Principles of Marketing Epiphany

Marketing has the main responsibility for achieving profitable growth for the company. Marketing needs to identify, evaluate marketing opportunities and lay down strategies for capturing them. One useful device for identifying growth opportunities is the product/market expansion grid. This essay will examine this theory and apply it to Crocs, Inc. that markets those rubbery clogs with Swiss-cheese holes.

First, Crocs might consider whether the company can achieve deeper market penetration---making more sales without changing its original product. For example, Crocs now offers a rainbow of colors and styles to match any personality or outfit. The company keeps prices of many of its models low, and it is broadening distribution channels to include everything from shoe and department stores to sporting goods stores…, etc.

Second, Crocs management might consider possibilities for marketing development --- identifying and developing new markets for its current products. For instance, managers could review new demographic markets. Perhaps new groups--- such as senior consumers--- could be encouraged to try Crocs shoes, based on their comfort.

Third, management could consider product development--- offering modified or new products to current markets. For example, over the past five years, the Crocs footwear line has grown to more than 30 rubbery styles, including boots and all-terrain shoes. The company has also forged licensing agreements with organizations such as professional sports leagues, cable TV channels and various universities to create sports and entertainment Crocs shoes.

Fourth, Crocs might consider diversification---starting up or buying businesses outside of its current products and markets. For example, Crocs purchased Jibbitz which makes accessories that can be snapped into existing air holes in Crocs shoes.

Companies must not only develop strategies for growing their business portfolios, but also strategies for downsizing them. There are many reasons that a firm might want to abandon products or markets. The market environment might change, making some of the company’s products or markets less profitable.

In conclusion, evaluating current businesses, designing the business portfolio involves finding businesses and products the company should consider in the future. Companies need growth when they compete more effectively and attract top talent. The company’s objective must be to manage profitable growth.