strategies For Industrial
Marketing
Marketing
strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is
presented below:
1.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:
Leader
Challenger
Follower
Nicher
2.Porter generic strategies - strategy on
the dimensions of strategic scope and strategic strength. Strategic scope
refers to the market penetration while strategic strength refers to the firm‗s
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 (broad)
Cost
leadership (broad)
Market
segmentation (narrow)
3.Innovation strategies - This deals with the firm's rate of the new
product development and business model innovation. It asks whether the company
is on the cutting edge of technology and business innovation. There
are three types:
Pioneers
Close
followers
Late
followers
4.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
Vertical
integration
Diversification
Intensification
A more
detailed scheme uses the categories
Prospector
Analyzer
Defender
Reactor
Marketing
warfare strategies - This scheme draws parallels between marketing strategies
and military strategies.
5.Strategic models
Marketing
participants often employ strategic models and tools to analyze marketing
decisions. When beginning a strategic analysis, the 3Cs can be employed to get
a broad understanding of the strategic environment. An Ansoff Matrix is also
often used to convey an organization's strategic positioning of their marketing
mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined
strategy.
There are
many companies especially those in the Consumer Package Goods (CPG) market that
adopt the theory of running their business centered around Consumer, Shopper
& Retailer needs. Their Marketing departments spend quality time looking
for "Growth Opportunities" in their categories by identifying
relevant insights (both mindsets and behaviors) on their target Consumers,
Shoppers and retail partners. These Growth Opportunities emerge from changes in
market trends, segment dynamics changing and also internal brand or operational
business challenges.The Marketing team can then prioritize these Growth Opportunities
and begin to develop strategies to exploit the opportunities that could include
new or adapted products, services as well as changes to the 7Ps.
6.Real-life marketing
Real-life
marketing primarily revolves around the application of a great deal of
common-sense; dealing with a limited number of factors, in an environment of
imperfect information and limited resources complicated by uncertainty and
tight timescales. Use of classical marketing techniques, in these
circumstances, is inevitably partial and uneven.
Thus, for
example, many new products will emerge from irrational processes and the
rational development process may be used (if at all) to screen out the worst
non-runners. The design of the advertising, and the packaging, will be the
output of the creative minds employed; which management will then screen, often
by 'gut-reaction', to ensure that it is reasonable.
For most
of their time, marketing managers use intuition and experience to analyze and
handle the complex, and unique, situations being faced; without easy reference
to theory. This will often be
'flying
by the seat of the pants', or 'gut-reaction'; where the overall strategy,
coupled with the knowledge of the customer which has been absorbed almost by a
process of osmosis, will determine the quality of the marketing employed. This,
almost instinctive management, is what is sometimes called 'coarse marketing';
to distinguish it from the refined, aesthetically pleasing, form favored by the
theorists.
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