Market cultivation

Under marketing ( english market cultivation ) are understood in marketing all measures, a market with respect to other market participants and market volume as possible with products / services to provide.

General

The company as a provider must ensure that their products / services on the marketing measures by appropriate relevant market can be sold. To this end, they have strategies develop, known as marketing strategies. The aim of these market strategies is to determine the needs of the customer groups identified through market analysis and to satisfy them with the corresponding products / services. The market cultivation aims at a systematic maintenance of the sales markets through the use of marketing instruments and serves the market development , market development , market penetration and market exploitation. All available means are to be used in such a concentrated manner that the greatest possible effect is achieved on the market.

species

There are two main market cultivation strategies, namely undifferentiated and differentiated market cultivation. The undifferentiated market development ( market unification ) is based on the assumption of a largely homogeneous market and ignores differences between the individual market segments . It offers customers standard products. An example of this strategy is the range of soft soap . This soap can be used for cleaning the floor, washing cars, dishes or laundry, as well as fighting aphids .

The differentiated marketing ( market segmentation ), however, considered the submarkets as heterogeneous market areas, take into account their individual differences and will target groups before. A demand-oriented product is submitted to all identified market segments. The product-related procedure determines which products are missing on the market. The missing items will be until the market develops . This strategy can be seen, for example, in the detergent market , where the right detergent for every purpose is available in powder or liquid form (heavy duty detergent, color detergent, mild detergent, detergent for white or black laundry, wool detergent, eco detergent, etc.). Since a large number of different products have to be developed and manufactured with this strategy, it is only of interest to large companies .

With selectively differentiated market cultivation , small and medium-sized enterprises can also try not to cover all market segments (as with differentiated market cultivation), but instead concentrate on selected segments. Not all pharmaceutical companies do research in all medical indication areas , but rather select individual areas (such as cardiovascular diseases , pain disorders ). In doing so, they limit research and development costs on the one hand and concentrate on basic research and applied research in the selected sub-areas on the other .

With concentrated market development , a company only focuses on one product and tries to become the market leader or technology leader with it. For example, a heating engineer can choose from the various types of heating for pellet heating and concentrate his research and development exclusively on this type of heating.

Marketing strategies

There are the following marketing strategies:

Undifferentiated marketing strategy	Concentrated marketing strategy	Differentiated marketing strategy
Mass market uniform offer for all consumers	Niche market special offer for a target group	Class market (multiple niche market ) special offers for different target groups

The pursuit of market cultivation strategies requires market analysis , market observation and market research .

Market penetration

The result of market development is market penetration . Each provider can determine this economic key figure as the ratio between the sales revenues achieved and the existing market potential :

${\displaystyle {\text{Marktdurchdringung}}={\frac {\text{Umsatzerlöse}}{\text{Marktpotenzial}}}\times 100}$

The degree of market penetration (also known as market penetration ) shows the extent to which a provider has already exhausted its sales opportunities . The lower the sales revenues are compared to the existing market potential, the more market cultivation is required and vice versa.

literature

• J. Becker: Basics of the marketing concept. Vahlen, Munich 1983, ISBN 3-8006-0959-2 .

Individual evidence

1. ↑ Ludwig G. Poth: Gabler Marketing Terms from A to Z. 1999, p. 254. (books.google.de)
2. ↑ Alois Gröne: Market segmentation for capital goods. 1977, p. 38.
3. ^ Rüdiger Pieper (Ed.): Lexicon Management. 1992, p. 244. (books.google.de)
4. ↑ Oliver Kohrmann: Multi-level market segmentation for new customer acquisition. 2003, p. 81. (books.google.de)
5. ↑ Günter Wöhe / Ulrich Döring , Introduction to General Business Administration , 25th edition, 2013, p. 383