Strategic Marketing. Lesson 6. Strategy Discovery Tools

🎧 This lesson is available for listening.

🎯 Lesson 6. Strategy Discovery Tools

✅ Learning Outcomes

• Identify which basic competitive strategy your company is currently using.
• Understand how your company can move across different marketing strategies using the Ansoff Matrix.

🏆 Basic Competitive Strategies

Goal = what the business wants to achieve.
Strategy = the plan to reach that goal.

According to strategy expert Michael Porter, there are two main sources of competitive advantage:

• 🔹 Low Costs
• 🔹 Differentiation

Based on these, three directions of strategy are formed:

1. Cost Leadership 💰 — minimize costs, tight expense control, efficiency focus.
2. Differentiation ✨ — create a unique product or service that stands out in the market.
3. Focus 🎯 — serve a specific group of customers or a niche.

🔄 Ansoff Matrix

This tool helps plan company growth strategies:

1. Market Penetration (existing products → existing markets)
   • Improve product quality.
   • Increase business process efficiency.
   • Attract new customers through advertising.
   • Increase frequency and volume of purchases.
2. Market Development (existing products → new markets)
   • Geographic expansion.
   • New sales channels.
   • Target new customer segments.
3. Product Development (new products → existing markets)
   • Launch new products.
   • Improve existing ones.
   • Expand product lines.
4. Diversification (new products → new markets)
   • Most risky strategy, requires major investments.
   • Used when growth potential in current markets is exhausted.

💡 Example

I’ll use my own small family-run business as an example — a party rental company in Wake County, North Carolina. Because it’s mine, I can be open and flexible in sharing information.

We operate in the party equipment rental segment for private parties, tailgating, and small corporate events.

Our strengths:

• 🖥 24/7 online booking with instant confirmation.
• 💵 Transparent pricing.
• 🎁 Free linens with every table rental.
• 🚗 Free self-pickup with no order minimum.
• 📦 Free delivery on orders over $100 within Wake County.

Our base strategy: Focus + Differentiation.
We don’t compete with big companies on inventory scale. Instead, we offer convenience, simplicity, and a hyper-local customer orientation.

📊 Possible Strategies via the Ansoff Matrix

1. Market Penetration
   • Loyalty program (discount for next order).
   • Increase average order value with add-ons.
   • Collect and publish reviews to build trust.
2. Market Development
   • Expand delivery outside the county.
   • Promote to schools, nonprofits, and local clubs.
   • Partnerships with catering and event agencies.
3. Product Development
   • New colors of furniture and linens.
   • Ready-made “event packages.”
   • Extra services: décor, lighting, all-inclusive setups.
4. Diversification
   • Full-service option (delivery + setup + décor).
   • DIY kits for home parties.
   • Sports event rental equipment.
   • Online blog or event-planning guide.

🔍 Discovering Customer Value

Often, customers themselves point out growth opportunities. Use this simple 4-step algorithm:

1. Focus on Customers 👥
   • What requests do we have to refuse?
   • What do they ask for that we cannot deliver?
   • What do they like about competitors?
   • Why do they value us?
   • Which complaints repeated in the last year?
2. Our Competencies 💪
   • What do we do best?
   • What new services can we create thanks to our skills?
3. Partners 🤝
   • What new technologies do our partners offer?
   • How can they strengthen our business?
4. Analysis 📋
   • Combine everything into a clear list of potential products and services.