Marketing strategies area set of strategic priorities that are used by the organization to achieve its goals. According to the classification, the following strategies exist: basic development strategy, firm growth strategy and competitive strategy. Let's consider in more detail the growth strategies.
The first group of this category arestrategy of concentrated growth. Following them, the firm improves its product line or develops a new product without changing the industry. Speaking about the market, following a concentrated strategy, the firm searches for opportunities to improve the situation on the market or moves to a new level. The strategies of the first group include:
- The strategy of strengthening the firm's position in the market,following which, the firm carries out activities aimed at winning the best product in the market by a specific product. To implement this strategy, significant marketing efforts are needed. It is allowed to apply "horizontal integration", during which the firm carries out activities to establish control over competitors.
- The development strategy on the market, using which, the firm searches for the sales markets of the product line, which is already produced.
- The product development strategy is aimed at increasing its market share through new products in the developed market.
The second group includes business strategies,aimed at strengthening the organization with the help of new structural units. Another name is the strategy of integrated growth. It is important to know that the strategy of integrated growth will be achieved through the acquisition of new objects in the ownership or by expanding the structure.
The integrated growth strategy has two main types:
- Reverse vertical integration strategyworks to increase market share by gaining control over suppliers, as well as through the creation of subsidiaries that supply raw materials. This strategy allows you to get positive results by reducing the dependence on raw material prices. In addition, supplies for the firm, as an expense item, turn into an income item.
- The integrated growth strategy also hasAnother kind is forward of the going vertical integration. It is expressed in the desire to gain control over organizations that, in accordance with the type of activity, work with the end point of implementation.
The third group is represented by diversified growth strategies. They are used when the firm does not have the opportunity to develop in a certain market with an existing product line within the industry.
- The strategy of horizontal diversificationis aimed at developing on the already familiar market by introducing new types of products, using new technologies that are different from those used by the firm. Using this strategy, it is necessary to focus on the production of this type of technologically different products that can apply the existing capabilities of the organization in different areas, for example, in the supply of raw materials. The new products should be oriented to the circle of consumers of the main product, the new product should meet the quality of the product already produced. The prerequisite for implementing this strategy is a preliminary analysis of opportunities, for example, in the construction sector, it is necessary to segment the real estate market, assess its competence to implement further actions.
- The strategy of centered diversification -which searches for and uses business opportunities to introduce new products into production. Existing goods are central. New products are developed based on the opportunities that are embedded in already implemented technologies.
- The strategy of conglomerate diversificationIt is used when expanding with the help of a new product, which is not connected with those already produced and is directed to new markets. The successful implementation of this strategy depends on several factors, for example, on the competence of the staff, the availability of the necessary working capital.
The fourth group is represented by strategiesreduction. They are applied when the firm wants to regroup forces after a long period of growth and is carried out to improve efficiency, if there are changes in the economy. The implementation of this strategy is painful. However, one must understand that this is the same development strategy as the growth strategy.