What is the meaning of Strategies of market? Concept, Definition of Strategies of market
Concepts and meanings of strategies of market
Meaning of strategies of market
Marketing strategies, also known as marketing strategies, marketing strategies or business strategies, consist of actions that are carried out to achieve a particular goal related to marketing.Examples of marketing objectives can be: capture a greater number of customers, drive sales, giving to know new products, achieve greater coverage or exposure of products, etc.
The design of marketing strategies is one of the marketing functions. To design strategies, firstly we must analyze our target audience so then, based on this analysis, we can design strategies that can meet their needs or desires, or take advantage of their characteristics or habits.
But when designing marketing strategies, we must also take into account the competition (for example, designing strategies that take advantage of their weaknesses, or which are based on strategies that are giving them good results), and other factors such as our capability and our investment.
For a better management of marketing strategies, these are usually divided or classified into strategies to 4 aspects or elements of a business: strategies for product, price strategies, strategies for the square (or distribution), and strategies for promotion (or communication). Set of elements known as the 4 Ps or mixture (or mix) marketing (or marketing).
Below some examples of marketing strategies that can be applied to each element that makes up the marketing mix:
Strategies for product
The product is the product or service that we offer or sell to consumers. Some strategies we can design related to the product are:• include new features to the product, for example, give you new improvements, new utilities, new functions, new uses.
• include new attributes to the product, for example, give a new design, new packaging, new colors, new logo.
• launch a new product line, for example, if our product are jeans for ladies, we can opt to launch a line of shoes for ladies.
• expand our product line, for example, increase the menu of our restaurant, or take a new type of shampoo for another type of hair.
• launch a new brand (without removing the market which we already have), for example, a new brand dedicated to another type of market, for example, one of greater purchasing power.
• include new additional services that provide a greater enjoyment of the product to the customer, for example, include home delivery, installation, new guarantees, new payment facilities, service one more advice on the purchase.
Strategies for price
The price is the dollar value that we attach to our products at the time of offering them to consumers. Some strategies we can design related to the price are:• to launch a new product with a price low, so that, in that way, we can achieve rapid penetration, a quick response, or we can do it quickly known.
• to launch a new product with a high price, so, in that way, we can leverage purchases made as a novelty product.
• to launch a new product with a high price, so, in that way, we can create a feeling of quality.
• reduce the price of a product, so that in that way, we can attract a larger clientele.
• reduce prices below the competition, so that, in that way, we can block it and win market.
Strategies for the plaza or distribution
The plaza or distribution consists of the selection of the places or points of sale where it will offer or sell our products to consumers, as well as determine the way in which products will be transferred to such places or points of sale. Some strategies that can be applied related to square or distribution are:• to offer our products via the Internet, phone calls, sending emails, seen at home.
• make use of intermediaries and, thereby, achieve greater coverage of our products or increase our points of sale.
• Locate our products at all points of sale have or might have (intensive distribution strategy).
• Locate our products only in the points of sale which are suitable for the type of product we sell (selective distribution strategy).
• Locate our products only on a point of sale that is exclusive (exclusive distribution strategy).
Strategies for the promotion or communication
The promotion is to communicate, inform, give to know or do to remember the existence of a product to consumers, as well as persuade, stimulate, motivate, or inducing its purchase, purchase, consumption or use. Some strategies that can be applied related to the promotion are:• create new offerings such as the 2 x 1, or possible to purchase a second product at half price for the purchase of the first.
• offer coupons or discount vouchers.
• give gifts on the purchase of certain products.
• offer quantity discounts or discounts by seasons.
• organize sweepstakes or contests among our customers.
• publish notices in newspapers, magazines or the Internet.
• creating traditional or electronic newsletters.
• participate in trade fairs.
• put jobs tasting.
• organizing events or activities.
• sponsor to someone, any institution or to any other company.
• placed advertisements in company vehicles or public transport vehicles.
• create signs, panels, posters, posters, brochures, catalogues, flyers or business cards.
Definition of strategies of market
Market strategies, according to experts in the field:Richard L. Sandhusen, in his book "Marketing", provides the following classification of growth strategies for existing products and for new additions to the portfolio of products or strategies for the growth of the market:
1. Intensive growth strategies: consist of "cultivate" in an intensive way the current markets of the company. They are suitable in situations where the existing "market" opportunities still not have been exploited in their entirety, and include the following strategies:
or penetration strategy: focuses on the more aggressive marketing of existing products (e.g., through a range of more affordable price than the competition and advertising, personal selling and pretty aggressive sales promotion activities). This type of strategy, in general, produces revenue and utilities because 1) persuades existing customers to use more of the product, 2) attracts customers from competition and 3) persuades not determined to transform prospects into customers.
or market development strategy: focuses on attracting members to the new markets, for example, those segments that has not come yet (as new geographical areas).
or product development strategy: develop new products to attract members of already existing markets, for example, includes developing a new product presentation that provide additional benefits to customers.
2 Integrative growth strategies: exploits the strength that has a company in its industry to exert control over suppliers, distributors and/or competitors. In that sense, a company can scroll backward, forward or horizontally.
or backward integration: occurs when the company increased their control over their resources of supply; i.e. that it controls to its suppliers or at least its main suppliers.
or forward integration: occurs when the company increases its control over its distribution system. For example, when a large company is the owner of a network of stations or service shops and controls it.
or horizontal integration: occurs when the company increases its control with respect to its competitors. For example, when hospitals or medical centers negotiate Consortium arrangements with medical specialists so that each physician provides services in a particular specialty (plastic surgery, Gynecology, Pediatrics, etc...), but within the hospital or medical center.
3 Diversified growth strategies: are suitable when few growth opportunities in the market there is the company's goal. Usually, they include horizontal diversification, conglomerate diversification and concentric diversification [1].
or horizontal diversification strategies: they consist of adding new products to the line of the company's products, which are not related to existing products, but that they are designed to attract members of the markets the company's goal. For example, when McDonalds adds toys to your hamburger combo for kids, what you are actually doing is adding products unrelated to its main product lines, but that serves to attract more effectively to a group of customers in your market goal (in this case, children).
or conglomerate diversification strategies: consist of selling new products not related to the existing product line, to thereby attract new categories of clients.
or concentric diversification strategies: introduce new products that have similarities technological or marketing with existing products and are designed to attract new market segments.
4. Market leadership strategies: are used by companies that dominate your market with superior products, competitive effectiveness, or both. Once the company achieved leadership in your market, you have two strategic options continue to grow:
or cooperative strategy: consists of increasing the total size of the market (for the same company and competitors) to find new users and applications of product or service.
or competitive strategy: is to achieve an additional market share investing heavily (e.g., in advertising, personal selling, sales promotion and public relations) to capture customers from competition.
5. Challenge of market strategies: are strategies that companies can adopt against the market leader and are classified into three:
or frontal attack: is to attack all the mixture of market (product, price, distribution, promotion) of the leader. Usually done by stronger competitors.
or attack on the sides: consists in focusing on the weak points of the leader, as the price. Usually done by the weaker competitors.
or referral strategies: consists of focusing on areas that are not covered by the leader (usually, competitors who have a product or very specialized service performed it).
6. Follow-up of market strategies: are employed by companies of competition that are not interested in challenge to the leader of a direct or indirect way. These companies try to maintain its market share (and profits) following closely the policy of product, price, place and promotion of leader.
7 Strategies for niche market: are used by smaller competitors that are specialized in servicing niche markets and larger competitors often ignore or are unaware of its existence. This type of companies (nicheras) offer products or services very specific or specialized to meet the needs of groups small (individuals or organizations) but homogeneous in terms of their needs or desires.
William Stanton, Michael Etzel and Bruce Walker, in his book "Fundamentals of Marketing", proposed three strategies for markets goal (which once completed a market segmentation can be used):
1 Congregation of market strategy: also known as a strategy of mass market or strategy of undifferentiated market, consists of: 1) offer a single product to the total market, 2) design a pricing structure and a distribution system for product and 3) use a single promotion programme aimed at the entire market. This method is also known as "shotgun or pellets" because it seeks to reach an extensive objective with a single program.
2. Strategy of one segment: also called strategy of concentration, consists of choosing as its goal an open segment of the total market; Therefore, a marketing mix is getting to that single segment. Such a strategy allows the company or organization penetrate the market segment that has chosen to fund and acquire a reputation as a specialist or expert in that segment.
3. Strategy of multiple segments: consists of identifying as markets goal two or more groups of potential customers and generate a marketing mix to reach each segment; Therefore, the company or organization develops a different version of the basic product for each segment, with tiered pricing, distribution systems and promotion programmes tailored to each segment.
Ricardo Romero, in his book "Marketing", mentions the following market strategies:
1. Segmentation of the market: is the process that consists in dividing the total market of a good or service in smaller groups, so that members of each are similar in the factors that affect the demand. At the discretion of Romero, a crucial element for the success of a company is the ability to properly segment your market.
2. Extension of the market: is the set of actions that will be used at different moments of the existence of a product to sustain its sales and profits, rather than suffer the normal decline.
3. Multiple brands: consists in the supply of various brands in a particular category of products.
4 Brand extension: involves the use of a trademark in other products.
The purpose of market strategies is the company or organization provide a useful guide about how to deal with the challenges associated with the different types of market; Therefore, they are part of the strategic planning business level.
Now, during the planning stage, specifically during the selection and development of market strategies, you need to make a careful analysis of the characteristics of the company or organization, its marketing mix, market place in which will bid and the characteristics of the competitors in order to choose the or the most appropriate strategies. In other words, it is indispensable to carry out a study of the environment (both external and internal) of the company or organization before making a decision about market strategies that will be deployed.
Then, during the implementation stage of market strategies that have been planned by the / the marketer (s), is essential to perform a constant monitoring of the objectives that will be achieved, in this way, decisions about whether a particular strategy is maintained or change to another according to the current situation. For example: in the event a company (which occupies the second place in market share) intends to be the leader, will need to implement a strategy for market by a frontal attack challenge to achieve your goal. If after a while you get it, you need to change that (initial) market strategy for a competitive leadership strategy, to strengthen its position and move away from his followers.
Concept of market strategies
Marketing strategies, also known as marketing strategies, marketing strategies or business strategies, consist of actions that are carried out to achieve a particular goal related to marketing.Examples of marketing objectives
they can be: capture a greater number of customers, drive sales, giving to know new products, achieve greater coverage or exposure of products, etc.The design of marketing strategies is one of the marketing functions. To design strategies, firstly we must analyze our target audience so then, based on this analysis, we can design strategies that can meet their needs or desires, or take advantage of their characteristics or habits.
But when designing marketing strategies, we must also take into account the competition (for example, designing strategies that take advantage of their weaknesses, or which are based on strategies that are giving them good results), and other factors such as our capability and our investment.
For a better management of marketing strategies, these are usually divided or classified into strategies to 4 aspects or elements of a business: strategies for product, price strategies, strategies for the square (or distribution), and strategies for promotion (or communication). Set of elements known as the 4 Ps or mixture (or mix) marketing (or marketing).
Below some examples of marketing strategies that can be applied to each element that makes up the marketing mix:
Strategies for product
The product is the product or service that we offer or sell to consumers. Some strategies we can design related to the product are:• include new features to the product, for example, give you new improvements, new utilities, new functions, new uses.
• include new attributes to the product, for example, give a new design, new packaging, new colors, new logo.
• launch a new product line, for example, if our product are jeans for ladies, we can opt to launch a line of shoes for ladies.
• expand our product line, for example, increase the menu of our restaurant, or take a new type of shampoo for another type of hair.
• launch a new brand (without removing the market which we already have), for example, a new brand dedicated to another type of market, for example, one of greater purchasing power.
• include new additional services that provide a greater enjoyment of the product to the customer, for example, include home delivery, installation, new guarantees, new payment facilities, service one more advice on the purchase.
Strategies for price
The price is the dollar value that we attach to our products at the time of offering them to consumers. Some strategies we can design related to the price are:• to launch a new product with a price low, so that, in that way, we can achieve rapid penetration, a quick response, or we can do it quickly known.
• to launch a new product with a high price, so, in that way, we can leverage purchases made as a novelty product.
• to launch a new product with a high price, so, in that way, we can create a feeling of quality.
• reduce the price of a product, so that in that way, we can attract a larger clientele.
• reduce prices below the competition, so that, in that way, we can block it and win market.
Strategies for the plaza or distribution
The plaza or distribution consists of the selection of the places or points of sale where it will offer or sell our products to consumers, as well as determine the way in which products will be transferred to such places or points of sale. Some strategies that can be applied related to square or distribution are:• to offer our products via the Internet, phone calls, sending emails, seen at home.
• make use of intermediaries and, thereby, achieve greater coverage of our products or increase our points of sale.
• Locate our products at all points of sale have or might have (intensive distribution strategy).
• Locate our products only in the points of sale which are suitable for the type of product we sell (selective distribution strategy).
• Locate our products only on a point of sale that is exclusive (exclusive distribution strategy).
Strategies for the promotion or communication
The promotion is to communicate, inform, give to know or remember the existence of a product to consumers, as well as persuade, motivate or inducing its purchase or acquisition. Some strategies that can be applied related to the promotion are:• create new offerings such as the 2 x 1, or possible to purchase a second product at half the price, for the purchase of the first.
• offer coupons or discount vouchers.
• give gifts on the purchase of certain products.
• offer discounts for quantity, or discounts for seasons.
• create sweepstakes or contests among our customers.
• put ads in newspapers, magazines or the Internet.
• creating traditional or electronic newsletters.
• participate in trade fairs.
• creation of tasting.
• create activities or events.
• sponsor to someone, any institution or to any other company.
• placed advertisements in company vehicles or public transport vehicles.
• create signs, panels, posters, posters, brochures, catalogues, flyers or business cards.