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Different Kinds of Marketing Strategies

Daniel Jimenez

Do you know the differences between targets, goals and strategy? Although it might seem very clear, sometimes companies can mistake terms. Target examples: a target can increase your market share by 10% or increase your sales by £2 millions. Strategies examples: Change products’ quality, add new features or improve customer’ care.

In other words: a target is what a company wants to become or where a company wants to go. And a strategy is the way to reach it. The origin of the word ”strategy” is Latin, and people use it to explain the tactic to invade other cities, places. Strategy is the way to get something.

Nowadays, people use these words in business and in other fields to explain how a project works. In the business field, there are different kinds of classifications. In the following article, I am going to explain two of them:

1) Differentiation and Cost leadership: It was formulated by the American economist Michael E. Porter. This kind of classification is focused on how products and services are, compared with the competitors’. If a company and its competitors sell the same product, both of them want to be successful, they only have one option: namely, they have to be cheaper. This strategy is called ”Cost leadership”. If you are going to sell cheaper than your competitors, you need to have some production advantages in order to have a profitable business. The other possible strategy in this classification is Differentiation. It is used when a company is selling products that are considered as unique by the customers. You can add new features, new versions, new services, etc. Everything you believe in is necessary to make your product different. When you are using this strategy, you have to be sure that competitors cannot copy it. If you are different but you competitors can copy you, you do not have any competitive advantage and your business has a serious problem.

2) Process, Product, Client: This classification was formulated by Michael Treacy and Fred Wiersema in their book “The discipline of marketing leaders”.

Process strategy: Companies that use this strategy are focused on how they can be more efficient, on how they can produce cheaper goods and on how they can be more suitable. For example: Primark is selling cheaper goods than its competitors with an amazing production system.

Product leader: Companies that use this strategy are focused on having a distinctive and superior product. For example: BMW is claiming that it offers the ultimate driving machine.

Clients: Produce a good or provide a service expected by the customer. For example: A tailor makes suits just as the clients want it.

To conclude, I would like to say that there are many way to classify the strategies. The most important in a business is to know where you want to go and how you are going to reach your goal.

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