Unit 3 P1

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P1 –Describe how maketing techniques are used to market products in two organisations The ansoff matrix is a planning tool for business which want to find out which product to sell and how why risk might be selling it. The ansoff matrix can suggest a business whether it is going to grow by selling a new product or operating in a new market or by selling existing products or in an existing market. Market Penetration Market Penetration is a growth strategy which describes a business to sell existing product in an existing market. The advantage of this strategy is that the business sells products they already know. Therefore, the risk of failing is minor as for existing products the business already knows about the competition and the needs…show more content…
By that the same groceries, which have been sold for decades, are perpetually being sold. Product Development With the Product Development strategy the business plans to sell a new product in an existing market. For new products the business needs investment but as the product is in the same market, the business is familiar with the products. Companies do this to gain the leading position in the market. In case of Thorpe Park, which already had many rides previously, The Sworm was built. The Sworm is the first winged rollercoaster in Thorpe Park. However, the ride still appeals the same target group; therefore it is a new, never before existing product in the same market. In the supermarket Sainsbury’s, Product Development can be seen often as it covers a wide range of markets. For instance in the mobile phones sector of the business. Over the years the development of technology has been proceeding exponentially. Therefore, new and more products enter the market with improved specifications. Sainsbury’s offers a wide range of recent mobile phones which are frequently exchanged with more recent…show more content…
Different businesses Thorpe Park is using outsourcing which saves money on staff, stock and maintenance as other businesses now operating there need to concern with that. In addition, other companies operating need to pay 50% of the profits to Thorpe Park Another way to save costs and by that a survival strategy is to close rarely used rides on days where are few visitors. Sainsbury’s buy their stock in large amounts to pay less for each as they can demand offers from the seller. This has the benefit that the prices for the customers are low, as well. Both businesses use the strategy of recruitment freezes to save costs. If a business has financial struggles or it just want’s to keep the highest costing component – the wages of the employees - of a business low, it can stop recruiting staff as with time current staff leave. This process is called natural wastage. But the businesses won’t response on left employees with recruiting staff, but with freezing the recruitment. By with fewer staff that is employed the business will get more profit. This can be applied to both businesses, Sainsbury’s and Thorpe

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