Term
Strategic Market Plan (3-5 Year Plan)
-Best use of limited resources |
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Definition
| Sets the direction and provides guidelines for resource allocation |
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Term
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Definition
| Factors include: Product life-cycle and market growth rate measures |
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Term
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Definition
| Ratio of a business's market share to the total share of its three largest competitors |
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Term
| Improved market share index |
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Definition
| leads to sales and profit growth |
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Term
| Marketing Planning Process (3 Elements) |
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Definition
| Business performance, market attractiveness, competitive position |
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Term
| Factors considered in market attractiveness |
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Definition
Stage of the product lifecyle
market's growth rate
market development index
size of the market
competitive environment
ease/difficulty of accessing the market |
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Term
| Forces of Market Attractiveness (3) |
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Definition
Market Forces (Size, Growth, Buyer Power)
Competitive Environment (Number of Competitors, Ease, Price Rivalry)
Market Access(Familiarity, Channel Access, Sales Requirements) |
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Term
| Factors of Competitive Position (3) |
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Definition
Differentiation (Quality, Service, Brand)
Cost(Unit, Transaction, Marketing)
Marketing (Share, Brand Awareness, Distribution) |
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Term
| Offensive Strategies (3) More growth oriented |
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Definition
Invest to Grow
Improve Position
New Market Entry |
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Term
| Defensive Strategies (4) More likely used during maturing, mature or declining markets |
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Definition
Protect Position (Dominant Position: Gatorade)
Optimize Position (Late-Growth Stage: Banks fees)
Monetize (Less Attractive: Maximize Cash flow without exiting the market)
Harvest (Prices Increase, Volume Decrease)
Divest (Exit Market by selling or closing down stores) |
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Term
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Definition
Offensive - Deliver above-average performance in the areas of sales growth, position and long-run profit performance
Defensive - Protect important share positions and produce short-run profit |
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Term
| Diversification across product-markets(Helps to:) |
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Definition
1. Reduces dependence on a single product-market
2. Mitigate poor performance across the board |
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Term
Marketing Mix Strategy(Intel example)
-Tackling multiple segments of the portfolio |
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Definition
1. Strategy for low-end personal computer market
2. Another strategy for high share positioning in microprocessors |
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Term
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Definition
| A chart that includes all products, with strategies in total. |
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Term
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Definition
| Invest marketing resources to grow the market demand, market share or customer revenue |
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Term
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Definition
| Invest to improve/strengthen competitive position and deliver a stronger value proposition, higher margins and higher levels of customer loyalty |
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Term
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Definition
| Invest to enter new related/unrelated markets or develop new products |
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Term
| Of the five forces that limit market demand, the three most restrictive are: |
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Definition
| price, availability and compatibility |
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Term
| Reasons to pursue an unrelated market strategy (Think Westinghouse acquiring CBS) |
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Definition
-New source of growth
-Smoother performance
-Reduced vulnerability |
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Term
| Entering New Emerging Markets enable |
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Definition
| - a business to establish an early leadership position in the market - influence position and market growth |
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Term
| Early followers (Earthlink after AOL) |
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Definition
| Market entrants that engage after pioneers have tested the waters |
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Term
| Why would Yum Brands divest such well-known store brands like A&W and Long John Silver’s? |
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Definition
| Long John Silver’s had a good market share but in a very small market. A&W was facing tough segment competition from McDonald’s, Wendy’s, Burger King, and others. Funds from the sale of these brands will be invested in the growth brands within Yum Yum. The company’s strategic market plan is to grow sales at a faster rate, improve the average profit margin, and increase Yum Brands’ operating profit in dollars and as a percentage of sales. A&W and Long John Silver had small opportunity for growth and an average market share compared to other brands. |
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Term
| 2. Why did Toyota enter the U.S. car market at the low-price point of the market instead of the mid-price or high-price point? |
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Definition
| Toyota adopted a strategic market plan to build its product line by introducing brands at the next quality-price point. The company continued its strategy through the 1970s and 1980s until the Toyota brand reached the limits of its brand status, and then it made an extensive engineering and marketing effort to develop the Lexus. |
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Term
| Why did Toyota add the Lexus and Scion product lines to its product portfolio as separate umbrella brands instead of retaining an all-Toyota product line portfolio? |
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Definition
As the Toyota product line grew in price and performance, there came a point at which it was just below the luxury car segment dominated by BMW, Mercedes, Audi, Cadillac, and Volvo. Toyota management knew it could build a competitive product, but the Toyota brand image would be difficult to sell in the luxury segment. A new brand name (Lexus) was developed and positioned for the luxury segment, and the strategy has been a huge success. There should be little doubt that the company could not have had the same success with a car branded as the Toyota Lexus.
For Scion, Toyota wanted to offer more options within its price-performance product line without confusing the product positioning of the current Toyota line. It was easier to introduce a second umbrella brand that would compete in many of the same price-performance segments as the Toyota line. |
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Term
How would Apple use the product life cycle that was used in this chapter to evaluate
the current and future sales and profits of a business’s portfolio of products? |
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Definition
The product life cycle serves as the basis for an important portfolio analysis in which a business can display its product line over the product life cycle with respect to sales, sales
growth, and profitability.
How could Apple use Product Life Cycle? They could measure market attractiveness that
correspond to sales and profits. Difference in stages of the life cycle require a business to
implement different strategies and allocate different levels of marketing resources as a
product moves through its life cycle. |
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Term
| 7. For Yum Brands, what is meant by a “strategic market plan”? |
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Definition
■ Invest to Grow: KFC, Taco Bell, and Pizza
Hut. The company plans much of the growth
in these brands to occur outside the United
States, with a strong focus on China, where
the brands are already in place.
■ Divest: Long John Silver’s and A&W were
sold in late 2011. Long John Silver’s had a
good market share but in a very small market.
A&W was facing tough segment competition
from McDonald’s, Wendy’s, Burger
King, and others. Funds from the sale of these
brands will be invested in the growth brands. |
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Term
| Why would a business like Coca-Cola opt to use the GE/McKinsey portfolio model over other portfolio models? |
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Definition
- The GE/McKinsey portfolio model includes an index of several market attractiveness factors and an index of several competitive position factors. Separate ratings of importance and performance shape the overall performance of these two dimensions.
- For a worldwide brand like Coca-Cola, a competitive position could include more than a business’s relative market share or its share development index. A strong brand, high product performance, outstanding service quality, high brand awareness, and a cost advantage are also important in shaping competitive position.
- The GE/McKinsey model would be preferred because it’s a portfolio matrix that uses multiple factors to index market attractiveness and competitive position. The multi-factor indexes create a scale that varies from 0 to 100.
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Term
How would you assess the attractiveness of a new consumer product-market for
Procter & Gamble? List the specific factors you would include as you build an index
of market attractiveness for a Procter & Gamble consumer market. |
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Definition
Factors that typically shape market attractiveness are market size, market growth, competition, margin potential, market access, and a “good fit” with the company’s core capabilities. These factors can
be meaningfully grouped into three dimensions -
Market Forces: Market Size, Growth Rate, Buyer Power
Competitive Environment: Number of Competitors, Ease of Competitor Entry, Price Rivalry
Market Access: Customer Familiarity, Channel Access, Sales Requirements |
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Term
| Under what conditions would Apple use an offensive strategic market plan? |
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Definition
| Offensive strategic market plans are geared to deliver above-average performance in the areas of sales growth, share position, and long-run profit performance. They are more likely to be used in attractive markets. Apple would use this strategy if it was the market’s leader in a market that was growing and it was able to maintain above-average margins by using an efficient marketing strategy. |
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Term
What role do offensive and defensive strategic market plans play in the short- and
long-run performance of Apple? |
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Definition
Offensive strategic market plans are geared to deliver above-average performance in the areas of sales growth, improved share position, and improved long-run profit. Defensive strategic market
plans are intended to produce short-run profit performance, protect important share
positions, and contribute to long-run profit performance and strategic position.
Offensive strategic market plans require investment in order to produce sales growth
and improve share position, which limits short-run profit performance. Defensive strategic
market plans promote short-run profit performance but are not particularly effective
at growing sales revenue or improving the long-run share position. In the long run, a
growth-oriented market strategy will shift from an offensive strategic market plan to a
defensive strategic market plan. |
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Term
Why would the overall variation in sales revenues over a 10-year period be different
between General Electric and Dell? |
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Definition
Dell, because of a strong portfolio position, has invested heavily over the past 20 years to grow both the
personal computer market and its share of the market. General Electric’s competitive position is due to its strong brand, high product performance, outstanding service quality, high brand awareness, and a cost advantage. These factors contribute to different levels of sales revenues for each company over the past 10 years. |
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Term
How would an offensive strategic market plan and marketing and sales budget for
GE Appliances to grow market share differ from those of a strategic market plan to
optimize position and reduce share? |
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Definition
Invest to Grow —An offensive strategic market plan to invest marketing and sales
resources to grow the market or a product’s position in a market
Optimize Position —Many businesses implement a defensive strategy in the lategrowth
stage or the mature stage of the product life cycle. When growth potential is
limited and competitive position is set, businesses need to optimize the marketing mix
to produce maximum marketing profits. This is the time in the product life cycle when
volumes are nearly at full potential and margins are still somewhat attractive. A business
can incrementally reduce its investment in marketing resources because the
product-market is mature or nearing maturity. A business using this defensive strategy
undertakes a conscious effort to reduce its customer base in order to reach a more
profitable level of business. |
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Term
How would an offensive strategic market plan and marketing and sales budget for
GE Appliances to grow market share differ from those of a strategic market plan to
optimize position and reduce share? |
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Definition
Invest to Grow —An offensive strategic market plan to invest marketing and sales
resources to grow the market or a product’s position in a market
Optimize Position —Many businesses implement a defensive strategy in the lategrowth
stage or the mature stage of the product life cycle. When growth potential is
limited and competitive position is set, businesses need to optimize the marketing mix
to produce maximum marketing profits. This is the time in the product life cycle when
volumes are nearly at full potential and margins are still somewhat attractive. A business
can incrementally reduce its investment in marketing resources because the
product-market is mature or nearing maturity. A business using this defensive strategy
undertakes a conscious effort to reduce its customer base in order to reach a more
profitable level of business. |
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Term
| Why did General Motors’ 2009 defensive strategic market plan produce improved performance in 2010? |
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Definition
| In 2009, GM decided to restructure its portfolio, which included discontinuing brands that were no longer profitable and/or failed to meet growth. This defensive strategy was needed to reallocate resources being used for unprofitable products and prevent continuing declines in sales, growth and profits. By pursuing this defensive strategy, these resources could be used to maximize profits in the short-term (by stopping sources of negative cash flow), and begin reinvesting in other offensive strategies for long-term growth and profitability. |
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Term
| Why was it important for General Motors to develop the Volt? |
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Definition
| Before the Volt was developed, GM’s product portfolio was unbalanced. All of its products were at the mature stage of the product life cycle. Products at this stage serve mature markets with relatively slower growth. GM needed a product that would improve its overall market share and capture a share of the growing market for electric cars. As an innovative electric car, the Volt provided GM with this growth opportunity. |
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Term
| What are the differences between defensive market strategies and offensive market strategies? |
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Definition
Defensive market strategies are primarily focused on protecting strategic market positions and adding to short-term cash flow and short-term profitability. They are more likely to be implemented in the latter stages of the product life cycle (i.e. late growth, maturing, and declining stages).
In contrast, offensive market strategies are focused on growing sales, growing market share, entering/developing new markets and increasing profitability in the long-term. These strategies are generally most appropriate during the early stages of the product life cycle (i.e. emerging, early and rapid growth stages). |
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Term
| Why is it more difficult to protect Apple’s IPhone market share in a high-growth market than Apple’s Mac in a slow-growth market? |
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Definition
Apple’s investment in a high share product such as the iPhone is crucial its overall portfolio balance, and continued market dominance. The “difficulty” is associated with the amount of new entrants, high level of competition, and wide range of customers purchasing Iphones vs. Macs. To Consider: Based on PIMS the (Profit Impact of Marketing Strategies), average businesses experience a (.4)% change per 1% of growth.
For Apple, as the leaders in the cell-phone market, high growth represents high reward, fast erosion. |
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Term
| Why is it more difficult to protect Apple’s IPhone market share in a high-growth market than Apple’s Mac in a slow-growth market? |
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Definition
Apple’s investment in a high share product such as the iPhone is crucial its overall portfolio balance, and continued market dominance. The “difficulty” is associated with the amount of new entrants, high level of competition, and wide range of customers purchasing Iphones vs. Macs. To Consider: Based on PIMS the (Profit Impact of Marketing Strategies), average businesses experience a (.4)% change per 1% of growth.
For Apple, as the leaders in the cell-phone market, high growth represents high reward, fast erosion. |
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Term
| Why do share leaders like Microsoft, Google and Intel have to work harder than share followers to protect share? |
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Definition
| Having the largest share in their respective industries also means having the potential to lose the largest amount due to share erosion. To Consider: PIMS identifies an inverse relationship between size of market share and change in market. By imploring key defensive strategies, these leaders can protect high share position, which creates greater profit in the short-term, and allows for reallocation of funds to offensive market strategies. |
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Term
| What are some key aspects of performance that would enable a share follower like Yahoo to achieve the same level of profit as a share leader? |
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Definition
As a share follower, Yahoo can still add great value to its customer base, and continue to profit at a high level. Some key elements to the company’s performance are:
- High product quality (search engine algorithm, ease of use)
- Aggressive investment in marketing as a percentage of sales (brand recognition leads to user loyalty/new customers)
- Investment into R&D/Technology (engaging clients from a digital standpoint) |
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Term
| . Compare defensive market strategies to protect a share position with strategies to exit a share position in terms of their contributions to short-run profit performance and overall share position of the business. |
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Definition
Protect:
- As mentioned earlier, defensive strategies such as investing in technology, focusing on product quality, engaging existing client bases, etc.
Exit:
- Monetize – extract the maximum short-run cash flow from the market by using minimal resources and low prices
- Harvest (Slow Exit) – Only used when the potential to profit long-term is still a thought. If money is being lost, then harvest can actually cost more down the line
- Divest ( Fast Exit) – by eliminating a source of negative cash flow quickly, short-run profit can be achieved |
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Term
| Why would a mature paint company pursue a reduce-market-focus strategic market plan? |
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Definition
| A mature paint company would pursue a reduce-market-focus strategic market plan if it was utilizing defensive core strategy IIB, with the goal of maximizing profits (see figure 13.2 and p 445). “A decision to purse a reduce market focus defensive strategy is most appropriate when a business does not have the resources to invest in protecting its current share position or when greater levels of profitability can be derived from a narrower, more selective choice of target customers.” (p 445). This strategy may entail lower revenue and loss of market share, but it will probably lead to higher levels of profitability as a percentage of sales. A mature paint company may not have the funds to maintain it’s market share, and it may want to become more efficient by focusing on their target customers to improve their net marketing contribution, and increase profits. |
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Term
| What is the primary objective of a monetize strategic market plan? |
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Definition
| “When an optimize position strategy is not viable, (in a mature market), a business may elect to remain in the market with a monetize cash flow strategy. The goal of a monetize strategy is to extract the maximum short-run cash flow from the market. This defensive strategy operates with minimal marketing resources and usually with low pricing levels.” (p 446) |
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Term
| 14. Under what conditions would a business select an exit market strategy over a strategy to protect share position? |
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Definition
| An exit strategy requires considerable fewer resources than a strategy designed to protect share position. For example, “[t]o protect share in a market that is growing at 15 to 20 percent a year, Intel will have to continue its rollout of new products and add to its marketing budget. Not doing either would almost guarantee erosion of the company’s share position in the microprocessor market.” |
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Term
| 15. When should a business pursue a harvest market strategy, and how could that strategy affect short-run profit performance? |
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Definition
| “In a very mature market with below-average profits, a business would use a harvest price strategy to reduce volume. Whereas price increases usually result in lost market share and lower volumes, overall sales often decline only modestly. .. A harvest price strategy continues to raise prices slowly with expected decreases in volume until the business has exited the market.” |
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Term
| Why would Google use an offensive sales growth strategy to expand the Internet search engine market rather than attempting to increase its share of this market? |
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Definition
| Offensive strategic market plans are growth oriented and more appropriate for the growth stage of a product-market life cycle. Expanding their internet search engine market would be a more effective offensive strategy than increasing its share of this market because it would enable them to invest marketing resources to grow market demand. Expanding their internet search engine market would effectively produce sales growth. |
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Term
| Why would AT&T’s efforts to improve customer retention be considered an offensive strategy to improve margins? |
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Definition
Retaining customers is a less expensive measure than attracting new customers. As a result, AT&T does not have to experience higher marketing and sales expenses and lower marketing profits.
AT&T had an 89.2 percent customer retention rate for a recent year. The company had 65.7 million customers, so this means that AT&T lost 7.1 million customers that year. To hold its customer base at 65.7 million, AT&T had to acquire 7.1 million new customers. Not only is this effort 5 to 10 times more expensive with respect to marketing and sales expenses, but new customers often use less service, resulting in a lower average monthly margin per customer. If AT&T could improve its customer retention rate from 89.2 to 94.2 percent, the company would increase the lifetime value of its customers by 25 percent. For any business, retaining a higher percentage of customers and improving their loyalty is an offensive strategic investment that not only affects short-term profits but also greatly enhances long-run performance. |
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Term
| Microsoft has developed a product called Meeting Pro to help facilitate the running of small business meetings. Although this is a value-added software product, Microsoft offers it at no cost to Windows users. Explain why this is an offensive strategy to grow market share. |
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Definition
| An offensive strategy can grow revenue per customer by using price premiums. Businesses, like Microsoft, can enhance their products with value-added services. By offering Meeting Pro at no cost, it motivates interested customers who see the value of running business meetings more easily to try their brand. This type of promotion can lead to increased sales in its main products. |
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Term
| Why are offensive strategies for General Motors crucial for the long-run success of that company? What kind of offensive strategies could GM use to ensure future growth in sales and profits? |
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Definition
A business needs a strategic market plan that carefully maps out future growth and profit performance. Offensive strategies can improve competitive advantage and market share. Each strategic market plan can affect both its short- and long-run performance in market share, sales, and profit.
General Motors must choose its offensive strategies effectively because, in the past for example, it has tried to Enter Unrelated Markets and failed because it retreated from its core market. It acquired Data Information Services, which was too far removed from its marketing and business expertise, and was unsuccessful.
GM could take on an approach to Grow Revenue per Customer, instead for example. For businesses with well-known brand names, such as Kodak, Nike, Honda, IBM, and Disney, it is easy to introduce line extensions by leveraging the high awareness and positive image of the companies’ brand names. (I.e. When Honda entered the lawn mower market in the early 1990s, sales of its mowers were driven by the company’s name. Customers immediately perceived the mowers to be reliable, high-quality products.) |
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Term
| Microsoft has embarked on a joint venture with Sony to develop an online alternative to the telephone. What type of offensive marketing strategy best describes this joint venture, and what are the expected short and long-run performance objectives? |
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Definition
| Core Strategy III: Invest to enter new markets Strategic Objective: Diversify growth Invest to Grow Improve Position: Invest marketing resources to grow the market demand, market share, or customer revenue. |
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Term
| What forces limit new-customer growth within the existing market for personal computers? How could a company like Intel grow market demand by addressing these forces? |
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Definition
| Price and availability are large forces that can limit customer growth. Intel could design a new product for price sensitive customers, and make it available on a much wider scale to compete with current competitors. |
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Term
| What important considerations should Starbucks evaluate between a related new market entry strategy and an unrelated new market entry strategy? |
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Definition
At some point, every business will need to examine growth opportunities outside its existing markets. Any of three fundamental reasons could lead a business to enter a new market: (1) a limited number of attractive market opportunities within existing markets; (2) attractive opportunities, in terms of meeting the business’s overall performance objectives, outside existing markets; and (3) a desire to diversify sources of profitability to reduce variation in performance.
After determining which reason is leading Starbucks to enter into a new market Starbucks should consider a few ideas. If Starbucks is entering into a related new market, it should consider it’s competition, and what it must do to gain market share within the market. Often times the entry into established markets may be quite costly, as a result Starbucks may consider partnering with a similar organization as it makes the move into a new market.
If Starbucks chooses to enter an unrelated new market, there may be many challenges the company may face. If the new market is too far away from the company’s core competencies it may find difficulty in successfully navigating the completely different market. The company should carefully consider any decision it makes towards stepping outside of its core market. |
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Term
| When would a business like Dell pursue an unrelated new market entry strategy? |
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Definition
If the computer market was fairly unstable, or If Dell was finding that it had maximized it’s share potential it may find it useful to pursue an unrelated new market entry strategy. Some of the potential benefits of this strategy are as follows:
1. New Source of Growth: New market diversification offers the potential to add to the business’s sales growth and profit performance.
2. Smoother Performance: New market diversification offers product diversification, which can reduce the magnitude of swings in sales and profit performance.
3. Reduced Vulnerability: New market diversification reduces market dependence and vulnerability, which helps protect the business’s performance and, in some instances, its survival. |
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Term
| What is the advantage to Apple in growing market demand for a new emerging product-market such as the iPad? |
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Definition
| In it’s first year the Ipad generated sales of about $5 billion. When apple grows market demand for products such as the Ipad then it increases its market share potential, it sales revenue, and it’s profits. The Ipad is a product that grows the business for apple, it grows the amounts spent per customer, It grows the consumer base. It also creates room for additional market share potential for products to be created by apple. |
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Term
| What would Apple’s sales and margins have looked like in 2010 if it had the same product portfolio then as it had in 2000? |
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Definition
| ● If Apple had the same product portfolio in 2010 as it did in 2000, Apple’s sales and margins would be a lot less than it was in 2010. In 2000, Apple was a one product company with the Mac accounting for 83% of company sales with sales of about $8 billion. In 2005, Apple’s sales without the iPod would have been $9.4 billion. There was no growth for the Mac and sales fell in a growing market. If Apple were to continue with its 2000 portfolio, Apple’s margins would have remained close to its 2000-2005 margin around 27-29% and its sales would have stagnated around $10 billion. There is no way that Apple would have been able to increase its margin to 41% and its sales to $65.2, which were the amounts in 2010. This is because a tremendous part of Apple’s growth can be attributed to the offensive strategies it employed in releasing new product introductions such as the iPod and iPhone. |
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Term
| How does the Apple product life cycle portfolio add to the strategic insight into Apple’s current and future sales and profit performance? |
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Definition
● Apple’s product life cycle portfolio helped Apple understand where in its product life cycle, each one of its products are. By evaluating the life cycle stage that each product is in, Apple can create a strategic market plan that makes the best use of limited resources by mapping out future growth and profit performance. The life cycle stage of each product helps determine whether to use an offensive or defensive strategy.
● Offensive strategic plans are usually growth oriented and are used during the growth stage of a product-market life cycle, from the emerging market stage to before the late growth stage. In 2005, Apple utilized an offensive strategy for music, the iPod and Mac while they were in their growth stages. In 2010, an offensive strategy was used for the iPad, iPhone, and music. Thus, Apple was able to produce sales growth and improve share position and future profit performance.
● Defensive strategic market plans are usually used during the later stages of a product-market life cycle, between late growth and declining market. By employing a defensive strategy in 2010 for the iPod and Mac, Apple was able to protect its share positions and contribute to short-run sales revenues and profits. |
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Term
| How has Harley Davidson’s offensive strategy to grow revenue per customer affected its sales and profits? |
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Definition
● Harley Davidson’s offensive strategy to grow revenue per customer by selling retail clothing has increased its sales and profits. Harley Davidson introduces 1,200 new clothing items annually and because the clothes are an important aspect of communicating the brand (as it enhances brand awareness and brand equity), they decided to add fitting rooms to every dealership. This has increased sales and profits because incremental sales of related products have higher margins than motorcycle sales, and the build customer loyalty.
● As a business approaches 100% of its share development index, additional growth based on market share gains becomes increasingly difficult. The business can improve overall performance only by growing sales with existing customer to increase the amount of revenue per customer. Growing revenue per customer can also be done through product line extensions and price premiums. |
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Term
| How would a Nike offensive strategy to increase market penetration differ from a strategy to grow customer purchases (revenue per customer) in the under-18 female athlete market? |
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Definition
● A market penetration strategy should be pursued if a business has a short-run need for better profit performance rather than a long-run market development strategy.
● A strategy to grow customer purchases is an example of a long-run market development strategy. A business with a good cash position that is facing stagnant maturing markets might pursue this strategy. Although it is riskier, it can provide the business with needed growth and diversification into an attractive market.
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Term
| How would a Nike offensive strategy to increase market penetration differ from a strategy to grow customer purchases (revenue per customer) in the under-18 female athlete market? |
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Definition
● A market penetration strategy should be pursued if a business has a short-run need for better profit performance rather than a long-run market development strategy. Market penetration strategies can be carried out by increasing market share. For example, this strategy is ideal when the business has not reached a large percent of its share development index (which is market share index/ share potential index). For example, if a business has achieved only 40% of its share potential index, it would have a good opportunity to grow market share with a market penetration strategy. A business has to examine each area of performance (product awareness, product preference, purchase intentions, product availability, and purchase rate) with respected to its expected and actual performance.
● A strategy to grow customer purchases is an example of a long-run market development strategy. A business with a good cash position that is facing stagnant maturing markets might pursue this strategy. Although it is riskier, it can provide the business with needed growth and diversification into an attractive market.
● The selection of one offensive strategic market plan over another depends on the business’s short-run profit needs, strategic position and resources, and opportunities for growth. |
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