Marketing Strategy

MARKETING STRATEGY

Marketing strategy deals with pricing, selling and distributing a product. Using a market development strategy, a company or business unit can:

• Capture a larger share of an existing market for current products through market saturation and market penetration or
• Develop new market for current products.

Eg: P & G, Colgate – Palmolive

Using Product development Strategy, a company or business unit can

• Develop new products Egisting markets or
• Develop new products for new markets.

Eg: GCMMF – Amul products (Using a successful brand name to market other products is called line extension and is a good way to appeal to a company’s current customers).

Using Advertising and promotion strategy, a company or business unit can use

• Push Strategy – Spending a large amount of money on trade promotion inorder to gain or hold shelf space in retail outlets.
• Pull Strategy – spending a large amount of money on consumer advertising designed to build awareness so that shoppers will ask for the products.

Using Distribution strategy, a company or business unit can choose any method of distribution, namely

• Using distributors and dealers to sell the products
• Selling directly to the consumers

Using Pricing strategy, a company or business unit can choose,

• Skim pricing means high price, when the product is novel and competitors are few or
• Penetration pricing is aimed at gaining high market share with a low price.