Marketing Strategies Assignment Example | Topics and Well Written Essays - 1750 words

Marketing Strategies - Assignment Example It will shape the product features based on cost considerations. The marketing plan will allocate resources where they will gain the best return. Packaging, advertising, and distribution will all be a part of the marketing plan. To begin writing an effective marketing plan first requires a detailed marketing strategy based on a number of strategic criteria. Market power is the degree of penetration that a company or product currently has in the market. If a company has a large market share, or market dominance, they can benefit from the ability to set prices and less competition. If a company has a small market share they will be forced to follow the pricing plan of the market leaders. Market dominance can also be attained if there are barriers to entry for other companies. Dominance can also be acquired if the product has a sufficient profit margin to allow pricing competition. If a product has low market share, easy entry to the market, and a low profit margin the marketing will be from the aspect of low market power. This will be a consideration when placing the product in the market. The product may opt to challenge the market leader or find a niche market. The company may also place the product as a market follower or suitable substitute for the market leader. Innovation strategies determine the extent that a company or product will lead or f... Continual innovation and product improvement is mandatory. Other products may not be as influenced by innovation and consumers may prefer proven reliability rather than innovation. Innovation strategies also extend to the distribution and customer base of the product or company. New uses for an existing product is innovation. Finding new outlets, markets, and generating new customers is also an innovative strategy. Growth Strategies One of the most basic measurements of a firm's success is its growth rate. Aside from selling more of an existing product, a company may decide to grow vertically or horizontally. The company that employs vertical integration seeks to control the raw material, production, transportation, and marketing of their product ("Vertical Integration"). In this strategy, the firm profits from every step in the product's life. Horizontal integration is the acquisition of additional processes or markets that are similar to the existing base. An oil company that acquires additional refinery capability through purchase or mergers is employing horizontal integration. Products can be marketed to targeted and segmented markets with this strategy. A firm can likewise grow through either diversification or specialization. Kraft Food has benefited by offering a wide range of food products. A firm can also benefit from specializing in a product and becoming the market maker for the item. Kleenex and Xerox were both known for their focused product and expertise. Aggressiveness Strategies Part of the business plan will be plans for future expansion. The strategy will determine how fast and in what ways the firm will grow. These factors will be determined by the ability to take risks, financial leverage, level of bureaucracy, and aggressiveness. A company is