04-19-2011, 07:16 PM
Discussion Question
There are four growth strategies which are currently prevailing in the market. These are Market penetration, Market Development, Product Development and Diversification. Below are the four companies which are tried to excel in the marketing environment. You are required to point out ONLY the NAME of growth strategy of following four companies:
1. Jahanzaib Limited is dealing in woolen blanket in Attock and it launches baby toys in Attock.
2. Mudassir Chemicals is dealing in chemicals in Karachi and it launches Cement industry in Lahore.
3. Ahmad Enterprise is dealing in baby shoes in Lahore and it launches baby shoes in Peshawar.
4. Ali Textile Mills is dealing in Denim fabrics in Rawalpindi and it uses extensive marketing strategies to grow in Rawalpindi market.
Solution:
Sr No
Scenario
Answer
1
Jahanzaib Limited is dealing in woolen blanket in Attock and it launches baby toys in Attock
Market Diversification
2
Mudassir Chemicals is dealing in chemicals in Karachi and it launches Cement industry in Lahore
Market Diversification
3
Ahmad Enterprise is dealing in baby shoes in Lahore and it launches baby shoes in Peshawar
Market Development
4
Ali Textile Mills is dealing in Denim fabrics in Rawalpindi and it uses extensive marketing strategies to grow in Rawalpindi market
Market
Penetration
1). Market Penetration—making more sales to present customers without changing products in any way. Market penetration means trying to increase sales of a firm’s present products in its present markets probably through a more aggressive marketing mix. The firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors’ customers or current nonusers. New promotion appeals alone may not be effective. A firm may need to add a home page on the Internet to make it easier and faster for customers to place an order. Or, it may need to add more stores in present areas for greater convenience.
2). Market Development—a strategy for company growth by identifying and developing new markets for current company products (example, demographic markets). Market development means trying to increase sales by selling present products in new markets. Firms may try advertising in different media to reach new target customers. Or they may add channels of distribution or new stores in new areas, including overseas.
3). Product Development—a strategy for company growth by offering modified or new products to current markets. Product development means offering new or improved products for present markets. By knowing the present market’s needs, a firm may see new ways to satisfy customers. Computer software firms like Microsoft boost sales by introducing new versions of popular programs.
4). Diversification—a strategy for company growth by starting up or acquiring businesses
outside the company’s current products and markets. Diversification means moving into totally different lines of business perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system
There are four growth strategies which are currently prevailing in the market. These are Market penetration, Market Development, Product Development and Diversification. Below are the four companies which are tried to excel in the marketing environment. You are required to point out ONLY the NAME of growth strategy of following four companies:
1. Jahanzaib Limited is dealing in woolen blanket in Attock and it launches baby toys in Attock.
2. Mudassir Chemicals is dealing in chemicals in Karachi and it launches Cement industry in Lahore.
3. Ahmad Enterprise is dealing in baby shoes in Lahore and it launches baby shoes in Peshawar.
4. Ali Textile Mills is dealing in Denim fabrics in Rawalpindi and it uses extensive marketing strategies to grow in Rawalpindi market.
Solution:
Sr No
Scenario
Answer
1
Jahanzaib Limited is dealing in woolen blanket in Attock and it launches baby toys in Attock
Market Diversification
2
Mudassir Chemicals is dealing in chemicals in Karachi and it launches Cement industry in Lahore
Market Diversification
3
Ahmad Enterprise is dealing in baby shoes in Lahore and it launches baby shoes in Peshawar
Market Development
4
Ali Textile Mills is dealing in Denim fabrics in Rawalpindi and it uses extensive marketing strategies to grow in Rawalpindi market
Market
Penetration
1). Market Penetration—making more sales to present customers without changing products in any way. Market penetration means trying to increase sales of a firm’s present products in its present markets probably through a more aggressive marketing mix. The firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors’ customers or current nonusers. New promotion appeals alone may not be effective. A firm may need to add a home page on the Internet to make it easier and faster for customers to place an order. Or, it may need to add more stores in present areas for greater convenience.
2). Market Development—a strategy for company growth by identifying and developing new markets for current company products (example, demographic markets). Market development means trying to increase sales by selling present products in new markets. Firms may try advertising in different media to reach new target customers. Or they may add channels of distribution or new stores in new areas, including overseas.
3). Product Development—a strategy for company growth by offering modified or new products to current markets. Product development means offering new or improved products for present markets. By knowing the present market’s needs, a firm may see new ways to satisfy customers. Computer software firms like Microsoft boost sales by introducing new versions of popular programs.
4). Diversification—a strategy for company growth by starting up or acquiring businesses
outside the company’s current products and markets. Diversification means moving into totally different lines of business perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system