4 Types Of Marketing Plans And Strategies - Branding Strategy Insider (2024)

In a now classic Harvard Business Review article, Ansoff (1957) identified four strategies for business growth. These four strategies also identify four basic types of marketing plans and the types of investments and activities associated with each. The strategies are defined by whether the focus is on new or existing products and new or existing markets.

1. Market Penetration Strategy

When a firm focuses on selling its current products to existing customers, it is pursuing a market penetration strategy. The marketing activities that will dominate in this type of marketing plan are those that emphasize increasing the loyalty of existing customers so that they are not vulnerable to loss to competitors, attracting competitors’ customers, increasing the frequency of product use, and converting nonusers into users.

This article is part of Branding Strategy Insider’s newsletter. You can sign up here to get thought pieces like this sent to your inbox.

Increasing awareness through marketing communications and increasing availability through expanded distribution are common marketing activities in this type of plan. Identifying new use occasions and new uses for a product may increase usage frequency or convert current nonusers into users. For example, the advertising campaign for orange juice that has the tagline “It’s not just for breakfast anymore” was an effort to expand usage. Price promotions might be used to encourage competitors’ customers to try the firm’s product if there is reason to believe that such a trial will result in repeat purchases. Loyalty programs can be very effective in retaining existing customers. This strategy reduces risk by relying on what the firm already knows well—its existing products and existing customers. It is also a strategy where investments in marketing should pay back more quickly because the firm is building on an existing foundation of customer relationships and product knowledge.

2. Market Development Strategy

The efforts to expand sales by selling current products in new markets are referred to as a market development strategy. Such efforts may involve entering new geographic markets, such as international markets. Creating product awareness and developing distribution channels are key marketing activities. Some product modification may be required to better match the needs of the local market. For example, as fast food restaurants have moved into international markets, they have often changed their menus to better match the food preferences of customers in local markets. Expanding into a new market with an existing product carries some risk because the new market is not well known to the firm and the firm and its products are not well known in the market. The return on marketing investments in such a strategy is likely to be longer than for a market penetration strategy because of the time required to build awareness, distribution, and product trial.

3. Product Development Strategy

Creating new products to sell to existing customers, a product development strategy, is a common marketing strategy among firms that can leverage their relationships with existing customers. For example, American Express has been able to leverage its relationships with its credit card customers to also sell travel-related services. Similarly, cable television companies have expanded their offerings into Internet and telephone services. Research and development activities play a dominant role in this strategy. The time required to develop and test new products may be long, but once a product is developed, creating awareness, interest, and availability should be relatively rapid because the firm already has a relationship with customers. A product development strategy is also riskier than a market penetration strategy because the necessary product may not be possible to develop, at least at a cost acceptable to customers, or the product developed does not match the needs of customers.

4. Diversification Strategy

A diversification strategy involves taking new products into new markets. This is really the creation of a completely new business. This is the riskiest of strategies and the strategy likely to require the most patience in waiting for a return on investment.

Contributed to Branding Strategy Insider by: David Stewart, President’s Professor of Marketing and Business Law, Loyola Marymount University, Author, Financial Dimensions Of Marketing Decisions.

The Blake Project Can Help Your Brand Business Grow In The Brand Growth Strategy Workshop

Join 20,000 Marketers Who Have Taken A Transformative Journey To A Bigger Future In Mark Ritson’s Mini MBAs In Marketing And Brand Management Courses.

Branding Strategy Insider is a service ofThe Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Growth and Brand Education

FREE Publications And Resources For Marketers

Post Views: 99,241

4 Types Of Marketing Plans And Strategies - Branding Strategy Insider (2024)
Top Articles
LibGuides: Author's Rights: Types of Author Agreements
The Vine and Branches: An Exegetical Analysis and Commentary of John 15:1-11
Durr Burger Inflatable
Parke County Chatter
Po Box 7250 Sioux Falls Sd
Davante Adams Wikipedia
35105N Sap 5 50 W Nit
Computer Repair Tryon North Carolina
Bluegabe Girlfriend
Wfin Local News
Top Golf 3000 Clubs
Erskine Plus Portal
Dityship
Ap Chem Unit 8 Progress Check Mcq
Palace Pizza Joplin
今月のSpotify Japanese Hip Hopベスト作品 -2024/08-|K.EG
Panorama Charter Portal
Sky X App » downloaden & Vorteile entdecken | Sky X
The Cure Average Setlist
Craftology East Peoria Il
Sport-News heute – Schweiz & International | aktuell im Ticker
Race Karts For Sale Near Me
Strange World Showtimes Near Roxy Stadium 14
Team C Lakewood
Seeking Arrangements Boston
At&T Outage Today 2022 Map
Ecampus Scps Login
BJ 이름 찾는다 꼭 도와줘라 | 짤방 | 일베저장소
WRMJ.COM
91 Octane Gas Prices Near Me
Dtlr On 87Th Cottage Grove
Chadrad Swap Shop
Was heißt AMK? » Bedeutung und Herkunft des Ausdrucks
1400 Kg To Lb
Cross-Border Share Swaps Made Easier Through Amendments to India’s Foreign Exchange Regulations - Transatlantic Law International
Zero Sievert Coop
The Best Restaurants in Dublin - The MICHELIN Guide
Pay Entergy Bill
Trap Candy Strain Leafly
Craigslist Mexicali Cars And Trucks - By Owner
Sams Gas Price Sanford Fl
Mbfs Com Login
UT Announces Physician Assistant Medicine Program
Caphras Calculator
Wolf Of Wallstreet 123 Movies
Bonecrusher Upgrade Rs3
Mcoc Black Panther
Blog Pch
Craigslist Sarasota Free Stuff
Jovan Pulitzer Telegram
Latest Posts
Article information

Author: Velia Krajcik

Last Updated:

Views: 6453

Rating: 4.3 / 5 (74 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Velia Krajcik

Birthday: 1996-07-27

Address: 520 Balistreri Mount, South Armand, OR 60528

Phone: +466880739437

Job: Future Retail Associate

Hobby: Polo, Scouting, Worldbuilding, Cosplaying, Photography, Rowing, Nordic skating

Introduction: My name is Velia Krajcik, I am a handsome, clean, lucky, gleaming, magnificent, proud, glorious person who loves writing and wants to share my knowledge and understanding with you.