A2 Business Studies Resources

1. Do Now
What do you remember from what we have
covered so far in Marketing Strategies….
Test what you’ve learned!

2. Selecting Marketing Strategies
Module 1

3. Learning Objectives
By the end of the lesson you should be able to:
1. Describe a range of marketing strategies.
2. Explain the meaning and significance of Ansoff’s Matrix in
assessing marketing strategies.
3. Assess the suitability of Ansoff’s competitive strategies in a
given context.
4. Evaluate the method, benefit and drawbacks of entering
international markets.

4. Marketing Strategies
Corporate Goals
What are marketing
strategies?
Marketing Objectives
What steps need to be
taken before
marketing strategies Analysis of the market
can be introduced?
Marketing strategy

5. Low cost Versus Differentiation
for firms that operate in both niche and mass markets
DEBATE CHALLENGE!
DIFFERENTIATION
LOW COST your given strategy. Prepare to
Research The purpose is to make one
This is the option to go is the best option.
demonstrate which
product appear different
for the cheaper end of of organisations that
Discuss examples and somehow superior to
have succeeded using these strategies.in the market.
the market. others
Encouraging customers to
Aim is to offer products
Remember you will need to counter argue
so make sure you read up about your particular make
choose that
at a lower price than competitors strategy. model when making
or
competitors. purchase decisions.

6. Ansoff’s matrix
Igor Ansoff’s matrix shows the main
strategic options available to firms.
Market Penetration
Product Development
Market Development
Diversification
The matric allows managers to discuss
strategies to achieve corporate aims.
Each carries a different level of risk.

7. Ansoff’s Matrix
Increasing Risk
Product Existing New
Market
Existing Market Product
Penetration Development
New Market Diversification
Development
Increasing Risk

8. Market Penetration
Target market would consist of existing customers
Benefits?
brand loyalty
Introduce new product to this market
reduce the purchase
of substitutes
E.g. –
encourage customers
to use the product
more often
Wii Game Wii Console owners

9. Market penetration – in action
Given America's love of coffee and super-sized portions, it was inevitable that
Starbucks should tie the two together in its latest offering: the massive new
'Trenta' cup size, holding 31 US fluid ounces – that's 917ml, or more than one and
a half imperial pints – of beverage

10. Market Development
Market an existing product to a new market
Nothing about the product changes
Benefits?
E.g. – Risk but security of an
established product.
Wii Game UK Wii Game USA

11. Market Development – in action
Move abroad
Topshop to US
Primark in Spain
Tesco in China

12. Product Development
Develop a new product to sell to existing customers
Benefits?
Risk but security of its
Could include and add established
on or extension pack
customers.
E.g. – Drawbacks?
May need extensive
R&D.
Wii Console Wii Fit

13. Product development – in action
The sandwich chain Pret A Manger announced a 37% profit
increase, boosted by sales of 50,000 porridge pots a week

14. Diversification
Market a new product to a new market
Related or unrelated to previous product
Drawbacks?
E.g. – High risk strategy!
Apple Ipad New market

15. Diversification – in action
Nokia
In 1990 Nokia made tyres and
toilet rolls
Mobile Phones

16. Getting to know the Ansoff Matrix
Decided how Coca-
Cola and Nestle
have used different
growth strategies.
Feedback your
findings to the rest
of the group.

17. National or international?
When considering marketing
strategies, why is it
increasing likely that firms
Carry out research on
will have an international
aspect to International
‘Entering
their plans?
Markets’ and look at the
benefits and drawbacks
to different methods.
What are the benefits of
operating on an to the
Prepare to feedback international
scale? of the group.
rest

18. Assessing the effectiveness of
marketing strategies
How can firms assess the effectiveness of marketing
strategies?
Has the strategy helped the business to achieve its marketing
objectives and therefore its corporate objectives?
Can the strategy be assessed within quadrants within the
Ansoff’s matrix – achieved market penetration, product
development, market development or diversification?

19. Finally
Identify and explain
three key words from
todays lesson.

20. Re-cap Learning Objectives
You should now be able to:
1. Describe a range of marketing strategies.
2. Explain the meaning and significance of Ansoff’s Matrix in
assessing marketing strategies.
3. Assess the suitability of Ansoff’s competitive strategies in a
given context.
4. Evaluate the method, benefit and drawbacks of entering
international markets.