Marketing Strategy

1
Marketing Strategy
Corporate Strategy Decisions and their Marketing
Implications
2
Ansoff Corporate Growth Strategies
3
Alternative Corporate Growth Strategies
Current products
New products

• Market penetration strategies
• Increase market share
• Increase product usage
• Increase frequency of use
• Increase quantity used
• New applications

• Product development strategies
• Product improvements
• Product-line extensions
• New products for same
• market

Current markets

• Diversification strategies
• Vertical integration
• Forward/backward integration
• Diversification into related bus (concentric
  diversification)
• Diversification into unrelated businesses
  (conglomerate diversification)

• Market development strategies
• Expand markets for existing products
• Geographic expansion
• Target new segments

New markets
4
Resource Allocation The BCG Growth Share Matrix
High
Stars
Question marks
5
2
4
1
6
Market growth rate (in constant dollars)
3
10
Dogs
Cash cows
7
11
12
8
9
10
13
Low
10
0.1
1
Relative market share
5
Cash Flows Across Businesses in BCG Portfolio
Model
Question marks
Stars
High
Cash Flows
Growth rate (cash use)
Low
Dogs
Cash cows
High
Low
Relative market share
Desired direction of business development