The concept of marketing to build a profitable organization satisfaction survey customer needs, and this has helped the company to achieve success in high growth, are at a competitive market. But as for the necessary marketing strategies. Consider such a strategy and product portfolio into account the anticipated move of the competitors in the market.
Price / Bid Business Strategy: A company that followed the skimming strategy of trying to be the first to introduce products with very good performance, selling to the innovator and market segments set premium prices for it. This makes as much profit as possible, then move on when the competition arrives. Prices will likely fall from time to time as the competition. Such skimming strategy contrasts sharply with the strategy, which seeks to gain market share at the expense of short-term profits, and increase prices from time to time as market share gained.
Competitors have certain strengths and abilities. To succeed, companies must take advantage of unique capabilities.
A company must prepare a defensive strategy of potential threats before they arrive. If the shock of a company's competition with the introduction of the product is far superior, companies must resist the temptation to continue with the product mediocre. A company should never introduce products that wear out when the market hits.
Competition may be a response to corporate actions should be considered carefully.
Marketing Research for Strategic Decision Making
The two most commonly used marketing research is for diagnostic analysis to understand the market and current business performance, and opportunity analysis to determine any of unexploited opportunities for growth. Marketing research include consumer studies, studies of distribution, semantic scaling, multidimensional scaling, intelligence studies, projections, and analysis together. Some of them are described below.
Semantic scaling: a very simple rating of how consumers view the physical attributes of a product, and what the values would be the ideal attributes. Semantic scaling is not accurate because the consumers surveyed by an ordinal ranking, so the average is not mathematically possible. For example, 8 is not needed twice as many as 4 in the ordinal ranking system. In addition, each person using a different scale.
Multidimensional scaling (MDS) to discuss issues related to the semantic scale by consumers voting for the pair-wise comparisons between products or between one product and the ideal. The assumption is that when people can not be trusted to report the drive attribute their choice, they can report the similarities between the brand perception. However, MDS analysis did not indicate the relative importance of attributes.
Assembly analysis of the relative importance of attributes concluded by presenting consumers with a series of hypothetical products feature two and ask those who prefer their products. This question is repeated over several sets of attribute values. The results can be used to predict a more important attribute, attribute value combination of the most popular. From this information, the expected market share of a design can be estimated.
Marketing Research for Strategic Decision Making
The two most commonly used marketing research is for diagnostic analysis to understand the market and current business performance, and opportunity analysis to determine any of unexploited opportunities for growth. Marketing research include consumer studies, studies of distribution, semantic scaling, multidimensional scaling, intelligence studies, projections, and analysis together. Some of them are described below.
Semantic scaling: a very simple rating of how consumers view the physical attributes of a product, and what the values would be the ideal attributes. Semantic scaling is not accurate because the consumers surveyed by an ordinal ranking, so the average is not mathematically possible. For example, 8 is not needed twice as many as 4 in the ordinal ranking system. In addition, each person using a different scale.
Multidimensional scaling (MDS) to discuss issues related to the semantic scale by consumers voting for the pair-wise comparisons between products or between one product and the ideal. The assumption is that when people can not be trusted to report the drive attribute their choice, they can report the similarities between the brand perception. However, MDS analysis did not indicate the relative importance of attributes.
Assembly analysis of the relative importance of attributes concluded by presenting consumers with a series of hypothetical products feature two and ask those who prefer their products. This question is repeated over several sets of attribute values. The results can be used to predict a more important attribute, attribute value combination of the most popular. From this information, the expected market share of a design can be estimated.
Multi-Product Allocation of Resources
The most common method of resource allocation is:
* Percentage of sales
* Executive assessment
* All-you-can-can
* Match competitors
* Last year on the basis
Another method is called a decision calculus. Managers will be asked four questions:
What will the sale with:
1. no sales force
2. half of the current business
3. 50% greater efforts
4. a saturation level of effort.
From this answer, we can determine the parameters of the S-curve response functions and uses linear programming techniques to determine the allocation of resources.
The decision algorithm that produces extreme solutions, such as allocating most of the sales force for one product while ignoring other products often do not produce practical solutions.
For mature products, sales increased very slightly as a function of advertising expenditure. But for newer products, there is a very positive correlation.
Model portfolios can be used to allocate resources among the major product lines or business units. BCG growth-share matrix is one of the models.
New Product Diffusion Curve
As a new product diffuses into the market, some types of customers such as innovators and early adopters before buying other consumer products. Product adoption follows a path shaped like a bell curve and is known as product diffusion curve. Marketing strategy must take this adoption curve into account and address the factors that affect the level of adoption by different types of consumers.
Dynamic Product Management Strategies
Two fundamental issues are whether management products to pioneer or follow, and how to manage products through their life cycle.
The order of market entry is very important. In fact, the estimated market share relative to the pioneering brand is the pioneer brand of shares divided by the square root of the order of entry. For example, brands that have entered the third predicted 1 / √ 3 times the market share of the first participants (Marketing Science, Vol. 14, No. 3, Part 2 of 2, 1995.) Rule is determined empirically.
Pioneering advantage derived both from the supply side and demand. From the supply side, there is an excess of raw materials, a better experience for the effect of cost benefit, and channel preemption. On the demand side, there are advantages of familiarity, the opportunity to set standards, and the choice of position perception.
After the company's pioneering benefit, can maintain by increasing the product, creating a standard, advertised that it was the first, and introduce new products on the market that might cannibalize the first, but to prevent other firms enter.
There are also disadvantages to be pioneers. Be the first to allow competitors to jump start technology. Incumbent inertia in developing R & D and may not be flexible as new arrivals. Develop industry pioneer who must bear the costs themselves, and how to develop the potential of industry and size are not deterministic.