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A company's marketing strategies – sets of principles designed to achieve long-term objectives – obviously depend on its size and position in the market. Other determining factors are the extent of the company's resources, the strategies of its competitors, the behaviour of the consumers in the target market, the stage in the product life-cycle of the products it markets, and the overall macro-economic environment.

The aim of a market leader is obviously to remain the leader. The best way to achieve this is to increase market share even further. If this is not possible, the leader will at least attempt to protect its current market share. A good idea is to try to find ways to increase the total market. This will benefit everyone in the field, but the market leader more than its competitors. A market can be increased by finding new users for a product, by stimulating more usage of a product, or by exploiting new uses, which can sometimes be uncovered by carrying out market research with existing customers.

To protect a market share, a company can innovate in products, customer services, distribution channels, cost reductions, and so on; it can extend and stretch its product lines to leave less room for competitors; and it can confront competitors directly in expensive sales promotion campaigns.

Market challengers can either attempt to attack the leader, or to increase their market share by attacking various market followers. If they choose to attack the leader, market challengers can use most of the strategies also available to market leaders: product innovation, price reductions, cheaper or higher quality versions, improved services, distribution channel innovations, manufacturing cost reduction, intensive advertising, and so on.

Market followers are in a difficult position. They are usually the favourite target of market challengers. They can reduce prices, improve products or services, and so on, but the market leader and challenger will usually be able to retaliate successfully.

2.9. Дайте відповіді на запитання.

2.9.1. What do a company's marketing strategies depend on?

2.9.2. How can a company remain a market leader?

2.9.3. How can a market share be protected?

2.9.4. In what ways do market challengers compete with market leaders?

2.9.5. Why are market followers in a difficult position?

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