Transcript File

CTH 15/05
Related Diversification
• A process that takes place when a business
expands its activities into product lines that
are similar to those it currently offers.
• For example, a manufacturer of computers
might begin making calculators as a form of
related diversification of its existing business.
• a shoe producer starts a line of purses and
other leather accessories
Unrelated diversification
• Diversifying into a completely different industry
from a firms current operations.
• Unrelated Diversification is a form of
diversification when the business adds new or
unrelated product lines and penetrates new
markets.
• An example of unrelated diversification in a
business could be a toy manufacturer that is also
manufacturing industrial wiring for the
construction industry.
Growth Strategies – 1) Joint Ventures
• Joint Venture occurs when 2 or more companies
for a temporary partnership for take advantage
of on some opportunity.
• Examples – domestic organization forms a joint
venture with a foreign company.
• 2 firms complement each other well
• When projects are very profitable but requires a
lot of risk/ resources.
• When 2 smaller firms have trouble competing
with larger firms.
Famous Joint Ventures
Chery Jaguar Land Rover Automotive Company
The British luxury car manufacturers entered into a joint
venture with the Chinese company Chery Automobiles.
The joint venture company is known as Chery Jaguar Land
Rover Automotive Company. The investment will include
a new plant in Changshu near Shanghai. It will start
operating in 2014. Cars shall be modeled while keeping in
view the needs of Chinese consumers. In a joint
statement, the chiefs of JRL and Chery proclaimed,
“We will now begin working in close collaboration on
our partnership plans to harness the capabilities of our
respective companies to produce relevant, advanced
models for Chinese consumers.
• Sony-Ericsson is a joint venture between Sony
and the Swedish company Ericsson. Ericsson is
the Swedish manufacturing company of the
telecommunications equipment while Sony is
a mobile phone manufacturing company
Growth Strategies 2)
Acquisitions/Mergers
• A merger occurs when two organizations of
about equal sizes unite to form one
enterprise.
Growth Strategies 2)
Acquisitions/Mergers
• Acquisitions occurs when a larger company
purchases a small firm
Marketing communication
• Marketing communication can be described as
all the messages and media you deploy to
communicate with the market.
• The promotional elements of the marketing
mix which involves the communications
between an organization and its target
market.
• Core importance – Inform – Persuade – Image
Creation and Reinforcement.
Aim of Marketing Communication
• To develop brand values by using advertising
to set up feelings about the product/service,
to create vision and improve beliefs and
perceptions.
• To make customer behave in a beneficial way
in order to make them buy the
product/service
Marketing Communication Strategies
• A pull strategy involves motivating customers to
seek out your brand in an active process.
• 'Pull strategy' refers to the customer actively
seeking out your product and retailers placing
orders for stock due to direct consumer demand.
• Examples:
• Advertising and mass media promotion
• Word of mouth referrals
• Customer relationship management
• Sales promotions and discounts
Marketing Communication Strategies
• A push promotional strategy involves taking the product
directly to the customer via whatever means, ensuring the
customer is aware of your brand at the point of purchase.
• "Taking the product to the customer"
• Examples of push tactics
• Trade show promotions to encourage retailer demand
• Direct selling to customers in showrooms or face to face
• Negotiation with retailers to stock your product
• Efficient supply chain allowing retailers an efficient supply
• Packaging design to encourage purchase
• Point of sale displays
Communication Mix
Integrated Marketing Communication