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Sample example of a product promotion strategy. Strategies for promoting a specific type of company product, taking into account the market situation

Promotion of goods and services is the most important component of a set of marketing activities, representing any form of action used by an enterprise to inform, persuade and remind consumers about its goods, services, images, ideas, and social activities. Suleymanova B. The system for promoting goods and services as one of the tools of the marketing mix // Marketing in Russia and abroad. - 2009. - No. 4. - P. 76.

Modern organizations use complex communication systems to maintain contacts with intermediaries, clients, and various public organizations and layers. In this regard, the concepts of “marketing communications” and “product promotion methods” are essentially identical concepts, although specialists include the same specific methods of product promotion and trade organization (for example, direct marketing) in different ways in the concept of “product promotion.” and “marketing communications”.

To deliver planned requests to the consumer, the following types of communications are used:

Advertising is any form of communication paid for by a specific person, intended to promote goods, services or ideas. Although some types of advertising (eg, direct mail) are targeted at a specific individual, most advertising messages are intended for large groups of the population, and are distributed through such media as radio, television, newspapers and magazines.

Advertising plays a significant role in the activities of a huge number of private and public companies: it stimulates consumers, shapes public opinion, allows them to sell more, but significantly increases costs. Trutneva E.A. Econometric analysis of the effectiveness of the impact of advertising activity on the strategic indicators of a company’s development (using the example of the telecommunications market) // HSE Economic Journal. - 2009. - No. 4. - P. 520 - 548.

Sales promotions are various types of marketing activities that temporarily increase the initial value of a product or service and directly stimulate consumer purchasing activity (for example, coupons or samples), the work of distributors and sales personnel.

Consumer incentives are aimed at increasing consumer purchases and use the following main methods: providing samples for testing; use of coupons; return of part of the price or trade discount; package sales at reduced prices; bonuses; souvenirs with advertising; encouraging regular clientele; contests, sweepstakes and games that give the consumer a chance to win something - money, goods, travel; exposition and demonstration of signs, posters, samples, etc. at places where products are sold.

For example, distributing samples, as well as conducting product tastings, is the most profitable move for edible products launched on the market, as well as printing, souvenirs, hygiene items and some other goods. These methods can either precede the start of sales, or work simultaneously with the start of trading. Kharlampieva S.S. Drawing up an advertising plan as part of a business plan when starting a private business // Marketing in Russia and abroad. - 2009. - No. 1. - P. 81.

Sales promotion activities are characterized by the rapid emergence of an economic effect, as they help make a final purchase decision or stimulate impulse purchases. After the end of the sales promotion campaign, sales return to their previous level. Slepenkova E., Gorchakov V. Construction of a complex of integrated marketing communications in a Russian company // Vestnik Mosk. un-ta. Ser. 6. Economics. - 2009. - No. 5. - P. 72.

Public relations (public relations) - coordinated efforts to create a favorable image of a product in the minds of the population. They are implemented by supporting certain programs and activities not directly related to the sale of goods: publication of commercially important information in the press, “publicity” on radio and television.

Direct marketing is an interactive marketing system that allows consumers to easily obtain information they are interested in and purchase goods through the use of various information distribution channels. Includes direct mail, print catalog orders, and online catalog sales.

Personal selling - establishing personal contact with one or more potential buyers for the purpose of selling a product. Examples of such contacts include telephone conversations between regional representatives of a manufacturing company and local companies or retailers, selective calls to potential buyers directly at home, or the sale of goods through telephone orders.

Special means for stimulating trade or advertising and design means for points of sale - refers to the use of means that deliver a marketing message directly to the point of sale and increase the likelihood of customers purchasing goods. Such means, such as in-store coupons, remind the customer about a particular product, deliver a company marketing message, or inform the customer about the benefits of a future purchase.

Packaging - in addition to its main function, serves as the location of the marketing communication message. Therefore, the development of product packaging is carried out by both technologists and designers, as well as marketing communications planners. Since it is the marketing message on the packaging that the store visitor sees in front of him at the moment of making a purchase decision, it plays an extremely important role in the process of persuading consumers.

Special souvenirs are free gifts that serve as a reminder of the company that produces the product and its brand name.

Sponsorship is financial support provided by a company to non-profit organizations during various events in exchange for the right to establish special relations with them. Sponsorship activities can increase the prestige of a company and create a positive image of its activities. Examples of sponsorship include material support for tennis tournaments or the transfer of funds to charitable public foundations.

Licensing is the practice of selling the right to use a company's trademarks or products. When a university allows a T-shirt manufacturer to use its name as an inscription on them, this permission must be formalized in the form of a special contract.

After-sales service is an important part of maintaining marketing communications and provides after-sales service to the buyer. Service programs are aimed at meeting current customer needs. An important tool for maintaining a positive perception of the company in the post-sale period is also the provision of guarantees for the goods sold.

Unsolicited communications include all other ways of conveying various information about the company and its brand to potential customers. For example, a dirty delivery vehicle, a lack of safe parking near a store, unfriendly behavior from order takers, an unkempt office building, irritated employees, or constantly busy phones are negative messages that can have a stronger impact on consumers. impact than planned marketing communications, including advertising and established public relations. All employees of the company, and especially those who directly deal with clients, can unintentionally become sources of transmission of unwanted information if they do not undergo special training, during which they become familiar with the communication effects of their actions and manner of communication. Although marketing communications professionals should not always be held accountable for these unplanned calls, they should anticipate and eliminate calls that are inconsistent with the firm's overall communications strategy and encourage the dissemination of information that fits with that strategy. Burnet J., Moriarty S. Marketing communications: an integrated approach / Transl. from English edited by S.G. Bozhuk. - St. Petersburg: Peter, 2001. - P. 8.

When promoting a product, a “push” strategy and a “pull” strategy are used.

The “push” strategy is the organization’s activities aimed at promoting a product, addressed to representatives of the distribution system in order to persuade them to “bring” the product to the end consumer.

The “pull” strategy is the organization’s activities aimed at promoting a product, addressed to end consumers who, if they want to buy the product, begin to demand it from representatives of the distribution system, who in turn turn to the manufacturer. Golubkov G. Marketing research: theory, practice, methodology: Textbook. - M.: Publishing house "Finpress", 2005. - P. 105.

Most organizations use a combination of these two strategies.

All elements of the marketing mix are interconnected. For example, the functionality and quality of the product determine the price charged. Each consumer explicitly or implicitly evaluates the purchased product according to the “price-effectiveness” criterion, comparing the amount of money put out of his pocket with the benefits and efficiency that the purchased product will provide him. Of course, each consumer’s “pocket size” is different. This leads to a very definite practical recommendation for manufacturers: manufactured products should be designed for the “pockets” of consumers of various sizes. It is obvious that the chosen means of promotion and delivery of the product influence the sales volume and profit. And examples of such relationships between elements of the marketing mix can be continued.

Thus, promoting a new product to the market is a combination of various types of activities to convey information about the merits of the product to potential consumers and stimulate their desire to buy it. Product promotion is carried out through the use of advertising, sales promotion methods, personal selling and public relations methods in a certain proportion.

Concept and features of promotion strategy

Definition 1

Promotion strategy is one of the subtypes of functional marketing strategies. It is a strategy for selecting and using incentive methods aimed at ensuring the sale and marketing of the company's products. In other words, it is a sales promotion strategy.

A promotion strategy can also be defined as a set of marketing efforts, including a description of the target market segment, positioning, brand structure, marketing communications distribution channels and a media plan.

A promotion strategy performs certain functions. In particular, these include:

informing;
exhortation;
reminder;
positioning;
retention;
formation of consumer demand;
incentives, etc.

The implementation of a promotion strategy is designed to create market awareness of new products, a corporate brand or a certain event. At the same time, it promotes the gradual, consistent formation of consumer preferences and attracts the attention of potential customers to the company and its products, encouraging them to make a purchase.

By maintaining market awareness, the promotion strategy reminds potential customers about the company, its products and services, and also helps retain loyal consumers. It also positions the brand, product and business as a whole. The most important functions of promotion strategies. However, sales promotion and the formation of consumer demand are considered.

A promotion strategy allows a company to identify the current position of the company’s products on the market and make a forecast of future development, taking into account the resource potential of the company and the state of the market. Thanks to it, market risks and opportunities are assessed, and free market niches and ways to penetrate them are determined.

Note 1

A promotion strategy always presupposes the need to position the brand and create a system of integrated marketing communications.

Basic elements of a promotion strategy

Being an integral element of marketing, a promotion strategy consists of many elements, the totality of which constitutes a complex of marketing communications. They are presented in general form in Figure 1.

Figure 1. Basic elements of the marketing communications mix. Author24 - online exchange of student work

Advertising is the basis of promotion strategy. In general, it represents a targeted informative impact of a non-personal nature, carried out in relation to consumers with the aim of promoting and selling the company's products. Its main goal is to convey information to the target audience, which is carried out through the use of various media channels.

The second important element of the promotion strategy is direct sales promotion. In general terms, it should be understood as a multiple set of short-term incentive campaigns carried out by a company, aimed at stimulating potential consumers to make a purchase or test products and services.

Sales promotion can be aimed at:

end consumers;
intermediaries;
sales agents.

The third element is propaganda or PR (public relations). This group includes various programs created to promote and/or protect the image of the company and its products. Their main goal is to establish and maintain communications between the company and the public in order to achieve strategic business goals.

The fourth element is personal selling, which should be understood as the direct interaction of organization representatives with one or more potential buyers for the purpose of making presentations, answering questions and receiving orders. In other words, this is a direct presentation of a product or service to a potential consumer, carried out by an official representative of the company.

In some cases, direct marketing, based on direct (immediate) interaction between the consumer and the manufacturer in the process of selling a specific product, is allocated as a separate group within the promotion strategy.

Development of a promotion strategy

The development of a promotion strategy is subject to a specific algorithm, which requires going through a number of stages. They are presented in general form in Figure 2.

Figure 2. Stages of developing a promotion strategy. Author24 - online exchange of student work

To penetrate new markets and strengthen positions in existing ones, a company must take into account regional specifics. An equally important role is played by understanding the strategic goals and objectives of business development. The promotion strategy must correspond to the general concept of the company's development and complement the marketing strategy of its development.

An important step in developing a sales promotion strategy is analyzing the market, especially competitors. Here it is necessary to understand how competing companies sell and promote their products, what tools they use, and how they attract consumers.

Based on in-depth analytical study, in accordance with the overall marketing strategy, the company’s goals in the field of promotion and sale of its products in selected markets are determined. A promotion policy is formed, the set and content of marketing communications tools are determined. The process of bringing products to the final consumer is subject to planning.

An important role is given to the formation of a promotion budget. Here, the amount of expenses for the implementation of the measures proposed within the framework of the strategy is predicted, and planned sales indicators are also formed.

Based on the stages described above, a promotion strategy is formed. Mechanisms for bringing products to consumers and ways to stimulate consumer activity are determined. A special role is traditionally assigned to advertising policy.

In what ways and through whom should you promote your product on the market? All entrepreneurs who want to occupy a certain niche and receive good income from business are certainly familiar with such concepts as marketing and strategic planning. What do these terms mean? What are the rules for promoting goods and services on the market?

Let’s try to reveal the secrets of the most effective ways to promote them, which have been considered the most effective for half a century.

What is promotion?

How to sell a product on the market as efficiently as possible? To do this, it will be necessary to carry out a whole range of measures, which will increase the demand for the products produced by the manufacturer and the services offered.

Promotion of a product on the market represents certain actions, the purpose of which is to increase the efficiency of sales through communicative influence on consumers, partners and staff. The purpose of such steps is twofold. On the one hand, promoting goods and services to the market is necessary to activate consumer demand. In addition, such events should maintain a favorable attitude towards the company.

Product promotion functions

This concept is one of the main elements of marketing. This is confirmed by a number of very important functions assigned to it. Among them:

Providing information to consumers about the product, as well as its parameters. After all, even with clear competitive advantages of products and the presence of associated innovations, the release of products will be absolutely meaningless if customers are not aware of them. It is especially important to convey such information to the right audience if a new product is being promoted to the market. For example, ultrasonic washing machines put up for sale will be in demand by customers if the manufacturer explains their advantages by comparing them with conventional washing devices. A prerequisite for this is confirmation of such information by enthusiastic owners.
Creating an image of innovation, low prices and prestige. Promotion of a product on the market aims to create among buyers an idea of a particular thing, which often exceeds its real consumer meaning. For example, plastic windows produced “without lead”, or shampoo with a pH of 5.5.
Supporting the popularity of goods or services offered on the market. This function is performed by reminding consumers of the need and importance of a particular product. For example, customers should always remember that in their lives a holiday comes only with Coca-Cola.
Changing certain stereotypes in the perception of a product. The idea of a particular thing does not always correspond to the expectations of the supplier and manufacturer. In order to change the negative trend, it is necessary to conduct a special campaign to promote the product on the market. For example, at one time the South Korean corporation Samsung increased the warranty period for equipment to three years. This is precisely what the product promotion campaign on the market was built on. Potential buyers were thereby convinced that the products of this company were not inferior in quality to those produced by Japanese competitors, and their prices were lower, and the service was better.
Stimulating subjects of the sales system. The development of product promotion on the market is carried out taking into account the fact that the company can sell its products not through direct sales channels, but through intermediaries. In this case, to increase purchases, it will be necessary to stimulate final demand using various promotion strategies.
Sales of expensive goods. The price of a particular product or service is sometimes not the decisive factor when choosing a client. This occurs in cases where a product is assigned a unique quality in the eyes of consumers. Thus, during the ongoing promotion campaign, it is explained to potential buyers that the Tefal frying pan, although expensive, has a removable handle and can be compactly placed in a kitchen cabinet. At the same time, similar products from competitors do not have such properties.
Favorable reviews about the company. This function of promoting goods to markets is sometimes called nothing more than hidden advertising. It is achieved through the actions of sponsors, the implementation of social projects, etc. And although recently such an organization of promoting goods on the market has become very popular, it is still the last in importance. After all, a low-quality product sold at a high price will certainly cause a negative consumer perception. Sponsorship will not help in this case to sell the products.

Increased consumer demand

Marketing promotion of a product on the market provides four options for ways to increase consumer demand. Let's take a closer look at them.

Among all types of product promotion, this is considered a non-personal form of communication carried out with the participation of paid means that disseminate information.

From this point of view, advertising activities should be considered. After all, you can pay as much money as you like for information about a product, but if it is not in demand on the market, then the level of its sales is unlikely to rise.

Advertising effectiveness

Methods of promoting a product to the market through the media will bear fruit only if the information provided to the consumer contains an assessment of a particular thing, as well as arguments in its favor.

Objective. In this case, advertising for promoting a product to the market contains logically understandable features of the product.
Subjective. They are designed to form certain associations and emotions in the consumer.

But be that as it may, the information provided to a potential buyer must contain some kind of unique offer. At the same time, the consumer must understand that if he purchases the item or service offered, he will receive some specific benefit from it.

Advertising perception

Necessary information that is understandable, accessible and very quickly remembered. Such advertising does not require significant investments. Just a few lines in the newspaper are enough. An example of this is advertising about writing term papers and dissertations for students.
Random information. As a rule, they do not remember it at all or remember it with difficulty. In this case, the information must be linked to the media - the advertising medium. A potential consumer will find the ad he needs if necessary. For example, if he wants to install plastic windows in his house, he will open a free advertising publication. The main task of the seller is to ensure that his offer catches the client’s eye.
Unnecessary information. Sometimes advertising is ignored by the consumer or simply irritates him. This is always taken into account when marketing a product to market. Unnecessary information always occurs. The product cannot be in demand by absolutely everyone. The main question in this case is: what part of the audience is for whom advertising is unnecessary?

Once the consumer understands the need to purchase the advertised product, he will decide to purchase it. The task of marketing in this case is to correctly determine the target audience and means of promoting goods on the market, which will increase sales volumes.

Direct (personal) sales

Among the ways to promote a product on the market, there is one in which sales become possible thanks to a conversation held with a potential buyer. The second name for such activities is “direct marketing”. When implementing such a strategy for promoting a product to the market, significant financial investments will not be required. Moreover, this method refers to a higher level of business organization compared to banal retail trade or the provision of household services.

This type of promotion is impossible without the company’s employees knowing the features of the goods being sold, including their quality and operational aspects. This allows for more qualified customer service.

A particularly important point

If you ignore the direct sales method, sales volumes can be significantly reduced. This is observed even if all other marketing conditions have been met by the company. For example, when offering high-quality and cheap goods, with an ideal store location, a huge assortment and an effective advertising campaign, the rudeness and disinterest of sellers in communicating with customers is unlikely to allow the outlet to make a profit.

The advantage of personal selling

When using this strategy for promoting a product on the market, the positive is:

Individual approach that is applied to each buyer;

Possibility of transmitting a large amount of information about the product to the consumer;

The presence of feedback from the consumer, which allows you to quickly adjust the production process and advertising campaign.

Disadvantages of Personal Selling

The negative side of such a marketing strategy is the high level of turnover costs. After all, those relationships that take place in the organization of a trading network are often built on the principle of a pyramid. Personal selling is most effective when the seller offers an exclusive product on the market. If such trade is carried out simultaneously by retail outlets and traveling salesmen, then personal selling will be uncompetitive. In this case, in the eyes of the buyer, the product loses its exclusivity.

Propaganda

This type of strategy for promoting a product to the market is one of the types of public relations. This is an incentive that is not paid for by the sponsor. Propaganda aims to attract the attention of potential buyers. In this case, you will not need to spend on advertising.

Propaganda means

The main tools for such promotion of a new product to the market are:

Speeches at which representatives of the company participate in welcoming speeches;

Events in the form of press conferences or online meetings, holding anniversaries and seminars, etc.;

News in the media with information about the company’s products and its employees;

Publication of annual reports, brochures, newsletters and other printed materials;

Sponsorship in the form of allocation of monetary resources and time for sports, charitable and other significant events;

Means of identification in the form of the use of a company logo (emblem), business cards, uniforms for employees, etc.

Sales promotion

This term refers to a set of activities that promote product promotion. This may include various elements of marketing associated with relationships in distribution systems.

Sales promotion activities are directly related to the price of products, their consumer properties and sales channels. Such a marketing move involves influencing three recipients. Among them:

Buyers. To encourage them to make purchases, the trading organization organizes lottery competitions, promotions, loyalty programs, etc.
Counterparties. To increase the volume of trade transactions and focus on the sale of the supplier’s products, promotional materials can be provided, competitions based on sales results can be held, assistance can be provided in employee training, etc.
Sales staff. Among the forms of incentives for such employees are: competitions in sales volume between employees, payment for health vouchers at the expense of the company, the accrual of material bonuses, etc.

Conclusion

The importance of the topic we discussed for successful business development is extremely high. Without promoting products, it is unlikely that you will be able to organize a profitable business.

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What is an enterprise marketing strategy

Let's turn to the etymology of the word "strategy" . Translated from ancient Greek it means "the art of a commander" , his long-term plan for the war.

The modern world dictates its terms, but strategy today remains an art that every entrepreneur must master in order to win the battle for profit and market share. Today, strategy is a long-term action plan aimed at achieving the global goals of the enterprise.

Any organization has a general strategy that corresponds to its global goals and strategy by type of activity. One of these is the marketing strategy of an enterprise.

Despite the fact that the number of companies in various markets is constantly growing, store shelves are crowded with a variety of goods, and consumers are becoming more and more whimsical and picky, many Russian companies still neglect marketing. Although it is the marketer who is able to highlight your product on the store shelf among competitors, make it special and bring profit. Therefore, developing a marketing strategy is one of the key issues in planning an organization’s activities.

Marketing strategy – a general plan for the development of each element (physical product - product, distribution, price, promotion; service - product, distribution, price, promotion, physical environment, process, personnel), developed for the long term.

The marketing strategy, as an official document, is enshrined in the company's marketing policy.

The practical importance of marketing strategy for an enterprise

The marketing strategy, being an integral part of the overall strategy of the enterprise, directs activities to achieve the following strategic goals:

Increasing the enterprise's market share in the market;
Increasing the company's sales volume;
Increasing the profit of the enterprise;
Gaining leading positions in the market;
Other.

The goals of the marketing strategy must be consistent with the mission of the enterprise and overall global goals. As we see, all goals are related to competitive or economic indicators. Achieving them without a marketing strategy is, if not impossible, then very difficult.

To achieve any of the above goals, it is necessary to include the following elements in the company’s marketing strategy:

Target audience of your company/product. The more detailed you can describe your target customer, the better. If you have chosen several segments for yourself, then describe each of them, don’t be lazy.
Marketing complex. If you offer a physical product, describe each of the four Ps (product, distribution, price, promotion). If you are selling a service, you will describe the 7 Ps (product, distribution, price, promotion, physical environment, process, people). Do this in as much detail as possible and for each element. Name the core benefit of your product, indicate the key value for the client. Describe the main distribution channels for each product, determine the price of the product, possible discounts and desired profit per unit. Think about what marketing activities will be involved in the promotion. If you offer a service, then determine who, how and where (in terms of room design, work tools) will implement it.

Each of the elements must also form its own strategy, which will be included in the overall marketing strategy of the business.

Marketing budget. Now that you have a detailed marketing strategy, you can calculate your overall budget. It doesn't have to be exact, so it's important to include a reserve here.

Once you have identified each of the listed elements, you can begin to realize your goals through a series of tasks:

Formulation of a strategic marketing problem (this point needs to be given the greatest attention);
Needs analysis;
Consumer market segmentation;
Analysis of business threats and opportunities;
Market analysis;
Analysis of the strengths and weaknesses of the enterprise;
Choice of strategy.

Levels of an enterprise's marketing strategy

As we can see, the overall marketing strategy includes strategies for marketing elements. In addition, the marketing strategy must be developed at all strategic levels of the enterprise.

In the classical reading, there are four levels of enterprise strategies:

Corporate strategy(if your company is differentiated, that is, it produces several products, otherwise this level will not exist);
Business strategies– strategy for each type of activity of the enterprise;
Functional strategy– strategies for each functional unit of the enterprise (Production, marketing, R&D, and so on);
Operational strategy– strategies for each structural unit of the company (workshop, sales floor, warehouse, and so on).

However, the marketing strategy will only cover three levels of the strategic hierarchy. Experts in the field of marketing recommend excluding the functional level, since it involves considering marketing as a narrowly functional type of activity. Today, this is not entirely true and leads to short-sighted decisions in the field of marketing.

So, marketing strategy must be considered from the point of view of three levels:

Corporate level: formation of assortment marketing strategy and market orientation strategy;
Business unit level: development of a competitive marketing strategy;
Product level: product positioning strategy on the market, strategies for the elements of the marketing mix, strategies for each product within the product line strategy.

As we can see, we should develop 6 types of strategies as part of the overall marketing strategy of the enterprise.

Choosing the type of marketing strategy for your business

Let's start moving towards a common marketing strategy from the highest level - corporate. It will be absent if you offer only one type of product.

Corporate level of marketing strategy

At the corporate level, we need to consider assortment strategy and market orientation strategy.

Assortment strategy of the enterprise

Here we need to determine the number of product units of the assortment, the width of the assortment, that is, the number of products of different categories in the assortment (for example, yogurt, milk and kefir), the depth of the assortment range or the number of varieties of each category (raspberry yogurt, strawberry yogurt and peach yogurt).

As part of the assortment policy, the issue of product differentiation (changing its properties, including taste, packaging), developing a new product and discontinuing the product is also considered.

The listed issues are resolved based on the following information about the market and the company:

Size and pace of market development;
Size and development of the company's market share;
Size and growth rates of various segments;
The size and development of the enterprise's market share in the product market.

It is also necessary to analyze information about the products that are included in the product line:

Trade turnover by product;
Level and change in variable costs;
Level and trends in gross profit;
Level and change in fixed non-marketing costs.

Based on this information, the assortment strategy of the enterprise is drawn up.

Market Orientation Strategies

As part of this strategy, we need to identify the target market and identify target segments. Both questions depend on your range and individual products.

In general, at this stage the decision comes down to choosing one of the following market segmentation options:

Focus on one segment. In this case, the seller offers one product in one market.
Market specialization. It is used when you have several product categories that you can offer only to one consumer segment. Let’s depict this schematically (“+” is a potential consumer)

Product specialization suitable for you if you have only one product, but can offer it to several segments at once.

Electoral specialization. This is the case when you can adapt your offer to any of the segments. You have enough products to satisfy the needs of each segment.
Mass Marketing. You offer one universal product that, without any changes, can satisfy the needs of each segment of your market.

Full market coverage. You produce all products available on the market and, accordingly, are able to satisfy the needs of the entire consumer market

Before defining a market targeting strategy, we advise you to carefully analyze the needs of the customer segments that exist in your market. We also do not advise you to try to “capture” all segments at once with one product. So you risk being left with nothing.

Business unit level

Choosing a competitive marketing strategy is a fairly broad issue. Here it is necessary to consider several aspects at once, but first it is necessary to carry out analytical work.

First, assess the level of competition in the market. Secondly, determine your company's position among competitors.

It is also necessary to analyze the needs of your target audience, assess the threats and opportunities in the external environment, and identify the strengths and weaknesses of the company.

It is necessary to carry out analytical work with the product: identify its key value for the target consumer and determine its competitive advantage. Once you have done your analytical work, you can begin choosing a competitive strategy.

From the point of view of marketing practitioners, it is advisable to consider competitive strategies from two perspectives: the type of competitive advantage and the role of the organization in a competitive market.

Competitive strategies by type of competitive advantage

Here it would be advisable to immediately present these strategies in the form of a diagram, which is what we will do. The possible types of competitive advantage of the organization are located in the columns, and the strategic goal of the product (company) is located in the rows. At the intersection we get strategies that suit us.

Differentiation strategy requires you to make your product unique in the quality that matters most to your target customer.

This strategy is suitable for you if:

The company or product is at a stage of its life cycle called maturity;
You have a sufficiently large amount of funds to develop such a product;
The distinctive property of a product constitutes its key value for the target audience;
There is no price competition in the market.

Cost leadership strategy assumes that you have the opportunity to produce a product at the lowest cost on the market, which allows you to become a leader in price.

This strategy is right for you if:

You have technologies that allow you to minimize production costs;
You can save money on production scale;
You are lucky with your geographical location;
You have privileges when purchasing/extracting raw materials;
The market is dominated by price competition.

Focus on costs and differentiation implies your advantage over competitors only in one segment of your choice, in terms of costs or distinctive product properties. The choice factors that we discussed above regarding each strategy will help you choose what exactly to focus on (costs or differentiation).

The focusing strategy has the following factors:

You can identify a clearly defined segment in the market with specific needs;
There is a low level of competition in this segment;
You don't have enough resources to cover the entire market.

Competitive strategies based on the organization's role in the market

At the very beginning, we recalled that the concept of “strategy” entered our lives from the art of war. We invite you to return to those ancient times and take part in a real battle, only in our time and in a competitive market.

Before you go to the battlefield, you need to determine who you are in relation to your competitors: a leader, a follower of the leader, an industry average, a small niche player. Based on your competitive position, we will decide on a “military” strategy.

Market leaders it is necessary to hold the defense so as not to lose your position.

Defensive war involves:

Staying ahead of competitors' actions;
Constantly introducing innovations into the industry;
Attack on oneself (own competing products);
Always be on the alert and “jam” the decisive actions of competitors with the best solutions.

Follower of the leader it is necessary to take an offensive position.

First of all, you need:

Identify the leader’s weaknesses and hit them:
Concentrate your efforts on those product parameters that are a “weak” side for the leader’s product, but at the same time important for the target consumer.

Industry average Flank warfare will do.

It involves the following combat actions:

Search for a low-competitive market/segment;
Unexpected attack from the flank.

If you are a niche player, your war is guerrilla.

You should:

Find a small segment that you can reach;
Be active in this segment;
Be “flexible”, that is, be ready at any time to move to another segment or leave the market, since the arrival of “large” players in your segment will “crush” you.

Product level of marketing strategy

The marketing strategy of a product is represented by three types of strategies at once: a strategy for positioning the product on the market, strategies for the elements of the marketing mix, strategies for each product within the marketing strategy of the product line.

Positioning strategy

We propose to highlight the following positioning strategies:

Positioning in a special segment(for example, young mothers, athletes, clerks);
Positioning on product functionality. Functional features are mainly emphasized by companies specializing in high-tech products. For example, The iPhone, seeing the target audience’s need for excellent photo quality, positions itself as a smartphone with a camera no worse than a professional one;
Positioning at a distance from competitors(the so-called “blue ocean”). There is such a positioning strategy as the “blue ocean” strategy. According to this strategy, the competitive market is a “red ocean”, where companies fight for every client. But an organization can create a “blue ocean,” that is, enter the market with a product that has no competitors. This product must be differentiated from competitors on key consumer factors. For example, Cirque du Soleil proposed a completely new circus format, which differed in price (it was much more expensive), did not have performances with animals and clowns, changed the format of the arena (there is no longer a round tent), and was aimed mainly at an adult audience. All this allowed Cirque du Soleil to leave the competitive market and “play by its own rules.”
Positioning on a branded character. There are quite a lot of such examples: Kwiki the rabbit from Nesquik, Donald McDonald from McDonald's, cowboy Wayne McLaren from Marlboro. True, sometimes a character also has a negative impact on the image of a company or product. So Wayne McLaren died of lung cancer and in the period of time from diagnosis to death he sued Marlboro, publicly telling how harmful their cigarettes were. Cartoons also sometimes cause harm. Thus, “Skeletons” from Danone were not popular among mothers due to the inflammatory images of cartoon characters used in advertising.
Discoverer. If you were the first to offer a product, you can choose a pioneer strategy when positioning;
Positioning based on a specific service process. This is especially true for the service sector. Everyone has already heard about the restaurant “In the Dark”. He will be a great example of this positioning.

Strategies for elements of the marketing mix

As part of the marketing mix strategy, there are four marketing mix strategies to consider.

Product marketing strategy

In addition to the assortment strategy, which we have already discussed, it is necessary to determine a strategy for each product unit. It will depend on the stage of the product life cycle.

The following stages of the life cycle are distinguished:

Implementation. The product has just appeared on the market, there are not many competitors, there is no profit, but sales volumes are quite high, as are costs. At this stage, our main goal is to inform the target audience. The actions should be as follows:

Analysis of existing demand;
Informing the target audience about the qualities of the product;
Convincing the consumer of the high value of the product;
Construction of a distribution system.

Height. You see rapid growth in sales, profits and competition, costs are falling. You need:

Modify the product to avoid price competition;
Expand the range to cover as many segments as possible;
Optimize the distribution system;
The promotion program should be aimed at stimulation, and not at informing, as it was before;
Reducing prices and introducing additional services.

Maturity. Sales are growing, but slowly, profits are falling, and competition is growing rapidly. In this case, you can choose one of three strategies:

Market modification strategy, which involves entering new geographic markets. In addition, as part of this strategy, it is necessary to activate promotion tools and change the positioning of the product.
Product modification strategy involves improving the quality of the product, changing the design and adding additional characteristics.
Marketing mix modification strategy. In this case, we have to work with the price, it needs to be reduced, promotion, it needs to be intensified, and the distribution system, the costs of which need to be reduced.

Recession. Sales, profits, promotional costs and competition are reduced. Here, the so-called “harvest” strategy is suitable for you, that is, the gradual cessation of production of the product.

Pricing Strategies

There are pricing strategies for new enterprises and “old-timers” of the market.

Pricing Strategies for New Businesses

Market penetration. Relevant if there is sufficiently elastic demand in the market. It consists in setting the lowest possible price for the product.
Strategy of functional discounts for sales participants. If we want large chains to promote our product, we need to give them a discount. Suitable for large companies.
Standard pricing. Nothing special. The price is calculated as the sum of costs and profits.
Following the market involves setting the same prices as competitors. Suitable for you if there is no fierce price competition in the market.
Price integration strategy applicable when you can agree to maintain the price level at a certain level with other market participants.
A strategy for balancing the quality and price of a product. Here you need to determine what you will focus on: price or quality. Based on this, either minimize costs (lower the price) or improve the quality of the product (raise the price). The first option is acceptable for elastic demand.

Pricing strategies for market watchdogs

Open competition on price. If you are ready to reduce the price to the last player on the market, then this strategy is for you. Don't forget to estimate the elasticity of demand, it should be high.
Refusal of "price transparency". In this case, you need to make it impossible for consumers to compare your price with your competitors' prices. For example, make a non-standard volume of product, for example, not 1 liter of milk, but 850 ml. and set the price a little lower, but so that your liter of milk is actually more expensive. The consumer will not notice the trick.
Strategy for offering a package of goods. The strategy of offering a package of goods is to provide the consumer with the opportunity to purchase a “set of products” at a better price than if they were purchased separately. For example, in the McDonald's restaurant chain, such a package of products is a Happy Meal for children. When purchasing it, the consumer receives a toy at a reduced price, and the company receives an increase in sales.
Stepped pricing strategy for the offered assortment. Break down the entire assortment into price segments. This will allow you to cover a larger portion of the market.
Price linking strategy. We all remember the “makeweight” that was attached to scarce goods. This is a great example of this strategy.
Price differentiation strategy. If your core product needs complementary products, then this strategy is for you. Set the price low for the main product and high for the complementary product. After purchasing the main product, the consumer will be forced to purchase a complementary one. A good example is a capsule coffee machine and coffee capsules.
Introduction of free services. This strategy is similar to the strategy of abandoning price transparency. In this case, the consumer will also not be able to compare your prices with those of your competitors.

The next step in determining a pricing strategy is to determine a price differentiation (or discrimination) strategy; their use is not mandatory for the company.

There are two price differentiation strategies:

Geographical price differentiation strategy. It is divided into zonal price, uniform price, selling price, basis point price and manufacturer's delivery cost strategies.

If your company has a presence in several areas (multiple geographic markets), then use the strategy zonal prices. It involves charging different prices for the same product in different geographic regions. The price may depend on the average salary in the region, differences in delivery costs, and so on.

If you set the same prices for products in all regions, then your strategy is single price strategy.

Selling price strategy applies if you do not want to transport the goods at your own expense to the consumer (point of sale). In this case, the consumer bears the cost of delivery.

Basis point price involves fixing a certain point from which the delivery cost will be calculated, regardless of the actual location of shipment.

Manufacturer's delivery cost strategy speaks for itself. The manufacturer does not include the cost of delivery of the goods in the price.

Price differentiation strategy for sales promotion. Suitable for you if the product is at the maturity stage of its life cycle. There are several other strategies that can be highlighted here.

“Bait Price” strategy. If you have a sufficient number of products in your assortment, you can apply this strategy. It consists of setting prices much lower than market prices for one particular product. The rest of the goods are offered at the average market price or above the average price. The strategy is especially suitable for retail stores.

Pricing strategy for special events – promotions, discounts, gifts. We won't stop here. Let's just say that there are discounts for timely payment of goods in cash (wholesale), discounts for volume, discounts for dealers, seasonal discounts (if you sell seasonal goods, you need to stimulate sales during the off-season).

Product distribution strategy

As part of the distribution strategy, it is necessary to determine the type of distribution channel and the intensity of the distribution channel. Let's deal with everything in order.

Distribution channel type

There are three types of distribution channels:

Direct channel– movement of goods without intermediaries. Used when a company offers high-tech or exclusive products to a small segment.
Short channel with the participation of a retail trader. In this case, an intermediary appears who will sell your product to the end consumer. Suitable for small companies.
Long channel with the participation of a wholesaler (wholesalers) and a retail trader. If you have a high production volume, then this channel will provide you with a sufficient number of outlets.

Distribution Channel Intensity

The intensity of the distribution channel depends on the product and production volume.

There are three types of distribution intensity:

Intensive distribution. If you own a large production facility and offer a mass product, then this strategy is for you. It assumes the maximum number of retail outlets.
Selective distribution. Selection of retail traders based on any criteria. Suitable for those who offer a premium, specific product.
Exclusive distribution. Careful selection of traders or independent distribution of products. If you offer an exclusive or high-tech product, you should choose this type.

Having considered these elements, we will obtain a product distribution strategy that will be part of the company's overall marketing strategy.

Product promotion strategy

There are two main promotion strategies:

Pulling promotion involves stimulating demand in the market by the manufacturer independently, without the help of distributors. In this case, the consumer himself must ask the distributors for your product. This can be done using promotion tools (advertising, PR, sales promotion, personal selling, direct marketing). In this case, the promotion strategy must specify all the tools used and the timing of their use;
Push promotion. In this case, you must make it profitable for distributors to sell your product. You must “force” him to promote your product. This can be done through discounts for sales representatives.

At first glance, choosing a marketing strategy seems to be a very labor-intensive and lengthy process. However, after going through all the described stages of defining a marketing strategy for each level of the strategic pyramid, you will understand that it is not so difficult. Let us give you an example to prove our words.

Marketing Strategy Example

Step 9 Calculation of the total marketing budget. We repeat again, these are only approximate figures.

Step 10 Analysis of marketing strategy.

That's it, our marketing strategy is ready.