Intensive Strategies
Market penetration, market development, and product development are sometimes referred to as intensive strategies because they require intensive efforts if a firm’s competitive position with existing products is to improve.
Market Penetration
A market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This strategy is widely used alone and in combination with other strategies. Market penetration includes increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts. Chrysler Group LLC recently launched a new marketing campaign for its redesigned Ram pickup truck that features new technology and improved fuel economy. Chrysler desires to make inroads into the market share of the truck sales leader F-150. Chrysler’s new ads feature gruff-voiced actor Sam Elliott promoting Ram trucks over the Chevrolet Silverado and the GMC Sierra trucks.
General Motors in 2013 rolled out its global advertising campaign for its Chevrolet brand in hopes of improving the brand’s image globally and halting its market-share slide in the United States. The new tagline for the GM campaign is “Find New Roads” that replaces the lackluster “Chevy Runs Deep” slogan. The new ad campaign is designed to support GM introducing 13 new or refreshed Chevrolet vehicles in the United States in 2013 and another 12 in different regions around the world.
In the 2013 Super Bowl, Anheuser-Busch InBev launched a huge new advertising campaign to coincide with its new Black Crown brand of beer. The prior year, the company had used the Super Bowl to launch its Bud Light Platinum brand. The company believes the Super Bowl is the ideal venue to launch something new because viewers of the game surpass 110 million annually. Black Crown is a golden amber lager that is a little bit darker and a little bit more flavorful than tradition Budweiser lager, and Black Crown has a 6 percent alcohol content rather than 5 percent. Anheuser is especially targeting the 21- to 34-year-old-age group with the new ads and brand.
These five guidelines indicate when market penetration may be an especially effective strategy:
Market penetration, market development, and product development are sometimes referred to as intensive strategies because they require intensive efforts if a firm’s competitive position with existing products is to improve.
Market Penetration
A market penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts. This strategy is widely used alone and in combination with other strategies. Market penetration includes increasing the number of salespersons, increasing advertising expenditures, offering extensive sales promotion items, or increasing publicity efforts. Chrysler Group LLC recently launched a new marketing campaign for its redesigned Ram pickup truck that features new technology and improved fuel economy. Chrysler desires to make inroads into the market share of the truck sales leader F-150. Chrysler’s new ads feature gruff-voiced actor Sam Elliott promoting Ram trucks over the Chevrolet Silverado and the GMC Sierra trucks.
General Motors in 2013 rolled out its global advertising campaign for its Chevrolet brand in hopes of improving the brand’s image globally and halting its market-share slide in the United States. The new tagline for the GM campaign is “Find New Roads” that replaces the lackluster “Chevy Runs Deep” slogan. The new ad campaign is designed to support GM introducing 13 new or refreshed Chevrolet vehicles in the United States in 2013 and another 12 in different regions around the world.
In the 2013 Super Bowl, Anheuser-Busch InBev launched a huge new advertising campaign to coincide with its new Black Crown brand of beer. The prior year, the company had used the Super Bowl to launch its Bud Light Platinum brand. The company believes the Super Bowl is the ideal venue to launch something new because viewers of the game surpass 110 million annually. Black Crown is a golden amber lager that is a little bit darker and a little bit more flavorful than tradition Budweiser lager, and Black Crown has a 6 percent alcohol content rather than 5 percent. Anheuser is especially targeting the 21- to 34-year-old-age group with the new ads and brand.
These five guidelines indicate when market penetration may be an especially effective strategy:
- When current markets are not saturated with a particular product or service.
- When the usage rate of present customers could be increased significantly.
- When the market shares of major competitors have been declining while total industry sales have been increasing.
- When the correlation between dollar sales and dollar marketing expenditures historically has been high
- When increased economies of scale provide major competitive advantages
Market Development
Market development involves introducing present products or services into new geographic
areas. India is a target for numerous firms to expand geographically.
These six guidelines indicate when market development may be an especially effective strategy
Market development involves introducing present products or services into new geographic
areas. India is a target for numerous firms to expand geographically.
These six guidelines indicate when market development may be an especially effective strategy
- When new channels of distribution are available that are reliable, inexpensive, and of good quality.
- When an organization is successful at what it does.
- When new untapped or unsaturated markets exist
- When an organization has the needed capital and human resources to manage expanded operations.
- When an organization has excess production capacity.
- When an organization’s basic industry is rapidly becoming global in scope.
Product Development
Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development usually entails large research and development expenditures.
These five guidelines indicate when product development may be an especially effective strategy to pursue:
Product development is a strategy that seeks increased sales by improving or modifying present products or services. Product development usually entails large research and development expenditures.
These five guidelines indicate when product development may be an especially effective strategy to pursue:
- When an organization has successful products that are in the maturity stage of the product life cycle; the idea here is to attract satisfied customers to try new (improved) products as a result of their positive experience with the organization’s present products or services.
- When an organization competes in an industry that is characterized by rapid technological developments.
- When major competitors offer better-quality products at comparable prices
- When an organization competes in a high-growth industry
- When an organization has especially strong research and development capabilities
No comments:
Post a Comment