Marketing strategies for differentiation

Differentiation strategy - the creation by the company of such a market offer that would differ from the offers of competitors.

The differentiation strategy is the basis for creating a positioning strategy.

Differentiation and positioning are interrelated strategies. They are based on determining the differences in the market activity of the company in comparison with competitors.

F. Kotler identifies four categories of competitive differentiation:

product,

service,

staff,

image.

Strategic methods of product quality management:

Quality Improvement Strategy

Quality maintenance strategy

Quality reduction (falsification) strategy

Differentiation strategies:

commodity differentiation,

service differentiation,

personnel differentiation,

image differentiation.

Diversification marketing strategies

Diversification is a strategy that involves a company entering new areas of business.

There are the following types of diversification strategies:

concentric (vertical) diversification;

horizontal diversification;

conglomerate diversification.

The essence of vertical diversification is that the company begins to produce new products that are technologically and marketing related to the existing product.

Horizontal diversification involves the release of new products that are not related to existing, but intended for existing customers of the company.

Conglomerative diversification is a strategy that aims to produce new products that are not related to the company's core business and its sales markets.

Marketing strategies for integrative growth

Integrative growth involves increasing a company's sales, profits, or market share through collaborative efforts with suppliers, resellers, or competitors.

Depending on who the company is cooperating with, the following types of integrative growth strategies are distinguished:

direct integration

reverse integration

vertical integration

horizontal integration

A direct integration strategy involves merging a company with a reseller.

The backward integration strategy involves the integration of the company with the supplier of material and technical resources.

Vertical integration is the union of efforts between the manufacturer's supplier and the intermediary.

Horizontal integration - is provided in case of joining the efforts of the company with a competitor.

Ansoff matrix

Considering the strategy of intensive growth, the following terms are used:

existing product (or old product)

new product

existing market

new market

Varieties of intensive growth strategies are well shown in the I. Ansoff matrix (product-market).

I. Ansoff matrix

The strategy of deep penetration into the market is associated with an increase in sales volumes and market share of the company without changing its product and market positions in the market.

Market development strategy - means adapting the company's existing products to new markets.

A product development strategy is a modification of a company's product or its quality parameters (style, image, expansion of the product line) for existing consumers of the company.

Classification of growth strategies

Provided that the company has a stable development, a strong position in the market and decides (chooses a goal) to increase sales volumes, market shares or expand the scale of its activities, then there are three ways to achieve this goal:

1 - strengthening (intensification) of existing opportunities,

2 - join forces with other enterprises,

3 - access to other areas of business that are not related to the main activities of the company.

With regard to these areas, there are three main types of growth marketing strategies (the term "growth" means the expansion of the scope of activities, and ultimately - sales and profits of the company):

1 - intensive growth,

2 - integrative growth,

3 - diversified growth.