Market Leadership Strategies

Written by admin on May 25, 2009

Market Leadership Strategies: These are used by companies that dominate their market with superior products, competitive effectiveness, or both. Once the company achieved leadership in its market, has two strategic options for growth:
Cooperative strategy consists in increasing the total market size (for the same company and competitors) to find new users and applications of the product or service.
Competitive Strategy: to achieve an additional stake in the market to invest heavily (eg advertising, personal selling, sales promotion and public relations) to attract customers to the competition.
Strategies for Market Challenge: These are strategies that companies can take against the market leader and are classified into three:
Frontage consists of attacking the entire market mix (product, price, distribution, promotion) of the leader. In general, performed the strongest competitors.
Attack on the side: It consists in focusing on the weaknesses of the leader as the price. In general, the weakest performing competitors.
Strategies derivation consists in focusing on areas that are not covered by the leader (usually performed by the competitors who have a highly specialized product or service). Business is a great thing!

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Diversified Growth Strategies

Written by admin on May 25, 2009

Diversified Growth Strategies: These are appropriate when there are few opportunities for growth in the target market for the company. Generally, cover horizontal diversification, conglomerate diversification and concentric diversification.
Horizontal diversification strategies consist in adding new products to the line of company products, which are not related to existing products, but are designed to appeal to members of target markets for the company. For example, when McDonalds toys add to your burger combo for kids, what they’re doing is actually adding products unrelated to its main product lines, but it serves to attract more effectively to a group of customers your target market (in this case, children). Business is a great thing!
Conglomerate diversification strategies: They sell products not related to the existing product line, to thereby attracting new categories of customers.
Concentric diversification strategies: introducing new products that have technological or marketing similarities with existing products and are designed to attract new market segments.

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Growth strategies

Written by admin on May 25, 2009

integrated growth strategies: build on the strength that has a particular company in its industry to exercise control over suppliers, distributors and / or competitors. In that sense, a company can move backwards, forwards or horizontally.
Backward integration: Occurs when the company increases its control over its supply, ie, that controls its suppliers or at least its main supplier.
Forward Integration: Occurs when the company increases its control over its distribution system. For example, when a large company owns a network of service stations and stores and controls.
Horizontal integration: Occurs when the company increases its control over its competitors. For example, when hospitals or physicians negotiate arrangements with a consortium of medical specialists for each medical service provided in a particular specialty (plastic surgery, gynecology, pediatrics, etc. …), but in the hospital or medical center. Business is a great thing!

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Penetration Strategy

Written by admin on May 25, 2009

Penetration Strategy: Focus on more aggressive marketing of existing products (eg by offering a price more suitable than the competition and advertising activities, sales staff and sales promotion quite aggressive). This type of strategy usually produces revenue and profits because 1) persuades customers to use more product, 2) attract customers of the competition and 3) to persuade customers not determined to become prospects.
Market Development Strategy: Focus on attracting new members to the markets, for example, those segments to which has not been reached (such as new geographic areas).
Product development strategy includes developing new products to attract members of the existing market, for example, developing a new product that provides additional benefits to customers. Business is a great thing!

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Learn how to select your niche market

Written by admin on May 25, 2009

You must select market segments that generate sufficient sales at a cost sufficiently low to generate revenue to justify the investment required. In a nutshell, that is sufficiently profitable.
We must find niche markets where competitors are few or weak. It is hardly advisable for a company enters a saturated market by competition unless they have an overwhelming advantage that enables it to take customers from other companies.
Election Ethics Target Markets:
According to the author Philip Kotler, identifying target markets often generate controversy in the public, especially when the expert advantage in the market value of vulnerable groups such as children, marginalized groups in poor suburban areas, or when promoting products that are potentially capable of causing damage (cigarettes, alcoholic beverages, food with high fat content, etc.). Business is a great thing!
Therefore, by identifying target markets, the issue is not only decide who is determined, but how and why. Namely that the expert made a socially responsible market segmentation and localization of target markets to function not only for the interests of the company or organization, but also to the interests of those who were identified as target market.

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