Marketing summary Q4
Chapter 2 – Company and marketing strategy
Developing strategies for growth and downsizing
• Product/market expansion grid
o Ansoff
o Market penetration
▪ Making more sales without changing its original product
▪ Adjustments to its product design, advertising, pricing and
distribution efforts
▪ Broader range of styles, colours and designs for different users
▪ Could also add direct to consumer distribution channels
• Own retail stores
▪ Without changing the product
o Market development
▪ Identifying and developing new markets
▪ Geographical expansion
o Product development
▪ Offering modified or new products
o Diversification
▪ Beyond its current products and markets
o Downsizing
▪ Might abandon products or markets
▪ Firm may have grown too fast or entered area where it lacks
experience
▪ Brands or businesses that are unprofitable
Chapter 9 – New product development and product life-cycle strategies
• Google: the new product “moonshot” factory
o “the googly thing is to launch it early (as a beta product) and then to iterate,
learning what the market wants – and making it great
o when it comes to new product development at google, there are no two-year
plans
o very serious about innovation
• New product development strategy
o A firm can obtain new products in two ways
▪ Acquisition
• By buying a whole company, a patent or a license to produce
someone else’s product
▪ Firm’s own new product development
o 90% of new consumer products launched in Europe fail
o why do so many new products fail
Chapter 2 – Company and marketing strategy
Developing strategies for growth and downsizing
• Product/market expansion grid
o Ansoff
o Market penetration
▪ Making more sales without changing its original product
▪ Adjustments to its product design, advertising, pricing and
distribution efforts
▪ Broader range of styles, colours and designs for different users
▪ Could also add direct to consumer distribution channels
• Own retail stores
▪ Without changing the product
o Market development
▪ Identifying and developing new markets
▪ Geographical expansion
o Product development
▪ Offering modified or new products
o Diversification
▪ Beyond its current products and markets
o Downsizing
▪ Might abandon products or markets
▪ Firm may have grown too fast or entered area where it lacks
experience
▪ Brands or businesses that are unprofitable
Chapter 9 – New product development and product life-cycle strategies
• Google: the new product “moonshot” factory
o “the googly thing is to launch it early (as a beta product) and then to iterate,
learning what the market wants – and making it great
o when it comes to new product development at google, there are no two-year
plans
o very serious about innovation
• New product development strategy
o A firm can obtain new products in two ways
▪ Acquisition
• By buying a whole company, a patent or a license to produce
someone else’s product
▪ Firm’s own new product development
o 90% of new consumer products launched in Europe fail
o why do so many new products fail
