Market-Development Strategy


A market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. Examples include introducing existing products to different geographical areas or different buying publics.

The mix of marketing activities used must often be varied to reach different markets with differing buying patterns and requirements. Reaching new markets often requires modification of the basic offering, different distribution outlets, or a change in sales effort and advertising.

Market development involves a careful consideration of competitor strengths and weaknesses and competitor retaliation potential. Moreover, because the firm seeks new buyers, it must understand their number, motivation, and buying patterns in order to develop marketing activities successfully. The firm however must consider the strengths, in terms of adaptability to new markets, in order to evaluate the potential success of the venture.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Organizational Philosophy Statements


Ford Motor Company: “Quality is job 1!”

L. L. Bean: “Sell good merchandise at a reasonable profit, treat your customers like human beings, and they’ll always come back for more.”

Metropolitan Life Insurance Company: “Quality is the key to our future success.”

Xerox: “Leadership through quality.”

Federal Express: “People—Service—Profit.”

Ritz Carleton: “Ladies and gentlemen serving ladies and gentlemen.”

Citicorp Savings of California: “To consistently deliver a differential level of service so exceptional and so unexpected that it becomes a vehicle for the acquisition of profitable new relationships as well as the retention and growth of existing ones.”

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Market Penetration Strategy


A market penetration strategy is the one that dictates that an organization seek to gain greater dominance in a market in which it already has an offering. This strategy involves attempts to increase present buyers’ usage or consumption rates of the offering, attract buyers of competing offerings, or stimulate product trial among potential customers. The mix of marketing activities include lower prices for the offerings, expanded distribution to provide wider coverage of an existing market, and heavier promotional efforts extolling the unique advantages of an organization’s offering over competing offerings.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Product Development Strategy


A product development strategy dictates that the organization create new offerings for existing markets. The approach taken maybe to develop totally new offerings (product innovation) to enhance the value to customers of existing offerings (product augmentation) or to broaden the existing line of offerings by adding different sizes, forms, flavors,  and so forth (product line extension).

Companies successful at developing and commercializing new offerings lead their industries in sales growth and profitability. The likelihood of success is increased if  the development effort results in offerings that satisfy a clearly understood buyer need.

Important considerations in planning a product deployment strategy concern the market size and volume necessary for the effort to be profitable, the magnitude and timing of competitive response, the impact of the new product on existing offerings, and the capacity (in terms of human and financial investment and technology) of the organization to deliver the offerings to the market(s). more importantly, successful new offerings must have a significant point of difference reflected in superior product or service characteristics that deliver unique and wanted benefits to consumers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Follies of Losers


Losers lose out on repeat business. They use rather than value their existing customers. They haggle over prices and margins, and discourage ‘variations’ from standard offerings that might create ‘extra work’ and cause ‘systems problems.’ They do just enough to fulfill any contracts that are won. They don’t really care about their customers’ businesses and keep ‘outsiders’ at a distance to protect their ‘know-how.’

Losers do little to lock their customers in. they are reluctant to establish online links because of worries about importing viruses. Open book accounting and partnering relationships are also avoided. Not surprisingly, clients seeking a deeper and more intimate relationship look elsewhere.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Online Retail Selling: Barriers to Success


i.            Increasing consumers’ comfort levels: Online retailers need to improve convenience and value for customers and assist them in overcoming their concerns about security and trust.

ii.            Resolving technological limitations: The ability for online retailers to deliver unique experiences is linked to technology improvements. The internet is still constrained by lack of bandwidth and problems with reliability.

iii.            Rapidly scaling internal operations: Online retailers face the challenges of managing significant growth, internal organizational change and developing and scaling their customer service and fulfillment infrastructure—all while the technology is still evolving.

iv.            Engineering comprehensive convenience: Customers identify many convenience problems with today’s online environment. Among them are the need for customers to reenter personal data on different sites, the vide variation in customer service across sites and the lack of coordination between online and offline retail environments on the part of retailers using both channels.

v.            Resolving channel conflict: many offline retailers believe that there is a risk of cannibalizing sales through existing channels by going online. Many manufacturers fear alienating their existing distribution partners by providing an alternative channel for customers to purchase. These perceived channel conflicts are keeping some traditional retailers and manufacturers from joining the Internet.

vi.            Developing low-cost distribution: Distribution system can be expensive. Online fulfillment systems are still developing and there is a disconnect between what is required and what is currently offered by existing offline systems.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

The Seedbeds of Managers


Good managers are not born; they are made. An organization acquires managers in three ways: promoting employees from within, hiring managers from other organizations, and hiring managers graduating from universities.

Promoting people within the organization into management positions tends to increase motivation by showing employees that those who work hard and are competent can advance in the company. Internal promotion also provides managers who are already familiar with the company’s goals and problems. Promoting from within , however, can lead to problems: it may limit innovation. The new manager may continue the practices and policies of previous managers. Thus, it is vital for companies—even companies committed to promotion from within—to hire outside people from time to time to bring new ideas into the organizations.

Finding managers with the skills, knowledge and experience required to run an organization or department is sometimes is difficult. Specialized executive employment agencies—sometimes called headhunters, recruiting managers, or executive search firms—can help locate candidates from other companies. The downside is that even though outside people can bring fresh ideas to a company, hiring them may cause resentment among existing employees as well as involve greater expense in relocating an individual to another city.

Schools and universities provide a large pool of potential managers, and entry level applicants can be screened for their developmental potential. People with specialized management skills are specially good candidates. Some companies offer special training programs for potential managers just graduating from college.

When exposed to advertising, the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised product.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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