Direct mail brochures, postcards, catalogues Websites, blogging, and social media which can be considered inbound or outbound Branded marketing newsletters, key chains, pens, even flash drives Who employs outbound marketing?
A typology of diversification strategies[ edit ] Trend in product variety for some models in the USA  The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm.
Generally, the final strategy involves a combination of these options.
This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.
There are three types of diversification: Concentric diversification[ edit ] This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage.
For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a Emerging marketing strategy product that helps the particular company to earn profit.
For instance, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd.
The company could seek new products that have technological or marketing synergies with existing product lines appealing to a new group of customers. This also helps the company to tap that part of the market which remains untapped, and which presents an opportunity to earn profits.
Horizontal diversification[ edit ] The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. This strategy tends to increase the firm's dependence on certain market segments.
For example, a company that was making notebooks earlier may also enter the pen market with its new product. When is horizontal diversification desirable?
Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity or instability. Another interpretation[ edit ] Horizontal integration occurs when a firm enters a new business either related or unrelated at the same stage of production as its current operations.
For example, Avon's move to market jewellery through its door-to-door sales force involved marketing new products through existing channels of distribution. An alternative form of that Avon has also undertaken is selling its products by mail order e.
In both cases, Avon is still at the retail stage of the production process. Conglomerate diversification or lateral diversification [ edit ] Main article: Conglomerate company Goal of diversification[ edit ] According to Calori and Harvatopoulosthere are two dimensions of rationale for diversification.
The first one relates to the nature of the strategic objective: Diversification may be defensive or offensive. Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth.
Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total expansion needs. The second dimension involves the expected outcomes of diversification: Management may expect great economic value growth, profitability or first and foremost great coherence with their current activities exploitation of know-how, more efficient use of available resources and capacities.Apr 16, · 3.
Decouple Strategy and Innovation. Unfortunately, in many organizations, strategy and innovation are often grouped together because they are both perceived as things that “smart people” do. That change in customer focus may warrant an entirely different marketing and merchandising strategy—one that Home Depot isn’t convinced it should deploy yet.
Emerging markets (EMs) constitute the major growth opportunity in the evolving world economic order. Their potential has already effected a shift in multinational corporations (MNCs), which now customarily highlight EM investments when .
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