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This is where the company markets their existing products to their existing customers. This could be done by promoting the product or reducing prices to increase sales. However, the product is not altered and they do not seek any new customers.
Market Development
The company markets their existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Southern Shoe Company can achieve their first objective, which is to achieve a 10% increase in sales in one year by using the market development option.
Product Development
This is where a new product is marketed to existing customers in the hope that the company will gain more custom and market share. Southern Shoe Company can use this option if they want to gain 25% of the market for woman's wide fitted plastic shoes by September 2004. They could develop new products offerings to replace existing ones. These products can then be marketed to their existing customers. …show more content…
However the sales of these branded products were declining. To increases brand awareness Southern Shoe Company need to make sure that their customers know about their brands. In order to achieve this Southern Shoe Company will need to look at their marketing mix.
Marketing Mix - 4p's
Kotler, (1996) p96 defines marketing mix as "the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market".
The marketing mix principles (also known as the 4 p's.) are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is apart of the organisations planning process and consists of analysing the defined:
· Product strategies.
· Price strategies.
· Place strategies.
· Promotion strategies.
Because Southern Shoe Company is poorly positioned in the market, they have an ineffective marketing mix and a very poor image. Their product, promotion, price, and place focuses are not properly aligned with those of the
Market Development
The company markets their existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Southern Shoe Company can achieve their first objective, which is to achieve a 10% increase in sales in one year by using the market development option.
Product Development
This is where a new product is marketed to existing customers in the hope that the company will gain more custom and market share. Southern Shoe Company can use this option if they want to gain 25% of the market for woman's wide fitted plastic shoes by September 2004. They could develop new products offerings to replace existing ones. These products can then be marketed to their existing customers. …show more content…
However the sales of these branded products were declining. To increases brand awareness Southern Shoe Company need to make sure that their customers know about their brands. In order to achieve this Southern Shoe Company will need to look at their marketing mix.
Marketing Mix - 4p's
Kotler, (1996) p96 defines marketing mix as "the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market".
The marketing mix principles (also known as the 4 p's.) are used by business as tools to assist them in pursuing their objectives. The marketing mix principles are controllable variables, which have to be carefully managed and must meet the needs of the defined target group. The marketing mix is apart of the organisations planning process and consists of analysing the defined:
· Product strategies.
· Price strategies.
· Place strategies.
· Promotion strategies.
Because Southern Shoe Company is poorly positioned in the market, they have an ineffective marketing mix and a very poor image. Their product, promotion, price, and place focuses are not properly aligned with those of the