The paper “ Strategic Marketing Programs for Pioneer and Followers and Maintaining Competitive Edge in Declining, Mature and Shakeout Markets" is an informative example of term paper on marketing. Present strategic planners, having established as much value as they possibly could by reducing costs, are now seeking to expand domestic markets, generate revenues and develop new markets in countries such as South Africa, Malaysia, India, China, and Brazil. Though, before they strike out, they should be able to provide answers to some important questions. Whether or not it pays to be the pioneer with a service or product?
Is it desirable to kill time and learn from the pioneers’ market experiences? What would be the best balance between rewards and risks? What strategies pioneer can implement to avoid market share erosion when followers enter? What strategies followers can implement to ensure a successful entry? Strategic Marketing programs for Pioneer and Followers: In most cases, according to Aaker (1998) studies indicate that being a pioneer to the market offers sustained and considerable market-share leverage over the followers. However, followers can succeed by implementing distinctive marketing and positioning strategies.
In most industries generally, once pioneers have acquired incumbent status, they remain powerful. However, sometimes they become complacent or are not in a position to manage the shifting or growing marketplace demands. Followers can take advantage of failures of the products or services of these aging companies or devise innovative methods to market their service or product. Pioneers that have a distinctive presence within the market should be in a position to react or better still, expect potential followers and improve their entry barriers. For instance, a pioneer may be in a position to lower its price and lower the business value for the follower or it can entirely obstruct entrance by controlling important distribution channels.
Whether a pioneer or follower it seeking to frustrate newcomers, it is important to have a clear understanding of the defensive and entry strategies available, a game plan and good. Strategies for pioneersTypically, competitive strategies rely on the market environment and product portfolio and positioning of the existing companies and the basics regarding the study business include: Lowering the price to enable penetration of the existing market: (Mass-Market Penetration): According to Leslie (2010) through the introduction of a low price product than the pioneer’ s, a follower would attract new consumers who otherwise would have not bought the burger thus, growing the total market.
Low prices can also motivate the existing customers of the pioneer to switch. This strategy, however, would result in reduced profits for the follower in comparison to other market players, unless the cost of production of the follower is relatively lower. This can be implemented by both the pioneers and incumbents as well (Barnhart et al, 2007). Improve service or product targeting a niche market (Niche Penetration).
Wansink (2006) argues that corporations can compete by becoming innovative within the marketplace and the innovation processes can be incremental or radical. Incremental innovation can be achieved by improving the version of the already existing product. The improved product can then directly compete within the existing offering, or it can be positioned in such a way that it attracts a minor segment of the existing market.