Market Strategies

The company market is the total sales volume achieved by a business in a certain period of time.
An approach to the market through strategies and specific actions needs to be referring to an analysis of the demand that can be:
Market strategies are guiding lines concerning the market approach by the company on a medium and long term.
The strategies are introduced by the company taking into account several criteria:

  1. Depending on the demand features:

  1. Depending on the demand requirements:

  1. Competitive market strategies are related to the competitors on the actual or potential markets. These strategies can be arranged in a bi-dimensional matrix, also known as the “Product/market matrix” or “Ansoff matrix”. The two dimensions take into account the company products (available or new) and the markets (actual or new).

Markets

Available products

New products

Actual markets

Market penetration strategy

Product development strategy

New markets

Market development strategy

Diversification strategy

The market penetration strategy consists in identifying new ways to increase sales for the products that are already on the company market. This can be achieved by stimulating the consumption, attracting new customers from those who don't buy the product yet or from competitors' customers.
The market development strategy focuses on reaching to new consumer segment for the actual products. Geographical expansion or a broadening of the target market can attain the desired objective.
Product development strategy comprises the design of new products that will be offered to the available market segments, where they will be adopted much easier.
Diversification strategy consists in the introduction of new products on new market segments that have not been attended to. This is a brave strategy and very risky because the consumers don not have sufficient information neither about the product or the manufacturer. Therefor, aggressive promotional actions are required.

  1. Geographical strategies.
Depending on the area where the company runs its operations, the strategies can be: