Chapter8 Marketing you should know

IB303 International Marketing

Product/Market Expansion Grid

Helps in the identification, evaluation, and selection of market growth opportunities.
Marketing must achieve profitable growth for the firm.

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Product/Market Expansion Grid (Ansoff s Growth Strategies)

PRODUCT

Existing Existing
MARKET

New Product Development

Market Penetration Market Development

New

Diversification

Market Penetration
Strategy: to increase sales to current buyers without changing the products being sold.
Market penetration can be achieved by adding new stores in current market areas, improving advertising, lowering prices, adding services, etc.

Market Development
Strategy: identify and develop new markets demographic or geographic for current products.
Bass Pro Shops has aggressively developed new geographic markets for its Outdoor World retail stores.
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Product Development
Strategy: offering modified or new products to current markets.
How? Adding new sizes, flavors, or offerings, cobranding products, etc.

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Diversification
- Related - Unrelated

Diversification
Strategy: start up or buy businesses outside of current products and markets.
Diversification is the riskiest strategy. Firms that diversify too broadly into unfamiliar products or industries can lose their market focus.

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Growth Strategies Market Penetration: make more sales to current customers without changing products.
How? Add new stores in current market areas; improve advertising, prices, menu, service. Increase usage or Change other3P.

Market Development: identify and develop new markets for current products.
How? * Review new demographic (seniors/ethnic consumers) or **geographic (Asian, European, Australian, & South American) markets.
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Product/Market Expansion Grid Based on Starbucks Product Development: offering modified or new products to current markets.
How? Add food offerings, sell coffee in supermarkets, co-brand products.

Diversification: start up or buy businesses outside current products and markets.

How? Making and selling CDs, testing restaurant concepts, or branding casual clothing.

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( Brand-strategy decision )
(Product 1. Line 2. Brand Category)

extensio extensio ns ns 3.Multib 4.New

Societal Marketing Concept

CSR
Corporate Social Responsibility (Good Governance)

CSR
CSR

 CSR
1. 2. 3. 4.

 CSR
6. 7. 8. 9. 10.

 CSR
CSR CSR CSR after process in process as process

Q&A Thank you

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