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Describe the different types of product strategies and market entry strategies that companies pursue. Objectives help guide and motivate a company’s employees and give its managers reference points for evaluating the firm’s marketing actions.
A firm’s marketing objectives should be consistent with the company’s objectives at other levels, such as the corporate level and business level. Firms often use multiple strategies to accomplish their objectives and capitalize on marketing opportunities. A marketing planA document that is designed to communicate the marketing strategy for an offering.
The different types of product and market entry strategies a firm can pursue in order to meet their objectives. Market penetration strategiesSelling more of existing products and services to existing customers.
New markets can include any new groups of customers such as different age groups, new geographic areas, or international markets. Firms can also licenseSell the right to use some aspect of the production process, trademark, or patent to individuals in foreign markets., or sell the right to use some aspect of their production processes, trademarks, or patents to individuals or firms in foreign markets. The front of a KFC franchise in Asia may be much larger than KFC stores in the United States.
FranchisingGranting an independent operator the right to use your company’s business model, techniques, and trademarks for a fee. Contract manufacturingWhen companies hire manufacturers to produce their products in another country. Joint venturesAn entity that is created when two parties agree to share their profits, losses, and control with one another in an economic activity they jointly undertake. Diversification strategiesOffering products that are unrelated to other existing products produced by the organization. The strategic planning process includes a company’s mission (purpose), objectives (end results desired), and strategies (means). July 26, 2010 By Trend Hunter 5 Comments Anyone who is wanting to make money in the Stock Market today is going to need to learn some Stock Market Strategies.
Like Warren Buffett, you need do your due diligence before you invest your life savings, as doing your homework up front and learning some specialized knowledge, can really stack the odds in your favor. Whether you are trading Stocks or Options in the Stock Market, its important to be aware that there is an element of risk involved. Each of the Stock Market Strategies I mention below bring different Risk and Reward, and you need to ensure they fit your comfort levels or trading plan. Going Long on a Stock, is the strategy that most people are familiar with, and simply means that you are Buying a Stock with the view that the stock will rise in value & eventually sold at a higher price. If you are Bullish on a Stock you have purchased, but are concerned it may fall in value, then the Protective Put Strategy is for you. You can protect the value of the stock by purchasing a Put Option, in the event the Stock price falls.
This strategy is great for taking most of the risk out of any stock position as you enter, or maybe you want to carry some profits over to the next financial year, or you simply don’t want to worry about your position when away on holidays.
The writing Covered Calls Strategy, is like Renting out your Shares, and is a great income generation strategy.
This strategy is a neutral to mildly bullish strategy, which is one of the safer option strategies with a higher probability, but limited reward. If the price rises above the $70 at Option Expiration, you will be forced to sell the stock at $70 each($7000)  and you keep the $350, which is about 9% income for the month, not bad huh! If the price remains below $70 at option expiration, you get to keep the stock and the $350, and you can rinse and repeat the process next month. So there you have it, 3 cool Stock Market Strategies to help you towards your own stock market success. Understanding stock market strategies which limit your risk is a great way to protect your capital.
I’m just learning to trade options so understanding stock market strategies is an important topic for me. It is definatly important to have some good stratergies to stick to when you enter the stock market.
One of the hardest things to convince non traders of is that the risks involved in trading can be greatly reduced and in some cases almost eliminated by applying the correct stock market strategies. The marketing strategy should be designed in such a way that it increases sales so that your company has a competitive advantage which is sustainable in the long run. Diversification is a high risk strategy which involves diversifying the range of products and services that you offer.

This is the process of developing your current market and could include entering new markets with your products and services. Although many organizations publish their mission statements, most for-profit companies do not publish their objectives.
An example of a marketing objective for PepsiCo might be “to increase by 4 percent the market share of Gatorade by the end of the year.” The way firms analyze their different divisions or businesses will be discussed later in the chapter. For example, in addition to pursuing a low cost strategy (selling products inexpensively), Walmart has simultaneously pursued a strategy of opening new stores rapidly around the world.
The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success.
Many companies, including PepsiCo and Hyundai, have entered—and been successful in—rapidly emerging markets such as Russia, China, and India. Licensing is a popular strategy, but firms must figure out how to protect their interests if the licensee decides to open its own business and void the license agreement. Each and every stock can fall in value, just as easily as it can rise in value, and therefore you must be able to accept the risk of any position before you enter.
Stocks have a 1:1 leverage, so for every dollar the share price rises so does each of your shares eg. If the stock price falls, the put option will increases in value, which offsets the loss in the stock.
Typically you can receive 3-12% income per month, for writing & selling a Call Option against stock you already own. There are so many strategies to chose from these day but I believe the ones you mention are some of the best. Your marketing strategy is therefore a set of rules which direct what you do to promote and sell your products or services. It is high risk in that it is usually a high cost strategy which medium to large sized established companies use in order to continue to grow the business.
You could visualize it almost like a pyramid with your overall business aims and objectives at the bottom. Your marketing mix is very simple, it consists of your what product you are going to sell, what price you are going to sell it at and where you are going to sell it.
In addition to being accomplished within a certain time frame, objectives should be realistic (achievable) and be measurable, if possible.
Accomplishments at each level of the organization have helped PepsiCo meet its corporate objectives over the course of the past few years.
Successful strategies help organizations establish and maintain a competitive advantage that competitors cannot imitate easily. Many companies develop marketing strategies as part of their general, overall business plans.
Companies often offer consumers special promotions or low prices to increase their usage and encourage them to buy products. A new product can be a totally new innovation, an improved product, or a product with enhanced value, such as one with a new feature.
Exporting, licensing, franchising, joint ventures, and direct investment are methods that companies use to enter international markets. As Figure 2.12 "Product and Market Entry Strategies" shows, there are different ways, or strategies, by which firms can enter international markets. The French luggage and handbag maker Louis Vuitton faced this problem when it entered China. Franchisees pay a fee for the franchise and must adhere to certain standards; however, they benefit from the advertising and brand recognition the franchising company provides. The manufacturers are provided specifications for the products, which are then manufactured and sold on behalf of the company that contracted the manufacturing.
For example, In Bev, the Dutch maker of Beck’s beer, was able to capture market share in the United States by purchasing St. Firms that have little experience with different markets or different products often diversify their product lines by acquiring other companies.
By laying a solid foundation with a Stock Market Education and applying sound investment strategies you can increase your chances of success in the stock market. You can think of it like taking a Insurance policy, and as such is one of the safer strategies. Although your upside is limited you are guaranteed a premium each month (which can be sold before expiry if the market dips).
A good stock market education, a simple strategy and compounding over a few years, that’s a winning combination. This can be achieved by finding new customers or getting your current customers to buy more of your product, instead of your competitor’s product.

Once this is established, you can write a marketing plan, which is the detail of the specific marketing activities you are going to take action in order to achieve your business aims and objectives. PepsiCo’s business units (divisions) have increased the number of their facilities to grow their brands and enter new markets. PepsiCo attempts to sustain its competitive advantage by constantly developing new products and innovations, including “mega brands,” which are eighteen individual brands that generate over $1 billion in sales each. When Frito-Lay distributes money-saving coupons to customers or offers them discounts to buy multiple packages of snacks, the company is utilizing a penetration strategy. Cell phones that allow consumers to charge purchases with the phone or take pictures are examples of a product with enhanced value. Competitors started illegally putting the Louis Vuitton logo on different products, which cut into Louis Vuitton’s profits.
Contract manufacturing may provide tax incentives and may be more profitable than manufacturing the products in the home country. Some countries such as China often require companies to form a joint venture with a domestic firm in order to enter the market. Diversification can be profitable, but it can also be risky if a company does not have the expertise or resources it needs to successfully implement the strategy.
The different product market strategies firms pursue include market penetration, product development, market development, and diversification. Once you overcome the relatively small cost of the put option to begin with, this strategy has unlimited reward potential. You have probably set objectives for yourself that you want to achieve in a given time frame.
PepsiCo’s beverage and snack units have gained market share by developing healthier products and products that are more convenient to use.
We’ll look at marketing plans here and discuss them more completely in Chapter 16 "The Marketing Plan". The marketing plan also helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its objectives.
The Campbell Soup Company gets consumers to buy more soup by providing easy recipes using their soup as an ingredient for cooking quick meals.
A new product can also be one that comes in different variations, such as new flavors, colors, and sizes.
For example, during the recent economic downturn, manufacturers of high-end coffee makers began targeting customers who go to coffee shops.
Firms can simply exportSell products to buyers in foreign markets., or sell their products to buyers abroad, which is the least risky and least expensive method but also offers the least amount of control. Examples of products in which contract manufacturing is often used include cell phones, computers, and printers. After entering the market in a partnership with a domestic firm and becoming established in the market, some firms may decide to separate from their partner and become their own business. A direct investment strategy involves the most risk and investment but offers the most control. Warner Music Group’s purchase of the concert promoter Bulldog Entertainment is an example of a diversification attempt that failed. For example, your objectives might be to maintain a certain grade point average and get work experience or an internship before you graduate. The different components of marketing plans will be discussed throughout the book and then discussed together at the end of the book.
The manufacturers are hoping to develop the market for their products by making sure consumers know they can brew a great cup of coffee at home for a fraction of what they spend at Starbucks. Other companies such as advertising agencies may want to invest and develop their own businesses directly in international markets rather than trying to do so via other companies. Next, let’s take a look at the different types of basic market strategies firms pursue before they develop their marketing plans. For example, just after Starbucks announced it was cutting back on the number of its lunch offerings, Dunkin’ Donuts announced it was adding items to its lunch menu.
The venture combined the Japanese company Sony’s electronic expertise with the Swedish company Ericsson’s telecommunication expertise.

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