Chapter 2 con't

Ansoff's Strategic Opportunity Matrix

Think of tools that will let you lay things out better (charts, tables, illustrations)

Put your material in different formats, lay it out, make it look nice.

Apple was used as an example

Diversification takes a lot of effort..it's expensive. (new products, new market..high risk)

Market Penetration - selling the same things to the same people (low risk)

Product Development - product has changed, but the people have not

Market Development - same product new markets (Baking Soda..used for cooking..but now used for your fridge)

Portfolio Matrix

Starting to layout our products into this portfolio and see what we need to do with our product. This is a study guide for business strategy. (aka BCB Matrix, etc..)

Market Share ( <--> horizontal ) percent of sales you have in a product category 

Market Growth ( ^ vertical ) 

High Growth and High Share = Star

Low Growth and High Share = Cash Cow (the future potential is just not there)

High Growth and Low Share = Question Marks (Problem Child)

Low Growth and Low Share = Dogs

Star

5 different star products? what's bad about that?

Marketing cost, quick change..could be very expensive.. always moving promotions, appealing to the new group.

Cash Cows, "just keep it going"

making money not spending a lot

Problem with 5 cash cows? No growth, gonna hurt later on.

Problem Child (Question Marks)

"If then" kinda thing

a flow chart situation (if this, then do this, if that then do this)

Question marks can become a Star if we have a growing share

Now, if Question marks are not bringing any money in..then the growth goes down to the Dogs

Dogs

ex. Coke Black

Target Market Strategy

Segment the market based on groups with similar characteristics

Analyze the market based on attractiveness of market segments

Select one or more target markets

"I'm in the market for a new vehicle"

What market am I in? I'm actively looking.. Might purchase something

Target Market - the interested people

Marketing Mix: The Four P's

1. PRODUCT

Includes:

physical unit, package, warranty, service, brand, image, value

Products can be:

tangible goods, Ideas, services

"We want them to think [our product] is their best friend"

(Reasons he stays in Coke products)

- Surrounded by it in Atlanta (loyal to hometown), friend worked at Coke, went to Coke's Six Flags picnic, some of the ads, color: red

2. PLACE

Getting the product to the customer when the want it.

- Product availability where and when customers want them

- All activities from raw materials to finished products

- Ensure products arrive in usable condition at designated places when needed

"I think they put Waffle Houses on both sides of the interstate exits to make it easier on the drunk people."

3. PROMOTION

uRole is to bring about exchanges with target markets by

uInforming

uEducating

uPersuading

uReminding (Coke ads are mainly for reminding)

uIncludes integration of:

uPersonal selling

uAdvertising

uSales promotion

uPublic relations

Reminding ads: "Oh, I love McDonalds.." Their ads don't really Inform, Educate, or Persuade

4. PRICE

by far, the most difficult one to get right

uPrice is what a buyer must give up to obtain a product.

uThe most flexible of  the 

"4 Ps"-- quickest to change

uCompetitive weapon

uPrice  x  Units Sold = Total Revenue

== END OF CHAPTER 2 ==

Twitter talk: Guitar Center, Best Buy

Turned in Homework Assignment 1