Used by new companies wishing to gain a foothold in existing market conditions. It is used by organizations wishing to develop previously unused and unexplored niches.
- Market development strategy
This entrepreneurial marketing strategy of business is used primarily to attract new customers. The goal is achieved through expanding the geography of sales of goods (geographical expansion strategy) or attracting new user groups in an already developed territory (new market creation strategy).
Let’s give an example.
Johnson & Johnson has achieved incredible heights in business by creating a new segment of consumers who are interested in shampoo for children. Given the statistics and demographic forecast, it was possible to talk about the existence of a real threat of a decrease in sales due to the decline in the birth rate. The company’s marketers noted that the shampoo is used by both children and adults.
Johnson & Johnson conducted a corresponding campaign, which ensured the rapid growth of the baby shampoo’s position on the market. It became the leader. That is, the entrepreneurial marketing strategy of the business was chosen correctly.
Another example: in many stores, the target audience of which is mainly teenagers, the women’s anti-aging cream Oil of Ulay is actively advertised.
There is another approach to market development strategy – identifying new methods of using the product. Du Pont proposed a new way to use nylon. The material was used to make women’s stockings, blouses and men’s shirts, parachutes, and car tires. Each option extended the life cycle of nylon.
New methods of using a product are cyprus phone number material often suggested by the buyers themselves. For example, Vaseline was initially used to lubricate various mechanisms. But then people decided that the area of Vaseline use could be expanded, and began to use it for skin care and hair styling.
Another example. Arm & Hammer,
A manufacturer of baking soda, has been producing the product consistently, but optimizing lead generation with a dedicated crm system sales have declined significantly over the past 125 years. The product has many household uses, but the vast majority of people were unaware of this.
When the company learned that many consumers were using baking soda to keep their refrigerators fresh, it launched a massive advertising campaign. As a result, almost all women in the United States began storing baking deb directory soda in their refrigerators. A few years later, the company released another ad, which talked about the effective elimination of fatty deposits.
There is also an entrepreneurial marketing strategy of business, the purpose of which is to expand the market. The essence is to convey to the consumer the need to increase the intensity of use of the company’s products. For example, the same Procter & Gamble states that the effectiveness of shampoo doubles when its one-time share is increased.
French company Michelin Tire demonstrated a creative approach to stimulating product usage. Its marketing strategy was aimed at encouraging car owners to travel long distances and change their tires frequently.
The company chose a rather unconventional way to promote its product by participating in the formation of a list of the best establishments in France. The classification, developed with its participation, showed that the best restaurants are located in the south of the country. This became an incentive for connoisseurs of exquisite cuisine to travel long distances, focusing on the Michelin guide.
Case: VT-metall
- New product development
A promising marketing strategy that involves some risks. Before creating a new product or service, the manufacturer must be sure that there is demand. If there is none, they look for a way to generate it.
Among other things, the company should assess risks, reserves, competitiveness of similar products from other manufacturers and compare costs with expected income. When implementing a marketing strategy, it is necessary to overcome the conservatism of buyers who are skeptical of everything unfamiliar. However, if the product turns out to be truly fundamentally new, and the audience feels the need for it, the profit will be off the charts.
Companies do not always use innovative technologies when creating a product. Sometimes it is enough to look at the process differently. This is how, for example, the manufacturers of the Rubik’s Cube, Tetris or stickers were able to become market leaders.
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Power strategy
It is preferred by large and standard enterprises. Companies implementing a power strategy are able to increase the efficiency of the production process with lower costs, compared to the process of creating small batches of goods that differ significantly from each other. This is their advantage.
The power entrepreneurial marketing strategy of business has a number of advantages, the purpose of which is to develop large-scale scientific research, a developed sales network and large-scale advertising campaigns. It was successfully implemented at one time by Malboro, Electrolux, Toyota, Kamaz.
- Niche strategy
It is used by specialized enterprises that produce non-standard products for a narrow group of consumers. Due to the fact that a certain segment of buyers uses indispensable, highly specialized products, the company can take a good position in the market.
Here are some examples of how a niche strategy can be used. Bandog is a tire retreader and truck stop service provider. Ritz-Carlton is a leader in the hotel business. eBay conducts online auctions, Porsche sells sports cars, and Cannondale specializes in luxury mountain bikes. Horizon, Atlantic Southeast, and Comair offer passenger flights of 50 to 250 miles. Jiffy Lube International provides fuel, lubrication, and minor repairs. Enterprise Rent-a-Car specializes in renting cars to replace those that need repairs.
