the Boston Matrix is Constructed
The Boston Matrix makes a series of key assumptions:
•Market share can be gained by investment in marketing
•Market share gains will always generate cash surpluses
•Cash surpluses will be generated when the product is in the maturity stage of the life cycle
•The best opportunity to build a dominant market position is during the growth phase
How does the Boston Matrix work?
The four categories can be described as follows:
•Stars are high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows
•Cash cows are low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars
•Question marks are products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about “Question Marks” - which ones should they invest in? Which ones should they allow to fail or shrink?
•Unsurprisingly, the term “dogs” refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.
Ideally a business would prefer products in all categories (apart from Dogs!) to give it a balanced portfolio of products.
The main values of using the Boston Matrix include:
•A useful tool for analysing product portfolio decisions
•But it is only a snapshot of the current position
•Has little or no predictive value
•Does not take account of environmental factors
•There are flaws which flow from the assumptions on which the matrix is based
However, the model can be criticised in several ways:
•Market growth is an inadequate measure of a market’s attractiveness
•Market share is an adequate measure of a products ability to generate cash
•The focus on market share and market growth ignores issues such as developing a sustainable competitive
•advantages
•The product life cycle varies
Summary
Questions - Construct a Boston Matrix for the following companies:
McDonalds
Tesco
Coke
Emirates Airlines
Apple
Toyota
Any other company you choose
Finally, all of you need to put together a Boston Matrix for Tim Hortons...
A business with a range of products has a portfolio of products. However, owning a product portfolio poses a problem for a business. It must decide how to allocate investment (e.g. in product development, promotion) across the portfolio.
•Market share – does the product being sold have a low or high market share?
•Market growth – are the numbers of potential customers in the market growing or not
How the Boston Matrix is Constructed
The Boston Matrix makes a series of key assumptions:
•Market share can be gained by investment in marketing
•Market share gains will always generate cash surpluses
•Cash surpluses will be generated when the product is in the maturity stage of the life cycle
•The best opportunity to build a dominant market position is during the growth phase
How does the Boston Matrix work?
The four categories can be described as follows:
•Stars are high growth products competing in markets where they are strong compared with the competition. Often Stars need heavy investment to sustain growth. Eventually growth will slow and, assuming they keep their market share, Stars will become Cash Cows
•Cash cows are low-growth products with a high market share. These are mature, successful products with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars
•Question marks are products with low market share operating in high growth markets. This suggests that they have potential, but may need substantial investment to grow market share at the expense of larger competitors. Management have to think hard about “Question Marks” - which ones should they invest in? Which ones should they allow to fail or shrink?
•Unsurprisingly, the term “dogs” refers to products that have a low market share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in. Dogs are usually sold or closed.
Ideally a business would prefer products in all categories (apart from Dogs!) to give it a balanced portfolio of products.
The main values of using the Boston Matrix include:
•A useful tool for analysing product portfolio decisions
•But it is only a snapshot of the current position
•Has little or no predictive value
•Does not take account of environmental factors
•There are flaws which flow from the assumptions on which the matrix is based
However, the model can be criticised in several ways:
•Market growth is an inadequate measure of a market’s attractiveness
•Market share is an adequate measure of a products ability to generate cash
•The focus on market share and market growth ignores issues such as developing a sustainable competitive
•advantages
•The product life cycle varies
Summary
Questions - Construct a Boston Matrix for the following companies:
McDonalds
Tesco
Coke
Emirates Airlines
Apple
Toyota
Any other company you choose
Finally, all of you need to put together a Boston Matrix for Tim Hortons...
16 Sept 2012
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