How to increase your market share and profits!

• 1)Good Cognitive skills
• 2)Action plan for the next 12-24 months
• 3)Strategies to ensure that the action plans are successful
• The strategies that you are about to go through will help you develop your business and increase profits and market share.
• Low cost, High
• Differentiation
• Strategies.
• · Dominant leader strategies for defending competitive position through low cost, high differentiation.
• Research experience and intuition all indicate that the dominant market leaders, the company that stands out above the rest, has significant advantages in the market place, which it dominates. Basical
• This means that market share and profitability are strongly related. This means that businesses with market share above 40% earn an average return on investment 3 times that of those with shares under
• 1. Marketing share is more important for infrequently purchased products than for frequently purchased ones.
• 2. Market share is more important to business when buyers are fragmented rather than concentrated.
• Factors such as economies of scale, risk aversion by customers and market power are some of the intuitive explanations of the dominance/high profitability relationships.
• The dominant market leader will at different times, consider both offensive and defensive strategies. Offensive moves are those strategic changes the market leader initiates. They may be threatening t
• Offensive strategies include.
• · Product packing and service innovation
• · Development of new market segments
• · Redefinition of the market to broaden its scope and position products more closely against broad substitutes, and
• · Market development through product variety and distribution strategies to increase usage and widen availability
• Only the market leaders should consider playing defence. Under certain market conditions the most profitable strategies are those that protect and defend the market share and profit base of the market
• Defensive strategies include
• · Blocking competitors by brand for brand matching, distribution coverage and price strategies to reduce their market share and profit potential
• · Pre-emption of a competitora??s action by being first with a new product/services and distribution system
• · Use of government regulations tariffs, import quotas or court action to increase a competitors cost or deny a market base, and
• · Rumours about a competitors viability, service back-up or reliability of products/services
• In practice, all these strategies are used frequently by leaders to defend their market position. Two main types of strategies for gaining maximum coverage and closing competitors out of opportunities
• Market saturation, by offering proliferation of product to distributors and end users limits the opportunities for the competitors. British airways have been very successful with this strategy in the
• Low cost,
• Low differentiation
• Strategies.
• The banking industry is a good example of undifferentiated markets in which a number of large competitors exist, none of whom have a dominant share, but all of whom are seeking a leadership position.
• 1. Vision. How the business will change and improve in the future ahead of its competitors
• 2. Commitment. In every area of the business to achieve improvements in customer value or cost of operations
• 3. Innovation. In every area of the business to achieve improvements in customer value or cost of operations.
• 4. Long-term outlook. Allows commitment to longer term growth and profit goals
• 5. Continuing. Investment to renew and improve all assets, especially new products, existing brands and customer franchises
• 6. Persistent attack. Providing the overall focus of a companya??s activity on fighting and winning, any defensive efforts is part of a long term plan that will culminate in a fresh attack, and
• 7. Speed of response. To changes in the customer needs or in the business environment, and quick counter-attack to competitive thrusts.
• Lets put all of this together now with one more piece of information, which is of vital importance.
• Choosing a value Positioning.
• More for more
• Companies can always be found that specialise in making the most upscale version of the products and charging a high price to cover their higher cost. Called luxury goods, such products claim to be be
• More for the same.
• Companies have been able to attack a more for the same brand by introducing a brand claiming comparable quality and performance but priced much lower. The Toyota Company introduced the new Lexus, with
• The same for less.
• When buying a product at less than the normal price you are making some savings, No matter what it is i.e. flat screen TVa??s seem to be available at lower prices at some shops. Today people are able to
• More for less.
• Yes, the winning strategy for value positioning would be to offer prospects and customers more for less. This is the attraction of highly successful category killer big outlets. Toys R Us, for example
• Deciding on the breadth of market coverage.
• Below are written five elements of market coverage that can be used for your company.
• 1. Single segment concentration. In which the organisation focuses on just one segment. Although a potentially high-risk strategy in that your company is vulnerable to sudden changes in taste or the e

Steps

2

Step Two

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Add value to your customers, and your competitors customer, thus stealing them away and increasing market share and profits.

3

Step Three

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Understanding of the sector you are in is of vital importance. You must keep up with changes and plan your strategies for the present and future. Be it National or International

• The 4 Pa??s takes a sellers view of the market, not a buyers view. A buyer considering an offering may not see it in the sellera??s way. Each of the four Pa?? s might be better described as the four C's from the buyera??s point of view.
• Product
• Price
• Place
• Promotion can be replaced with the 4 C's written below
• Customer value
• Cost to the customer
• Convenience
• Communication
• While you as a marketer see yourself as selling a product, the customer see themselves as buying value or a solution to a problem. Customers are interested in more than price; they are interested in their total cost of obtaining, using, and disposing of a product. Customers want the product and service to be as conveniently available as possible.
• Look at the 4 Ca??s then build from this the 4 Pa??s, use this as a platform for the start of gaining interest and share.
• Defining the target market
• Once you have chosen the target market, it is relatively easy to identify the names of potential buyers. As the company deepens its knowledge of the target market, what it wants, what it buys, where and when it buys, how it buys and so on, you improve the ability to find good leads.
• Soliciting Leads Through Communication Tools
• There are several ways to gather prospect names. You can use advertising, direct mail, telemarketing, and trade show exhibits. Or you can buy names from list brokers, of the companies you want. For example if you wanted to obtain names of cat owners in the UK. One way is to place an add in the national leading newspaper, offering a free booklet titled a??How to take care of your cata?? any cat owner needs only to fill in a coupon and supply the familya??s name, the cats name, the cats age and birthday, and any other information that you can find useful. Most cat owners who saw the ad would probably request a free booklet. Plus there are other ways of obtaining names and addresses.