Concept and Examples of Marketing Strategies

Marketing strategies, also known as marketing strategies, marketing strategies or trading strategies consist of actions carried out to achieve specific marketing-related, such as to present a new product objectives, increase sales or achieve greater market share.
To formulate or design marketing strategies, in addition to taking into account our goals, resources and capacity, we must first analyze our target audience, so that based on this analysis we can, for example, design strategies that allow us to meet your needs or desires, or taking into account their habits and customs.

Marketing Strategies

But also to analyze our target audience, we must also previously analyze the competition, so that based on this analysis we can, for example, to design strategies that allow us to capitalize on their weaknesses, or based on the strategies they are using and best results are giving them.
For better management of marketing strategies, they are usually divided or classified into strategies to 4 aspects or elements of a business: strategies for product strategies for price strategies for the square (or distribution), and strategies for promotion (or communication). Set of elements known as the 4 Ps or mix (or mix) marketing (or marketing).
Let's look at some examples of marketing strategies that we can apply to each element that makes up the marketing mix:

Strategies for product

The product is the good or service offered or sold to consumers. Some strategies that can formulate related to the product are:

    add new features to our product attributes, benefits, enhancements, functions, utilities, applications.
    change to our product design, presentation, packaging, labeling, colors, logo.
    launch a new line of complementary products to which we have; for example, if our product is jeans for ladies, we could launch a line of shoes or handbags for ladies.
    expand our product line; for example, increase the menu of our restaurant, or take a new kind of shampoo for other types of hair.
    launch a new brand (without removing the market we already have); for example, a new brand for our same type of product but dedicated to a public with greater purchasing power.
    adding thereto complementary services to our product; for example, the delivery of product delivery, product installation, technical maintenance or service, warranties, return policies.

Strategies for Price

The price is the monetary value assigned to the product at the time of offering or selling it to consumers. Some strategies that can design related to the price are:

    launch a new product with a low price in order to achieve rapid penetration, rapid host or do it quickly known.
    launch a new product with a high price in order to take advantage of the purchases made as a result of the novelty of the product.
    reduce our prices in order to attract more customers and boost sales.
    increase our prices in order to achieve a higher profit margin.
    reduce our prices below the competition in order to block it and win market.
    increase our prices above the competition in order to create a feeling in our products of higher quality.
    offer discounts for early payment, volume or per season.

Strategies for place or distribution

The square or distribution refers to places or outlets where the product is offered or sold to consumers as well as the way it is distributed or transferred to such places or outlets. Some strategies that can establish related to the place or distribution are:

    using intermediaries (eg, agents, distributors, retailers) in order to achieve greater coverage of our product.
    open a new shop.
    create a website or an online store for our product.
    offer or sell our product through phone calls, sending emails or visits.
    locate our products at all points of sale and for having gotten (intensive distribution strategy).
    locate our products only in outlets that are suitable for the type of product we sell (selective distribution strategy).
    locate our products only in a retail outlet that is unique (exclusive distribution strategy).
    increase the number of distributors or delivery vehicles.

Strategies for promotion or communication

Promotion or communication is to publicize, inform or to recall the existence of the product to consumers and persuade, encourage or motivate your purchase, consumption or use. Some strategies that can apply related to the promotion or communication are:

    offer to purchase the offer two products for the price of one.
    offer the offer to purchase a second product at half price for the purchase of the first.
    working with coupons or discounts.
    providing special discounts on certain products and on certain dates.
    create a sweepstakes or a contest among our customers.
    give small gifts or gifts to our major customers.
    advertise in newspapers or magazines.
    advertise on Internet sites classified ads.
    participate in a fair or exhibition business.
    enable a tasting station.
    organize an event or activity.
    putting up posters or advertising posters on the facade of the premises of our company.
    advertising sheets placed on the outside of our company vehicles.
    rent advertising space on signboards or panels on public roads.
    printing and distributing brochures, flyers, business cards.
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Marketing Strategies - Definition, Types and Examples 

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Marketing Strategies - Definition, Types and Examples

Designing marketing strategies is one of the main aspects to work in marketing. Marketing strategies define how they will achieve the business objectives of our company. This requires identifying and prioritizing those products with greater potential and profitability, select the public we will lead, define brand positioning we want to achieve in the minds of customers and work strategically different variables form the marketing mix (product, price, distribution and communication).

Marketing strategies:

Portfolio Strategy

Not all products of our portfolio have the same return, or the same potential. That is why, we need to make strategic decisions about our portfolio of products, thus we prioritize investment of resources depending on the importance of achieving these have on marketing goals we have set.

To make strategic decisions about product portfolio is a right way and start working our marketing strategies, we can use the matrix McKinsey-General Electric also called attractive-competitiveness matrix. First and depending on the amount of products that we have in our portfolio, we must decide whether we will work for products on an individual basis, grouped by product line or our portfolio is so broad that we must work dividing by business units.

The McKinsey matrix is ​​formed by two axes. On the X axis are the "competitive position" while the Y axis is located the "market appeal". In the axis of "competitive position" we must assess the ability of our product to compete against other options available in the market and classify it in one of its three quadrants: weak, medium or strong.

Moreover, in the axis of "market attractiveness" as the name suggests, analyze the attractiveness of the market in which the product operates, later also sort the result in one of its three quadrants: low, medium or high.

Marketing Strategies Mckinsey

As can be seen in the image of the matrix there are three areas that correspond to three marketing strategies portfolio:

Investing / Grow: This area of ​​the matrix has absolute priority when allocating our resources. When making our investment we will get rapid growth therefore will allocate as many of our investment.

Select / Benefits: This area can be reversed, but with special care and depending on the analysis of each case. If you have finally decided to invest, there are two strategies: 1- invest only to maintain the current situation in which it is located or 2- invest a greater amount of our budget item since we observe that there is growth potential.

Reaping / Divest: this area are advised to observe short-term disinvestment, take profits and try to sell to remove the stock.

Segmentation Marketing Strategies

In the XXI century consider the market as a unit and go to him with the same offer is a mistake. Perhaps it works in the 20s when the economy of scale was the winning horse of companies. In those years there were very few options for consumers and had to choose from. The following quote from Henry Ford is an example of the old paradigm: "the customer can choose the color car you want, as long as it's black". Can you imagine, now a car manufacturer that only manufactured in black color?

Today there is a completely different scenario, we might even say that we are completely at the other end. We have gone from tight supply and options saturation. In addition the market is composed of different customers with different needs. So if we want to optimize our marketing budgets it is necessary to divide the market into groups that have similar characteristics and needs. In this way we can offer a different value proposition and that suits each target group. The segmentation strategy is one of the main marketing strategies.

There are four variables to segment the market: Geographic: countries, cities, postal codes. Psychographic: personality, social class, lifestyle. Population: income, education, gender, age, profession, nationality. Behavioral: loyalty level, pursuit of profit, frequency of use.

In the blog I have already spoken on other occasions on market segmentation, if you want you can get more information by clicking here.

Here you can see the different segmentation strategies you can follow:

Undifferentiated strategy: despite having identified different segments with different needs, the company chooses to address them with the same offer, to try to get the maximum number of potential customers.

Differentiated strategy: we went to different market segments we have identified, but with a different one for each offer. Although this strategy has a higher cost, will enable us to meet the specific needs of each selected segment.

Concentrated strategy: we will go only with one offer to those segments that demand such offer, avoid distributing our efforts in other segments.
Marketing Strategies for Positioning

The brand positioning is the space that the product occupies in the minds of consumers over its competitors. To properly establish our positioning strategy must take into account certain aspects such as knowing the attributes that bring value to consumers, our current positioning and our competitors or positioning we aspire and viability.

The main marketing strategies for brand positioning are:

Benefit: this strategy is to position the product for the benefits it offers.

Quality / Price: offer the highest possible quality at a competitive position or by high prices or low price.

Attributes: it is positioning the product attributes offered. If you try to position multiple attributes will be more complicated, since they lose effectiveness.

Use / Application: Another option is to position based on the use or application that can be given to the product.

Categories: position yourself as a leader in a product category.

Competitor: compare our attributes with those of other competitors is a classic in products such as detergents, toothpaste, etc.
Functional strategy

The functional strategy is made up of marketing mix strategies, also called the 4Ps of marketing, are the essential variables that comprise a company to achieve its business objectives. These four variables (product, price, distribution and communication) must be fully consistent with each other and should complement each other.

Take for example the elitist brand Rolex watches, as a guard observe a strict coherence between 4 variables. Rolex watches are products that have the highest quality standards, guarantee maximum safety and durability. Also take care of every detail, from its packanging all materials used in their watches (steel, gold and estrategias_de_marketing_Rolexpreciosas stones). Rolex has an elitist brand image, becoming an aspirational brand (grants who has a status, social class and exclusivity). As for the variable price, the brand uses its high prices as reinforcement positioning, to remember their quality and prestige. How could it be otherwise, follows a selective distribution is distributed only in high watchmakers and unique selling points. Finally its communication strategy contributes once again to the consistency that follows the brand, a billing only in media aimed at high social classes and sponsoring sporting events that require precision and of course that give social prestige (tennis, golf, Formula 1, ski , boating, etc).

The marketing mix consists of the following variables:

Product: packaging, brand, image, warranty, after-sales service ...

Price: price change, scales of discounts, payment terms, etc.

Distribution: packaging, storage, order management, inventory control, location of outlets and transportation.

Communication: advertising, public relations (PR) and direct marketing and sales promotion.

As you have been able to observe marketing strategies are one of the most important aspects for business competitiveness. Unfortunately, it is one of the unfinished business of many companies. Focus only on operational marketing perform actions without your strategies defined above, it is a big mistake. To be effective in the short / medium term before we have established a correct strategic vision in the organization. If you have questions about how to define marketing strategies of your company or how to develop your marketing plan, do not hesitate to contact me. I hope you have been helpful article.

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