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How Apple became successful
Role of strategic marketing
Role of strategic marketing
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Strategic Marketing Trough Differentiation and Positioning
Strategic marketing has been defined by Ansoff and McDonell (1990) as the process of positioning the organization to its environment in a way that helps it obtain success and insures it against future obstacles (Ansoff & McDonell, 1990). This is an important element in achieving successful organizations despite the constantly changing environment and customers’ needs. As stated by Tomb & Seamons (2013), a company needs 4 steps of processes in order to create high customer value and achieve profitable customer relationships, segmentation, targeting, differentiation, and positioning. This process will help decides which customers they will serve through segmentation and targeting and how they do it through steps called differentiation and positioning. This paper focused on differentiation and positioning steps in marketing strategy.
Differentiation is a broad term and is described as creating a significant different in the company's market offering to give a superior customer value. In other words, differentiation is the ability for a company to show its special quality instead of being similar to its competitors thus losing its own color. Differentiation is really necessary when the market is competitive or saturated but there are still some underserved needs of the customers that need to be catered (Porter, 1985).
A perfect case to show a differentiation strategy is the introduction of iPhones by Apple. Apple established clear differentiation with their famous tagline “Think Different” in 2007 when iPhone was launched as a new business. Steve Jobs mentioned in 2007, “iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile pho...
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...o successful, newspaper article, 7 May 2012, TIME Tech, . viewed 18 March 2014
• Alastair Tombs, & Owen Seamons, 2013. Foundations of Marketing 2nd Edition: 132-136. Sydney: Pearson Australia
• The Times 100: Business Case Studies, n.d,. Developing new products: A Gillette case study. . Viewed 18 March 2014
• Forbes, 2013. World’s Most Valuable Brands. . Viewed 18 March 2014
• Porter, Michael. E., 2014. Porter's Generic Competitive Strategies (ways of competing), book, 1985, Institue for Manufacturing, Univeristy of Cambridge,
• . viewed 18 March 2014
The strategy for competing in the market was a broad-differentiation strategy. It was broad because it produced a large variety of products such as clamps, inserts, knobs, and similar items. Also, it differentiates from the other metal companies because of its good quality, good delivery, and reasonable price.
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
Differentiation through marketing strategies, this is a form of innovation driven by the need to create a superior brand (Sadler, 2003).
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
Narrow focus on limited value chain activities, competitor’s pricing war and lack of differentiation parity can erode the competitive advantage associated with cost leadership strategy. Similarly, imitation of differentiating features by competition and lack of perceived value of the differentiating features can erode the competitive advantage associated with differentiation strategy.
Differentiation through distribution, including distribution via mail order or through internet shopping. For example u can buy Monster from Amazon.com.
In the modern world of conducting business, any company that wishes to succeed must differentiate its products or services from others in the industry. Differentiation makes it possible for consumers to point out notable differences between one company’s products as compared to those of competitors. Differentiation helps companies build brand loyalty as the uniqueness keeps customers fixed on a particular product. BMW is one of the most popular automakers in the world today. It definitely uses differentiation as a strategy to beat off competition by building products that are innovative, detailed and incomparable to those of competitors.
The term product differentiation refers to the process of distinguishing a product or service from the competitor’s product, to make it more attractive to a particular target market. A firm uses marketing to differentiate its product, which refers to all necessary activities for a firm to sell a product to a consumer. A firm uses brand management to build a brand and unique identity of a product for the long run; this helps the firm to have an independent identity and to differentiate its products from the competitor’s product. So its uses brand management to maintain product differentiation over time. Firms use advertising as a tool to try to shift the demand curve to the right and make consumer demand for their product inelastic. This creates consumer loyalty of brand loyalty for the product. Since my movie theater doesn’t have IMAX screens, one way to advertise it could be by advertising it as affordable neighborhood theater. This way it would create brand recognition of a comfortable, homey and affordable theater for families and teens to be entertained on a budget. Product differentiation helps firms to create a unique identity of their product, which helps people become more attracted and loyal to the product even though substitutes are available, making the demand more
JetBlue follows the differentiation generic strategy in their business. The differentiation strategy focuses on persuading consumers that a service or product is better than its competitors. JetBlue supported this strategy in many ways, providing more advantages for their consumers. JetBlue began with research on other airlines to identify their service trends so they could adapt and adopt these services to benefit JetBlue. They identified a huge strategic advantage over larger and older airlines because they realized that they could achieve tasks more efficiently
Petty Ross D. Editor's Introduction: The What and Why of Marketing; American Business Journal, Vol. 36, 1999
Product differentiation – Even though consumers are getting more and more aware about differentiated products but still i...
Competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors. According to Porter, there are two major sources of competitive advantages: costs and differentiation. Cost-based competitive advantage involves reducing production costs so that an organisation can earn higher profit margin or offer products at lower price compared to competitors. Differentiation-based competitive advantage involves offering unique properties that are not offered by competitors’ products. Differentiation allows an organisation to charge a premium for their products because they offer additional benefits to buyers.
...spect only. Such as, the other four generic strategies low-cost strategy, broad differentiation strategy, focused low-cost strategy and focused differentiation strategy. Because, they focus in one market it was either to have broad or narrow market coverage. Also, the competitive advantage was either to have a low cost or differentiating strategy. While Starbucks can implement an ideal strategy, which is best cost provider strategy that give Starbucks the best of the two the affordable prices and the quality differentiation.
An organisation strategies that combine all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and the business. marketing strategy is one way to achieve the goal of a company. The destination marketing is the first and best in class in meeting the needs and aspirations of consumers. Besides that, being a key partner for our customers, consumers and communities. Eliminating non-value added activities of the process. However, the aims to increase the target profitable growth and provides benefits above average employees and shareholders. There is an example of marketing strategies that used in Rejoice company. The 4P’s are influence the marketing strategies.