The marketing department has a big influence on the customers but the marketing is also important in the competition with other companies. Considering that it’s important to make no mistakes in the marketing otherwise the competitors in your business will take a part of your market.
There are some mistakes that are common in the marketing of a company, I will explain them:
- Me- too product: There are several companies who sell a similar product, so everybody thinks it’s important to sell the best product. Because of that some companies will set up a big market research, work longer at the research and development of the product,… But for some products the first mover advantage is better than the fast follower advantage.
- A company needs to show good results to Wall Street but if they have very good results the chance is bigger that there will be new competitors on the market. So sometimes it happens that the race to good results lead to creative accounting and bad decisions. That makes that a company needs to find a good balance In the focus on the numbers.
- Companies that have a lot of success become less objective. They feel like they are something invincible and make because of that feeling, bad decisions.
- It’s also important to target a group of people you want to reach with your product. It’s not possible to sell a product to all the people, you need to be strong in your target market.
Despeghel An-Sofie
In addition to an-sofie's article I would like to add some extra information.
BeantwoordenVerwijderenThe mistakes she mentions are result of bad marketing strategies, or bad choices between these strategies.
You can link the blue-ocean-strategy to the illustration on "me-too product". For competing companies it's a smart move to look for steady positions on the market.
To clarify the concepts first mover/fast follower advantage i'll try to give an example:
- first mover advantage: nintendo was the first who developed a console and tried to maintain this monopoly.
- first follower advantage: amazon.com wasn't the first online-seller of books and other media. But they succeeded in capturing a big part of the market.