Edexcel Business A Level Revision

Ansoff Matrix - The Ansoff matrix is a famous strategic marketing planning tool that helps a business determine its product and market growth strategy. It suggests that a business's attempts to grow depends on whether it markets new or existing products in new or existing markets. MARKET PENETRATION A business might wish to pursue a strategy of market penetration targeting the same customer base in its current global markets.  To do this it will look at its EPG (Ethnocentric, Polycentric and Geocentric) marketing approach and decide where and how to invest. This will be dependent on the forecast return on investment from each market that it already operates in. It will look to see if it should continue its current approach e.g. ethnocentric or adapt it to meet the changing requirements of the marker e.g. to one of geocentricity.  MARKET DEVELOPMENT Global businesses will always be looking to pursue a strategy of new market development. As markets grow and disposable...

Global marketing strategy - A product strategy to increase sales through promotion and advertisements to the international market. It focuses on the 4Ps - Price, Place, Promotion and Product - on a range of foreign markets. Marketing strategy - A process to allow a bsuiness to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage. Glocalisation - is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets. The term is a mix of globalisation and localisation. MNCs such as Coca-cola and McDonald's use the same global marketing strategies in each market in which they operate, which has the advantage of economies of scale across global markets, called global brands. This would be a transnational corporation approach which is also used by Rolls-Royce cars, Chanel handbags and Tiffany jewellery, all luxury products. However, businesses increasingly have found t...

Tactical decision - A short-term response by a business to opportunities or threats. Strategic decision - A long-term plan of action to achieve business aims and objectives Strategic decisions on human resources may include long term plans to build up a workforce, for example hiring more staff to build cars on a production line. This scenario would impact on both the physical and financial resources of the business as it is likely it would have to invest in new machinery (physical) and train and house the new employees to ensure they were productive (financial). All this takes a great deal of planning and time, so cannot be easily reversed.

Business Objectives - is a goal set by a business, usually in the medium to long term. They can be set at any level of the business and can cover financial and non-financial issues important to the business's success Corporate objectives - Measurable, clearly defined targets for how to achieve business aims. Effective objectives should be SMART (specific, measurable, achievable, realistic and time specific) Mission statement - is a short term statement of the company's vision and values which helps to set aims and objectives. This enables employees, managers and customers and possible some suppliers to understand the conduct of the business. It is a statement of purpose, such as 'grow our market share in the UK'. Nike's mission statement is; "To bring inspiration and innovation to every world athlete". Aim - is a generalised statement of what the business plans to achieve in the longer term. A goal or purpose of the business for the future, to inspir...

Ansoff Matrix - The Ansoff is a famous strategic maketing planning tool that helps a business determine its product and market growth strategy. The matrix identifies four alternative growth strategies to product and market strategy based around whether a business chooses to focus on existing/new products and existing/new markets and the relationship between risk and reward. MARKET PENETRATION   This is a growth strategy where a business aims to sell EXISTING products to EXISTING markets. Key Points: Trying to sell more of an existing product/service to the same target audience LIMITED RISK = limited potential reward also. Getting existing customers to buy more Widen the range of existing products Gain market share from competitors through competitive pricing or advertising Changes to the marketing mix e.g. loyalty scheme to increase repeat customers Extension strategies Evaluating market penetration: Business focuses on markets and products it knows well Can...