Marketing Strategies: 1st Set

The Centres in the Tree diagram are primary categories of commercial focus derived from the modes of engagement in the market.

Each Centre, epitomized in a 2-3 word phrase, refers to diverse business choices flowing from a set of interrelated principles. Understanding of the approaches to interacting-for-benefit is therefore taken for granted. Channels between Centres define alternative and complementary business strategies as listed.

 

L2B Focus: Competitor performance
L1B Focus: Company performance

Notes:

  • Benchmarking may apply to profitability, and also to any aspect of the company’s operations.
  • The aim may be to demonstrate out-performance, or to provide a basis for assessing and possibly improving business operations as part of strengthening the company.
L3M Focus: Facilitating purchase by prospects
L1B Focus: Flexible reliable production

Notes:

  • This includes: determining distribution/selling channels; diversifying, restricting or expanding outlets; deciding on vertical integration; and handling major changes in demand.
  • Information systems including distributors and suppliers can enable optimization of operations (e.g. via just-in-time methods).
L3M Focus: Market structure
L2B Focus: Competitors’ shares of the market

Notes:

  • Dominance is critical to stabilize profitability. By analysing a target market in sufficient depth, leadership within a niche is usually possible.
  • Niches may be neglected for many reasons, but once recognized, other competitors will attempt to colonize them. It is therefore essential to be first, and to be ready to repel any competition.
L3P Focus: Desired product qualities
L1B Focus: Production methods and standards

Notes:

  • Improvements many be focused on performance, styling, design, functionality, safety, gimmickry, durability, reliability, servicing, packaging, &c. or on generating a stream of new models or related products.
  • Controlling costs is critical and may be attempted by copying competitors, reverse engineering or reducing numbers of parts and assembly costs.
L3P Focus: Established product category
L2B Focus: Competitor products

Notes:

  • Distinctive brand recognition is required for each product that is potentially a market leader. Attempting to leverage brand equity to different products (e.g. by line extension) is weak.
  • Trademarks, patents, design copyrights &c. must be defended to ensure distinctiveness.

Originally posted: July 2009