The Consumer-Centric Business

The Consumer-Centric Business
There are a many companies especially those in the Consumer Package Goods (CPG) market that adopt the
theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for “Growth Opportunities” in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal
brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities
and begin to develop strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 4Ps.
Real-life marketing primarily revolves around the application of a great deal of common -sense; dealing with a
limited number of factors, in an environment of imperfect information and limited resources complicated by
uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably
partial and uneven.
Thus,for example, many new products will emerge from irrational processes and the rational development
process may be used (if at all) to screen out the worst non -runners. The design of the advertising, and the
packaging, will be the output of the creative minds employed; which management will then screen, often by
‘gut -reaction’, to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle the complex,
and unique, situations being faced; without easy reference to theory. This will often be ‘flying by the seat of the
pants’, or ‘gut -reaction’; where the overall strategy, coupled with the knowledge of the customer which has
been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This,
almost instinctive management, is what is sometimes called ‘coarse marketing’; to distinguish it from the
refined, aesthetically pleasing, form favored by the theorists.

Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business. However there are a
number of ways of categorizing some generic strategies. A brief description of the most common categorizing
schemes is presented below:
Strategies based on market dominance -In this scheme, firms are classified based on their market share or
dominance of an industry. Typically there are three types of market dominance strategies:
Leader
Challenger
Follower

Porter generic strategies – strategy on the dimensions of strategic scope and strategic strength.

Strategic scope refers to the market penetration while strategic strength refers to the firm ’s sustainable competitive
advantage.
Product differentiation
Market segmentation
Innovation strategies – This deals with the firm’s rate of the new product development and business model
innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are
three types:
Pioneers
Close followers
Late followers
Growth strategies – In this scheme we ask the question, “How should the firm grow? ”. There are a number of
different ways of answering that question, but the most common gives four answers:
Horizontal integration
Vertical integration
Diversification
l Intensification
A more detailed scheme uses the categories:
Prospector
Analyzer
Defender
Reactor
Marketing warfare strategies – This scheme draws parallels between marketing strategies and military
strategies.

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