Some people also believe that, too often, research generates lots of useless data that is in lots of written reports that rarely are ever read, much less used in the real world. This is a major misunderstanding. Odds are that you have already conducted at least some basic forms of market research. For example, you have listened a research technique to others complain about not having enough of something -- that should suggest providing what they need in the form of a product or service.
Other approaches[ edit ] The choice of competitive strategy often depends on a variety of factors including: Growth strategies[ edit ] Growth of a business is critical for business success. A firm may grow by developing the market or by developing new products.
The Ansoff product and market growth matrix illustrates the two broad dimensions for achieving growth. The Ansoff matrix identifies four specific growth strategies: This is a conservative, low risk approach since the product is already on the established market.
This can include modifications to an already existing market which can create a product that has more appeal.
This can include new geographical markets, new distribution channels, and different pricing policies that bring the product price within the competence of new market segments. Diversification is the riskiest area for a business. This is where a new product is sold to a new market. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is easier to build good reputations for a business when using this strategy.
There are three main benefits to a business's reputation after a merge. A larger business helps the reputation and increases the severity of the punishment. As well as the merge of information after a merge has happened, this increases the knowledge of the business and marketing area they are focused on.
The last benefit is more opportunities for deviation to occur in merged businesses rather than independent businesses. An example of a vertically integrated business could be Apple.
Apple owns all their own software, hardware, designs and operating systems instead of relying on other businesses to supply these. Also by decreasing outside businesses input it will increase the efficient use of inputs into the business. Another benefit of vertical integration is that it improves the exchange of information through the different stages of the production line.
Also if the business is not well organised and fully equipped and prepared the business will struggle using this strategy. There are also competitive disadvantages as well, which include; creates barriers for the business, and loses access to information from suppliers and distributors.
The market leader dominates the market by objective measure of market share. Their overall posture is defensive because they have more to lose. Market leaders may adopt unconventional or unexpected approaches to building growth and their tactical responses are likely to include: The market challenger holds the second highest market share in the category, following closely behind the dominant player.
Their market posture is generally offensive because they have less to lose and more to gain by taking risks.
They will compete head to head with the market leader in an effort to grow market share. Their overall strategy is to gain market share through product, packaging and service innovations; new market development and redefinition of the to broaden its scope and their position within it.
Followers are generally content to play second fiddle. Their market posture is typically neutral. Their strategy is to maintain their market position by maintaining existing customers and capturing a fair share of any new segments.
They tend to maintain profits by controlling costs. The market nicher occupies a small niche in the market in order to avoid head to head competition.
Their objective is to build strong ties with the customer base and develop strong loyalty with existing customers. Their market posture is generally neutral. Their strategy is to develop and build the segment and protect it from erosion. Tactically, nichers are likely to improve the product or service offering, leverage cross-selling opportunities, offer value for money and build relationships through superior after sales service, service quality and other related value adding activities.
As the speed of change in the marketing environment quickens, time horizons are becoming shorter. Nevertheless, most firms carry out strategic planning every 3- 5 years and treat the process as a means of checking whether the company is on track to achieve its vision and mission.
Strategies are broad in their scope in order to enable a firm to react to unforeseen developments while trying to keep focused on a specific pathway. A key aspect of marketing strategy is to keep marketing consistent with a company's overarching mission statement.The leading source for e-commerce news, strategies and research.
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Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal of achieving a sustainable competitive advantage. Strategic planning involves an analysis of the company's strategic initial situation prior to the formulation, evaluation and selection of market-oriented competitive position that contributes to the company's goals and marketing objectives.
Edexcel BTEC Level 3 Nationals specification in Business 1 – Issue 1 – January © Edexcel Limited Unit 3: Introduction to Marketing. Marketing Case Studies Show Real Results. Whether you are looking to position your organization for high-velocity gains or to strategically manage growth, having a marketing professional on your team will lead to a more focused and informed approach.
With a good marketing plan you can expand your reach, set attainable objectives and launch your new products with success. Base your marketing strategies on knowledge of your target market and the competition and choose the right marketing mix to highlight your competitive advantage.