Marketing Essay Example | Topics and Well Written Essays - 1250 words - 17

Marketing - Essay Example These strategies are divided broadly into strategic scope and strategic strength. 2 A strategic scope relates to the demand of the products or the services that the company deals in and it focuses on the demand size and the component of the market. Strategic strength focuses on the supply of the products or services. Porter then came up with three strategies that reduced the broadness and the ambiguity of the previous strategies; these strategies included cost leadership, differentiation and market segmentation. The three strategies are drawn in a cube with the focus strategy being in the narrow segment and the other two being relatively broad.3 According to Porter, companies that gain a competitive advantage are those that strive to combine the three strategies effectively. Market segmentation can be combined with the differentiation strategy and ripe the company very effective results. Combinations of the strategies that are grouped in the broad category of the cube are a bit difficult to combine but that does not mean that they do not take place. Segmenting the market into niches helps the company to scope itself, increase the concept of demand and increase the company’s market share. Market segments also affect the strategies that relate to innovation and give the company the edge technology. This is because reducing the size of the market gives the company the specialization of the market and therefore, a chance to concentrate on aspects of improved technology. This presents the company as the pioneers of innovation. A multi-dimensional approach is a kind of approach where the company incorporates all the variables of market segmentation in coming up with its niches. These variables are broadly divided into; geographic variables, demographic variables, psychographic variables and behavioral variables.4 2.1 Geographic Variables – this is the