is the total
sales volume achieved by a business in a certain period of time.
An approach to the market through
strategies and specific actions
needs to be referring to an
analysis of the demand that can be:
- Homogeneous demand – all the consumers have identical
behaviors, requesting for identical products.
- Segmented demand – the consumers are divided into groups
that differ by market behavior and products. There is an homogeneous
demand inside the groups.
- Scattered demand – the consumers have very different
individual behaviors, each of them requesting distinct, customized
lines concerning the market approach by the company on a medium and
The strategies are introduced by the
company taking into account several criteria:
- Depending on the demand features:
- Undifferentiated strategy – applied for a homogeneous
demand, when the market segments have a similar behavior. In this case,
the company approaches all the customers with the same products and
marketing activities. This is a rather seldom strategy nowadays,
characteristic to the general consume products that have little
- Differentiated strategy – the company approaches the
various market segments with products and marketing activities that are
specific to each segment because the demand is scattered. In this case,
the company wants a better reach of the different market segments and
tries to satisfy each of them.
- Concentrated strategy – when the demand is segmented, the
company focuses on only one market segment or a small number of market
- Customized strategy – very practical for a scattered
demand, each individual forming the demand is approached with specific,
customized products and marketing activities.
- Depending on the demand requirements:
- High requirements strategy – applied on the market
segments with a high purchasing power. In this case, the company
launches exceptionally qualitative products, sold usually at high
- Average requirements strategy – the company approaches the
market with products of an average quality, destined for a demand with
an average purchasing power.
- Low requirements strategy – low quality products for low
purchasing power market. This is also a strategy usual for a low market
competition situation, where the providers are not interested in
satisfying the demand at high standards.
- Competitive market strategies are related to the
competitors on the actual or potential markets. These strategies can be
arranged in a bi-dimensional matrix, also known as the “Product/market
matrix”. The two dimensions take into account the company products
(available or new) and the markets (actual or new).
The market penetration strategy
consists in identifying new ways to increase sales for the products
that are already on the company market. This can be achieved by
stimulating the consumption, attracting new customers from those who
don't buy the product yet or from competitors' customers.
The market development strategy
focuses on reaching to new consumer segment for the actual products.
Geographical expansion or a broadening of the target market can
attain the desired objective.
Product development strategy
comprises the design of new products that will be offered to the
available market segments, where they will be adopted much easier.
consists in the introduction of new products on new market segments
that have not been attended to. This is a brave strategy and very
risky because the consumers don not have sufficient information
neither about the product or the manufacturer. Therefor, aggressive
promotional actions are required.
- Geographical strategies.
Depending on the area where the company
runs its operations, the strategies can be:
- Local market strategies
- Regional market strategies
- National market strategies
- International market strategies.