emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
But irrespective of where opportunities originate, when it comes to successful
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The Apple Inc. can use this tool when they want to increase their sales either by expanding product or by entering a new market. With the help of this grid, market expansion strategy is determined.
Golden Rule:
• Opportunity: this grid not only provides the opportunity to expand the product but it also but it also provides with the opportunity to withdraw from the current market to another.
• Risk: each grid provides with each level of risk involve with each strategy.
Structure of Product-market Expansion Grid:
The product-market expansion grid consists of two main dimensions that are, Product and the Market. The product dimension can be a new product or existing product and market could be existing or a completely new market.
Products
Market Penetration Product Development Market
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For example by introducing loyalty schemes.
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.
2) Market Development:
The second strategy is Market development strategy which focuses on selling the existing product in a completely new market. The organization targets the new geographical area, region which share the same demographic profiles than in the home country. The organization does not have to make a huge change in the product nor they have to change their marketing strategies. There are few of the following ways through which this could be done:
I. New Geographical markets: this involves selling outside the region or a country and offering them same existing product. Expanding into new market place with the same existing product is a very effective way to grow the business.
II. New product dimensions or packaging: sometimes for the successful selling of the existing product it is necessary to repackage the product to open the new market. Apple can use different packaging technique according to the different age group of it
There are typically four areas for market expansion; product development, diversification, penetration, and market development. What business you are in, what brands you have, and the type of products you offer will influence the type of market expansion that best fits the business. Coca Cola is giant in all the areas noted above when it comes to market expansion but what both companies had in common was the recognition that "Market development” was essential to revenue growth.
A marketing strategy is an objective driven long-term plan which aims at achieving specific marketing goals. Clorox strategic plan aims at growing its sales volume by 3 to 5 percent annually and this means that the marketing team needs to come up with ways through which the required sales volume will be achieved.
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
The expansion into new markets and lines to help assure the full use of resources;
Apple probably has the world 's best PR department. This is especially significant during the development and launch of new products, because in any technological company cannot call such a resonance with their innovations. Before the first time users are be able to see the new Apple product and touch it, the company carefully plans all its public appearances and mentions of it, leak control, organizes briefings for journalists privileged, closed the presentation that can be accessed by invitation only, and finally, it organizes early testing for pre-screened positive-minded members of the media. Nothing ride, on the rare occasions when Apple does not control the initial promise, it corrects this by using its powers to bring elaborate answers
Through Apple’s innovative enterprise approach, we seek to generate personal computing products which have higher quality at lower unit costs than the previously available one. In order to manage projects effectively in the program,
Overall, Apple has a creative way of marketing to the millions of people over the world. Their creative marketing coupled with their unique product meshes together to form a multi-billion dollar company. If Apple keeps using their exclusive style of marketing to a younger “hip” generation then they will be Apple customers for life.
Grewal and Levy (2010: p32) state that ‘a marketing strategy identifies, (1) a company’s target market(s), (2) a related marketing mix - their four P’s and (3) the bases upon which the firm plans to build a sustainable competitive advantage’.
Primarily, strategic marketing initiates its process through market research, thereby inculcating the optimal target customers throughout the development phase of the product or service. Market research enables the firm to identify trends from the horizon, especially by studying major competitors in the market that eventually informs the firm’s product designs and development. Strategic marketing does thus enable the company to use to researched information to differentiate products for individual client niches, which provides the firm with a competitive
Apple depends on building a better product and in turn, the product itself leads people to purchase from Apple. However, new or improved products will not necessarily be successful unless they are priced, distributed, advertised, and sold properly (Kotler & Keller, 2012). The holistic concept encourages the marketer to integrate marketing activities and assemble marketing programs to create, communicate, and deliver value for consumers such that “the whole is greater than the sum of its parts (Kotler & Keller, 2012). This is why Apple advertises how much the new feature will enhance the consumers’ life and release snippet tutorials of how to use the new features or
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
The adaptation of the major business strategy to all the markets where the company’s products are presented.
One must look at the economic environment and how it will affect the launch of the product. One must look at:
International Marketing, at its simplest level, involves the firm making one or more marketing mix decisions across national boundaries (Jobber, 2010). At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe (Jobber, 2010). There are various reasons for going global, some of which are: to find opportunities beyond saturated domestic markets; to seek expansion beyond small, low growth domestic markets; to meet customers’ expectations; to respond to the competitive forces for example the desire to attack an overseas competitor; to act on cost factor for example to gain economies of scale in order to achieve a balanced growth portfolio. The methods of market entry that could be used are indirect exporting (for example, using domestic –based export agents), direct exporting (for example, foreign –based distributors), licensing, joint venture and direct investment. I found this par...