The importance of marketing strategy is due to the fact that marketing provides information, strategic and operational connections between the enterprise and the external environment.
The basis of marketing is the process of continuous collection, analysis and evaluation of information, primarily about the state of the market. It is almost impossible to effectively manage marketing activities without constantly updated and reliable information. In order to survive in a competitive environment, an enterprise must monitor all changes in the market (consumer requirements, price ratios, competition), as well as the creation of new products, the introduction of new elements into the distribution network.
In the process of substantiating and developing an enterprise’s marketing strategy, three interrelated tasks are solved:
* development of a set of marketing activities (development of new types of products; creation of alliances, differentiation of market policies; diversification of production; overcoming barriers to entry into the market, etc.);
* adaptation of the enterprise's activities to changes in the external environment (taking into account cultural specifics in contacts with the public, the social situation in the country, economic conditions, etc.);
* ensuring the adequacy of the enterprise's marketing policy to the changing needs of customers (changes in the range of goods and services produced; knowledge of customer needs; detailed market segmentation, etc.).
Marketing strategy, or the marketing strategy for the development of an enterprise, is a set of directions for its activities in the market and decision-making that orient individual marketing activities towards the fullest possible implementation of the basic strategy of the enterprise.
The marketing strategy of an enterprise is designed to create the necessary conditions for achieving the desired competitive position over a certain period of time.
strategy management functional innovative
Fig.2.1.
It is customary to distinguish four main approaches to planning a marketing strategy:
* matrix of opportunities for goods/markets by I. Ansoff;
* matrix of the Boston Advisory Group (BCG);
* program for the impact of market strategy on profits (PIMS);
* general competitive strategies of M. Porter.
The main components of the marketing strategy for enterprise development are presented in Figure 2.2.
Rice. 2.2.
As an important element of the marketing strategy for the development of an enterprise, a product strategy (new product strategy) should be considered, which, in turn, consists of the basic elements presented in Figure 2.3.
Rice. 2.3.
At the growth and maturity stages of the product life cycle, it seems appropriate to use the design strategy and the product overlap strategy as the main ones.
The product design strategy assumes that, depending on its size, financial capabilities, fame and popularity, an enterprise can offer to the market either standard goods or services, or goods and services in accordance with the wishes and tastes of the customer (custom-made goods and services).
It should be noted that the strategy of a standard product with modifications (as a palliative between the strategy of a standard product and the “custom-made” product strategies) is advisable to use primarily in the production of large products in order to gain a larger market share.
The strategy of “overlapping” goods with each other is based on the enterprise increasing its external competitiveness by creating conditions for internal competition. This is especially true at the maturity stage of the product life cycle, when maintaining sales volume is possible with further differentiation of the intended products and increasing their consumer properties. The strategy of “overlapping” goods is used either by enterprises seeking to conquer the market, but do not yet have a strong position in it, and by enterprises that are confident in their “image”.
At the decline stage of the product life cycle, the strategy of product liquidation is most often used.
The harvesting strategy can be applied to a product whose sales volume is steadily declining. While simultaneously reducing production costs, the enterprise tries to obtain maximum profit without investing funds to maintain this product on the market.
The assortment simplification strategy is used if there are not enough funds to maintain the entire product range, and the remaining products will provide a sufficient amount of profit.
The strategy of liquidating the entire product range is used in the case when goods “do not sell” (for example, an obsolete product that no longer finds its buyer).
The price (pricing) strategy, as an element of the marketing strategy of an enterprise, provides for the justification and development of a mechanism for determining prices for the goods it produces.
The product promotion strategy as an element of the enterprise’s marketing strategy involves the justification and development of a system of measures to strengthen the existing consumer attitude towards goods. This strategy is addressed to various consumers (shareholders, government, personnel), etc.
The main functions of a product promotion strategy include the following:
1. Creating an image of prestige, products, services, low prices.
2. Information about the parameters of goods and services.
3. Generating recognition of new products and services.
4. Creating interest among distribution channel participants.
5. Convincing consumers to switch from one product and service to another.
6. Justification of the price of goods and services.
7. Generating favorable information about the company, its products and services relative to competitors.
“Strategy” is taken from the military lexicon, where it means planning and bringing into life half of the country using all available resources. In a general sense, the concept is used to denote the adoption of broad measures or approaches.
Strategy– the process of formulating long-term goals and intentions of the enterprise, choosing the direction of activity and the corresponding distribution of those resources that are necessary to achieve further goals. Page is the art of management, a general plan for conducting work in various areas of economic activity; opportunities in business are associated with the rapid development of technology, increasing consumption requirements, and tougher competition on the global market. Under these conditions, the company's success is largely due to its ability to constantly adjust its strategy. The company's advantages of market orientation lie in the close relationship of their corporate and marketing strategies.
Corporate strategy– the interrelation of all kinds of components of the economic activities of companies, for example, the creation of consumer value.
Corporate strategy is formed by:
1. management decisions that determine the company’s goals
2. practical actions, for example, to achieve these goals.
Thus, the corporate strategic plan sets the scale of the activity and the strategic goal, tactical tasks, determine the process of planning the sequence of necessary actions and the required resources to achieve this goal . Mark strategy designed to answer the questions: how, when and where.
Mark.page presented is a process consisting of stages of analysis, planning, implementation and control, for example, to satisfy needs and preferred consumption by providing exceptional value.
The layout of the marking page provides:
1. identification of target market segments and positioning strategies
2.development of strategies, for example to maintain relationships with consumers
3.times of planning strategies for new products
4.choice of strata. sales, promotion and central security
5.implementation and management of strategies
44. Marketing strategies in the system of general corporate management.
45. General characteristics of enterprise growth strategies using the “product-market” matrix.
Growth Strategies
general characteristics
Corporate strategy is a general management plan for a diversified company. Its development includes 4-components:
1) Geographic growth vector – determining the direction and scale of future areas of activity;
2) Competitive advantage that will manifest itself in various areas of activity;
3) Synergy;
4) Strategic flexibility (due to activities in various areas).
All the diversity of corporate strategies comes down to four species:
1 . Growth strategy (offensive);
2 . Stabilization strategy (offensive-defensive);
3. Survival strategy (defensive);
4. Combination strategy.
Growth strategy– increasing production by penetrating and capturing new markets; implemented in dynamically developing industries and market segments.
Growth can be either external (in the form of vertical and horizontal growth), expressed in the form of a struggle to increase or maintain its market share, or internal (expanding the range, active marketing policy, innovation, etc.).
If production occupies other market positions, has stable development and chooses the growth of sales markets, profits and capital as its goal, then there is 3 strategic directions:
1) intensification of existing capabilities;
2) combining goals with other productions;
3) entering other areas of business not related to the main activity.
In accordance with these directions, the following growth strategies are distinguished:
Growth rate;
Integrated growth;
Product strategy.
To carry out successful activities in the market, a detailed and well-thought-out product strategy is required. Strategic product decisions are central to the overall marketing strategy of a tourism enterprise. This is due to the fact that the product serves as an effective means of influencing the market, the main concern of the enterprise and a source of profit. It also represents a central element of the marketing mix. Price, sales, communications are based on the features of the product.
Product strategy is the development of directions for optimizing the product range and determining the range of products that is most preferable for successful work in the market and ensuring the efficiency of the enterprise as a whole.
The lack of a product strategy leads to instability in the supply structure due to the influence of random or temporary current factors, loss of control over the competitiveness and commercial effectiveness of products.
Pricing strategy.
Price falls under the category of controllable marketing factors. Therefore, careful development of a pricing strategy is the most important task of the enterprise. At the same time, it is extremely important to ensure consistency and interrelation between the pricing and overall strategy of the enterprise.
Some of the most important factors to consider when developing a pricing strategy include:
- - The relationship between supply and demand;
- - Level and dynamics of competing prices;
- - State regulation of the economy as a whole;
- - Consumers.
The objectives of a pricing strategy arise from an analysis of the enterprise's position in the market and its overall goals in the market. Possible goals include the following:
Maximizing current profits. In this case, the enterprise, as a rule, does not care about the possible strategic consequences.
Maintain position in the market. Under such circumstances, an enterprise often does not consider the structure of its costs and in some cases sells goods even at a loss. This approach cannot be used for long. The main thing here is to analyze the cost structure and set goals in such a way that the company can not only maintain its position, but also make at least a moderate profit.
- - Gaining and maintaining market leadership. Based on an accurate determination of the cost structure, prices are calculated that make it possible to operate for quite a long time with sufficient profit, are affordable to consumers and do not make competitors want to compete for a leading position in the market.
- - Achieving leadership in the quality of products offered. In this case, the enterprise strives to surpass its competitor by maximizing the quality characteristics of its activities. Improving the quality of products means increasing their prices. Taken together, the price of a product is determined by the mutual action of three groups of factors: individual production and sales costs, the state of demand and the level of competition in the market.
Taking into account these factors, pricing methods have been developed in marketing practice:
- 1. Cost-based pricing (cost method) is based on the calculation of production costs, service costs, and desired profits. This method does not take into account a number of factors: the level of demand, the sensitivity of customers to price levels, the price level of competitors.
- 2. Pricing based on the level of competition is quite typical for enterprises operating in the service sector. In this case, prices are set below market prices, at market levels, or above them, depending on the demands of customers, the service provided, the image of products, and the real or proposed response of competitors.
- 3. Demand-driven pricing. Focuses on studying consumer desires and setting prices that are acceptable to the target market.
Pricing strategy is the choice of possible dynamics of changes in the initial price of a product in market conditions that best corresponds to the goals of the enterprise.
From a marketing point of view, the following strategies stand out:
- - The skimming strategy (high prices) involves the initial sale of a product at high prices.
- - Market penetration pricing strategy. Based on deliberately low prices in order to influence the largest possible number of consumers.
- - The strategy has a number of disadvantages. Firstly, it is necessary that a situation arises where competitors do not have time to react to the price reduction. Secondly, the enterprise's own costs must be so low that even at low prices it ensures a sufficient amount of profit. Third, it is especially dangerous if a competitor begins to pursue a similar strategy.
- - Prestigious pricing strategy. Prestige prices are deliberately high prices designed to attract consumers who are more concerned about a product's quality, uniqueness, or status than price.
The “following the leader” strategy involves the company’s correlation of prices for its products with the movement and nature of the leader’s prices in a given market.
- - The sliding falling price strategy is used when the enterprise is reliably insured against competition.
- - Preferential price strategy. Its essence is to achieve an advantage over competitors in terms of costs (then the price is set lower than competitors' prices) or quality (then the price is set higher).
- - The strategy of price manipulation is one of the means of increasing the value of a service in the eyes of customers. At the same time, a slightly increased price for a product is perceived by the buyer as an indicator of the value of the service.
Sales strategy.
The development and implementation of a sales strategy involves solving the following fundamental issues:
- - Selection of sales channels;
- - Selecting intermediaries and determining an acceptable form of working with them.
The choice of a distribution channel is a complex marketing decision, since it most directly affects the effectiveness of the implementation of the marketing concept in the enterprise.
A sales (distribution) channel is a set of firms or individuals involved in the process of promoting a product from manufacturer to consumer.
Channels can be characterized by the number of levels that comprise them.
The channel level is any intermediary that performs one or another function in bringing the product closer to the consumer. Since both the producer and the consumer perform certain work, they are also part of any channel. The length of the channel is indicated by the number of intermediate levels it contains.
In the service industry, zero-level and single-level channels are commonly used. In tourism, both two-level and three-level can be additionally used.
A service enterprise, especially a tourism enterprise, has in its arsenal a fairly wide variety of sales channels and ways of organizing and constructing them.
It can carry out its sales independently, but it is easier to work in markets, especially unfamiliar ones, with the help of intermediaries.
Communication strategy.
Thus, in general, a complex of marketing communications is a system of activities aimed at establishing and maintaining certain relationships between an enterprise and communication recipients.
The marketing communications mix includes four elements:
- 1. Personal selling - direct contact of a company representative with one or more potential buyers for the purpose of presenting a product and making a sale.
- 2. Sales promotion - short-term incentive measures to purchase a product.
- 3. Propaganda - work with the public aimed at creating and maintaining friendly relations and mutual understanding between it and the enterprise.
- 4. Advertising is a paid form of non-personal presentation of a product and creating demand for it, as well as creating the image of an enterprise.
Each element of the communications complex has specific methods and techniques. However, they all pursue one goal - to contribute to the successful solution of strategic and tactical tasks in implementing the marketing concept.
Strategy refers to a plan or method of any activity, presented in general form for a long period of time.
The strategy is developed in any direction in order to make the most efficient use of available resources to achieve the main goal.
A marketing strategy is part of a company's overall corporate strategy and aims to describe how the company should use its limited resources in order to grow in the long term. It represents an element of the company’s marketing plan and is more descriptive in nature, suggesting not the specific actions themselves, but only their direction.
Concept, objectives and application of marketing strategies
Marketing strategy should be understood as the process of planning and subsequent implementation of various activities in the field of marketing of an organization, which are aimed at achieving the goals set for the company.
Since the marketing strategy is included as an integral element in the overall strategy of the company, it helps outline the main directions of the organization’s activities in the market space in relation to consumers and competitors.
The development of a marketing strategy will be influenced by the main goals of the company, its current market position, the resource potential of the organization, an assessment of its market prospects and possible actions of competitors.
Main goals Marketing strategy usually includes:
- an increase in sales volume, which can occur in two ways: by increasing the flow of customers or the number of orders;
- company increase;
- ensuring the attractiveness of products for a particular target audience;
- winning a larger share of the market space;
- achieving leadership positions in your market segment.
The goals of the marketing strategy should not contradict the main mission of the company and the strategic goals of the business as a whole. Marketing strategies are also subject to all marketing activities of the company (advertising, public relations, sales organization, etc.).
It represents the gradual implementation of an interrelated set of operational level strategies, which include sales, advertising, pricing strategies, etc. In the modern world, companies often do not simply maintain or increase the share of the existing market, but search for new markets.
Since the market situation is always dynamic, the marketing strategy is also characterized by flexibility, mobility, and the ability to constantly be adjusted. There is no single marketing strategy that is suitable for all types of companies and products. To increase sales of a particular company or promote a certain type of product, separate development of areas of activity is required.
Kinds
The classification of marketing strategies can be based on various characteristics.
The most common is the division of known marketing strategies to the following groups of strategies:
- Concentrated growth. It is assumed that the market for the product will change or the product itself will be improved (modernized). Most often, such strategies are aimed at fighting competitors to gain an expanded market share (“horizontal development”), searching for markets for existing products, and improving the products themselves.
- Integrated growth. They pursue the goal of expanding the structure of the enterprise through “vertical development” - the start of production of new goods or services. As part of the implementation of this type of strategy, it is planned to monitor the company’s branches, suppliers and dealers, as well as to influence the final buyers of products.
- Diversified growth. They are used if the enterprise does not have the opportunity to develop under current market conditions with a certain type of product. A company can focus on producing a new product, but at the expense of old, existing resources, and the product may differ slightly from those already produced or be completely new.
- Abbreviations. Aimed at increasing the efficiency of the enterprise after a long period of its development. In this case, both the reorganization of the company (for example, the reduction of individual divisions) and its liquidation (for example, a gradual reduction of activities to zero while simultaneously obtaining the maximum possible income) can be carried out.
Also, the marketing strategy of an enterprise can be focused both on the entire market and on its individual target segments. In this case, they can be implemented three main strategic directions:
In addition, marketing strategies can be distinguished by means of marketing, which the enterprise is more focused on:
- Commodity;
- Price;
- Branded;
- Advertising.
If you have not yet registered an organization, then easiest way This can be done using online services that will help you generate all the necessary documents for free: If you already have an organization and you are thinking about how to simplify and automate accounting and reporting, then the following online services will come to the rescue and will completely replace an accountant at your enterprise and will save a lot of money and time. All reporting is generated automatically, signed electronically and sent automatically online. It is ideal for individual entrepreneurs or LLCs on the simplified tax system, UTII, PSN, TS, OSNO.
Everything happens in a few clicks, without queues and stress. Try it and you will be surprised how easy it has become!
Formation and development stages
Formation marketing strategy occurs in 4 stages:
- The stage of analyzing the organization's marketing capabilities. It is an assessment of the strengths and weaknesses of the functioning of an enterprise, its advantages in a particular market and possible risks;
- The stage of selecting markets for operation. It involves conducting an analysis of supply and demand, considering a certain type of market, its pros and cons, consumer composition, as well as the need for the products that the enterprise produces;
- Marketing program development stage. It consists of determining the features of the pricing policy, methods of positioning a particular product on the market, conducting an advertising campaign, as well as monitoring the sales of products;
- Stage of approval and implementation of marketing programs. It assumes their reasonable analysis in the context of the provisions of the general strategy of the organization and crisis management.
Capable of forming a marketing strategy influence the following actions:
- detailed analysis of the market state, identifying its key segments;
- assessment of the current financial condition of the company;
- analysis of the enterprise’s activities in a competitive environment, as well as the actions of competitors;
- analysis of strategic alternatives and choice of marketing strategy;
- approximate economic assessment of the chosen strategy;
- determination of methods for monitoring the implementation of the marketing strategy.
Structure and content
The following structure of the marketing strategy can be distinguished:
Definition various marketing strategies:
Features of marketing strategies in various directions
Marketing Strategies in trade involve conducting a continuous systematic analysis of market needs, which will contribute to the development of those products that are needed by specific target groups. These products have special properties that distinguish them from competitors' products and provide them with an undeniable competitive advantage.
Marketing Strategies in construction involve ensuring a rational organization of production, reducing, efficient use of resources, increasing, and the ability to adapt to the market in conditions of increased competition. These strategies set the direction of the organization’s activities in the market, facilitate the coordination of the marketing components of each division of the construction organization, and allow for the effective use of available resources.
Marketing Strategies in finance provide not only the search for effective directions and methods for selling financial products, but also the identification of ways to diversify the company’s services, as well as the formation of the organization’s anti-crisis policy.
Evaluation and analysis of effectiveness
Efficiency mark marketing strategy of an enterprise allows you to understand whether its concept was chosen correctly, as well as to monitor the implementation of your goals.
For this it is necessary carry out a detailed analysis several components of a marketing strategy:
Marketing audit will give an opportunity see the degree of deviation of strategic marketing results from planned ones. If they differ significantly, it makes sense to reconsider the strategy, or completely abandon it and choose an alternative. If the design is carried out successfully, this allows the company to achieve high results in the long term and take a leading market position.
Marketing strategies in crisis management
A marketing strategy is developed, among other things, for the organization’s behavior in the market in conditions of tough opposition to negative environmental factors. It is implemented within the framework of crisis management, when the company receives a focus on achieving the best position in modern market conditions.
Implementation of the entire set of measures that make up the marketing strategy will help the organization overcome the crisis with the least administrative and financial costs. Marketing strategies, as an important part of the overall anti-crisis development strategy of an enterprise, occupy a leading place in determining various methods for overcoming the crisis. For this purpose, marketing strategies for pre-crisis, crisis and post-crisis management are being developed.
For information on the rules for developing a marketing strategy, see the following video lesson.
Part 1:
1. Basic elements of a marketing strategy The strategic marketing process is associated with the following key questions, the answers to which determine the mission of the company with key questions and, accordingly, the structure of the strategic marketing plan: ü ü ü ü ü What market is the base market for the company and what is the strategic mission of the company in this market? (What business are we in?). Which product markets constitute the firm's core market and what positioning can be chosen in these markets? What is the objective attractiveness of product markets and what opportunities and threats are associated with them? What are the firm's strengths and weaknesses, and what is the nature of its specific advantage? What is the company's development strategy, taking into account the possibilities of diversification, integration, etc.? What competitive strategy can be chosen in the chosen market? How can new needs identified during strategic analysis be transformed (taken into account) into new product concepts?
Strategic marketing is a process carried out by a company with market motivation in order to achieve indicators, pursue a policy of creating goods and services that provide consumers with goods of higher value than competitors.
Basic principles of strategic marketing: § orientation to the global goals of the organization; § focus on long-term results, objective consideration of the future; § determination of goals and strategies based on the profile of the identified competitive advantage; § multiple options when choosing strategies (using a “portfolio of strategies”);
2. Market segmentation. Assessment of market segments. A market segment is a part that is specially distinguished by certain common characteristics. Objects of segmentation: consumers, products and enterprises themselves. Product segmentation analyzes which parameters of a particular product may be attractive to consumers and to what extent this has already been taken into account by competitors. Market segmentation by consumer groups identifies a market segment based on four main characteristics: demographic, geographic, psychographic and behavioral.
Example: In 1994, the refining and marketing division of the American oil company Mobil Oil conducted a detailed study of the main types of Oil buyers of gasoline at gas stations. The division criteria were based on such parameters as: q consumer income, q average number of kilometers traveled per year, q types and forms of payment for services, q price sensitivity, q propensity to purchase additional goods (services) at gas stations, q loyalty to to a specific company.
In modern conditions, when planning a segmentation strategy, personal demographic profiles of lifestyles are often used, taking into account several factors at once. Lifestyle includes a whole set of social and psychological factors that collectively determine “how people live and spend their time and money.” Currently, market segmentation based on psychological factors has gained universal acceptance. Within the framework of marketing theory, a new direction has emerged, called “motivational analysis,” which studies the influence of such capacious concepts as “lifestyle” and “personality type.”
3. Stages of decision-making by market segments Before deciding to enter any market segment, a company must assess the attractiveness of this segment. The following questions need to be answered: - What is the growth rate in each segment? - What is the firm's market share in each segment? - Where are the company's most important clients? - Where are the company's direct competitors? - What are the specific requirements of each segment in terms of service, quality, price, etc.?
Market analysis at the segmentation stage also involves searching for new potential segments. For this purpose, the following questions: - Are there other Technologies available to perform the required functions? - Is the improved product capable of performing additional functions? - Are there other buyer groups with similar needs or functions?
Basic concepts in measuring demand Market demand is the total sales volume in relation to the product market in a given place and in a given period for a set of brands or competing firms.
Market share for a particular brand of a firm is calculated using a simple formula: Market share can be calculated by volume (number of items sold divided by total sales in the underlying market) or by value (based on revenue rather than unit sales).
A clearer segmentation in strategic marketing is facilitated by the concept of strategic business zones (SZH) and strategic business units (SBU), which is widely used in the business practice of most large Western firms and reflects the interdependence of the strategic segmentation of the external and internal environment of the company. Analysis of the potential characteristics of SZH allows us to determine the most rational directions of the company's development strategy. ü The first step is to identify the relevant areas and study them without regard to the structure of the enterprise or its current products. Result of the analysis: assessment of the prospects of the opening company. ü The second step is the development of an appropriate product range of responsibility between the structural divisions of the production system for choosing the area of activity, developing competitive products and marketing strategies, as well as for realizing profits. ü For this purpose, strategic business units (SBUs) are identified within the enterprise, which are entrusted with responsibility for choosing strategic directions of activity.
4. Determination of the type of strategy in segment M. Porter identifies the following emergence, growth, maturity, decline. Stages of industry development: Strategies in an emerging industry. The main characteristic of an emerging industry is the absence of rules of the game, i.e., patterns according to which the industry will function. Organizations starting to operate in young industries face two most important problems: 1) gaining access to the resources necessary for production and sales; 2) determination of mechanisms for the formation of competitive advantage. When deciding what competitive advantages are appropriate to use to gain a leading position, you must keep in mind the following: competitive strategies focused on low costs or differentiation are usually the most viable.
Strategy at the growth stage. At the growth stage, competition is mainly for market share. We can say that with significant growth rates of market capacity, the industry as a system is not stable, that is, “it is in a nonequilibrium state.” Minor external and internal disturbances can cause significant changes in system parameters. The organization must rush to take advantage of the benefits of scale and absorption effects, strive to consolidate relationships with key suppliers, actively develop its sales network, search for new customer segments, and develop new geographic territories. She should always remember that powerful competitors with great capabilities may enter.
Strategies in the recession stage. An industry at the decline stage has the following characteristic features: o o o o a decrease in demand tightens competition and complicates its forms; the competitive power of suppliers increases; the role of price and quality in competition is increasing; the complexity of managing the increase in production capacity is increasing; the process of creating product innovations becomes more complicated; international competition is intensifying; industry average profitability decreases; The industry is experiencing an increase in company acquisitions, mergers, entries and exits from the industry. To combat competition during the recession stage, M. Porter suggests using four strategies. - Leadership. Has the goal of remaining alone or almost alone in the industry. Conducted through leadership of offensive maneuvers in relation to competitors. - Creation or protection of specific segments. It consists of searching for a segment where the demand for segments is still stable and profits are high, and securing this segment for your enterprise. - Collection of ripe fruits. The firm tries to maximize the cash flows generated from the fruits of its industry activities. - Quick exit. It involves leaving the industry at the beginning of the recession, when it is still possible to find buyers.
5. Varieties of marketing strategies Alternative marketing strategies for developing sources can be presented using the Ansoff grid.
In the case of horizontal diversification, know-how gained in one market is used in another. The penetration of the tobacco industry into the beverage industry is just such an example: effective marketing know-how for one consumer product is used for another product.
Loading...