Identifying the right strategy to market your business can be challenging. How do you get your message to the right audience effectively and how do you beat your competitors? In this chapter, we will discuss how to choose the best marketing strategy for your product or service.
Three Main Marketing Strategies:
There are different types of marketing strategies and every marketing manager has to decide what’s the appropriate one. This step is important as this has a big impact on the marketing mix. A manager needs to pick one of the following marketing strategies:
- Mass Marketing
This is a push market strategy in which segmentation is completely ignored and an attempt is made to reach the largest number of potential customers possible. This technique relies on the persuasion potential of communication. Traditional mass marketing method are radio, television, and print advertising.
Coca Cola’s original marketing strategy was based on this format when they offered one product, which they believed had universal appeal. However now that Coca Cola has introduced other products, it has changed its marketing strategy to differentiated marketing.
- Differentiated Marketing
This marketing strategy is also known as the multi-segment marketing strategy. Each customer segment is handled uniquely so that you target different customer segments with different solutions. This strategy keeps your team more focused and is more efficient in spending your marketing dollars.
An airline company offering first, business, and economy class tickets, with separate marketing programmes to attract customers for each of the tickets types, is an example of a differentiated marketing strategy.
- Concentrated Marketing
This strategy targets a single well-defined segment of the customer population. The marketing costs are low, but so is your sales potential. It is particularly effective for small companies with limited resources as it does not believe in the use of mass production, mass distribution and mass advertising.
The car-manufacturer Rolls Royce only targets the premium segment of the car market.
Perceptual mapping is a diagrammatic technique used by marketers in an attempt to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition. This kind of visual representation can give valuable information about the current position as well as the future strategy of a company.
Some perceptual maps use different size circles to indicate the sales volume or market share of the various competing products. Perceptual maps commonly have two dimensions. For example, in this perceptual map
you can see consumer perceptions of various automobiles on the two dimensions of financial effectiveness and prestigious.
Such a visual display can reveal important information about the current reception of a product or brand. For example:
This sample of consumers felt that Mercedes cars were the most financially effective and prestigious cars in the study. Cars that are positioned close to each other were seen as similar on the relevant dimensions by the consumer. For example, consumers saw Toyota and Ford as similar. They are close competitors and form a competitive grouping. A company considering the introduction of a new model will look for an area on the map free from competitors.
Perceptual mapping is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers.