Techniques in marketing products Essay Example for Free

Techniques in marketing proceedss Essay1. Intro to company convergence or service elect for evaluation.The company I have chosen is Tesco PLC and service provided by them which is Tesco Mobiles established in May 2003. divine service mentioned above is a mobile virtual network operator. The type of the company is private and owned by Tesco Mobile Services Ltd in 45%, Tesco Mobile communication theory Ltd by a nonher 45% and O2 Communications Ltd by 10%. Products provided by the company atomic number 18 mobile telecommunications. some other important argue I would comparable to consider is that Tescos mobile services run on the O2 network in the united Kingdom. 2. Explanation of the marketing strategy employ to market the crop/service.Tesco Mobiles touch based its strategy on Ansoffs Matrix diagram attached below and the one used by them is market shrewdness. strategy used currently by Tesco Mobile Company is definitely less risky than it used to be at the beginning as the variegation which is less predictable, expect more work and more time. integrity of the reasons wherefore that is a market penetration is that they established the company in 2003 so currently they argon already 12 years in a business environment. Market penetration is primarily defined as an activity of growing the market share of a present product. Tesco Mobiles is perfect example for a market penetration as they are providing already animate product on the existent market. It used to be diversification for Tesco at the beginning because the concern is mainly recognized by groceries non electronic accessories but currently as it already exists for so long we discount define it as a market penetration. However Tesco Mobiles is currently using market penetration to measure the amount of adoption or sales of a service or product which is associated to the total theoretical market for that service or product.3. Explanation of TWO risks of the marketing strategy.So far mark et penetration strategy seems like risk-free way to keep the sale of the product and make profit on it. However this strategy does not work for all of the products provided by the company. Market penetration focuses on the low prices at the resembling point to increase market share and demand for a product. When demand for the product increase then concern can save money onproduction costs per unit by making a greater amount of the product. There are missed opportunities when the company provides good quality, luxury products when in a market same products with less quality are already provided as a cheap purchase. At the end of the day even when the company decrease the price of the luxury product and raise it feeling by step later on customer probably may go elsewhere when for them seems the same product is cheaper. Second point of the risky way of a market penetration I would like to consider is poor company image. When company focuses on the market penetration of one product it can hurt or decrease sale of the other products provided by them. If company which is providing high quality product will focus on a cheap sale in a market penetration then image and reputation of the luxury producer can without any doubt suffer.4. Analyse of quaternion advantages of the marketing strategy.There are absolutely more advantages than disadvantages found in a market penetration. first of all as the product will attempt to the already existing market as already existing product the result of this may be quick adoption and diffusion of the product in the market. Another point worthy to consider is discourage competitors. When for example Tesco provides existing product into existing market that Sainsburys got already it may interest the customers and bring them back to Tesco by the more attractive price or look of a product. Third advantage presented by the market penetration is high product turnover.In the situation when there is high product turnover in terms of fa st sales retailers are forced to order more from the suppliers which at the same time give more profit to the suppliers. To shut down advantages of the market penetration the last point in all likelihood to provide is raising profitability. Market penetration is mainly know and defined as the way of selling current services and product to already existing target market which makes it profitable and least risky through all of the Ansoffs Matrix strategies. 5. overcritical analysis of two other strategies that wont be useful for the product/service and why?Two other strategies that I would like to mention and use them as the ones I will not provide are diversification and product development. Diversification is a strategy which enter new pains or market and that isthe most risky strategy for the business. There are several disadvantages of diversification. As the diversification does not provide that much protection while investing money into something new people does not always f eel positive(p) to actually purchase the product before someone else will suggest it.However if the company will experience any loses while performing diversification during the market integrating then in result some business units might be subsidized. Another strategy that in my own opinion will not be useful is product development which brings new product to existing market. In case of this strategy company might experience and sometimes is very likely to have product failure. As the product is first-time mover in a new market and on the face of it people same like in case of diversification might not feel confident to purchase the product. However company must be concerned of target audience for their new product which has no experience in sale yet.