Marketing Strategies: 1st Set
The Centres in the Tree diagram are primary categories of commercial focus derived from the modes of engagement in the market.
Each Centre, epitomized in a 2-3 word phrase, refers to diverse business choices flowing from a set of interrelated principles. Understanding of the approaches to interacting-for-benefit is therefore taken for granted. Channels between Centres define alternative and complementary business strategies as listed.
Much more detail can be found in marketing textbooks.
#1: Benchmark Strategy L2B ↔ L1B
| L2B Focus: | Competitor performance |
| L1B Focus: | Company performance |
Notes:
- Benchmarking may apply to profitability, and also to any aspect of the company’s operations.
- The aim may be to demonstrate out-performance, or to provide a basis for assessing and possibly improving business operations as part of strengthening the company.
#2. Distribution Strategy L3M ↔ L1B
| L3M Focus: | Facilitating purchase by prospects |
| L1B Focus: | Flexible reliable production |
Notes:
- This includes: determining distribution/selling channels; diversifying, restricting or expanding outlets; deciding on vertical integration; and handling major changes in demand.
- Information systems including distributors and suppliers can enable optimization of operations (e.g. via just-in-time methods).
#3. Niche Strategy L3M ↔ L2B
| L3M Focus: | Market structure |
| L2B Focus: | Competitors’ shares of the market |
Notes:
- Dominance is critical to stabilize profitability. By analysing a target market in sufficient depth, leadership within a niche is usually possible.
- Niches may be neglected for many reasons, but once recognized, other competitors will attempt to colonize them. It is therefore essential to be first, and to be ready to repel any competition.
#4. Product StrategyL3P ↔ L1B
| L3P Focus: | Desired product qualities |
| L1B Focus: | Production methods and standards |
Notes:
- Improvements many be focused on performance, styling, design, functionality, safety, gimmickry, durability, reliability, servicing, packaging, &c. or on generating a stream of new models or related products.
- Controlling costs is critical and may be attempted by copying competitors, reverse engineering or reducing numbers of parts and assembly costs.
#5. Brand Strategy.L3P ↔ L2B
| L3P Focus: | Established product category |
| L2B Focus: | Competitor products |
Notes:
- Distinctive brand recognition is required for each product that is potentially a market leader. Attempting to leverage brand equity to different products (e.g. by line extension) is weak.
- Trademarks, patents, design copyrights &c. must be defended to ensure distinctiveness.
Originally posted: July 2009
All posted material is part of a scientific project and should be regarded as provisional. Visitors are encouraged to think through the topics and propositions for themselves. Copyright © Warren Kinston 2009-2016.
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