Marketing Basics
What are the 7 P’s and 7 C's of marketing mix?
Seller’s point of view | Buyers’ point of view | Product | Customer Choice | Place | Convenience | Price | Cost (to the customer) | Promotion | Communication | People | Consideration | Process | Consistency | Physical Evidence | Circumstances |
ANSOFF'S MATRIX
A common tool used within marketing was developed by Igor Ansoff in 1957. He suggested that a business has the potential to grow by using one of four strategies. These strategies involve making the most of existing markets and products, introducing new products, or entering new target markets. Ansoff's four strategies are depicted in the matrix below.
1. Market Penetration:
This involves increasing sales of an existing product and penetrating the market further by promoting the product heavily or reducing prices to increase sales. This strategy has the lowest risk strategy as the firm knows the product and the market. Market penetration is often used by supermarkets and large retail chains.
2. Product Development:
The business develops/introduces new products into existing markets with the aim of selling the new product to existing customer groups. For example Microsoft with their Xbox2 game console introduced the Kinect, an add on that allows customers to play without the use of a controller, much like the Nintendo Wii. This is an example of a new product which simply needs to be added onto the existing model aimed at the existing market. Product Development is a medium risk strategy as the business is familiar with the market but not the new product.
3. Market Development:
Under a market development strategy a firm sells existing products to new markets. For example a sandwich shop which is doing well in one area, expands and opens another sandwich shop in a different region. Through market development our sandwich shop has the potential to become a national chain. There are different ways to define new markets including different
Seller’s point of view | Buyers’ point of view | Product | Customer Choice | Place | Convenience | Price | Cost (to the customer) | Promotion | Communication | People | Consideration | Process | Consistency | Physical Evidence | Circumstances |
ANSOFF'S MATRIX
A common tool used within marketing was developed by Igor Ansoff in 1957. He suggested that a business has the potential to grow by using one of four strategies. These strategies involve making the most of existing markets and products, introducing new products, or entering new target markets. Ansoff's four strategies are depicted in the matrix below.
1. Market Penetration:
This involves increasing sales of an existing product and penetrating the market further by promoting the product heavily or reducing prices to increase sales. This strategy has the lowest risk strategy as the firm knows the product and the market. Market penetration is often used by supermarkets and large retail chains.
2. Product Development:
The business develops/introduces new products into existing markets with the aim of selling the new product to existing customer groups. For example Microsoft with their Xbox2 game console introduced the Kinect, an add on that allows customers to play without the use of a controller, much like the Nintendo Wii. This is an example of a new product which simply needs to be added onto the existing model aimed at the existing market. Product Development is a medium risk strategy as the business is familiar with the market but not the new product.
3. Market Development:
Under a market development strategy a firm sells existing products to new markets. For example a sandwich shop which is doing well in one area, expands and opens another sandwich shop in a different region. Through market development our sandwich shop has the potential to become a national chain. There are different ways to define new markets including different