3.0 Marketing Strategy Overview
All companies from different levels of operations for example, local companies, international and multinational corporations are finding the marketing strategy a persuasive tool to sustainable competition and ever increasing improved efficiency. Marketing strategy underscores a variety of factors both internal and external. Due to its high innovative marketing strategy the gross turnover of Clarification product will consistently be surpassing the GDP of many countries. This study focuses on the marketing strategies applied in most profit and revenue maximizing firms.
3.1 Positioning Strategy
This involves the image of my Clarification Company that will be created in the mind of the customers. This is because positioning strategy entails creating a mental picture in the consumers of what one offers in respect to the market and any competition that one exhibits. For example for a firm to position itself in the market it may result to lowering its price relative to its competitors, positioning helps to create differential advantage in comparison to that of the competitors, it involves showing that your brand is of a superior quality than others (Selden, 1997). The company can also associate its products with superior values that customers prefer. The company will also get market segmentation advantage. The company’s branding of the products will also help the firm in the positioning strategy execution.
3.2 Pricing Strategy
When this company will be getting into the markets, it may results to application of this strategy which include lowering the price of the products relative to the established firms, Also the established existing firms may opt to lowering prices of their products to increase their market share.
3.2.1Price Leadership Strategy
Price Leadership Strategy applies where my Company may be dominant thus making the it leads others by setting the price so that others may follow the suit. This firm will therefore sets the price and the smaller firms take the price dictated by the dominant firm. The smaller firms cannot significantly influence the price because of their lower market share. If the smaller firms tries to sets the price they ignite a competition which they cannot sustain and will in the long run exit from the market (Joshi &Mohan, 2005).
The company will therefore act as the market leader. The leadership can also take the form of bolometric leadership. In this it depends on the ability of the firm to interpret the market conditions. In this case a firm which is able to interpreted the market conditions with accuracy. The leader in this case is the firm which is able to understand and well interpreted the market conditions that becomes the leader.
3.2.2 Cost plus Pricing
The company will determine its costing from the cost of production. In this case, it will determine its cost of production and unto its add a percentage to cater for profit margin, in this case firms are able to determine their effective costs and estimate their predetermined costs and as a result their predetermined profits after calculation. The company’s effectiveness is gained by lower in the cost of production and relative to the competitors’ this requires the innovation of the firm in its operation to lower the costs so as to have a comparative advantage relative to the others in market.
3.2.3 Limit Pricing
This involves the use of monopolist setting a price below the average cost to discourage potential firms from entering the market to compete with the Clarification product company. In these cases getting into the market seems not profitable as the prospect firm would incur a loss and therefore it’s not beneficial to enter such a market, with the same price the monopolist firm is able to make a reasonable profit.
3.2.4 Penetration Pricing
This is where a new firm entering the market results to lowering its price relative to the existing market price .This is in order to win a considerable customers or to sign its arrival in the market’ the new firm can results to making losses in the short run due to its low volume of sales.
3.2.5 Price Discrimination
This is where my company will be changing different prices in different market segmentation. This is possible because of different levels of income and information asymmetry, the firm is therefore able to maintain this market share and more so profitability. Price discrimination is only possible where there exists different market segmentation and a bit of information asymmetry.
3.3 Market attack strategy
Market attack strategy is case whereby this company will define a mechanism of taking a market and announcing its arrival. A firm signals its arrival into the market and its strength. It also incorporates strategic matrix in its practices.
Front attack strategy
This will be practiced where my Clarification Company is going to mobilize its resources in a concentrated manner so as to attack the competitor’s products. It involves a substantial use of the company’s resources in order to capture the attention of the consumers, in realizing this a firm may results to a lot of advertising so as to try to get rid of the accumulated effects of the existing products in the mind of the consumers, this requires diversion of much resources from other sectors to the advertisement department. A firm cans also results to thorough research to develop products that will have a counter effect from the existing products (Browne, 2010).
There are however some shortcomings to this strategy; first the strategy involves diversion of more funds from other sectors to the advertising area, this may affect the liquidity of the company negatively, secondly the established may counter the advertising effect of the new firm thereby leading to loss of customers gained by the new firm,\lastly excessive advertisement may have negative effects on the mind of the consumers and the attitude of the consumer changes if its exceeded, therefore the firm should determine the optimal amount of advertising.
3.3.1 Leap frog strategy
This is a situation where the company will surpasses another without incurring major costs, for the introduction of wireless network by this firm may lead to the decreased revenues by the previous firm from that line of product. In this situation Clarification product firm will just surpass the original company without additional costs, in leapfrog the ability of a company to be innovative is the factor, a company should carryout a market research and scrutinize the technology for efficiency in operations and providing the consumers with a superior quality products.
3.3.2 Envelopment strategy
This involves a situation where the company will introduce a range of products that are similar to that of its competitor. In this way the firm will be able to challenge the competitor’s products and the market share and leaves the market very weakened (Kotler, Philip, Keller, 2009). There are various principles which are considered in the marketing attack strategy;
3.3.3 Analysis of the strength of the existing competitor
The areas of the strength of the competitor are analyzed to determine the method of overcoming the said strength. An analytical framework carried out which involves the analysis of the strength and weakness of the competitors strategy.
3.3.4 Identifying weakness in the existing population
The weakness of the population existing is evaluated and thoroughly analyzed so as to major on this competitors weakness so as to have a comparative advantage over their competitors.
3.3.5 Quick launch of attack
After a thorough analysis of competitor’s strategy the opponent a strategy is launched at the point where the competitor’s weakness is most pronounced.
3.4 Marketing research
Marketing entails the application of the research tools and models to the market sector. It involves evaluation of the factors affecting the different markets segments and different types of market structures. Marketing research is the sustainable tool to any market prevailing condition. The more the potential firm invests in the market research the more the firm is likely to overcome the market competition. The below table shows the indicators to make some money work for an individual in every month in year.
3.4.1 Technology efficiency research
In this situation the Clarification Company will researches on the technology so as to lower its overall cost of production therefore having an upper hand in relation to the other firms in the industry.
3.4.2 Product research
In this case the Clarification product firm carries a thorough research on the range of products and services available in the market, their method of production, their close substitutes and their market demand.