In this assignment I will be describing how marketing techniques are used to market products in two organisations. The organisations I have selected are Tesco and Virgin Group.
Growth strategies (Ansoff matrix)
Igor Ansoff designed the Ansoff Matrix in 1957 and this was first published in the Harvard Business Review. The Ansoff Matrix identifies four areas of growth:
1. Market Penetration- Market penetration is where a business markets existing products to its existing customers. With this approach businesses are trying to sell more of the existing products to the same customers.
2. Market Development- Market development is when existing products are marketed in new markets such as marketing an existing product to a different country.
3. Product Development- Product Development is where a business develops a new product for the existing market.
4. Diversification- Diversification is where a business markets a new product to a new market. It can produce it in an area it understand or an area it does not understand.
Many business are often faced with having to develop strategies to survive, Example of survival strategies are downsizing the business to reduce costs, coming out of less profitable markets and making employees redundant.
Relationship marketing is where a business focuses on the long term value of a customer.
Transactional marketing is when a business focuses on the sale of the product rather than developing a relationship with the customer.
Brand building is the process of enhancing brands equity directly through advertising campaigns or directly through promotions such as supporting causes or event sponsorships.
Brand extension is a marketing strategy in which a business marketing a product with a well-developed image uses the same brand name in a different product. Brand extension is not the same as diversification.