Ansoff Growth technique; Below are the four descriptions;
• Market Penetration
Market Penetration is an existing product to the existing customers. It is increasing revenue, through different ways. For example, promoting the product, re packaging the items, repositioning the brand, price drops and much more. But the product is not altered and do not seek any new customers.
• Market Development
Market development is marketing the same product to a different customer. This means exporting the product abroad or moving it to a new region. You could also include a new distribution channel i.e. selling a product to large supermarket, whereas before you …show more content…
There are two types of diversification. One where there is a new product aimed at new customers within the same brand or company. The other diversification is where the company goes into a completely different market from which they were trading in before (manufacturing video games- selling cakes).
Tesco’s the large supermarket chain adopts the Ansoff technique and they publish the on their website.
• Market Penetration – Tesco decided to open their larger stores on a 24/7 basis. This would help them to gain customers who cannot shop during normal hours.
• Market development – Tesco’s knew that the daily commuter could not travel on the outside of town to buy their lunch’s everyday so they moved into the smaller Tesco’s. Such as Tesco metro and express. These are smaller stores that can be based right in the centre of cities and towns.
• Product Development – Tesco decided to move into different products such as clothes and then Petrol stations. But now they have launched Tesco bank. They offer loans, saving and also credit cards.
• Diversification – Tesco’s have set up a few stores abroad in places such as china. They first tried selling their average products but soon learned that they would have to diverse into selling different product that the Chinese would be more inclined to …show more content…
This means they keep people coming back.
• Apple cuts cost by sourcing products from abroad they do not make any of the components they just put them together. This keeps cost down because the labour is sourced in cheaper places.
Relationship Marketing is when the company has a rapport with the customer. This is where the companies want Loyalty, trust, and commitment to the brand. They want the relationship to be long lasting.
• Tesco has a club card point service, so the more you spend the more rewards you receive. This keeps customers coming in so they so not waste points they could have got at Tesco if they shopped at Asda.
• Apple achieves relationship marketing through the way they make their products desirable, for example the style and design of their products and the street cred you get from owning an IPhone, IPad…
Branding is a key to the success of a business. Most people know the slogans and the Logos of all major business. Brands are promoted in lots of different ways for example branding products, and through the