Introduction
In mature markets, companies often face intense competition, saturated demand, and declining growth. In such circumstances, one effective marketing strategy is to focus on differentiation. Companies can differentiate their offerings based on unique features, superior quality, exceptional customer service, or a strong brand image (Harrigan & Porter, 1983).
Discussion
By differentiating their products and services, companies can capture a larger share of the market and command a premium price. For example, Apple Inc. has built a strong brand image that is synonymous with innovation, design, and quality. The company differentiates its products by offering a premium user experience with sleek designs and user-friendly software. This differentiation has allowed Apple to command a premium price for its products and maintain its position as a market leader in the highly competitive technology industry.
Another effective marketing strategy for extending a brand’s sales and profits is to expand into new markets. Companies can do this by entering new geographic regions, launching new product lines, or expanding into new customer segments (Harrigan & Porter, 1983). By entering into new markets, companies can gain access to new sources of demand and increase their overall sales and profits. For example, Coca-Cola has successfully expanded its brand by entering new markets and launching new product lines. The company has established a presence in almost every country in the world and has introduced a wide range of products, including soft drinks, bottled water, juices, and sports drinks. This expansion has allowed Coca-Cola to diversify its revenue streams and maintain its position as one of the largest beverage companies in the world.
Conclusion
In conclusion, companies operating in mature markets face intense competition, declining growth, and saturated demand, which makes differentiation a critical marketing strategy for survival. Differentiation enables companies to capture a larger share of the market and command a premium price for their offerings by providing unique features, superior quality, exceptional customer service, or a strong brand image. On the other hand, expanding into new markets can also help extend a brand’s sales and profits. This can be achieved by entering new geographic regions, launching new product lines, or expanding into new customer segments, thereby tapping into new sources of demand and increasing overall sales and profits.
Reference
Harrigan, K. R., & Porter, M. E. (1983). End-game strategies for declining industries. Harvard Business Review. Web.