Presentation on theme: "Step 3. Identify Problem. 3. Identify Marketing Problem Problem should be solved by manipulating marketing mix. –Hint: Formulate as a question. Focus."— Presentation transcript:
Step 3. Identify Problem
3. Identify Marketing Problem Problem should be solved by manipulating marketing mix. –Hint: Formulate as a question. Focus should be on main not only secondary problem. Problem should stem from thorough SWOT analysis. Problem should be broad enough to pose several alternatives.
Problem should be related to company’s goals. –Growth for Current Markets Market Penetration Product Development Vertical Integration –Growth for New Markets Market Development Market Expansion Diversification Strategic Alliances –Consolidation Retrenchment (Withdraw from weak markets) Pruning (reduction of products offered) Divestment/Liquidation (Selling off part or all of business)
Market Penetration Strategies Increase market share Increase product usage; Increase frequency of use, increase quantity used, find new applications Product Development Strategies Product improvements Product-line extensions New products for the same market Market Development Strategies Expand markets for existing products Geographic expansion Target new segments Diversification Strategies Vertical integration, Forward integration, Backward integration Diversification into related businesses (concentric diversification) Diversification into unrelated businesses (conglomerate diversification) Corporate Growth Objectives Current Products New Products Current Markets New Markets
3. Example Marketing Problem Sales people are leaving the company –Causes: Improper training Unfair compensation Bad product Unrealistic quotas –Symptoms High turn over rate High training costs
3. Example Marketing Problem In mature stage of product life cycle –Causes Maturing needs and wants –Symptoms: Increased Competition Price Warfare More Regulation