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MARKET
PENETRATIO
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MARKET
DEVELOPMEN
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PRODUCT
DEVELOPME
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DIVERSIFICATI
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Market Penetration (selling more o t!e same t!ings to more o t!e same
"#stomers$
3arket penetration normally focus on changing incidental clients to regular
clients, and regular client into heavy clients. Typical systems are volume
discounts, bonus cards and customer relationship management.
Market De%elo&ment (selling more o t!e same t!ings to 'i(erent
"#stomers$
This strategy often try to lure clients away from competitors or introduce
existing products in foreign markets or introduce new brand names in a
market.
Pro'#"t De%elo&ment (selling ne) &ro'#"ts or ser%i"es to t!e same
"#stomers$
8ith this strategy, it often try to sell other products to .regular0 clients. This
can be accessories, add*ons, or completely new products. 4ften existing
communication channels are leveraged.
Di%ersi*"ation (selling ne) &ro'#"ts or ser%i"es to 'i(erent "#stomers$
Company strategies based on diversi6cation are the most risky type of
strategies. 4ften there is a credibility focus in the communication to explain
why the company enters new markets with new products. This Eth :uadrant
.diversi6cation0 of the product-market grid can be further split up in four
types1
9orizontal diversi6cation .new product, current market0
Fertical diversi6cation .move into 6rms supplier7s or customer7s
business0
Concentric diversi6cation .new product closely related to current
product in new market0
Conglomerate diversi6cation .new product in new market0.
Gsing $nso)2s matrix, business owners can evaluate each of the growth strategies in turn to
assess which is likely to result in the best possible return.
So!$-e,:
Product/Market Grid..n.d.0 Aetrieved from http://vectorstudy.com/management-
theories/product-market-grid on January 13, %&'(.
Ansof Matrix. .n.d.0 Aetrieved from http://www.hjmbd.ie/use-ansoffs-matrix-to-identify-your-
growth-strategy on January 13, %&'(
MAR1ET8DRIVEN ANALYSIS MODEL
#eing a franchise in nature, one of the constraints that #on $ppetea is facing is the fact that
they have no power to decide on the products and services they can o)er to the market.
8ith this in mind, the researchers have agreed that 3arket*riven $nalysis 3odel can be
used as a good framework to appropriately discuss their ideas while considering the
limitations of organization itself.
This model shows the multi*disciplinary process of translating a corporate strtegy into a
marketing and sales policy and the client*related activities that are integral to the process.
The marketing and sales plan of an organization derive from corporate strategy. The plan
needsto be measurable in terms of speci6c activities and behavior of all employees, whether
they are focused on customers within organization, or are more outward*facing. The label
market*driven impliesthat the customer is the central point of focus in the organization, and
that all activities and systems are designed from a customer2s perspective. Gsing the
market*driven organization framework ensures that all processes in the organization are
aligned with corporate goals.
This model is perfect when evaluating a company2s marketing and sales e)ectiveness and
eDciency. ;t can be applied to two speci6c situations, ach with its own :uestions1
E3e-t#(ene,, o* t)e ope$at#on:
?pecify or evaluate the marketing and sales policy by asking1
?egmentation of the market1 8hich customers should we focus onH
i)erentiation of the proposition1 9ow should we approach this customersH
Target*setting1 8hat levels of sales, revenues, or market share should we strive forH
E9-#en-& o* t)e ope$at#on
4rganize or evaluate both the front and back oDce by considering 1
Iowering costs1 9ow can we improve the eDciency of the marketing and sales
departmentH
#uilding synergies1 what can we do to improve co*operation betweens department so
that we focus more e)ectivly on the resultsH
#alancing market-sales and operations1 how can we deliver tailor*made products in
the front oDce withour negatively a)ecting e)ectively in the back oDceH
;n order to plan for appropriate marketing, sales and other supporting activities, it is
necessary to decided upon1
3arket ?egmentation1 markets in which the company has tobe active.
Customer !ocus1 which customers are most relevant in each marketJ and
Company Targets1 which goals the company wants to achieve in each market
segment.
The optimal marketing mix will combine clear knowledge of the speci6c needs of the chosen
market segments with a deep understanding of customer2s priorities and the criteria that
in"uence their buying decisions.
?ources1
Kotler, P. .%&&&0. Marketing Management: The millenium edition (10
th
ed.). /ew @ork1
Prentice 9all.
$ssen, 3.F., en #erg, G.F. et. al. .%&&=0 e! Management Model: The "0# models e$er!
manager needs to kno% (&
nd
ed.). Great #ritain1 $shford Colour Press Itd.