Marketing Principles and implications for

Business

Prepared by: Ionela Alina Lungoci

For: Local Training Firm

Introduction
I have recently retired from a successful career in marketing. However, I have been offered a
consultancy contract based on my knowledge and experience by a local training firm. They
want me to prepare an informative report on marketing principles and implications for
business. The firm has given me specific guidance on what to concentrate on as the
information provided will act as input into a larger report. They would like the core layout of
the report to be put into four main sections.
The information from report come from references.
Contents:
Introduction
1. The concept of marketing and its function in business
1.1 Compare different definitions of marketing.

1.2 The importance of marketing and the cost implications for business
1.3 The main components of a business marketing strategy

2. The market research methods

2.1 The market research process
2.2 The relative merits of different market research methods and implications for business

3. The product life cycle and the relevance for businesses.

4. The concept of and importance of customer relationship management

4.1Customer relationship management (CRM)

4.2 Benefits of CRM

Conclusion

Appendices

References
1. The concept of marketing and its function in business

1.1 Compare different definitions of marketing.

For the definitions of marketing (see Appendix 1)
We have some similarities and differences in definitions of marketing defined above. About
similarities, all definitions point at the consumers’ needs which should be identified before
the product is produces. (Comparing alternative definitions of marketing, 2017)
The first definition it is talking about communication and satisfaction. The second one it
talks about communication and offerings. In third one defines about the right product,
place, price, and time. Because customers are satisfied if their needs are met at the right
place, right time, right price as well as continuous communication and offerings all are
related to each other. (Comparing alternative definitions of marketing, 2017)
Iven having similar points between each other, they also have differences which effect the
definition of marketing. The profit is the outcome of identifying, anticipating and satisfying
consumer needs it saying in first definition. Second and third definitions have not
mentioned anything about profit. In the second definition, the stakeholders are included but
first and third definitions have not mentioned them. About price which is missing in the first
and second definitions it has talked in third definition. (Comparing alternative definitions of
marketing, 2017)
Example of Marketing concept:
1.Market Segmentation
A marketing concept which divides the complete market set up into smaller subsets
comprising of consumers with a similar taste, demand and preference is called market
segmentation. A small unit within a large market comprising of like-minded individuals it is
called market segment. One market segment is distinct from the other segment. (Market
Segmentation - Meaning, Basis and Types of Segmentation, 2020)
For types of marketing segmentation (see Appendix 2)
2.Marketing Mix
A mixture of several ideas and plans followed by a marketing representative to promote a
particular product or brand is called marketing mix. Several concepts and ideas combined to
formulate final strategies helpful in making a brand popular amongst the masses form
marketing mix. Often the elements of marketing mix are called the four P’s of marketing.
(Marketing Mix - Meaning and its Elements, 2020)
For four P’s of marketing (see Appendix 2)
3.Target Marketing
Target Marketing refers to a concept in marketing which helps the marketers to divide the
market into small units forming of like-minded people. This segmentation it helps the
marketers to design specific strategies and techniques to promote a product amongst its
target market. A target market refers to a group of individuals who are inclined towards
related products and respond to similar marketing techniques and promotional schemes.
(Target Marketing - Meaning, Basis and its Need, 2020)
For basis of Target Marketing (see Appendix 2)

1.2 The importance of marketing and the cost implications for business
Evaluate importance of marketing
1.Getting Word Out
For a business to succeed, the product or service it supplies must be known to potential
buyers. In order to promote your product, service and company using marketing provides
your business with a chance of being discovered by prospective customers. (Eddine, 2015)
2.Higher Sales
Your chances are increasing when consumers will make a purchase once your product,
service or company gets on the radar screen of your prospects. Your sales will steadily
increase as the word spreads. Without employing marketing strategies, these sales may not
have ever happened; without sales, a company cannot succeed. (Eddine, 2015)
3.Company Reputation
To have success of a company often rests on a solid reputation. Marketing can build brand
name recognition or product recall with a company. (Eddine, 2015)
4.Healthy Competition
On marketing get the word out on pricing of products and services, with efforts, which not
only reaches the intended consumers, but also reaches other companies competing for the
consumers’ business. Importance of marketing is to advertise your product, by employing
marketing strategies, by marketing builds brand name recognition or product recall with a
company, healthy completion (other companies competing for the consumers’ business.)
(Eddine, 2015)
Considerations:
Iven if marketing is hugely important for a business to succeed, it can also be very
expensive. In its first year, a company might spend as much as half of its sales on marketing
programs. After the first year, a marketing budget can reach as much as 30 percent,
sometimes more, of the annual sales. A marketing program is a healthy mix of different
forms of marketing that gives your company the best chance. (Eddine, 2015)
For examples of cost implications of marketing (see Appendix 3)

1.3 The main components of a business marketing strategy

Marketing Strategy Process
A long-term approach to selling your products or services it is called marketing strategy. To
create a sustainable, successful business is the goal of a marketing strategy that connects
with customers and continues to grow. Marketing strategy process have 6 steps. (Duermyer,
2019)
For explanation of 6 steps in marketing strategy process (see Appendix 4)

2. The market research methods

2.1 The market research process

Marketing Research
The process involving researching your customers, competitors, industry, and market
environment it is called marketing research. You can research each of these separately and
combine the results to get an overall view of where your business fits in the market.
Classification of market research is secondary research and primary research.

For the components of Marketing research (see Appendix 5)

2.2 The relative merits of different market research methods and

implications for business
Market research methods
The various market research methods can be put in several categories. Most techniques fit
into one of six categories: 1. secondary research, 2. surveys, 3. focus groups, 4. interviews,
5. observation, or 6. experiments/field trials. (Guy and Pejak, 2020)
Classification of market research is primary and secondary research. The first of six market
research methods are secondary research. The other five are all different flavors of primary
research. (Guy and Pejak, 2020) (see appendix 6)

Primary Market Research Method – Surveys

Surveys are the most widely known and used method when it comes to market research.
Surveys come in a large variety of shapes and sizes, from that little “feedback card” on the
table at your favorite restaurant to those never-ending web surveys that make you want to
punch your computer. (Guy and Pejak, 2020)

Primary Market Research Method – Focus Groups

Focus groups involve getting a group of people together in a room (usually physically,
although technology is making virtual, or online focus groups more possible). These people
are chosen by demographic depending on the product or service in question. Participants
are always compensated in some way. A moderator will guide the discussion, with a goal of
getting participants to discuss the topic among themselves, bouncing thoughts off one
another in a natural group setting. Professional focus group rooms will have a one-way
mirror on one wall, with a team of observers on the other side. The company or group that
commissioned the study can sit-in on the meeting, along with members of the research
team who can take notes without disrupting the participants. (Guy and Pejak, 2020)
Primary Market Research Method – Interviews
Like focus groups, interviews are useful for exploratory research. Use this market research
method when you are interested in digging into a specific issue very deeply, searching for
customer problems, understanding psychological motivations, and underlying beliefs. (Guy
and Pejak, 2020)
For Summary of Market Research Methods (see Appendix 6)

3. The product life cycle and the relevance for businesses.

The product life cycle
The product life cycle is the process which the product goes through from when it
introduced into a market until it declines or is removed from market. The life cycle has four
stages - introduction, growth, maturity, and decline. (What Is the Product Life Cycle? Stages
and Examples, 2020)
For four stages of product life cycle (see Appendix 7)
Ansoff Matrix
Firms are using tools like Ansoff Matrix to analyse and plan their strategies for growth. The
matrix shows that four strategies can be used to help a firm grow and analyses the risk
associated with each strategy.
These are described in (see Appendix 7)
4. The concept of and importance of customer relationship
management
4.1 Customer relationship management (CRM)
CRM system is a tool which helps you manage your sales, customer service, business
development, recruiting, marketing or any other line of business. (What is CRM?, 2020)
For Components of Customer Relationship Management (see Appendix 4)

4.2 Benefits of CRM

Benefits of CRM for marketers

CRM is an integrational service which helps keep your mail clean, CRM also helps you
manage your loyalty programs. Using CRM data, you can reward constant customers for
repeated purchases at your business. (What is CRM?, 2020)
Benefits of CRM for customer service
CRM is a useful tool which keeps customers data base safe and recorded. CRM also takes
care of complains, refunds and customer suggestions' and helps manage this in a more
efficient way. Consider running a customer satisfaction survey to measure key goals that
CRM has eased. Bi-annual surveys can show where CRM is making improvements on
customer experience and where more focus can be achieved to generate more
improvements. (What is CRM?, 2020)

Benefits of CRM for sales

CRM will join your business helping marketing and sales to work together and supplying
cohesion for service and sales. CRM will supply data to measure the revenue per month by
salesperson. Managing the sales and accounts this will also mean time saved. If a system is
in place it can speed up sales. Sales data of what customers have bought previously and how
often can be used to focus sales and marketing teams to generate campaigns and create
more sales. (What is CRM?, 2020)

Conclusion
In this report above I have explained all 4 main section of “Marketing Principles and
implications for Business” requested by a local training firm, followed by appendices and
references.
Appendices

1. Definition of Marketing
Marketing is the process of showing consumer needs, producing the required products
trying to satisfy the consumers with the quality products at a reasonable price and profit.
(Friesner, 2020)
Marketing as an activity of producing products while communicating with the consumers
and supplying offerings which have excellent value for money to the consumers and the
society. (Friesner, 2020)
Marketing is considering customers' needs and wants and making a product that fills those
needs or/and wants and then pricing them. (Friesner, 2020)

2. Example of Marketing concept

Types of market segmentation:
Psychographic segmentation: Taken in consideration customers lifestyles, personalities, and
belief's in order to help your business cater your marketing techniques to your customers.
(Market Segmentation - Meaning, Basis and Types of Segmentation, 2020)
Behavioristic Segmentation: The loyalties of the customers towards a particular brand help
the marketers to classify them into smaller groups, each group making up of individuals
loyal towards a particular brand. (Market Segmentation - Meaning, Basis and Types of
Segmentation, 2020)
Geographic Segmentation: Geographic segmentation is considering your customers
geographical placements in order to then decide what to then market and distribute to
those areas. (Market Segmentation - Meaning, Basis and Types of Segmentation, 2020)
Demographic Segmentation: Demographic segmentation refers to classification of market
into demographic types. (age, gender, ethnicity) (Market Segmentation - Meaning, Basis and
Types of Segmentation, 2020)
Market segmentation
Geographic Demographic Psychographic Behavioral
Grouping customers Grouping customers Grouping customers Grouping customers
based on defined based on customer according to lifestyles based on actual
geographical personal attributes. customer behavior
boundaries. toward products and
services.
For example: For example: For example: For example:
-Region -Age -Lifestyle -Brand loyalty
-Country -Gender -Personality -Benefits sought
-Population -Nationality -Values -User status
-Climate -Ethnicity -Attitudes -Usage rates
-Occupation -Opinions -Occasion
-Income -Interests -Readiness to buy
-Social class
-Family size
-Religion
-Education
(Market Segmentation - Meaning, Basis and Types of Segmentation, 2020)
Four P’s of marketing:

Product: A product is a good or service that a business owner supports sale to his target
market. (Marketing Mix - Meaning and its Elements, 2020)
Product: quality, design, brand, and packaging.
Price: The price is the amount of money that customers must pay to purchase products or
avail of services. (Marketing Mix - Meaning and its Elements, 2020)
Price: retail price, payment plans, discounts, credit terms.
Place: The place is where your business is located. (Marketing Mix - Meaning and its
Elements, 2020)
Place: retail location, distribution, delivery, downloads.
Promotion: Promotion is how you communicate with your audience to spread your business
around. (Marketing Mix - Meaning and its Elements, 2020)
Promotion: advertising, public relation, personal selling, emails.
Marketing Mix
Product Price Place Promotion
Grouping customers Grouping customers Grouping customers Grouping customers
based on product based on price based on place based on promotion
For example: For example: For example: For example:
-Quality -Retail price -Retail location -Advertising
-Design -Payment plans -Distribution -Public relation
-Brand -Discounts -Delivery -Personal selling
-Packaging -Credit terms -Downloads -Emails

(Marketing Mix - Meaning and its Elements, 2020)

Basis of Target Marketing: (Target Marketing - Meaning, Basis and its Need, 2020)
 Age
 Gender
 Income
 Marital status
 Occupation

Target Marketing
Age Gender Income Marital Occupation
status
Grouping Grouping Grouping Grouping Grouping
customers customers customers based customers customers
based on age based on on income based on based on
gender marital status occupation
For example: For example: For example: For example: For example:
- Age group (0 - -Male - High income - Bachelors - Office goers
10 years) -Female Group - Married - College
- Age Group (10 -Mid Income couples students
- 20 years) Group
- Age group (20 -Low Income
years and Group
above)
(Target Marketing - Meaning, Basis and its Need, 2020)

3. Examples of cost implications of marketing

Examples of cost implications of marketing:
-Ongoing costs: website development, public relations, print and broadcast advertising,
design and printing for all print materials, trade shows and other dedicated events. (Eddine,
2015)
-Fixed costs: sales, marketing staff, salaries, material, advertising, promotional costs.
(Eddine, 2015)
-Variable costs: sales commission, bonuses. (Eddine, 2015)
-The impact on profits: positive marketing campaigns can boost sales and profit margins, but
also unsuccessful marketing strategies can increase overall costs and reduce profit
margins. (Eddine, 2015)

4. Marketing Strategy Process

(Pin on Marketing, 2020)

1.Understanding Customers
In order to understand customers, you must first decide what your promise to them is,
upkeeping that promise and listening to further requests is also a wonderful way to evolve
your knowledge of your audience. But great customer care involves getting to know your
customers so well that you can predict their needs and exceed their expectations. Your
database or customer relationship management system will help you understand their
needs and holds valuable information about your customers. Conducting surveys may help
you understand your customers wants and needs. You will also gain valuable insights.
(Understanding your customers, 2020)
2.Analyse Market
A market analysis is an assessment made of a market. It investigates the size of the market
both in volume and in value, the various customer segments and buying patterns, the
competition, and the economic environment in terms of barriers to entry and regulation.
We can do this by analyzing the target market, SWOT of competitors and your marketing
industry. (How to do a market analysis for a business plan, 2020)
The target market is the type of customers you target within the market. SWOT: Analyzing
the strengths, witnesses, opportunities and threats of your competitors and your business
market. (How to do a market analysis for a business plan, 2020)
Industry: Trends, threats, major players, growth rates, sales data. (How to do a market
analysis for a business plan, 2020)
3.Analyse Competition
A competitive analysis finds your competitors and evaluates their strategies to find
strengths and weaknesses compared to your brand. A competitive analysis often includes a
SWOT analysis which in turn helps marketing teams work out a plan on how to market said
product/s. (Competitive Analysis: Definition and Resources, 2020)
4.Define Marketing Mix
The marketing mix refers to the actions taken up by dictators of product/s in how to entice
the audience to buy said product/s. The 4Ps make up a typical marketing mix - Price,
Product, Promotion and Place. Several other Ps like Packaging, Positioning, People and even
Politics are nowadays in the marketing mix. (What is Marketing Mix? Definition of Marketing
Mix, Marketing Mix Meaning – The Economic Times, 2020)
5.Decide Market Position
Market Positioning refers to the ability to influence, consumer belief about a brand or
product compared to competitors. The goal of market positioning is to show the image or
identity of a brand or product so that consumers perceive it in a certain way. We do that by
using Unique Selling Proposition (USP). (Market Positioning - Creating an Effective
Positioning Strategy, 2020)
6.Marketing Budget
A marketing budget outlines the finances that will be supplied in to introduce the product to
the audience. Marketing budgets can include expenses such as paid advertising, sponsored
web content, innovative marketing staff, a registered blog domain, and marketing
automation software. (Conley, 2020)

5. Marketing Research Key

Primary and secondary research relate to the way you gather information.
Primary research
Primary research it is called field research because gathers original information directly for
your purpose, rather than being gathered from published sources. Primary research includes
surveys, direct observation, interviews and focus groups that are developed and conducted
by you or your researcher. (Market research methods | Business Queensland, 2021)
This form of research gives you control over the type of questions you ask and information
you gather. Results can be extremely valuable; they can also be much more time-consuming
and costly to gather than secondary research. (Market research methods | Business
Queensland, 2021)
You can choose to use primary research methods after you have conducted secondary
research to find what information already exists. (Market research methods | Business
Queensland, 2021)
Secondary research
Secondary research it is called desk research gathers existing information through available
sources. Secondary research includes information on the internet, existing market research
results, existing data from your own stock lists and customer database, information from
agencies such as industry bodies, government agencies, libraries, and local councils. (Market
research methods | Business Queensland, 2021)
This form of research allows you to make the most of existing information about your
market. (Market research methods | Business Queensland, 2021)
You can use secondary research to get a first understanding of your market. It is often faster
to analyze than primary data because, in many cases, someone else may have already
started analyzing it. When using secondary research be careful how you interpret it, as it
may have been collected for a different purpose or from a market segment that is not
relevant to your business. Also make sure that any secondary information is not out-of-date,
as the market can change quickly, and this will affect your results. (Market research
methods | Business Queensland, 2021)
Quantitative and qualitative research defines the type of information you gather. (Market
research methods | Business Queensland, 2021)
Quantitative research
This form of research gathers numerical data. Quantitative research includes surveys
on customer return frequency, sales figures, industry product sales numbers, online or
phone questionnaires, financial trends. (Market research methods | Business Queensland,
2021)
You can use this approach to find the size of your market and how much it might be worth
to your business, and to find areas for sales growth. This research can also help you
understand the demographics of customers, such as their age and gender. (Market research
methods | Business Queensland, 2021)
Quantitative research often produces a lot of statistics. These are useful as an overview of
your market, but make sure you do not rely solely on statistics in your research. Consider all
the information you have. (Market research methods | Business Queensland, 2021)
Qualitative research
This form of research gathers views and attitudes. Qualitative research includes focus
groups with customers and potential customers to understand their feelings and attitudes
towards your products and services, formal and informal conversations with customers
about their satisfaction with your business, visits, and reviews of competitors to understand
their products and customer service practices. (Market research methods | Business
Queensland, 2021)
You can use this approach to get a better understanding of your customers' interests, needs
and habits, and find opportunities for growing sales and improving customer service.
Analyzing qualitative data requires a different approach and can take longer to interpret
than quantitative data because of the nature of the information. (Market research methods
| Business Queensland, 2021)

6. Market Research Methods

(Guy and Pejak, 2020)

Summary of Market Research Methods

Methodology Qualitative or Typical Cost Typical Time Comments

Quantitative
Surveys Quantitative A large variety of Medium Verry good for
costs that include measuring attitudes
participant for a large
incentives, survey population and for
design and survey answering specific
administration. question.
Focus Groups Qualitative Medium costs, Medium Good for exploratory
include focus research.
group moderation
and participant
incentives
Interviews Qualitative Like focus groups, Short - Medium Good for exploratory
but can be much research, with deep
cheaper depending dives into specific
on the audience topics.
and of interviews
(Guy and Pejak, 2020)
7. The product life cycle and the relevance for businesses .

Four stages of product life cycle

(Claessens, 2017)

1.Introduction
After product has been developed, the first stage is its introduction stage. Product being
released into the market it is the first stage. When a new product is released, it is often a
high-stakes time in the product's life cycle, although it does not necessarily make or break
the product's eventual success. During this stage, marketing and promotion are at a high,
and the company often invests the most in promoting the product and getting it into the
hands of consumers. (What Is the Product Life Cycle? Stages and Examples, 2020)
The company is first to get a sense of how consumers respond to the product if they like it
and how successful it may be. However, it is also often a heavy-spending period for the
company with no guarantee that the product will pay for itself through sales. Costs are
remarkably high and there is typically little competition. The principal goals of the
introduction stage are to build demand for the product and get it into the hands of
consumers, hoping to later cash in on its growing popularity. (What Is the Product Life
Cycle? Stages and Examples, 2020)
2.Growth
Consumers are already taking to the product and increasingly buying it at this stage. The
product concept is proven and is becoming popular and sales are increasing. (What Is the
Product Life Cycle? Stages and Examples, 2020)
When other companies become aware of the product and its space in the market, which is
beginning to draw attention and increasingly pull in revenue. If competition for the product
is remarkably high, the company may still heavily invest in advertising and promotion of the
product to beat out competitors. When product is growing, the market tends to expand.
The product in the growth stage is typically tweaked to improve functions and features.
(What Is the Product Life Cycle? Stages and Examples, 2020)
More competition often drives prices down to make the products competitive, while the
market expands. Sales are usually increasing in volume and generating revenue. Marketing
in this stage is aimed at increasing the product's market share. (What Is the Product Life
Cycle? Stages and Examples, 2020)

3.Maturity
The sales tend to slow or even stop signalling a saturated market when a product reaches
maturity. Sales can even start to drop, at this point. Pricing at this stage can tend to get
competitive, signalling margin shrinking as prices begin falling due to the weight of outside
pressures like competition or lower demand. Marketing is used to target fending off
competition, and companies will often develop new or altered products to reach different
market segments. (What Is the Product Life Cycle? Stages and Examples, 2020)
Saturation is reached and sales volume is maxed out, at this stage. Companies often begin
innovating to support or increase their market share, changing or developing their product
to meet with new demographics or developing technologies. (What Is the Product Life
Cycle? Stages and Examples, 2020)
4.Decline
Although companies will try to keep the product alive in the maturity stage if possible,
decline for every product is inevitable. Product sales drop significantly and consumer
behaviour changes as there is less demand for the product, in this stage. The company's
product loses increased market share, and competition tends to cause sales to deteriorate.
(What Is the Product Life Cycle? Stages and Examples, 2020)
Marketing is often minimal or targeted at already loyal customers, and prices are reduced at
this stage. Eventually, the product will be retired out of the market, unless it is able to
redesign itself to remain relevant or in-demand. (What Is the Product Life Cycle? Stages and
Examples, 2020)
Ansoff Matrix

(Ansoff Matrix - Overview, Strategies and Practical Examples, 2020)

The four strategies of the Ansoff Matrix are:

Market Penetration: Increasing sales of existing products to an existing market. (Ansoff

Matrix - Overview, Strategies and Practical Examples, 2020)

Product Development: Introducing new products to an existing market. (Ansoff Matrix -

Overview, Strategies and Practical Examples, 2020)

Market Development: Entering a new market using existing products. (Ansoff Matrix -
Overview, Strategies and Practical Examples, 2020)

Diversification: Entering a new market with the introduction of new products. (Ansoff
Matrix - Overview, Strategies and Practical Examples, 2020)
1.Market Penetration

The firm uses its products in the existing market, in this strategy. A firm is aiming to increase
its market share with a market penetration strategy. (Ansoff Matrix - Overview, Strategies
and Practical Examples, 2020)

The market penetration strategy can be executed in several ways:

1. Decreasing prices to attract new customers.

2. Increasing promotion and distribution efforts
5. Getting a competitor in the same marketplace
(Ansoff Matrix - Overview, Strategies and Practical Examples, 2020)

For example, telecommunication companies all cater to the same market and employ a
market penetration strategy by offering introductory prices and increasing them,
promotion, and distribution efforts. (Ansoff Matrix - Overview, Strategies and Practical
Examples, 2020)

2.Product Development
The firm develops a new product to cater to the existing market, in this strategy. The move
typically involves extensive research and development, expansion of the company’s product
range. The product development strategy is employed when firms have a strong
understanding of their current market and can supply innovative solutions to meet the
needs of the existing market. (Ansoff Matrix - Overview, Strategies and Practical Examples,
2020)
This strategy, too, may be implemented in several ways:
1. To develop new products to cater to the existing market, is to Invest in R&D.
2. Getting a competitor’s product and merging resources to create a new product that
better meets the need of the existing market.
3. To gain access to each partner’s distribution channels or brand, is to form strategic
partnerships with other firms.
(Ansoff Matrix - Overview, Strategies and Practical Examples, 2020)
For example:
Automotive companies are creating electric cars to meet the changing needs of their
existing market. Current market consumers in the automobile market are becoming more
environmentally conscious. (Ansoff Matrix - Overview, Strategies and Practical Examples,
2020)
3.Market Development
The firm enters in a new market with its existing product/s, in this strategy. In this context,
expanding into new markets may mean expanding into new geographic regions, customer
segments, etc. The market development strategy is most successful if (1) the firm owns
proprietary technology that it can use into new markets, (2) potential consumers in the new
market are profitable (i.e., they own disposable income), and (3) consumer behavior in the
new markets does not stray too far from that of consumers in the existing markets. (Ansoff
Matrix - Overview, Strategies and Practical Examples, 2020)
One of the following approaches may involve the market development strategy:
1. Catering to a different customer segment
2. Entering a new domestic market (expanding regionally)
3. Entering a foreign market (expanding internationally)
(Ansoff Matrix - Overview, Strategies and Practical Examples, 2020)
For example:
Sporting goods companies such as Nike and Adidas recently entered the Chinese market for
expansion. The two firms are offering the same products to a new demographic. (Ansoff
Matrix - Overview, Strategies and Practical Examples, 2020)
4.Diversification
The firm enters in a new market with a new product, in this strategy. Although such a
strategy is the riskiest, as both market and product development are needed, the risk can be
mitigated through related diversification. Can offer the greatest potential for increased
revenues, as it opens an entirely new revenue stream for the company. (Ansoff Matrix -
Overview, Strategies and Practical Examples, 2020)
Are two types of diversification a firm can employ:
1. Related diversification: Between the existing business and the new product/market,
are potential synergies to be realized. (Ansoff Matrix - Overview, Strategies and
Practical Examples, 2020)
For example:
A leather shoe producer that starts a line of leather wallets or accessories is pursuing a
related diversification strategy. (Ansoff Matrix - Overview, Strategies and Practical Examples,
2020)
2. Unrelated diversification: Between the existing business and the new
product/market, are no potential synergies to be realized. (Ansoff Matrix - Overview,
Strategies and Practical Examples, 2020)
For example:
A leather shoe producer that starts manufacturing phones is pursuing an unrelated
diversification strategy. (Ansoff Matrix - Overview, Strategies and Practical Examples, 2020)

8. Components of Customer Relationship Management

Salesforce Automation is one such part that is undertaken by the maximum business
organizations. This includes forecasting, recording sales processing and keeping a track of
the potential interactions. (Taylor, 2020)
Human Resource Management the correct and effective use of human resource and skills at
the specific moment and situation. This requires to be made sure that the skills and
intellectual levels of the professionals match the tasks undertaken by them according to
their job profiles. (Taylor, 2020)
Lead Management is keeping the track of the sales leads and their distribution. It involves
an efficient management of the campaigns, designing customized forms, completing the
mailing lists and several other elements. (Taylor, 2020)
Customer Service emphasizes on collecting customer information and data, their purchase
information and patterns as well as involves supplying the collected information to the
necessary and concerned departments. (Taylor, 2020)

Marketing is one of the most significant components of CRM and it refers to the
promotional activities that are adopted by a company in order to promote their products.
(Taylor, 2020)

Workflow Automation is several processes run simultaneously when it comes to the

management and this requires an efficient cost cutting as well as the streamlining of all the
processes. (Taylor, 2020)
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