2.1.3 Selecting a Marketing Strategy
The primary effect of the marketing strategy is to contribute to the
achievement of the organization goals by developing satisfactory
exchange transaction with customers. Faced with the choice of
alternative marketing strategies the marketing manager must choose the
one best suited to the attainment of his objectives. Kolter (2006) has
suggested that size factors be considered namely:
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Size of Market: if the market for the product is small then
segmentation strategy becomes infeasible. In such a situation the firm
should pursue a product differentiation strategy.
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Consumer sensitivity: a target market that appear very
sensitive to product differences would be better exploited by a
strategy of product differentiation.
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Product type: Product that is subject to great variation e.g.
automobiles are suited to differentiation which those that are
homogeneous e.g. super or gas lines are more suited to
undifferentiated marketing.
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Product Stage in Life Cycle: if a product is being introduced
into a market place where similar types of product are existing,
segmentation strategy would be advisable in order to gain competitive
advantage in a particular segment.
-
Number of Competitors: the larger the number of competitor
selling the same product, the more difficult it is to differentiate a
firm’s product from that of its competitors. For each firm a
segmentation strategy aimed at those customers that are likely
prospects for its product are preferable. On the other hand a few
competitors would mean that a product differentiation strategy may
prove less costly and more effective. On the whole, the marketing
manager in selecting a marketing strategy should bear the following in
mind; the purpose of the product or service performance and position
of customers being sought, pricing and value relationship, brand
character or image etc.