Counter Strategies in Global Markets

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Company Profiles. Business Essentials. Warren Buffett. Investopedia uses cookies to provide you with a great user experience. By using Investopedia, you accept our. Your Money. Personal Finance. Your Practice. Popular Courses. Login Newsletters. An "end run strategy" eschews direct competition and instead seeks to exploit untouched markets or neglected segments, demographic groups or areas.

A "preemptive strategy" is simply the natural advantage a company has when it is the first to serve a particular marketplace or demographic.

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It can be exceptionally hard to unseat. Also known as " first-mover " advantage.

Global Marketing Strategies

A "direct attack strategy" is more aggressive than the end run or preemptive offensive competitive strategies. Such a strategy may entail comparisons to competing products or companies that are unflattering, a price war, or even a competition as to who can introduce new product features at a faster pace.

The direct attack may also borrow tactics of the previously listed strategies, all with the goal of taking charge of the public conversation through marketing campaigns. An "acquisition strategy" seeks to remove a competitor by buying it. International Strategy: Creating Va Embed Size px. Start on. Show related SlideShares at end. WordPress Shortcode.

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Tarun Madan , Business Analyst at Amdocs. No Downloads. Views Total views. Actions Shares. Embeds 0 No embeds. Now, what should be the best tactic for all of these different scenarios?

Well, the answer to this question lies in the type of market penetration strategy you adopt. And yes, there are quite a few different penetration tactics to choose from.

Reasons for foreign direct investment

The strategy of Price Adjustment is one of the most widely used market penetration tactics. But, in the real sense, this marketing strategy should be used very judiciously as overdoing it can lead to adverse results. Like, increasing your price consistently may make the customers believe that you are a company of high-profit motive.

Decreasing the price too often would make them to believe that your products are of sub-standard quality.

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The drastic increase in promotion of a product or service can lead to dramatic results. For example, advertising can be a wonderful tool for increasing brand awareness. Companies do have a choice of making their campaigns long-term or short-term which depends upon their needs and budget.

However, the thing to be considered is that whatever be the size of the campaign, it must be well-planned and thought-out. An easy to counter promotional campaign would be simply ruined by competitors in this age of cut-throat competition.

ESMT Berlin

The strategy of Distribution Channels is one of the most constructive market penetration strategies. This strategy typically involves opening of new distribution channels by focusing on a particular distribution channel. For example, if selling through retail outlets is your primary channel, then you can learn to gain new channels like telemarketing , e-mail marketing , online marketing , etc. Such opening of new distribution channels pave the way for more new channels and thus lead to increased market space and overall profitability.

It is true that to really appeal to your customers, you must improve your product quality. However, sometimes by communicating to them about the better standard of the product itself can do the trick and no major improvement in the product may be needed. This is because most consumers are encouraged to buy a product just by its appeal and do not necessarily check whether it proves itself or not. A very potent method of market penetration is that of increased usage of any product or service.

If a marketing promotion campaign is effectively delivered at a specific area, then it would lead to an upsurge in product use which would thus lead to better market penetration with the increase in sales figures. Most marketers whenever think of growth, think of new launches.

Global Marketing Mix: Consumer Products

However, it is only partially true. Actually, it can be risky too. When a new product is being launched, there exists the risk of it being successful or not. But, an efficient distribution channel along with a smooth delivery process makes it sure that the product does meet the expectations.

Using foreign direct investment as an international market entry strategy - Trade Ready

Similarly, entering a brand new segment of the market can be risky as well. Therefore, it is absolutely essential to know your market and your product in order to do well and beyond expectations. An effective way to do this is to properly communicate with the customers and be sensitive to their requirements and wants. For example, by minimizing your variable costs, you can boost your sales and establish a barrier to entry for others.

This is why many firms with superior technology and distinct processes are able to reduce variable costs and earn better gross margins per item sold. With a substantial share in the market and an efficient marketing process, your business could create a barrier to entry to prevent competitors from coming into your industry. To overcome the challenge, you need to be more unique and highly innovative in your approach. A repetitive selling strategy would yield unsatisfactory results and hinder your growth potential.

Counter Strategies in Global Markets Counter Strategies in Global Markets
Counter Strategies in Global Markets Counter Strategies in Global Markets
Counter Strategies in Global Markets Counter Strategies in Global Markets
Counter Strategies in Global Markets Counter Strategies in Global Markets
Counter Strategies in Global Markets Counter Strategies in Global Markets

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