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Chapter 02 - Developing Successful Organizational and Marketing Strategies

Incorporating competitive data into business portfolio analysis.

2. Diversification Analysis. a. Diversification analysis is a technique that helps a firm search for growth opportunities from among: 

Current and new markets.

Current and new products.

b. For any market, there is both: 

A current product (what the firm now sells) and…

A new product (something the firm might sell in the future).

c. For any product, there is both: 

A current market (existing customers) and…

A new market (potential customers).

d. As organizations seek to increase sales revenues, they consider all four market-product strategies. e. [Figure 2-5] Using Ben & Jerry’s as an example, these four market-product strategies are: 

Market penetration. –

Is a marketing strategy to increase sales of current products in current markets.

Example: Selling more Ben & Jerry’s Chocolate Chip Cookie Dough ice cream to U.S. customers.

There is no change in the basic product line or the market served.

Increased sales to existing customers are possible either by selling: *

More of the product through better promotion or distribution.

*

The same amount of the product at a higher price.

[Video 2-4: B&J’s Bonnaroo Buzz Ad] 

Market development. –

Is a marketing strategy to sell current products to new markets.

Example: Selling Ben & Jerry’s Bonnaroo Buzz Fair Trade-sourced ice cream to Brazilian customers, an attractive market.

Is risky if: *

The firm has no experience selling in the new market. 2-23

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Solutions for Marketing 14th Kerin  

Solutions Marketing 14th Edition Kerin 2019 (Solutions Manual Download) (9781259924040) (1259924041). Instant access. All chapter are includ...

Solutions for Marketing 14th Kerin  

Solutions Marketing 14th Edition Kerin 2019 (Solutions Manual Download) (9781259924040) (1259924041). Instant access. All chapter are includ...