In a classic Harvard Business Review article, Ansoff (195) identified four strategies for business growth. These four strategies also identify four basic types of marketing plans and the types of investments and activities associated with each of them. Strategies are defined based on whether the focus is on new or existing products and on new or existing markets. When a company focuses on selling its current products to existing customers, it is following a strategy of market penetration.
The marketing activities that will predominate in this type of marketing plans are those that emphasize increasing the loyalty of existing customers so that they are not vulnerable to losing to the competition, attracting competing customers, increasing the frequency of use of the product and converting non-users into users. Efforts to expand sales by selling current products in new markets are known as a market development strategy. Such efforts may involve entering new geographical markets, such as international markets. Raising product awareness and developing distribution channels are key marketing activities.
Some product modifications may be required to better meet the needs of the local market. For example, as fast food restaurants have moved to international markets, they have often changed their menus to better suit the dining preferences of local market customers. Expanding to a new market with an existing product involves a certain risk because the company does not know the new market well and the company and its products are not well known in the market. The return on marketing investments in such a strategy is likely to be longer than in a market penetration strategy, due to the time needed to raise awareness, distribute and test the product.
Creating new products to sell to existing customers, a product development strategy, is a common marketing strategy among companies that can leverage their relationships with existing customers. For example, American Express has been able to leverage its relationships with its credit card customers to also sell travel-related services. Similarly, cable television companies have expanded their offerings to Internet and telephone services. Research and development activities play a key role in this strategy.
The time needed to develop and test new products can be long, but once a product is developed, awareness, interest and availability should be relatively quick, since the company already has a relationship with customers. A product development strategy is also riskier than a market penetration strategy because it may not be possible to develop the necessary product, at least at a cost acceptable to customers, or because the product developed does not fit customer needs. A diversification strategy involves bringing new products to new markets. This is really the creation of a completely new business.
This is the riskiest strategy and will likely require more patience while waiting for a return on investment. The four main elements of a marketing mix are product, price, location and promotion. This framework aims to create a comprehensive plan to distinguish a product or service from the competition that generates value for the customer. Often, these elements depend on each other.
The 4 P's of marketing refer to the product, the price, the place and the promotion. These are the key elements that must come together to effectively promote and promote the unique value of a brand and help it stand out from the competition. Outbound marketing campaigns require your company to directly address your target audience (think cold calls or email campaigns). As marketers have moved from using traditional media channels, such as the press, radio and television, to digital channels such as email, search and social media, the main objective is to transmit the right message, to the right customer, on the right channel.
This allows marketers to better understand each customer and create detailed customer profiles, and allows brands to attract customers with relevant content at the most important moments.
The Six C's, a fundamental review of traditional approaches, aim to address the needs of modern, customer-centric digital marketing strategies. This marketing plan also considers where the product is being advertised and in what format, such as magazines, online ads, radio, infomercials, or movie product commercials. Pricing strategy is an art and a science, since it involves market data and careful calculations, in addition to skillfully balancing between prices that are too high or too low and understanding how a bias in any direction can affect the propensity of a potential customer or customer to buy.
The four P's have stood the test of time and, despite rapid digitalization, are still valuable in the marketing world because of their strong fundamental principles. The principles are still sound, but the practice of marketing itself has changed dramatically since the 4 P's were first outlined. From the examples of marketing strategies above, SEO content should almost always be included for its appreciative value and its lasting impact. Sometimes, the marketing combination can go beyond the classic four P's of product, price, location and promotion established by Professor E.
The way Apple marketed its product forced people to simplify their lives by carrying a smartphone that could also serve as a GPS, calendar, search engine, flashlight, weather guide and calculator. Traditionally, marketing begins with the identification of consumer needs and ends with the delivery and promotion of a final product or service. We'll also look at pillar-based marketing (PBM) as an example of a SaaS marketing strategy that strengthens your authority as a problem solver and attracts qualified leads. Omnichannel marketing often uses a data-driven, AI-driven approach to understand complex data points, such as customer behavior, preferred channels and the stage of the lifecycle, in order to determine which messages to send to which customers, through which channels and at what times.
Increasing awareness through marketing communications and increasing availability through greater distribution are common marketing activities in these types of plans. Determining this will be a fundamental factor in brand revenues, since it will affect profits, supply, demand and the amount that marketers should spend on a promotion or marketing strategy. .