Marketing strategies are a set of strategic priorities that are used by the organization to achieve its goals. According to the classification, the following strategies exist: basic development strategy, company growth strategy and competitive strategy. Let's consider growth strategies in more detail.
The first group in this category includes concentrated growth strategies. Following them, the company improves its product line or develops a new product without changing the industry. If we talk about the market, following a concentrated strategy, the company is looking for opportunities to improve the market or is moving to a new level. The strategies of the first group include:
- A strategy to strengthen the position of the company in the market, following which the company carries out activities aimed at winning a particular product the best position in the market. Significant marketing efforts are required to implement this strategy. The use of "horizontal integration" is allowed, during which the company takes measures to establish control over competitors.
- A market development strategy, applying which, the company searches for markets for a product line that is already being produced.
- The product development strategy is aimed at increasing its part of the market due to new products in the developed market.
The second group includes business strategies aimed at strengthening the organization with the help of new structural units. Another name is integrated growth strategy. It is important to know that the strategy of integrated growth will be implemented through the acquisition of new facilities or by expanding the structure.
The integrated growth strategy has two main types:
- The reverse vertical integration strategy works to increase market share by gaining control over suppliers, as well as by creating subsidiaries that supply raw materials. This strategy allows you to get positive results by reducing dependence on raw material prices. In addition, the supply for the company, as an expense item, turns into an income item.
- The strategy of integrated growth also has a different look - forward-going vertical integration. It is expressed in the desire to gain control over organizations that, in accordance with the type of activity, work with the endpoint of implementation.
The third group is represented by diversified growth strategies. They are used when the company does not have the opportunity to develop in a particular market with the existing product line within the industry.
- The strategy of horizontal diversification is aimed at developing an already familiar market by introducing new types of products using new technologies that differ from those used by the company. Using this strategy, it is necessary to focus on the manufacture of this type of technologically different products that can apply the organization’s existing capabilities in various fields, for example, in the supply of raw materials. New products should be oriented to the circle of consumers of the main product; in terms of quality, the new product should correspond to the one already produced. A condition for the implementation of this strategy is a preliminary analysis of opportunities, for example, in the construction sector, it is necessary to segment the real estate market , assess its competence for the implementation of further actions.
- A strategy of centered diversification is one that searches for and uses business opportunities to introduce new products into production. Existing products are central. New products are developed based on the capabilities that are already in place in the technologies that have already been introduced.
- The strategy of conglomerate diversification is used when expanding with the help of a new product that is not related to existing ones and is aimed at new markets. The successful application of this strategy depends on several factors, for example, on the competence of the staff, the availability of the necessary working capital.
The fourth group is represented by reduction strategies. They are used when the company wants to regroup after a long growth and is carried out to increase efficiency, if there are changes in the economy. The implementation of this strategy is painful. However, one must understand that this is the same development strategy as the growth strategy.