marketing strategies

Question 1

what is strategic direction?

Answer 1

the general path a business takes, based on its mission and achieving its objectives

Question 2

what can a strategic direction influence?

Answer 2

the strategic direction influences:
- how a business’s strategy develops
- all areas of the business

Question 3

what are key factors in setting a strategic direction?

Answer 3

• choices of which markets to compete in, what products to offer and which direction the business should grow in

Question 4

what is strategic direction guided by?

Answer 4

the marketing strategy

Question 5

what does the marketing strategy decide on?

Answer 5

markets and products

Question 6

what is the markets that a business plans to compete in and the products it plans to offer decisions influenced by?

Answer 6

• market research
• analysis
• internal skills and resources

Question 7

what are some important factors that influence the decision of which market a business should operate in?

Answer 7

• type of product
• level of competition
• external factors (political, social or economic factors which could create opportunities in certain markets)
• internal resources (production facility)
• attitude to risk

Question 8

what are some important factors that influence the decision of which products a business should sell?

Answer 8

• research and development
• competitors
• technology
• finances
• external factors (social, economic or environmental factors)

Question 9

what were the 4 different strategies ignor ansoff came up with that a business can use to grow?

Answer 9

• market penetration
• new product development
• market development
• diversification

Question 10

what is market penetration?

Answer 10

• trying to increase your market share in your existing market by using pricing strategies, sales promotions and advertising
  this strategy works best in a growing market

Question 11

what is new product development?

Answer 11

• selling new products in your existing markets
• best when the market has a good growth potential and the business has high market share, strong r and d and a good competitive advantage

Question 12

what is market development?

Answer 12

• selling existing products to new markets
• it can be done though repositioning ( business focuses on a different segment of the market )
• they need to research the target market segment and work out how they can adapt their product or promotion to suit the needs of a different set of consumers.
• this might involve creating a new advertising campaign or promotion which targets a different audience. can also target different market segments by using new channels of distribution.
• can also be done by expanding into new geographical markets to exploit the same market segment (eg in a different country)

Question 13

what is diversification?

Answer 13

• selling new products to new markets. diversification is a very risky strategy as it involves moving into markets that the business may have no experience of.
• it’s used when a business really needs to reduce their dependence on a limited product range or if high profits are likely which reduces the risk