Market strategy

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Market strategy is a strategy of companies for the future use of the existing market potential through market development .

General

Companies also have to develop strategies for the markets they serve or will serve in the future. This requires a market analysis of market data in order to get to know the market behavior and strategies of other market participants , to derive their own behavior and to use them for future market developments .

The term market strategy has seen several changes in content in the past. The starting point of research on market strategy makes US economist in 1957. Igor Ansoff , the ideological at its disposition between existing and new markets and introduced and new products or services differed. Market development, market penetration and product development were also part of his market strategy. The product-market matrix ( Ansoff matrix ) he developed is a tool for the strategic management of companies. Its matrix - expanded by the risk potential - looks like this:

Existing products risk New Products risk
Existing markets Market penetration very low Product development high
New markets Market development low Diversification very high
  1. Market penetration strategy : here the current market is served with current products (e.g. via advertising ).
  2. Market development strategy : Here a current product is presented in a new market (supermarket opens a shop in a new country).
  3. Product development strategy : here a new product is brought to an already existing market (new car model).
  4. Diversification strategy : Here a new product is established in a new market, e.g. B. through horizontal (farmer now also grows corn in addition to wheat), vertical (butcher now runs his own cattle breeding) or lateral diversification (a farmer also opened a car dealership on the side).

species

One of the oldest market strategies is the lock-in effect ( lock-in effect ), which enables close customer loyalty to products / services and / or a provider , which makes it difficult for customers to switch due to increasing barriers to change. The inventor is considered to be John D. Rockefeller , who exploited these dependencies around 1870 when he was selling petroleum lamps in China, where he owned a petroleum monopoly. The common technical-physical dependency creates complementary goods that enable this lock-in effect. A change of the provider and / or the product causes switching costs ( English switching cost ) representing the most significant exchange barrier. This also applies to King Camp Gillette when he gave away razors in 1902 and sold the disposable razor blades he had patented as complementary products. With this, he drove the lock-in effect to the optimum, because single-use products with constant demand ensured constant demand. American Airlines' Robert Crandall brought the effect to the aircraft industry in 1981 when he introduced the frequent flyer program. For all complementary goods, a system change is not worthwhile if the change costs would exceed the benefits resulting from a system change .

In 1992, Jochen Becker distinguished between four strategic levels in German business administration :

  • Market field strategies determine in which markets a company wants to be present with which products. Market penetration, market development, product development and diversification play a role .
  • Market stimulation strategies determine the way in which the market is influenced: preference strategy and price-volume strategy are essential components.
  • Market parceling strategies determine the long-term way of market sharing and coverage through market segmentation (differentiated marketing) and mass marketing (undifferentiated marketing).
  • Market area strategies are focused on different geographical sales areas and differentiate between local, regional, supra-regional, national, multinational and international strategies ( global marketing ).

The Engpasskonzentrierte strategy (EKS) of Wolfgang Mewes in 1970 is a niche strategy. It puts the customer benefit at the center of the considerations. Mewes strives for market leadership in sub-target groups ( market niches ), for whose problems with existing strength potentials suitable innovations can be developed. The innovations are based on the greatest deficiency (minimum factor) in the target groups. Through continuous improvements, the provider penetrates deeper and deeper into the target groups and thus develops into the market leader. The EKS uses the networking of the success factors and focuses on the most effective cybernetic point.

David Jobber, in turn, came up with a different classification in 1995 and favored market expansion , gaining further market shares , mergers & acquisitions and strategic alliances as market strategies . In addition to purely market-related strategies, he also pursued institutionalized strategies through company connections .

meaning

The market strategy differs from the marketing strategy in its microeconomic orientation, while the marketing strategy can be assigned to marketing . The main goal of a market strategy is to gain or hold market shares that create or secure market entry and thereby help to maximize profits .

Individual evidence

  1. ↑ Harry Igor Ansoff, Corporate Strategies for Diversification , in: Harvard Business Review vol. 35, 1957, p. 113
  2. ^ Carl Shapiro / Hal R. Varian, Information Rules: A Strategic Guide to the Network Economy , 1999, pp. 103 ff.
  3. ↑ Jochen Becker, Marketing-Konzeption , 1992, p. 122 ff.
  4. ↑ Ludwig G. Poth, Gabler Marketing Concepts from A - Z , 1999, p. 257
  5. ↑ Jochen Becker, Marketing-Konzeption , 1992, p. 217
  6. ↑ Wolfgang Mewes, The Cybernetic Management Theory (EKS). Twelve-part correspondence course , 1971–1977
  7. ^ David Jobber, Principles & Practice of Marketing , 1995, p. 98