Dave is CEO and co-founder of Smart Insights. He is editor of the 100 templates, ebooks and courses in the digital marketing resource library created by our team of 25+ Digital Marketing experts. Our resources used by our Expert members in more than 80 countries to Map, Plan and Manage their digital marketing. For my full profile, or to connect on LinkedIn or other social networks, see the About Dave Chaffey profile page on Smart Insights. Dave is author of 5 bestselling books on digital marketing including Emarketing Excellence and Digital Marketing: Strategy, Implementation and Practice . In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing.
Price / Selling Effort Strategies: A firm that follows a skimming strategy seeks to be the first to introduce a product with very good performance, selling it to the innovator market segment and charging a premium price for it. It makes as much profit as possible, then moves on when the competition arrives. The price is likely to fall over time as competition is encountered. Such a skimming strategy contrasts with a penetrating strategy , which seeks to gain market share by sacrificing short-term profits, and increasing the price over time as market share is gained.
In a narrow sense, marketing strategy is a specified set of ways developed by marketers to achieve desired market ends. E. Jerome McCarthy and William D. Perreault Jr., authors of Basic Marketing, stated that a marketing strategy defines a target market as well as an appropriate marketing mix and an overview of what a company will exploit a given market. In a marketing planning context, where marketing strategy tends to be developed, McCarthy and Perreault indicated that marketing strategy planning means finding attractive opportunities and planning ways to capitalize on such opportunities.