Home Management A Framework for Marketing Management
An important function of marketing is to drive sales and revenue growth. Marketing is especially adept at doing so for a new product with many competitive advantages and much potential. Good marketing can encourage trial and promote word of mouth and diffusion. Marketing in more mature markets can be more challenging.
Phil and Milton Kotler stress the following eight growth strategies.50 Companies can grow by (1) building market share, (2) developing committed customers and stakeholders, (3) building a powerful brand, (4) innovating new offerings and experiences, (5) expanding internationally, (6) arranging acquisitions, mergers, and alliances, (7) building an outstanding reputation for social responsibility, and (8) partnering with government and nongovernmental organizations.
Growing the Core
Some of the best opportunities come from growing the core—focusing on the most successful existing products and markets. Growing the core can be a less risky alternative than expansion into new product categories. It strengthens a brand’s credentials as a source of authority and credibility and can yield economies of scale. Through improved revenues and lower costs, growing the core can also lead to greater profits.
UK marketing guru David Taylor advocates three main strategies for growing the core, citing these examples:51
A focus on core businesses does not mean foregoing new market opportunities, especially if the core business is not expandable. However, marketers must avoid overestimating the upside of new ventures that stretch the company into uncharted territory. “Marketing Insight: Understanding Double Jeopardy” describes how market leaders can benefit from brand loyalty due to their size.
|< Prev||CONTENTS||Next >|