Pertemuan Keduapuluh Satu
Marketing Strategies for New
Market Entries
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The Degree of Newness
• New-to-the world- products; true
innovations
• New product lines;
• Additions to existing product lines
• Improvements in or revisions of existing
products
• Re-positionings
• Cost reductions
2
Strategic Objectives of New
Product and Market Development
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Defend market share position
Establish foothold in new market
Preempt market segment
Maintain position as product innovator
Exploit technology in new way
Capitalize on distribution strengths
Provide cash generator
Use excess or off season capacity
3
Pioneer Strategy
• Sources of competitive advantage:
– First choice of market segments and positions
– The pioneer defines the rules of the game
– Distribution advantages
– Economies of scale and experience
– High switching cost for early adopters
– Positive network effects
– Possibility of preempting scarce resources
and suppliers
4
Follower Strategy
• Sources of advantages:
– Ability to take advantage of the pioneer’s
positioning mistakes
– Ability to take advantage of the pioneer’s
marketing mistakes
– Ability to take advantage of the latest
technology
– Ability to take advantage of the pioneer’s
scarce resources
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Strategic Marketing Programs for
Pioneers
• Mass-market penetration
• Niche penetration
• Skimming and early withdrawal
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Conclusions
• Being the pioneer in a new product or
service category gains the firm a number
of potential advantages
• A pioneering firm stands the best chance
for long term share leadership and
profitability
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