3.1.3Concentration
Concentration is an important part of the marketing strategy, following up the indirect approach and differentiation. Its success is determined by the ability to distract competitor and seek out an opportunity in a developing segment. But it is important to take into consideration that concentration is effective only to extend one can successfully differentiate from the competitors.
3.2Marketing mix
Taking all that into consideration, it’s time to proceed to marketing mix, as a core structure under development of the marketing strategy. Marketing mix is usually composed of so-called 4P components – Product, Price, Place and Promotion. Every of the four primary components suggest strategy possibilities. For example, it is extremely helpful when comparing performance of the company to the competitors’ one to determine is the chosen strategy is the most suitable one. The table below is providing a guideline for creating a strategy out of a marketing mix. (Paley, 2007 p. 51)
The basis, when working with the marketing mix, is to effectively determine the factors that can possibly become a distinctive competitive advantage on the market.
For example, a company should select a feature of an offered product or service that a competitor cannot match, put quality and service as a general priority and try to focus on premium priced segment. Maintaining a market-driven orientation it is easier for the company to establish long-lasting relationships with customers through timely identifying and fulfilling their needs and wants.
Constant investigation of opportunities, which can contribute to the long-lasting goals, like, for example, new exporting situation, is a must. Timely investigation of the opportunities may as well result in the identification of the emerging niche on the market and lead to successful expansion. (Paley, 2007 pp. 52-53)
“In the marketing discipline, the Internet serves as a distribution channel, communication medium and fertile ground for new products. It has also lowered marketing costs and put tremendous downward price pressure on products sold online” (P. Kotler, 2005 p. 148)
Established and old-school marketing practices are not rejected with the technological advancement, they are being adopted. Now they are being used on a different scale, as globalization has brought a lot more space for the activities.
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