L1 International Marketing

What are the functions of marketing?

-        Analyze situation of the company in the current market e.g. using SWOT. 

-        Establish strategies according to the points identified in the analysis.

-        Clear positioning that fits the strategies of the company.

-        Marketing decisions to reach strategy goals (brand positioning always in mind): 4Ps.

What is the ansoff matrix?

Strategic framework and market development strategy that helps businesses identify growth opportunities by considering existing and new products or services in new or existing markets. It has 4 strategies businesses use to grow and help analyze each risk.

What 4 strategies does the business use to grow and help analzye each risk?

-        Market penetration: Using existing products for existing people (markets). Aims to get existing customers to buy more e.g. giving loyal cards to gain points. Involves increasing market share among current customers.

-        Product development: Introducing new products into present markets e.g. new product features and innovation. Starbucks creating instant coffee so customers can make Starbucks coffee at home.

-        Market development: Taking present products to new markets who haven’t tried e.g targeting new segments or geographical expansion e.g expanding a local internet service provider's service area to new towns.

Diversification: Introducing new products to new markets (people). Something a company has never done e.g. starbucks selling music or water to people never buying coffee.

What is STP?

Segmentation: Identify different potential target markets e.g. divide in age.

Target market: Choose what potential market you want to target e.g. the younger generation.

Positioning: Doing the marketing to convince target market that our product is worth it (Pricing, product, needs, distribution, communication for the target market).

What are competitive positions and which ones are there?

Competitive positions: Define company’s standing in the market relative to its competitors based on market share and strategic behavior.

-        Market leader: Largets market share and dominates in price changes, new products and promotions. Focusing on expanding total market, protect current share and increase e.g. coca-cola and google.

-        Market challenger: Second largest that attacks the leader and other competitors to gain shares through frontal attacks, encirclement, bypass e.g. pepsi and ford.

-        Market follower: Prefers to maintain its market share rather than challenge the leader directly by improve upon the leader’s offerings with less risk and R&D expense. Strategies include copying, imitation or adapting (improving) e.g. Hyundai adapting technology from Toyota.

-        Market nicher: Smaller firms focusing on small market segments that are often ignored by larger companies by specializing and knowing the customer segment better than mass marketers e.g. focusing on geographic areas or product features like Tesla.