Market Strategies.docx

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March 18, 2013 Market Strategies - Changes in economic organization o Decline of standardized merchandizing o Increase in niche  segmenting market (based on age, occupation etc.) creating particular lifestyle. Focus on that particular group. Not only about market but about stores too (Gap  gap adults, kids, babies)maximizing sales through this o market segmentation  all products are the same. If increase of product output, then increase in production. Destandardize  high level of production o Incorporation of information technology  barcode : tells how many items have been sold o Outsourcing - move things to low economy. Increase market, and look particular market lifestyle. (seniors, teens, kids, etc.) o Shift from “push” to “pull” manufacture  retailers are pulling particular goods from manufacture. They are determining what is being sold. (think about size of retailers, usually the size of retailers)  First to do this was walmart  they began to put pressure on suppliers.  They need to go find low wage economy, since they need to find goods that are cheap. - Terminology and Strategies o Market share (all leading markets want to be the first in the market share), oligopsony (small number of buyer in the market), oligopoly (small number of sellers in the market)  if there is a small number of sells, the buyers are the ones who are determining the price they pay. The two are converging. Ex. Loblaws controls both sides of market. They buy the products, but they also sell the products to the consumes – as a supplier you can only enter the market through loblaws and if you’re a consumer you can only buy they are they selling o Store format  over the past decade, the store format has increased in size.  Big box stores  they sell everything  This is important, it is a reflection of the economic change  They have determined what sells and what doesn’t sell March 18, 2013  This is beneficial because they are able to determine what is being segmented. “barcode system” able to determine what is being sold and what is not.  Price of product will determine volume of sales o Franchising  capital risk is influencing franchizee o Segmentation  breaking market down (adults, seniors, kids etc.), spatial niche o Integration  Vertical and horizontal removing competition from a market. Typical with forwardistic economy • Vertical  staying within the market. Ex. loblaws buys metro. They take out a competitor. Requires direct investor • Horizontal  using a large amount of capital, may not be productive. Does not require direct investment  Backward/forward linkages  forming relationship. Forming exclusive relationship but in return they need to give a good deal. Increase sales, cause they influence consumers • Backward  loblaws forms relationship with mr.christie - Terminology and strategies o Incorporation, penetration = investment
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