MARKETING AND THE MARKETING STRATEGIES IN TWO FAMOUS COMPANIES Many businesses aim to grow and improve by the way they market their products this is called growth strategy. One of the best know descriptions is the Ansoff Matrix, created by Igor Ansoff in 1957. The Ansoff matrix consists of four main points:
A business will penetrate an existing market with a new product that is related to an existing product that is successful in that market.
By aiming your product at a completely new range of customers without changing the product at all. Businesses do this to attract customers from rival companies.
A company will have an existing product and adapt problems of the previous version to meet customer need.
A business will diversify by creating a brand new product and marketing it is already familiar market or in a completely new market altogether.
This is the process of creating a unique name and image that keeps consumers remembering the product. Often these names or logos are trademarked to prevent competitors from using similar branding. A classic example of great branding is Heinz. The slogan ‘beanz meanz Heinz’ was used originally in 1967. It is considered to be one of the most successful advertising campaigns ever because of the way it influenced buyer behaviour. Huge numbers of adults still relate to the slogan 35 years on. Brand Building takes time and effort, the company has to decide the brand’s values. For example, Mercedes cars branding is that their cars stand for high performance, safety and prestige. How does a company convey the values? A consistent style, very specific, using specific fonts in adverts, training staff to present a specific image, a product that is both of good quality and can be relied upon. Hewlett Packard produces good quality computers. Once they had established their place in the market the company were confident the could rebrand their products with the branding ‘HP.’ Everyone knew what HP stood for, knew the quality was good and liked the HP logo. It has gone from strength to strength. Branding can be used to strengthen the chances of a new product by bringing it into the market as an extension to the other products under the same Branding. For example, BMW has moved into the small car market. It can do this because it can still market these new models under the normal BMW value of quality.
A Company has to think long term and take its customers with them and make sure they keep those customers. It also needs to consider how to gain other segments of consumer groups. Banks do this. For example they give money away and give free services to all students, thereby hoping that once the student is using them and is happy with the service being given then they stay with that bank – sometimes for life. Supermarkets need high turnover to make profit. They know that customers even have habits even when it comes to which shop they do their grocery shopping in. Morrison’s has been well known for having really big reductions in the prices of some of items. These loss leaders pull in customers looking for a bargain but they become hooked on looking for bargains each week and then do all their shopping in the same shop.
Whereas some businesses are trying to grow, some struggle to break-even and have to take major action to survive: Terminating less profitable products, reducing the size of the business, and make employees redundant to reduce costs on the business. Two Global Companies that do not have this issue are Coca Cola and Apple. They lead the way in the marketing of their different Products and are considered fine examples of how marketing strategies can keep their products selling so well against their competitors
Mission Statement: To maximise shareowner value over time.
Please join StudyMode to read the full document