Assignment 1: Marketing Techniques
Growth strategies are ways of using specific tactics to get ahead of the competition and to grow. There are several different strategies with growth, market penetration, market development, product development and diversification.
Market penetration is something that most business does, it’s where the business increases its market share of a product they do this by advertising or lowering prices.
Market development is where the market is being expanded for a new product or service. You can do this by adding new parts to the market or the business goes and finds a group of customers who are going to be buying the existing products.
Product development is the creation of new products for the business or modifying old products to meet the customer’s wants and needs.
Diversification is where a business goes into more than one type of business sector, for example virgin is in many different sectors from virgin airways to virgin mobile.
Tesco have used several different marketing techniques which have helped them become a successful brand. Growth strategies include having their own brand of products ranging from clothing to everyday groceries, this has help them increase the amount of products they own and develop their growing business. People will become more confident with the brand if Tesco have a good image with the public.
Tesco have to penetrate the global market of supermarkets and make sure they are keeping up with the increasing market share. They have to make sure that they are always one step ahead of their key rivals as Tesco want to be the one that the public will choose over Asda and Morrisons. To penetrate their market Tesco are constantly trying to have the best price for their products and to inform the customer of this Tesco have created an advert which compares them to the other leading supermarkets and shows how much cheaper they are this week than Asda or Morrisons is selling at. Penetration is a low...