Marketing strategies are some of the trickiest theories to learn and remember in marketing. Lucky for you, my dear loyal readers, I have created a simple and easy way to remember them.
1) Market penetration strategy: Suppose that you have a booth at the flea market selling charms and you are the only one in the entire market with that product. Then suppose that one day your nemesis Bob walks in and sets up a stall next to you and duplicates exactly what you sell: he just penetrated your market and stole some of your current customers……and part of your market share…the nerve of him!
2) Market development strategy: Suppose to make up for the lost revenues due to bob you start selling your charms not just to teenagers with cell-phones but to old people to…charms for canes! charms for walkers!….you just sold your current product to a new market….Good job smartypants! 😀
3) Product development strategy: Suppose Bob copies you again!! ( you should really do something about him! he keeps stealing your customers 🙁 ) Then you decide that along with your normal stock of charms you are going to sell sell mini-flashlights that you can hang from your cellphone….Charmlights!!! You just sold a new product to your existing customers and probably stole back some customers from Bob…..haha!!! lets see if Bob can beat that!
4) Diversification strategy: Bob did it again!! You get so annoyed by him that you decide to move to Antarctica and you set up your stand outside your new ice-house. Business is going great since there is no one else like you…..you are selling to a new market and have introduced a new product to that market…..you just diversified!
And here is an advertisement for Johnson’s baby oil from the 1970’s. Try to think of which marketing strategy Johnson’s is using in the advertisement. And post your opinion in the comments.
