Marketing strategies Essay

Types of strategiesMarketing strategies may differ depending on the unique spotlight of the individual crease. However there argon a number of slipway of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below Strategies based on market dominance In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies LeaderChallengerFollowerNicherAccording to Shaw, Eric (2012). Marketing Strategy From the Origin of the Concept to the Development of a abstract Framework. Journal of Historical Research in Marketing., there is a framework for marketing strategies. Market introduction strategiesAt introduction, the marketing strategist has both prescript strategies to choose from penetration or niche (47). Market growth strategiesIn the early growth stage, the marketing manager may choose from devil spare strategic alternatives segmen t expansion (Smith, Ansoff) or brand expansion (Borden, Ansoff, Kerin and Peterson, 1978) (48). Market maturity strategiesIn maturity, sales growth slows, stabilizes and starts to make up. In earlymaturity, it is common to make use of a maintenance dodge (BCG), where the firm maintains or holds a stable marketing mix (48). Market decline strategiesAt some point the decline in sales approaches and then begins to exceed costs. And not just accounting costs, there are hidden costs as well as Kotler (1965, p. 109) detect No financial accounting can adequately convey all the hidden costs. At some point, with declining sales and rising costs, a harvesting strategy becomes unprofitable and a divesting strategy necessary (49). Early marketing strategy concepts wereBordens marketing mixIn his classic Harvard Business Review (HBR) hold of the marketing mix, Borden (1964) credits James Culliton in 1948 with describing the marketing executive as a decider and a sociable of ingredients. This led Borden, in the early 1950s, to the insight that what this mixer of ingredients was deciding upon was a marketing mix (34). Smiths differentiation and partitioning strategiesIn harvesting differentiation, according to Smith (1956, p. 5), a firm tries bending the depart of demand to the will of supply. That is, distinguishing or differentiating some aspect(s) of its marketing mix from those of competitors, in a mass market or large segment, where customer preferences are comparatively homogeneous (or heterogeneity is ignored, Hunt, 2011, p. 80), in an attempt to shift its aggregate demand curve to the left (greater quantity sold for a given price) and make it more than inelastic (less amenable to substitutes).With segmentation, a firm recognizes that it faces multiple demand curves, because customer preferences are heterogeneous, and focuses on serving one or more specific design segments within the overall market (35). Deans skimming and penetration strategiesWith skimming, a firm introduces a product with a high price and afterwards milking the least price sensitive segment, gradually reduces price, in a stepwise fashion, tapping effective demand at each price level. With penetration pricing a firm continues its initial low price from introductionto rapidly capture sales and market share, but with lower profit margins than skimming (37). Forresters product life cycle (PLC)The PLC does not offer marketing strategies, per se rather it provides an overarching framework from which to choose among various strategic alternatives (38). There are also somatic strategy concepts likeAndrews bone up analysisAlthough widely used in marketing strategy, SWOT (also known as TOWS) Analysis originated in corporate strategy. The SWOT concept, if not the acronym, is the work of Kenneth R. Andrews who is credited with writing the text portion of the classic Business Policy Text and Cases (Learned et al., 1965) (41). Ansoffs growth strategiesThe most well-known, and l east oftentimes attributed, aspect of Igor Ansoffs Growth Strategies in the marketing literature is the term product-market. The product-market concept results from Ansoff juxtaposing new and existing products with new and existing markets in a two by two intercellular substance (41-42). Porters generic strategiesPorter generic strategies strategy on the dimensions of strategic range of a function and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. ** Product differentiation ** Cost leadership **Market segmentation * Innovation strategies This deals with the firms rate of the new product development and agate line model innovation. It asks whether the company is on the cutting e dge of technology and business innovation. There are three types ** Pioneers ** Close followers ** Late followers * Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers Horizontal integration upended integrationDiversificationIntensificationThese ways of growth are termed as organic growth. Horizontal growth is whereby a firm grows towards acquiring other businesses that are in the same line of business for example a clothing retail outlet acquiring a food outlet. The two are in the retail establishments and their integration lead to expansion. Vertical integration can be forward or backward.Forward integration is whereby a firm grows towards its customers for example a food manufacturing firm acquiring a food outlet. Backward integration is whereby a firm grows towards its source of supply for example a food outlet acquiring a food manufacturing outle t. A more detailed scheme uses the categoriesMiles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford Stanford University Press. ISBN 0-8047-4840-3. ProspectorAnalyzerDefenderReactorMarketing warfare strategies This scheme draws parallels between marketing strategies and military strategies. BCGs growth-share portfolio matrix Based on his work with experience curves (that also provides the rationale for Porters low cost leadership strategy), the growth-share matrix was originally created by Bruce D. Henderson, chief operating officer of the Boston Consulting Group (BCG) in 1968 (according to BCG history).Throughout the 1970s, Henderson expanded upon the concept in a series of short (one to three page) articles in the BCG newsletter titled Perspectives (Henderson, 1970, 1972, 1973, 1976a, b). enormously popular among large multi-product firms, the BCG portfolio matrix was popularized in the marketing literature by Day (1977) (45).