Marketing decision-making (A level BS)

From WikiTextbook

The Marketing Model
The marketing model outlines the process of which marketing decisions can be taken on a scientific basis. This contains a number of stages.

1. Set Marketing objectives I.E Achieve 10% market share,
2. Research on the market
3. Analyse the market (SWOT analysis)
4. Decide a marketing strategy
5. Implement the strategy
6. Review (Market research) and change if needed.

By using the marketing model, an organisation can decide if it's a good idea or not, this therefore can give managers the best approach on how to achieve their objectives. On the other hand it can also save a lot of if managers believe the strategy will be unsuccessful. However, by analysing the market it will take time and a lot of money (Assuming the organisation uses primary research.

Managers may use hunches rather than scientific approach as it's much quicker and less time consuming

"Early bird catches the worm" however "Curiosity killed the cat" meaning that businesses that see an opportunity may benefit from it if they enter before any competitors, on the other hand, going into a market blindly are likely to lose money.

Ansoff's Matrix
A marketing strategy is a long term plan designed to achieve a firm's marking (and organisation) objectives. A successful marketing strategy will ensure the right goods are sold in the right market as well as strengtening a companies SWOT analysis of it's self.

Ansoff's Matrix considers possible marketing strategies.

http://upload.wikimedia.org/wikipedia/en/5/53/AnsoffMatrix.jpg

Marketing Penetration - Increasing sales in order to take advantage of a growing market. This can be done by reducing costs or more promotion.....Low Risk.
Product Development - Launching a existing product in a new market I.e Over seas.....Medium Risk.
Marketing Development - Launching a new product in an existing market I.e Ipod....Medium Risk.
Diversification - New product in a new market....I.e Tesco's Car Insurance....High Risk.

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