P1.
In this business report I will be discussing the different marketing techniques, and how two different organizations, one profitable the other non-profitable utilize them in one specific product or service. The first business I will focus on is Sony, since their establishment in 1946; they have grown to become one of the most popular, well-known companies in the world which offer a huge variety of electrical consumer products, which include a large list of every day appliances which anyone would use.
My next organization is Beaumont school. Located in St Albans and established in 1938 Beaumont originally was a small, not highly rated secondary school. Similarly to Sony, Beaumont only in recent years has grown and is now regarded as one of the top schools in Hertfordshire, which offers a broad selection of subjects to all current students and applicants, which is some of the services they offer.
In order for success in both of these organizations a wide variety of marketing techniques are utilized which I am going to discuss below. The first being the 4 from Ansoff’s Matrix.
1) Diversification is the launching of new products/services into new markets, where an organization has had no experience in before. This is a risky move as if the product launched does not work the first time, problems can escalate. For an organization to adopt diversification it must have a clear idea about what it expects to gain and an honest assessment of risks. If the strategy Is adopted well profit rewards are highly likely.
2) Product development is when an organization modifies its products/services to appeal in existing markets. In order for a business to remain competitive it’s got to produce up to date modern-trendy products. Successful product development places marketing emphasis on:
Research, Development and innovation.
Insights into customer needs.
First to market before competitors.
3) Market Penetration is when an organization focuses on selling existing products in existing markets. There are 4 main objectives for this technique:
Maintain or increase market share of current products. This can be achieved by using pricing strategies, advertising, promotion and sales.
Dominance of growth markets.
Secure market, drive out competitors (aggressiveness towards competitors.)
Loyalty schemes so customers come back.
4) Market Development is when the organization starts selling existing products into new markets. If this is not performed well, this could be risky because of the new market consumers not purchasing the organizations products. There are 4 different categories for Market development:
New geographical markets ( a company may want to expand to different parts of the world)
New product/package dimensions, environmentally pleasing to new customers.
Distribution, have a variety of distribution centres. (Amazon)
New pricing policies to suit all types of customer, financially.
These are the 4 Techniques from Ansoff’s matrix however the following marketing strategies that organizations use to market their products all come under, Branding.
5) Brand extension is the launch of a successful brand name in a broad market. A successful brand helps a company. A successful brand helps a company enter new product categories easier. (Eg: Fairly extended from a washing up liquid to washing powder.
6) Relationship marketing involves developing long term relationship with customers so that they provide you with on-going business. An organization must exceed customer satisfaction expectations to retain and develop long term relationships, Customer Loyalty.
7) Branding is the process involved in creating a unique name and image for a product in the consumers mind, mainly through advertising campaigns with a consistent theme. However recent research shows that 90% of people trust peer advice than listening to adverts. Branding aims to establish a significant presence in the market that attracts and retains loyal customers.
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