Marketing Strategy and Competitive Positioning pdf ebook
Download 6.59 Mb. Pdf ko'rish
|
hooley graham et al marketing strategy and competitive posit
- Bu sahifa navigatsiya:
- Improving profitability
Increase share
Increasing market share, especially in mature markets, usually comes at the expense of exist- ing competition. The main routes to increasing market share include: a) winning competi- tors’ customers; b) merging with (or acquiring) the competitors; or c) entering into strategic alliances with competitors, suppliers and/or distributors. In order to win customers from competitors, a company must offer something that is currently unavailable through another supplier. Another way to look at this, is that the company must create a perception in the mind of the customer that what they offer is currently unavailable from another supplier. This may come about through identification of competitor weaknesses, or through better exploitation of the company’s own strengths and competencies. Each of the elements of the marketing mix (products, price, promotion and distribution) may be used to offer the value-added proposition to the customer, to induce switching. Increasing usage rate may be a viable approach to expanding the market for some prod- ucts. For example, breakfast cereals might be promoted as healthy snacks to be eaten at any time of day, and not just at breakfast. Alternatively, they might also be promoted as food that can help as part of a calorie-controlled diet, such as Kellogg’s Special K. Of late, many organisations have introduced loyalty schemes, designed to reward repurchase and ‘loyalty’ in order to increase purchase frequency, share of ‘purse’ and customer retention. Improving profitability With existing levels of sales, or even reduced levels, profitability can be increased through improving margins. This is usually achieved by increasing price, reducing costs or doing both of these things. In a multi-product firm, it may also be possible through ‘weeding’ of the product line – that is, removing poorly performing products and concentrating effort on the more financially viable. The longer-term positioning implications of this weeding should, however, be carefully considered prior to wielding the axe. It may be, for example, that maintenance of seemingly unprofitable lines is essential to allow the company to continue to operate in the market as a whole, or in its own specifically chosen niche of that market. |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling