MKT 2210 Lecture Notes - Swot Analysis, Stratus Cloud, Marketing Mix
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market penetration is increasing sales of present products in their existing markets. there is no
change in the product line, but increased sales to present markets are possible through actions like
better advertising, more retail outlets, or lower prices. for
market development, there is no change in the product itself but distribution is expanded through
reaching new target markets such as foreign countries.
product development involves selling a new product to existing markets. there is a change in the
product itself but it is sold to existing markets.
diversification involves developing new products and selling them in new markets. this is a
potentially high-risk strategy because new actions are required for both markets and products.
diveresification is when the new product has something in common with the existing line. in
unrelated diversification the new and existing lines have little in common.
the strategic marketing process.
after the organization assesses where it is at and where it wants to go, other questions
1. how do we allocate our resources to get where we want to go?
2. how do we convert our plan to actions?
3. how do our results compare with our plans, and do deviations require new plans?
the strategic marketing process involves an organization allocating its marketing
mix resources to reach its target markets. this process is divided into three phases:
planning, implementation, and control.
the strategic marketing process is usually formalized in a marketing plan, which is a
road map for the marketing activities of an organization for a specified future
period of time, such as one year or five years.
growing by using multiple market-product strategies
- most firms employ multiple growth paths
- single strategies may eventually lead to stalled growth
- heinz baby foods…with 90% of the market cannot increase penetration. it develops new
products in order to grow it’s business
- stratus vineyards uses market penetration in canada, market development in the u.s., and
product development (such as ice wines).
A. strategic marketing process: the planning phase
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