Developing an
effective marketing strategy is the key to success in the growth of a business.
A strategically formulated marketing strategy helps in the drafting of a well
defined plan that aids in the overall development of a business. For both
launch of a new product in the market or making a fresh entry into the market
with an already existing product, a solid and well defined market strategy is
very essential.
A business needs to
make constant evaluation of various factors which restrict its entry in the
market such as the total cost involved, the legal aspects, regulations
pertaining to the specific industry and even the prevailing competition in the
market. With least market entry restrictions,
a business can not only make a smooth entry in the market but also launch its
products effectively in the market along with better designing and
implementation of its market strategies such as the listed below.
1. Identification
of the market needs
Choosing a product or
service which bridges the market gap always help. Say for instance launch of a
product or service which has not made its entry into the market or launch of a
product or service which caters to selected group of consumers or a specific niche
helps to bridge the gap.
Similarly, choosing a
product better than others to launch or introducing a cheaper version of the already
existing product in the market is one way of identification of the market need
and better positioning of a specific product or service.
2. Adoption
of either price or quality
For majority of
businesses making an entry into the market with an existing product or service,
it always pays to choose between the two main strategies of price and quality. Introducing
your product in the market with price strategy as the primary goal helps in the
introduction of the specific product at a lower cost. This way you can reduce
the competition and capture a major share of the market.
The second option of
adopting quality strategy enables to launch your product as a luxury good in
the market at a higher price.
3. Evaluation
of entry
When and how a
business makes an entry into the market also needs to be worked out
strategically. A quick and sudden entry into the market is likely to end in
overestimation of demand and over production leading to heavy capital
investment, slashing of the product prices and increase in the operational
management costs.
On the contrary, a
slow market entry involves the risk of losing a major share of the market to
competitors or to products which are substitutes of your product. The market
entry strategy of any organization is solely based on the product to be
launched, its position in the market and the evaluation strategy adopted by the
business.
4. Foreign
market entry
The entry into the
foreign market requires an in depth study of the following four major
strategies-licensing, exporting, direct investments and joint venture.
For making an entry
into the foreign market, a company can adopt the indirect ways of licensing and
exporting. For this the company has to rely on the company based in the foreign
market. The advantage of making such an entry is that it requires minimal
investment and it is also a lower risk option. The profit sharing in this
venture is comparatively lower.
On the other hand, the
market entry strategy through direct investment or joint venture is more
profitable involving higher investment and is comparatively riskier.
Making a breakthrough
in the market can be quite tricky and this is the sole reason why many
companies fail every day. Through proper planning a company can attain success
in the first attempt and for this choosing the best market strategy is of prime
importance. Taking help of an experienced competitive intelligence services
provider is always beneficial.
