P1) Describe how marketing techniques are used to market products in two organisations.
Marketing is the process of meeting the necessities and wants of customers. Most businesses today are having rivalry towards generating the most profits as there are a lot of competitors in the business world. Marketing techniques are one of the ways that a business would do to increase its productivity and sales.
Starbucks and Nintendo are two different businesses and I will be evaluating about the marketing techniques that they do to attract more customers to increase their sales.
Starbucks is one of the largest coffeehouse in the world with more than 20,000 stores globally. Starbucks ...view middle of the document...
Relationship Marketing- Relationship marketing are the marketing activities that are targeted at developing and handling long-term relationships with a huge proportion of customers. Starbucks uses relationship marketing to build long-term relationships with customers. For example, Starbucks gives out free beverage to customers who have birthdays because their customer’s birthdate is recorded in their system and the customer is a member therefore the customer could expect free beverage every year. This makes Starbucks relationship towards successful because they value their customers.
Nintendo is a successful organisation in the field of gaming business industry and it was founded by Fusajiro Yamauchi and the name of the business used to be known as Nintendo Koppai until they adopted the name Nintendo. He started his business 23rd September 1889 in Kyoto, Japan with playing cards as their first product and the playing cards were handmade. Nintendo’s playing cards soon gain popularity and they had to hire assistants to keep in the demand of the customers.
Nintendo’s Marketing Strategies
Nintendo is a successful business over many years because of the marketing strategies that they did to keep up with the demand of their customers so that they will retain the trust of their customers. One of the marketing strategies of Nintendo is the growth strategies and it is divided into four different categories.
* Growth Strategies
Growth strategy is the strategy that most businesses use to expand their customers’ market for the products of the company which was developed by Ansoff in 1941. Ansoff’s growth matrix helps most businesses to plan their products their market growth strategy. It also proposes that business’ tries to increase on either a business needs to market new or present products in new or present markets. Growth strategies are strategies that seek growth in the business and it consist of:
1. Market Penetration: by marketing present products to the present market
2. Market Development: by developing new market for the present market
3. Product Development: by marketing new products for the present market.
4. Diversification: by marketing new products for new market
Ansoff’s Product/ Market Matrix
Ansoff’s Product/ Market Matrix
Diversification is the most risky growth strategy because the business is going to market new products that they have little or no knowledge. Nintendo started to market playing cards only but as their business consistently grows they started to market electronic games which were successful. As we can see, Nintendo started to make new products to generate more profit and that they assessed the risks they could face and the result was a high reward with the use of diversification.
* Product Development
Product development is very suitable for business who wants to remain competitive in the market by differentiating their products. For example, once...