Generic marketing entry strategies


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Generic marketing entry strategies

  1. 2. Essentials For Market Entry <ul><li>Firm`s brand name </li></ul><ul><li>Management`s Strength`s </li></ul><ul><li>Operational Strength`s </li></ul><ul><li>Capital resources </li></ul>
  2. 3. Types Of Market Entry Strategies <ul><li>FOR NEW FIRMS </li></ul><ul><li>First Movers </li></ul><ul><li>Alliances </li></ul><ul><li>FOR EXISTING FIRMS </li></ul><ul><li>Fast Followers </li></ul><ul><li>Brand Extender </li></ul>
  3. 4. First Movers <ul><li>Entering first into the market </li></ul><ul><li>Taking the advantages of user awareness followed by consumer transactions & experiences then grow brand strength </li></ul><ul><li>Eg </li></ul><ul><li> </li></ul><ul><li> </li></ul>
  4. 5. Concept – First Movers <ul><li>First movers experience short lived monopoly </li></ul><ul><li>They then become the only providers for few months </li></ul><ul><li>During that period competitors come in the market as entry cost is low </li></ul><ul><li>To prevent new entrants in the market , first movers need to advertise aggressively </li></ul><ul><li>Objective is building brand (site) awareness </li></ul><ul><li>Majority of the marketing budget is spend on high visibility advertising in mass media to strengthen brand </li></ul><ul><li>Brand strengthening will create less chances of customers to pay the switching cost </li></ul>
  5. 6. Limitations Of First Mover`s <ul><li>Lack of trust & loyalty </li></ul><ul><li>Lack of financial depth </li></ul><ul><li>Lack of Brand reputation </li></ul><ul><li>Production facilities needed to meet customer demands once the product succeeds </li></ul><ul><li>Site visits do not translate into purchase </li></ul>
  6. 7. Alliance <ul><li>To ally themselves with established firms </li></ul><ul><li>(Firms having established their brand names , production & distribution facilities , financial resources need to launch a business ) </li></ul><ul><li>Eg Brainplay an e-tailer of children`s goods entered into alliance with KB toys unit to form new online presence called </li></ul>
  7. 8. Fast Followers <ul><li>Using existing brand name to expand or enter market </li></ul><ul><li>Eg Barnes & Noble , world`s largest book retailer , formed after the success of </li></ul>
  8. 9. Brand Extender <ul><li>Mixing of online branding with offline stores </li></ul><ul><li>Already having the advantage of existing brand and relationship </li></ul><ul><li>Brand extenders do not separately set up online stores rather but instead integrate with online firms </li></ul><ul><li>Eg Walmart </li></ul>
  9. 10. E-CRM <ul><li>Customer relationship is the next step once the company enters into the market </li></ul><ul><li>Public relations and advertising media vital for establishing relationship </li></ul><ul><li>Three important techniques for E-CRM are : </li></ul><ul><li>Permission Marketing </li></ul><ul><li>Affiliate Marketing </li></ul><ul><li>Viral Marketing </li></ul>
  10. 11. Permission Marketing <ul><li>Marketing strategy in which companies obtain permission from consumers before sending them information or promotional messages </li></ul><ul><li>Sending information helps in developing relationship with customers </li></ul><ul><li>When consumers agree they are opting in and when consumers do not agree they are opting out </li></ul><ul><li>Eg companies asking for email from customers </li></ul>
  11. 12. Affiliate Marketing <ul><li>Affiliate adds link to the company`s website on its own site and encourage its visitors </li></ul><ul><li>When one website agrees to pay another website a commission for new business opportunities it refers to the site </li></ul><ul><li>Also it can be upon the number of clicks , flat fees , or combination of both </li></ul><ul><li>E.g. Ebay`s affiliates program pays $4 for each visitor who become a registered user </li></ul>
  12. 13. Viral Marketing <ul><li>Process of getting customers to pass along a company`s marketing message to friends , family and colleagues </li></ul><ul><li>Online version of word of mouth </li></ul><ul><li>E.g. is using the strategy by giving $5 to the person when his friend , family , colleague spends $10 on first order </li></ul><ul><li>(People are asked to give the name and email address for the friends and relatives whom they want to tell about the site) </li></ul>
  13. 14. Brand Leveraging <ul><li>Using the power of existing brand to acquire new customers for a new product or service </li></ul><ul><li>Eg Tab was the first to introduce diet cola drinks , Coka-Cola ultimately succeeded in dominating the market by leveraging the coke brand to a new product called Diet Coke </li></ul>
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