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Introduction to Marketing - strategies for growth, transactional marketing and relationship marketing

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Introduction

´╗┐Bukola Akanni P1 Task 1 Growth strategies There are four types of Growth Strategies which are: 1. Diversification 2. Product development 3. Market penetration 4. Market development Information from:www.wikipedia.com Diversification: this is a strategy for a company that seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification is the riskiest of the four strategies presented in the Ansoff matrix. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required. Therefore, the company puts in a great uncertainty. Because of the high risks explained above, many companies attempting to diversify have led to failure. Although, there are a few good examples of successful diversification like: 1. Virgin Media moved from music production to travel then to mobile phones, broadband, internet and TV. 2. Walt Disney moved from producing animated films then to theme parks and vacations places. 3. Canon diversified from a camera-making company into producing an entirely new range of media equipment for movies and music. 4. Apple store moved from PC laptop to iPod Shuffles and touch first, second, third and fourth generation. ...read more.

Middle

The word brand has continued to evolve to encompass identity; it affects the personality of a product, company or service. For example, Tesco offers more cheaper product to attract their customers, and Barclays bank service offer to save the customers money but the question is that is there money safe and they are doing their best to keep their reputation save by producing good services. They offer lost of services such as: 1. Bank account - Bank accounts, Student and graduate accounts, Young persons accounts, Currency accounts 2. Savings - Regular saving, Savings Bonds, Instant access ISAs, Children's saving 3. Mortgage - 4. Investments 5. Credit cards 6. Fraud prevention 7. Travel services 8. Help and support about the bank Buyer behavior is another thing in branding, this involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product). This can sometimes affect the customer because are used to their previous product or they change to less profitable product and the company (Tesco) ...read more.

Conclusion

The use of customer lifetime value as a marketing metric tends to place greater emphasis on customer service and long-term customer satisfaction, rather than on maximizing short-term sales. Customer lifetime value has intuitive appeal as a marketing concept, because in theory it represents exactly how much each customer is worth in monetary terms, and therefore exactly how much a marketing department should be willing to spend to acquire each customer. In reality, it is difficult to make accurate calculations of customer lifetime value. The specific calculation depends on the nature of the customer relationship. Customer relationships are often divided into two categories. Magazine subscriptions and car insurance are examples of customer retention situations. The other category is referred to as customer migration situations. In customer migration situations, a customer who does not buy in a given period or from a given catalogue is still considered a customer of the firm because she may very well buy at some point in the future. In customer retention situations, the firm knows when the relationship is over. One of the challenges for firms in customer migration situations is that the firm may not know when the relationship is over as far as the customer is concerned. ...read more.

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