M.COM. SEMESTER – III
BUSINESS STUDIES (MANAGEMENT) MARKETING STRATEGIES AND PRACTICE
Q.2.
State different types of Marketing Strategies
ANS:
The
Marketers use the different combination of marketing mix (4Ps to 7Ps) to get
advantage over the competitors in the market. The position of the firm in the
market plays a major role in deciding the strategies. Following the strategies
based on different positions in the market.
1. Market
Leader Strategies:
This is
adopted when the firm enjoys maximum share of market. Here the firm focuses on
expanding the market size, defending its share and increasing the relative
market share. It can be achieved by identifying new segments for sale of product,
introducing differentiation (of price and product) to stand apart from the
competition and introducing scheme to infuse more sale in the existing market
segments. Leaders have to beware of challenger’s strategies and continuously
work on their weak areas.
2. Market
Challenger Strategies:
The
challengers work on identifying the areas where the leader may be weaker like
change of technology, dissatisfied customers etc.
·
The
challengers can adopt frontal attack strategy by adopting the same features of
goods and making choice for consumer difficult
·
The
challengers may take up flank attack if frontal is not possible or otherwise
too. Here challenger attack where ever the market leader is weak or is caught
off-guarded.
·
The
encirclement attack can be taken up by adopting both frontal and flank attack
at the same time
·
The
challengers can take less offensive course by capturing the segments or markets
which have not been taken up by leaders and gradually increasing overall market
share
·
Guerrilla
Strategy can be adopted by constantly engaging the leader in price war or
surprising the firm with very unique features of the product to compete.
Introduction to Marketing Strategies
Examples of
Market leaders and challengers.
Marketing
leaders are the one who have highest relative market share and work on
defending its share and expanding it. Challengers are usually second or third
in terms of relative market share, but constantly attack the leader for
increasing their share or occupying markets where leaders have weaker presence
3. Market
Follower Strategies:
These firms
do not challenge or compete with the leaders. They, in turn, follow the success
strategies of leaders and learn from them. The time tested marketing mix strategies
are adopted leading to reduced risks.
Example of
Market Follower. Dell has been following the marketing strategies of Sony Vaio
4. Niche
Market Strategies:
It is
adopted by small firms which would like to have full control on small segment.
This strategy is more cost efficient as product differentiation will be created
specially to cater to a small market with predictable demand.