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Eric H. Shaw (Department of Marketing, Florida Atlantic University, Boca
Raton, Florida, USA) The purpose of this paper is to organize the semantics jungle of marketing strategy approaches, terms and concepts into a logically coherent framework using the history of marketing thought to inform current marketing research and practice. Design/methodology/approachThe paper takes the form of an intensive literature review tracing the three streams of marketing strategy terms and concepts from their roots in the literatures of early marketing management, managerial economics and corporate management to the present. FindingsAlong with marketing ideas, strategy concepts from managerial economics and from corporate management were absorbed directly into the corpus of strategic marketing thought. These three streams of research have converged into the current state of marketing strategy – an eclectic mixture of both complementary and conflicting strategic approaches, terms and concepts. By systematically following the evolutionary development of major contributions to strategic marketing thought and by redefining terms and refining concepts the various approaches to strategy can be integrated into a comprehensive conceptual framework for organizing and choosing among individual marketing strategies.
Originality/valueThe framework offers conceptual and practical value. It provides a researcher with a consistent set of terms and concepts to build upon. The framework also provides a strategic toolkit for the marketing manager, based upon organizational and environmental conditions, to choose from among the feasible alternatives the most effective marketing strategy to achieve management's goal(s). Keywords
CitationShaw, E.H. (2012), "Marketing strategy: From the origin of the concept to the development of a conceptual framework", Journal of Historical Research in Marketing, Vol. 4 No. 1, pp. 30-55. https://doi.org/10.1108/17557501211195055 Publisher:Emerald Group Publishing Limited Copyright © 2012, Emerald Group Publishing Limited Related articlesMost small companies have plans to grow their business and increase sales and profits. However, there are certain methods companies must use for implementing a growth strategy. The method a company uses to expand its business is largely contingent upon its financial situation, the competition and even government regulation. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition. Market Penetration StrategyOne growth strategy in business is market penetration. A small company uses a market penetration strategy when it decides to market existing products within the same market it has been using. The only way to grow using existing products and markets is to increase market share, according to small business experts. Market share is the percent of unit and dollar sales a company holds within a certain market vs. all other competitors. One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market. Market Expansion or DevelopmentA market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why a company may consider a market expansion strategy. First, the competition may be such that there is no room for growth within the current market. If a business does not find new markets for its products, it cannot increase sales or profits. A small company may also use a market expansion strategy if it finds new uses for its product. For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product. Product Expansion StrategyA small company may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market. A product expansion growth strategy often works well when technology starts to change. A small company may also be forced to add new products as older ones become outmoded. Growth Through DiversificationGrowth strategies in business also include diversification, where a small company will sell new products to new markets. This type of strategy can be very risky. A small company will need to plan carefully when using a diversification growth strategy. Marketing research is essential because a company will need to determine if consumers in the new market will potentially like the new products. Acquisition of Other CompaniesGrowth strategies in business can also includes an acquisition. In acquisition, a company purchases another company to expand its operations. A small company may use this type of strategy to expand its product line and enter new markets. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. A company must know exactly what it wants to achieve when using an acquisition strategy, mainly because of the significant investment required to implement it. What is a strategy for company growth by offering modified or new products to current market segments?Market penetration
The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share.
Is offering modified or new products to current markets?Question: 1-Market penetration involves offering modified or new products to current markets.
What is the strategy for new products with new markets?Diversification – The concept of entering a new market with altogether new products.
What are the 4 growth strategies?The four growth strategies
These are Product, Placement, Promotion and Price. Where the Four Ps focus on audiences, channels & pricing, the Ansoff Matrix is more effective for a broader view of markets and uses the older Four P framework within each of the 4 Ansoff quadrants.
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