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
LOW COST DIFFERENTIATION
The purpose is to make one
This is the option to go product appear different
for the cheaper end of and somehow superior to
the market. others in the market.
Encouraging customers to
Aim is to offer products choose that particular make
at a lower price than or model when making
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
Introduce new product to this market
E.g. –
Wii Game Wii Console owners

9. Benefits?
brand loyalty
reduce the purchase
of substitutes
encourage customers
to use the product
more often

10. 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

11. Market Development
Market an existing product to a new market
Nothing about the product changes
E.g. –
Wii Game UK Wii Game USA

12. Benefits?
Risk but security of an
established product.

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

14. Product Development
Develop a new product to sell to existing customers
Could include and add on or extension pack
E.g. –
Wii Console Wii Fit

15. Benefits?
Risk but security of its
established
customers.
Drawbacks?
May need extensive
R&D.

16. 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

17. Diversification
Market a new product to a new market
Related or unrelated to previous product
E.g. –
Apple Ipad New market

18. Drawbacks?
High risk strategy!

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

20. 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.

21. National or international?
When considering marketing
strategies, why is it
increasing likely that firms
will have an international
aspect to their plans?
What are the benefits of
operating on an international
scale?

22. Carry out research on
‘Entering International
Markets’ and look at the
benefits and drawbacks
to different methods.
Prepare to feedback to the
rest of the group.

23. 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?

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

25. 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.