Academic literature on the topic 'Marketing diversification'

Marketing management of business activities in the context of international diversification involves the construction of an appropriate system of information gathering, study of foreign markets, planning, implementation and control of the marketing program, risk and profit assessment, effectiveness of marketing decisions, development of marketing strategy of the enterprise, which allows obtaining the maximum positive result with minimal marketing costs. In this study, further development of scientific and methodological approaches to determining the state of marketing management of the activities of agricultural enterprises of Ukraine under the conditions of international diversification, consisting in the identification of problematic issues arising in the course of international business diversification; quantitative and qualitative assessment and determination of the degree of diversification of the enterprise in different markets, as well as conducting market research of the most important business segments of consumers in foreign markets and selecting the optimal exit strategy of a diversified international markets.
 Keywords: marketing management, concept of marketing management, international diversification, effectiveness of marketing management, planning, organization and control of enterprise marketing management, evaluation of the degree of diversification of activities, diversified company

Purpose Extant literature indicates that increased product market diversification generates both positive and negative impact on firm performance. This inconclusive pattern hinders the decision-making of deploying a firm’s resources across different markets. This research aims to embed diversification into a moderation-based framework and demonstrates the conditions under which increased diversification produces either beneficial or harmful effects on firm outcomes. The authors introduce another market configuration dimension, viz., market emphasis, and reveal how changes in diversification and in emphasis yield interactive effects on an important firm performance indicator, idiosyncratic risk. An additional moderator, market turbulence, is also incorporated to further enrich the model in a three-way interaction. Results show that when market turbulence is high, and a firm highly skews its resources to some of its markets, diversifying into more market domains will increase firm idiosyncratic risk. A better choice during increased diversification is to evenly emphasize each of its markets. However, in a market displaying low turbulence, the high diversification-high emphasis pattern may be preferred because of lower firm risk. Design/methodology/approach To test the hypotheses, the authors collected a comprehensive archival data that contained a large group of public traded US-based manufacturing companies from three different resources. These were the Compustat Annual Database, the Center for Research in Security Prices database and Compustat Business Segment Database. These databases and the combinatorial approach are widely adopted in marketing and management research involving firm strategies and financial outcomes. Findings When market turbulence is high, simultaneously increasing market diversification and emphasis will more strongly raise firm idiosyncratic risk. However, polarizing into either diversification or emphasis reduces firm risk. When in a low turbulence market, expanding to more product markets and simultaneously emphasizing key markets will decrease idiosyncratic risk. One noticeable fact is that irrespective of whether a firm is in high or low turbulence conditions, choosing a diversification strategy always decreases firm risk when market emphasis is low. However, the impact of this effect however is higher when turbulence is greater. The authors also present the boundary conditions under which the three-way interaction holds. Research limitations/implications First, the extension to the utilization of idiosyncratic risk stretches the understanding of effective ways of reducing firm risks from an angle of marketing management. This view of firm risk also contributes to further analysis of shareholder value. Classic corporate asset valuation focuses more on the financial performance indicators as well as the firm’s strategic domains. This research thus provides a unique and meaningful guideline for the corporate valuation approach from the angle of analyzing the firm’s business segment scope and emphasis in the context of the environment. Practical implications The idea about how many product markets a firm should enter is always one of the primary decisions that contain significant trade-offs. This makes the managers choice difficult during the decision-making processes. The authors suggest that managers should not only consider the scope of product markets but also think carefully about the resources allocated toward each segment. A matrix with dimensions of diversification and emphasis can be explicitly studied during the strategy formulation. The individual blocks within this matrix may have significant outcome differences. Originality/value Previous research focuses on either a firm’s internal assets or external competitive situations when researchers seek the drivers of risk-reduction. This research extends this horizon by adding the interplay between a set of fundamental firm decision areas, diversification and emphasis and the external conditions facing a firm (turbulence).

Serbian honey producers are exposed to the increased international competition of recent years. To face up to the new changes, producers are progressively using diversification strategies, such as direct sales and production diversification. The direct sales strategy allows the producers to increase the product added value, while diversification aims to offer new products to the consumers. The aim of this paper is to analyse the honey marketing strategy of Serbian honey producers. The first part of the paper analyses the structure of production costs, production performances as well as the determinants of the honey supply. In the second part of the paper, analysis is focused on the determinants of direct sales. Finally, in the third part of the paper, diversification strategies are discussed. The data for this research has been obtained on the basis of a representative sample consisting of 84 Serbian honey producers interviewed in 2011 and 2012. The results show that the Serbian honey producers operate with more or less similar production costs and with production performances that do not differ significantly. They use direct marketing for two reasons: firstly, it affords personal contact with consumers, and secondly, they aim to decrease the transaction costs, thereby keeping a higher share of the product’s final value. Offering new products to consumers is an attempt to create additional product demand.

Farm marketing has been recognized as an important factor for a successful farm business. Due to the increasing interest of consumers in food safety, direct marketing of farm products to consumers in the local farmers’ markets has become very popular. Compared to traditional farm marketing channels, relatively little is known about the use of direct-to-consumer marketing strategies by farmers. This paper aims to provide a more comprehensive picture of farmers’ choices among available farm marketing channels using the case study of Taiwan. Using a population-based survey of 5600 family farms in Taiwan in 2014, in this study we quantify the extent to which demographic characteristics of farm operators, farm production and family conditions may influence the decision of farms to sell farm products to the government, wholesale markets, and in direct-to-consumer sales. We develop a trivariate probit model, and our results indicate that education level and engagement in the off-farm labour market of farm operators, the number of household members, farm size, land ownership, and the type of farm are the key factors in determining farmers’ choice of marketing channels. The findings of this study may have important implications for the design of more effective farm marketing programs by agricultural authorities.

Theoretical fundamentals of product portfolio diversification in the frames of recrea­tional tourism were disclosed. The main attractive properties of recreationaltourism resources were substantiated. The potential advantages and disadvantages of recreation tourism product diversification were investigated. The product portfolio diversification and marketing processes in recreation tourism wereanalyzed via the example of the clinical sanatorium "Kuialnik" and the resort association "Perlyna Chornomoria" located in Odesa region of Ukraine. Keywords: recreation tourism, resort, sanatorium, product portfolio, diversification.