Marketing
Strategy
ITESM: Escuela de Graduados en Administración
y Dirección de Empresas
Professor: Fernando Huerta June11th, 2009
fhuertamty@itesm.mx

Marketing Strategies Options
• Market Scope: Deals with the coverage of the market. A
Business Unit may serve an entire market or concentrate on
one or more of its parts.
• Geographic: Deals with territories in order to serve them.
• Market Entry: Refers to the timing of market entry.
• Market Commitment: Refers to the degree of involment a
company seeks in a particular market.
• Market dilution: A company may find reducing a part of its
business strategically more useful than expanding it

Market Scope Strategy
• Single-Market Strategy:
– Definition: Concentration efforts in a single segment
– Objective: To find a segment currently being ignored or
served inadequately and meet its needs.
– Requirements:
• Serve the market wholeheartedly despite initial difficulties or Deals
with the coverage of the market.
• Avoid Competition with established firms.
– Expected Results:
• Low Cost
• Higher Profits

Market Scope Strategy
• Multi-Market Strategy:
– Definition: Serving several distinct markets.
– Objective: To diversify the risk of serving only one market.
– Requirements:
• Good market segmentation
• Avoid Confrontation with companies serving the entire market.
• Avoid Competition with established firms.
– Expected Results:
• Higher Sales
• Higher Market Share

Market Scope Strategy
• Total-Market Strategy:
– Definition: Serving the entire spectrum of market by selling
differentiated products to different segments in the
market.
– Objective: To compete across the board in the entire
market.
– Requirements:
• Employ different combinations of price, product, promotion, and
distribution strategies in different segments.
• Top management commitment to embrace entire market.
• Strong financial position.
– Expected Results:
• Increase Growth
• Higher Market-Share.

Market Geography Strategy
• Local-Market Strategy:
– Definition: Concentration of efforts in the immediate
vicinity.
– Objective: To maintain the control of the business
– Requirements:
• Good reputation in the geographic area
• Good hold on the requirements of the market
– Expected Results:
• Short term success
• Expansion to other geographic areas

Market Geography Strategy
• Regional-Market Strategy:
– Definition: Operating in two or three states or over a region
of the country
– Objective: To diversify risk of dependence on one part of a
region / To keep control centralized
– Requirements:
• Management commitment to expansion
• Adequate resources
• Logistical ability to serve a regional area
– Expected Results:
• Increased growth
• Increased market share
• Keep up with competitors

Market Geography Strategy
• National-Market Strategy:
– Definition: Operating nationally
– Objective: To seek Growth
– Requirements:
• Top Management commitment
• Capital Resources
• Willingness to risk
– Expected Results:
• Increase Growth
• Increase market share
• Increase profitability

Market Geography Strategy
• International-Market Strategy:
– Definition: Operating outside national boundaries.
– Objective: To seek opportunities beyond domestic
business.
– Requirements:
• Top Management commitment
• Capital Resources
• Understanding of international markets.
– Expected Results:
• Increase Growth
• Increase market share
• Increase profits

Market Entry Strategy
• First In Strategy:
– Definition: Entering the market before all others.
– Objective: To create a lead over competition that will be
difficult for them to match.
– Requirements:
• Be willing and able to take risks.
• Be technologically Competent.
• Struve to stay ahead / Promote heavily
• Create Primary demand
• Carefully evaluated strengths
– Expected Results
• Reduce Cost via experience
• Increase growth
• Increase Market Share
• Increase Profits

Market Entry Strategy
• Early Entry Strategy:
– Definition: Entering the market in quick succession after the
leader.
– Objective: To prevent the first entrant from creating a
stronghold in the market.
– Requirements:
• Superior marketing strategy.
• Ample resources.
• Strong commitment to challenge the market leader
– Expected Results:
• Increase profits
• Increase Market Share
• Increase Growth

Market Entry Strategy
• Laggard Entry Strategy:
– Definition: Imitator—Entering market with me-too product;
(b) Initiator—Entering market with unconventional
marketing strategies.
– Objective: Imitator—To capture that part of the market
that is not brand loyal. Initiator—To serve the needs of the
market better than present firms.
– Requirements:
• Market Share Ability /Production Capability
• Market Research Ability and ability to generate creative marketing
strategies
– Expected Results:
• Increase Short term profits
• Putting Market on a new growth path

Market Commitment Strategy
• Strong Commitment Strategy:
– Definition: Fighting off challenges aggressively by
employing different forms of
product, price, promotion, and distribution strategies.
– Objective: To defend position at all costs.
– Requirements:
• Operate optimally by realizing economies of scale in
promotion, distribution, manufacturing, etc
• Refuse to be content with present situation or position
• Have ample Resource and be willing to take risk
– Expected Results:
• Increase growth
• Increase profits
• Increase market share

Market Commitment Strategy
• Average Commitment Strategy:
– Definition: Maintaining stable interest in the market.
– Objective: To maintain the status quo.
– Requirements: Keep customers satisfied and happy.
– Expected Results: Keep customers satisfied and happy.

Market Commitment Strategy
• Light Commitment Strategy:
– Definition: Having only a passing interest in the market..
– Objective: To operate in the black.
– Requirements: Avoid investing for any long-run benefit.
– Expected Results: Maintenance of status quo (no increase
in growth, profits or market share)

Market Dilution Strategy
• Demarketing Strategy:
– Definition: Discouraging customers in general or a certain
class of customers in particular, either temporarily or
permanently, from seeking the product.
– Objective: To defend position at all costs.
– Requirements:
• Monitor Customer time requirements / Ration product supplies
• Divert customers with immediate needs to customers with immediate
needs to customers who have a supply of the product but no
immediate need for it.
• Find out and suggest alternative products for meeting Customer
needs
• Refuse to be content with present situation or position
• Have ample Resource and be willing to take risk
– Expected Results: Increase profits / Strong Customer good will and
loyalty

Market Dilution Strategy
• Pruning of Marginal Markets Strategy:
– Definition: Weeding out markets that do not provide
acceptable rates of return.
– Objective: To divert investments in growth markets.
– Requirements:
• Gain good knowledge of the chosen markets
• Concentrate all energies on these markets
• Develop Unique strategies to serve the chosen markets
– Expected Results:
• Long term growth
• Improve return on investment
• Decrease in market share.

Market Dilution Strategy
• Key Markets Strategy:
– Definition: Focusing efforts on selected markets.
– Objective: To serve the selected markets extremely well.
– o divert investments in growth markets.
– Requirements:
• Gain good knowledge of the chosen markets
• Concentrate all energies on these markets
• Develop Unique strategies to serve the chosen markets
– Expected Results:
• Increase profits
• Increase market share in the selected markets

Market Dilution Strategy
• Harvesting Strategy:
– Definition: Deliberate effort to let market share slide.
– Objective: Generate additional cash flow, to increase
short terms earnings , to avoid antitrust action
– Requirements: High market share
– Expected Results: Sales decline but useful revenues still
come in.

Marketing
Strategy
ITESM: Escuela de Graduados en Administración
y Dirección de Empresas
Professor: Fernando Huerta June11th, 2009
fhuertamty@itesm.mx