Market Strategies

1
Market Strategies

• Chapter 13

2
Topics Chapter 13

• Market-Scope Strategy
• Market-Geography Strategy
• Market- Entry Strategy
• Market-Commitment Strategy
• Market-Dilution Strategy

3
Market

• Identify viable markets
• Strategies are tied to target markets
• Focus of strategies

4
Market

• Provide direction for programming key activities
  and projects

5
Market-Scope Strategy Coverage of Market

• Single-market strategy
• Multimarket strategy
• Total-market strategy

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Single-Market

• Concentration on single segment
• Segment currently inadequately served

7
Multimarket

• Serve several distinct markets
• Diversify risk

8
Total-Market

• Serve whole market
• Differentiated products to different segments
• Different combinations of marketing mix in
  different segments

9
Market-Geography Strategy

• Geography is a strategic variable
• Incorporates
• Local
• Regional
• National
• International

10
Local-Market

• Concentrate in immediate vicinity
• Maintain control of business

11
Regional-Market

• Operate in multiple states, or a region of the
  country
• Diversify risk
• Keep centralized control

12
National-Market

• Operate nationally
• Seek growth

13
International-Market

• Operate outside national boundaries
• Seek opportunities beyond domestic business

14
Market- Entry Strategy

• Timing of market entry
• First-in
• Early entry
• Laggard-entry

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First-In

• Enter before all others
• Create a lead over competitors that is difficult
  to match

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Early-Entry

• Enter soon after the First-In leader
• Prevent leader from establishing a stronghold

17
Laggard-Entry

• Enter toward end of growth phase or in early
  maturity phase
• Two feasible modes
• Imitator Me-Too product
• Initiator Unconventional marketing strategies

18
Market-Commitment Strategy

• Involvement in a market
• Strong
• Average
• Light

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Strong-Commitment

• Aggressively fighting challenges with different
  price, product, promotion and distribution
  strategies
• Defend position at all costs

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Average-Commitment

• Maintain stable interest
• Keep customers happy and satisfied

21
Light-Commitment

• Passing interest
• Operate profitably
• Avoid investment in long-term benefits

22
Market-Dilution Strategy

• Reducing part of the business
• Demarketing
• Pruning marginal markets
• Key markets
• Harvesting

23
Demarketing

• Discourage customers from seeking product
• Maintain customer goodwill in times of shortages

24
Pruning-of-Marginal Markets

• Weeding out segments with unacceptable rates of
  return
• Invest in other growth segments

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Key-Markets

• Focus on selected markets
• Serve selections extremely well
• Develop unique strategies

26
Harvesting

• Deliberate effort to let market share slide
• Generate additional cash flow
• Increase short-term earnings
• Avoid anti-trust action