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The International Journal of Logistics Management. Plans can be extended to cover many years, with sub- plans for each year, although as the speed of change in the merchandising environment quickens, time horizons are becoming shorter. There are simulations such as customer lifetime value models which can help marketers conduct . Strategies often specify how to adjust the marketing mix; firms can use tools such as Marketing Mix Modeling to help them decide how to allocate scarce resources for different media, as well as how to allocate funds across a portfolio of brands. In addition, firms can conduct analyses of performance, customer analysis, competitor analysis, and target market analysis. A key aspect of marketing strategy is often to keep marketing consistent with a company's overarching mission statement. For example, a goal may be to become the market leader, perhaps in a specific niche; a mission may be something along the lines of . Strategy varies by type of market. A well- established firm in a mature market will likely have a different strategy than a start- up. Plans usually involve monitoring, to assess progress, and prepare for contingencies if problems arise. Diversity of Strategies. However, there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance. Typically there are four types of market dominance strategies. Preemption of Assets can help gain an advantage through acquiring scarce assets within a certain market, allowing the first- mover to be able to have control of existing assets rather than those that are created through new technology. By being a first entrant, it is easy to avoid higher switching costs compared to later entrants. For example, those who enter later would have to invest more expenditure in order to encourage customers away from early entrants . However, while Market Pioneers may have the . It has been found that while Pioneers in both consumer goods and industrial markets have gained . If there is an upside potential and the ability to have a stable market share, many businesses would start to follow in the footsteps of these pioneers. These are more commonly known as Close Followers. These entrants into the market can also be seen as challengers to the Market Pioneers and the Late Followers. This is because early followers are more than likely to invest a significant amount in Product Research and Development than later entrants. Therefore, it could also lead to customer preference, which is essential in market success. By having a different strategy, it allows the followers to create their own unique selling point and perhaps target a different audience in comparison to that of the Market Pioneers. Early following into a market can often be encouraged by an established business. While being a Late Entrant can seem very daunting, there are some perks to being a latecomer. For example, Late Entrants have the ability to learn from those who are already in the market or have previously entered. Sales And Marketing Integration A Proposed Framework Pdf Download
Sales And Marketing Integration A Proposed Framework Pdf ConverterThis allows them to create a strategy that could essentially mean gaining market share and most importantly, staying in the market. In addition to this, markets evolve, leading to consumers wanting improvements and advancements on products. Customer value means taking into account the investment of customers as well as the brand or product. Late Entry into a market does not necessarily mean there is a disadvantage when it comes to market share, it depends on how the marketing mix is adopted and the performance of the business. Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. Prospector. Analyzer. Defender. Reactor. Marketing warfare strategies . There are low horizontal levels which show that employees are specialized in their work and high horizontal levels which show that employees are integrated in their work. Some benefits of the horizontal integration strategy is that it is good for fast changing work environments as well as providing a broad knowledge base for the business and employees. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is easier to build good reputations for a business when using this strategy. There are three main benefits to a business's reputation after a merge. A larger business helps the reputation and increases the severity of the punishment. As well as the merge of information after a merge has happened, this increases the knowledge of the business and marketing area they are focused on. The last benefit is more opportunities for deviation to occur in merged businesses rather than independent businesses. An example of a vertically integrated business could be Apple. Apple owns all their own software, hardware, designs and operating systems instead of relying on other businesses to supply these. Also by decreasing outside businesses input it will increase the efficient use of inputs into the business. Another benefit of vertical integration is that it improves the exchange if information through the different stages of the production line. Also if the business is not well organised and fully equipped and prepared the business will struggle using this strategy. There are also competitive disadvantages as well, which include; creates barriers for the business, and loses access to information from suppliers and distributors. This is due to the use of a new product being introduced to a new market, so there are no already existing target markets or competition. Horizontal diversification is when a new product is introduced but doesn. Meaning horizontal diversification focuses more on product that the business has knowledge about, whereas vertical diversification focuses more on the introduction of new product onto new markets, where the business could have less knowledge of the ne market. There are three main models that can be applied and used within a business to receive better results and reach business goals. This strategy was developed by a Japanese strategy guru called Kenichi Ohmae. Without customers you have no business. The most important factors of customers and the wants, needs and requirements that the business needs to fulfill in order to attract buyers. The competition can be looked at in various different ways such as; purchasing, design, image and maintenance. The more unique steps a business takes the less competition a business will face in that field. Igor Ansoff and is a model that focuses on four main areas, which are; Market penetration, Product development, Market development and Product/ Market Diversification. These are then split into a further two areas known as the . From this strategy, businesses are able to determine the product and market growth. This is done by focusing on whether the market is a new market or already existing and whether the products are new or already existing. This can include new geological markets new distribution channels and different pricing policies. The last area is Diversification and is the riskiest area for a business. This is where a new product is sold to a new market at the same time. There are two type of Diversification; Related which means the business remains in the same industry that they are familiar with. The other is Unrelated which is when there are no previous relations or market experiences for the business. This strategy was designed as an easy way to turn marketing planning into practice. This strategy is used to find and meet the consumers needs and can be used for long term or short term purposes. The proportions of the marketing mix can be altered to meet different requirements for each product produced, similar to altering ingredients when baking a cake. As well as product research and development for any new products being introduced. This also includes price maintenance. 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. An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the product mix in order to achieve the maximum profit and sustain the business. The marketing strategy is the foundation of a marketing plan. See also. ISBN 9. Aaker, David Strategic Market Management 2. ISBN 9. 78- 0- 4. Baker, Michael The Strategic Marketing Plan Audit 2. ISBN 1- 9. 02. 43. Strategic Management Journal (9): 4. The Profit Impact of Marketing Strategy Project: Retrospect and Prospects: 8. Strategy and Business: 7. Strategic Management Journal. Harvard Business Review. Retrieved 3. 1 March 2. Strategic Management Journal. Strategic Management Journal. |
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