Types of Marketing Strategies on Foreign Markets
Types of Marketing Strategies on Foreign Markets
On the single European market, the development of a company marketing strategy should be preceded by a market research to identify the following elements: the potential capacity of selected segments of the market for a relevant industry, consumers’ tastes and needs, appropriate methods for entering a market (including identification of the methods employed by major competitors), as well as the necessary degree of product standardisation and differentiation.
The marketing strategy means setting a long-term objective for an enterprise, as well as identifying the instruments, methods and measures for its achievement. In the classic approach, M. Porter distinguished three major market competition theories, that is, strategy of low prices, strategy of differentiation and strategy of concentration [12-14].
1. The strategy of low prices is employed by companies with a cost advantage resulting from their controlling a large market share of usually standardised products manufactured in large volumes (effect of scale). On the Single European Market this strategy is pursued, for instance, by many clothing companies that manufacture standardised articles sold through large chain stores or by mail-order houses.
2. The strategy of differentiation consists in giving special features to products or services sold by a company, which will distinguish them from the other goods offered on the market. In the Single European Market, this strategy may also translate into the adjustment of goods to the requirements of selected national or regional market segments. This strategy makes it possible for a company to earn higher profit margins and gain a dominant position in selected market segments. If successful, the strategy triggers the imitation effect among major competitors, as a result of which the position held by market leaders may be undermined. One barrier to this strategy may be the relatively low absorption of a market.
3.
On the single European market, the development of a company marketing strategy should be preceded by a market research to identify the following elements: the potential capacity of selected segments of the market for a relevant industry, consumers’ tastes and needs, appropriate methods for entering a market (including identification of the methods employed by major competitors), as well as the necessary degree of product standardisation and differentiation.
The marketing strategy means setting a long-term objective for an enterprise, as well as identifying the instruments, methods and measures for its achievement. In the classic approach, M. Porter distinguished three major market competition theories, that is, strategy of low prices, strategy of differentiation and strategy of concentration [12-14].
1. The strategy of low prices is employed by companies with a cost advantage resulting from their controlling a large market share of usually standardised products manufactured in large volumes (effect of scale). On the Single European Market this strategy is pursued, for instance, by many clothing companies that manufacture standardised articles sold through large chain stores or by mail-order houses.
2. The strategy of differentiation consists in giving special features to products or services sold by a company, which will distinguish them from the other goods offered on the market. In the Single European Market, this strategy may also translate into the adjustment of goods to the requirements of selected national or regional market segments. This strategy makes it possible for a company to earn higher profit margins and gain a dominant position in selected market segments. If successful, the strategy triggers the imitation effect among major competitors, as a result of which the position held by market leaders may be undermined. One barrier to this strategy may be the relatively low absorption of a market.
3.