Marketing is a series of steps and very often these steps come in fours. The marketing mix is a prime example. It is commonly known as the 4 Ps (product, price, placement, and promotion). Marketing strategy is no different. Many believe there are four core marketing strategies:
1. Market Penetration
This strategy focuses on increasing market share within your existing markets. Tactically this can involve:
- Adjusting your pricing to make you more competitive
- Ramping up your marketing to increase your market’s awareness of your brand/name/products
- Improving your products in line with market demands or expectations
- Increasing your distribution so more customers have easier access to your products than your competitors
2. Market Development
This can involve expanding into new markets. In terms of new markets these could be geographic areas or new demographics (type, age, or sex of customer segments).
Alternatively, you could look to capitalise on particular niches within your markets. If you target specific types of customers with specific needs you can develop your presence, attractiveness and product offering to increase your market share at your competitors’ expense.
3. Product Development
This strategy is based on creating new products or modifying or improving existing ones to satisfy the current needs or demands of your market/s. This strategy is particularly powerful if your aim is to drive up customer loyalty (and repeat purchase) and steal market share by making your products or services more desirable than your competitors.
4. Diversification
Diversification involves either entering entirely new markets or developing new products to open new markets. This strategy is arguably the riskiest. However, it also offers greater returns if you get it right.
While these are the four core marketing strategies, they are seldom employed in isolation.
Most businesses will combine two or more to forge an even more robust marketing strategy and counter the specific commercial issues your face, current market conditions, demands and price sensitivity and the resources you have available.
If you’d like to review and refresh you marketing strategy and discuss how you can implement new tactics to capitalise on any of these four core marketing strategies, please get in touch by emailing us at [email protected].
