- Marketing Techniques
Products
Present New
Market Penetration
Market Penetration’s marketing strategy, it’s one the most used marketing techniques in the business world. Market penetration occurs when a business decides to add existent products and use the same market. Market Penetration benefits businesses hugely. Market penetration is most used techniques between Ansoff Matrix as it’s less risky and cost effective. Sony’s one of most of successful organisation in the world; they‘re known for their consoles ‘Sony PlayStation’. Sony PlayStation use Market Penetration; each year they release a new version of Sony PlayStation and they always target same market. Tesco PLC also uses Market Penetration as they offer the same offer same product (food, electronic...) to existent customers.
Product Development
The second Ansoff strategy’s product development. Product development happens when a business decides to introduce a new product to the existing customers. This method is slightly difficult for organisations as they will have to convince the actual customers that the new product and service is effective and they will have to spend a bit of money, organisations reputation may helpful when they decide to develop a product. Product development will help business to improve the brand. Tesco PLC has been using product development strategy, before Tesco only sell; they’ve been developing other product, now they have services such as Petrol sales, Banking etc... They offer new service and product but they keep the same market. Sony started business by selling electronic product such as Television, Camera, DVD players etc... Sony develop product by introducing consoles and Robot and offer them to the same customers.
Market Development
The third Ansoff technique is Market development. Market Development happen when a company choose to sell an existing product to new market. At this moment in business this strategy is used enormously as business want to improve their brand recognition and gain more profit. This strategy is very risky as coming to a new market where not one knows about you, you need to build a reputation and also beat competitors. Tesco is successful in United Kingdom; they have the majority of the market share in Supermarket. Recently, they decide to compete with foreign supermarket. Tesco has opened supermarket in Asia, France, Slovakia, Thailand, Japan, China etc. Sony was founded in 1946, it was a small business and in 1960, they expanded the organisation in United States; a new market.
Diversification
The fourth Ansoff strategy’s Diversification. Diversification happen when a business to change company’s affair completely; they introduce a new product to a new market; companies change completely their aims and objectives. This technique is rarely used compare to other three strategies. Diversification is really hard; business will have to move a new market and they will also have to spend more money. Many businesses did try diversification; Virgin group diversified from music production to travel and phones, and Walt Disney moved from movie studio production to Attraction Park. Sony corporation is electronic business, in 2001 they diversified to financial service (Sony Financial Service; they offer service such as Bank, insurance and more. Tesco has not yet used this method, but they are thinking about diversification.
- Branding
Branding is a marketing technique; nearly all business in the world uses this method. Branding means giving value to a product, a service or company. When a business use a branding methods; they want to create an identity, they customers or peoples to recognize their product straight away, they want to build a strong relationship with peoples. Branding relationship is built by the reputation; customers like quality service and product, customers may buy a product depending on brand reputation with quality. Branding is built by the logo or name; customers may have tested the brand product, they may be tempted to buy another product brand as it has the name and logos, for example; because to the success of Apple computers; Apple have created IPod Shuffle, IPod Nano, Ipad, IPhone and customers buy them because of the brand name, logo and reputation.
Corporate happen when a business decides to use company’s name as the product brand name. This is a common methods, it’s mainly used by food, clothing, and electronic company. Corporate branding is considered as marketing method. Using the company’s name will benefits organisations hugely; corporate branding can used for promotion; Customers may appreciate quality of the first product and they will be tempted to use the second product. Cooperate branding also help the business to build brand image and reputation; customers may recognize other products brand or name; they will want to buy it as they know the reputation of the business. Many companies use this method; Disney adds their name in most of the product (Disney world Walt Disney studio, Disneyland, Disney channel …). Sony Corporation also use this methods for their brand image; in most of Sony product are Sony (television, telephones, Sony TV, Sony Xperia, Sony computer entertainment and Sony Pictures entertainment) and they also use branding name in service ( Sony financial holding , Sony Bank , Sony Insurance). Tesco also use corporate Branding as most of the Tesco values product are called Tesco Values
Product branding happens when a business decides to name the product with another name not the company name. This method is more used for protection methods. Trading a product with another name has benefits and consequences. Benefits of using product branding is ; it may help the business reputation, in case of major fail; if customers are not satisfied by product or service they will point out at product brand not the actual company. Not using company name may also be disadvantageous for company branding; the actual product may be successful, the company may not benefits from to recognition and promotion. Many business company use product branding; Unilever’s multinational consumer goods company; they have produce many products under their unique brand name; Dove, Lynx, Flora, Magnum, Wall’s and more. Sony corporation have used product Branding; brand such as PlayStation, VAIO, BRAVIA, PSP and more.
- Relationship marketing
Relationship Marketing is one of the most used marketing methods in the world of business and it’s also of most the most effective relationship Marketing happen when a business decide to focus more on how to retain present customers instead of getting new customers. Companies using these techniques, use methods which will benefits customers. This Techniques will benefits companies hugely; they will from repeat business (Repeat business is when a customer returns or comes back to a business. Repeat businesses happen when a customer feels that they have been well treated and well served by the business), Customers coming back to business means more sales so more profit. Sony Corporation use Sony reward as relationship marketing methods to retain customers, when you buy SONY product, you will get more reduction on the next purchase. Tesco‘s the most successful retailer in UK, Tesco use relationship marketing; methods used by Tesco are; Club card when customers buy something , they will have more points , more you buy more you get points and those points reduce prices of certain product ; clients will have to come back.
- Survival Strategies
Survival Strategies can also be called Continuance plans or plan B. they are strategies set up by a business in case of unexpected problems. In business world, we never know what might happen; natural disasters, economic crises or disasters. Business must be ready to confront them this why survival strategies is important. Tesco PLC has survival strategies; in case recession; Tesco will have to dismiss some employees and cut unnecessary expenditure. SONY survival strategies are similar to Tesco in case recession; they will cut jobs and costs.
Website
Textbooks
Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C – BTEC Level 3 National Business Student Book 1 (Pearson, 2009)
by
blue37 (student)
