The marketing strategy of an organization is divided into two phases: strategic and managerial.
A strategic marketing plan is a process that involves the creation and accomplishment of a set of goals through increasing the company’s profit and visibility as well as branding its image and finding out the disadvantages of rival companies. Moreover, there are also rewards plans established for employers to raise the efficiency of their activity. For example, bonuses, more free time when employers can play on real online slots for money, as well as teambuilding events.
The managerial strategy focuses on developing policies that lead the company to gain a competitive edge and the goal is to install specific tactics.
The marketing strategy is formulated to take into account the various obstacles and opportunities that face the business.
In a Harvard Business Review article, Ansoff discussed the various general strategies that companies can use to expand their operations. These include establishing a marketing strategy, identifying their target audience, organizing activities, and concentrating on these efforts.
1. Market Penetration Strategy
A market penetration strategy seeks to increase the number of satisfied customers for a company’s goods. This can involve generating awareness about a product or its attributes, as well as enticing more potential clients as well as expanding its availability through distribution
By raising the quality of the product, the organization intends to raise its usage frequency.
Promotion of competitive prices can persuade consumers to try the goods or services of the organization leading them to repeat purchases. Companies always collect information about their customers and by relying on this, companies develop a loyalty program to reduce the risk of loss and keep customers.
This strategy aids the company build strong relationships with its customers, increases the number of repeat buyers, and improves the company’s financial performance.
2. Market Development Strategy
Market development refers to an approach that involves expanding the sales of a product by selling it in new markets by entering new regions or countries. Aside from product awareness, other key marketing activities include establishing distribution channels.
Besides product modifications, identifying the new needs of consumers in a new market is also a part of market development. For instance, when a fast food restaurant opens up in a new region, it often changes its menus to accommodate the preferences of its customers. Yet, this approach can be risky since the company might not be well known in the new market.
A marketing strategy for market development can take longer than traditional methods since it involves establishing a strong brand and launching a steady network of distribution.
3. Product Development Strategy
Product Development Strategy involves creating new products to cater to existing customers. This approach is used by companies that can leverage their connections with their clients. A strategy for market development aims to expand a company’s product line by introducing new products that even may not be related to its core business. For instance, the freight forwarder company can offer travel-related services by building strong relationships with its potential customers.
The other example is: cable TV companies have started offering telephone and Internet services to their potential customers. This strategy can involve new customers getting to know new advantages of the company. Once a product is developed, there should be developed easy methods to create interest and availability.
A product Development Strategy that focuses on product development is more risky than trying to penetrate the market. This strategy may not work because new advantages of the product may not be able to meet the buyers’ needs or be priced too high.
4. Diversification Strategy
Diversification strategy is a method used by businesses to expand or enhance their operations. These usually involve launching a new product or service within a new market. It can help them identify new growth opportunities and enhance their profitability.
Large businesses often follow a product diversification strategy. However, this method can be risky and requires a lot of research and analysis to ensure that it works.