The Marketing Strategies This section of the marketing plan provides the marketing objective, the selected target market, the selected services, our marketing statement and our promotional recommendations. Goals tell were a business wants to go; strategy answers how to get there. Every business must tailor a strategy for achieving its goals. The strategy must then be refined into specific programs that are implemented efficiently and corrected if they are failing to achieve the objectives. Michael E. Porter, author of the book "competitive strategy: techniques for analyzing industries and competitors" has categorized strategies into 3 generic types, which are: Overall cost leadership Here the business works hard to achieve the lowest costs of production and distribution so it can price lower than its competitors and win a large market share. Differentiation Here the business concentrates on achieving superior performance in some important customer benefit area valued by the market as a whole.
It can strive to be the service leader, the quality leader, the style leader, the technology leader, etc. Focus Here the business focuses on one or more narrow market segment rather than going after the whole market. The firm gets to know the needs of these segments and pursues either cost leadership or some form of differentiation within the target segment. As said before, Cumeco n.v. is in the business of steel construction, pipefitting and welding. We think that Cumeco n.v. must adopt a strategy that is based on a combination of the differentiation and focus strategy. Our recommendation is that Cumeco n.v. must start focusing on becoming a niche-player. As explained in the opportunity and issue analysis a market nicher is a smaller firm that chooses to operate in some part of the market that is specialized and is unlikely to attract larger firms.