The 4 types of marketing strategies are product, price, place and promotion. They are examples of the "marketing mix" or the combined tools and method
The 4 types of marketing strategies are product, price, place and promotion. They are examples of the “marketing mix” or the combined tools and methods used by marketers to achieve their marketing objectives.
Software as a Service marketing is fraught with unique challenges. And on the surface, marketing your SaaS offering follows the same steps as promoting any other product or costumer service. Looking ahead, SaaS companies need to take these familiar strategies and adapt them:
What Are Marketing Strategies?
A marketing strategy in a business plan is a set of personas that your team implements to accomplish a specific goal. For example, if one of your goals is to increase brand awareness, you can implement a social media strategy. This strategy can use tactics like posting helpful tips, starting a hash tag to take advantage of fan-generated content, and getting paid to promote your post to a new audience.
Marketing strategies fit into two main categories: (1) outbound and (2) inbound. Outbound marketing campaigns involve your business directly reaching out to your target audience while on the other hand, inbound marketing campaigns give your audience a reason to reach out to you and start a conversation.
In a classic Harvard Business Review article, enough (1957) offered four strategies for business growth. These four types of strategies in marketing strategy also identify four basic types of marketing plans and the types of investments and activities associated with each. Strategies are defined by whether they focus on new or existing products and new or existing markets.
- Market Penetration Strategy
- Diversification Strategy
- Market Development Strategy
- Product Development Strategy
- Market Penetration Strategy
This type of market penetration strategy is when a company works towards a higher market share by tapping into existing products in existing markets. And thus a company (which already exists in the market with a product) can increase business by increasing sales to people already in the market.
When a firm focuses on selling its existing products to existing customers, it is adopting a market penetration strategy. And the marketing activities that will dominate this type of marketing plan are those that emphasize increasing the service loyalty of existing customers so that they do not harm competitors, and that attract customers of competitors, increase the frequency of use of the product, and users among non-users.
Raising awareness through marketing communications and increasing availability through expanded distribution through marketing communications are common marketing activities in this market penetration strategy type of plan. Identifying new use cases and new uses for a product can increase frequency of use and convert existing nonusers into users.
For example, an ad campaign for orange juice with the tagline “It’s not just for breakfast anymore” was an attempt to broaden consumption. Price promotions can be used to get competitors’ customers to try the firm’s products and to encourage customers if there is reason to believe that such a trial will result in repeat purchases.
A loyalty program in a market penetration strategy can be very effective in retaining existing customers. And this strategy relies on what the firm already knows well and minimizes risk – its existing products and existing customers. It is also a strategy where investment in marketing should pay off more quickly as the firm builds on existing foundations of customer relationships and product knowledge.
- Diversification Strategy
Diversification strategy is applied when companies want to grow. A diversification strategy is the practice of introducing a new product into your supply chain to increase profits. And these products can be a new segment of the industry that your company already owns, known as business-level diversification.
This type of diversification strategy involves the introduction of new products in new markets. And this is actually the creation of a completely new business. And the riskiest of these strategies and requires the most patience in waiting for returns on investment is the diversification strategy.
- Market Development Strategy
A market development strategy is a business growth strategy and a market development strategy that focuses on introducing existing products to new markets and many companies often use market development new strategies to identify and develop new opportunities to sell their products in previously unexplored markets. For example, a company that manufactures and sells cell phones to customers in the United States may decide to advertise and sell the same cell phone in Canada to reach new customers.
Efforts to expand sales by selling existing products in new markets are known as market development strategies. And such efforts may include entering new geographic markets such as international markets. And creating product awareness and developing distribution channels are key marketing activities.
For example, as fast food restaurants have moved into international markets, they often change their menus to better match the food preferences of customers in local markets.
- Product Development Strategy
A product development strategy relies on developing new products or modifying existing products to make them appear new, and offering those products to existing or new markets. When implemented successfully, it can lead to increased sales and market share.
Product development strategy is important in marketing because product development strategy in marketing uses market research to develop a plan for success in selling products. And your overall strategy should include the methods and techniques you’ll use during each stage of product development. This can help you eliminate obstacles and focus on the most successful strategies. By making plans for how to develop different products, you can adjust existing products and grow your business.
Looking at the current scenario, creating new products to sell to customers, a product development strategy is a common marketing strategy among companies that can leverage their relationships with existing customers. For example, American Express is also able to leverage its relationships with credit card customers to sell travel-related services. Similarly, in modern times, cable television companies have expanded their offerings into Internet and telephone services.
Research and development activities play a dominant role in the formulation of product development strategy. The time required to develop and test new products can be long, but once a product is developed, building awareness, interest, and availability should be relatively quick because the firm already has a relationship with customers.
