Marketing strategies can help make or mar a company. A good marketing strategy draws its strength from market research and right product development, leading to increased sales and better competitive advantage. The purpose is to create value for everyone in the process chain– be it the customers, employees or the shareholders.
The diverse and varied cultural and vast economic disparity of the Indian market presents its own unique challenges and opportunities. While many have tried entering this complex market, there are only few who have been able to make a long-lasting impression. Though the marketing mantra is customer satisfaction, creating a local and emotional connect, a USP, building trust, positioning and networking are key ingredients for success in the Indian scenario.
According to H Igor Ansoff, the father of strategic management, the marketing strategies need to be built keeping in mind the matrix of Market penetration, Product development, Market development and Product / Market Diversification. The matrix helps identify the opportunities of offering existing and new products within existing / new markets and the levels of risks and opportunities associated with each.
The market penetration involves selling more established products into existing markets, often by increased promotion or price reductions or using different routes. Product development involves developing new products or services and placing them into existing markets. Market development entails taking existing products or services and selling them in new markets. Marketing strategy is also the foundation of a marketing plan and varies by the type of markets.
The strategies are devised according to a company’s market standing as to whether they are Leaders, Challengers or Late entrants. It also needs to follow the marketing mix model (catering to four Ps of Price, Product, Place and Promotion) having basic, short and long term goals with the ‘what if’ factor and possible actions required. A good marketing strategy needs to be both dynamic and interactive, so that it can be tweaked in case of an unforeseen development while not deterring from its specified goal and not affecting their Return on Investment (RoI) in the long term.
To create an effective marketing strategy, one needs to understand the market diversity and needs, and most important of all we need to understand – why should your customer buy your product as compared to your competitors?