Strategies for Declining Market
In business, marketing a brand or a commodity, there are challenges experienced at some point in time. Among some of these elements is this major one; the decline in the market. When this happens, formulation of marketing strategies are critical solutions in countering the same. The strategies must be efficient, reliable, and sustainable in combating holistically the decline in market concern. Ideally, the following examples will greatly aid in this battle. Maximization of short-term cash flow, sustaining share in the short term even if it means cutting margins due to sacrifice. Others include the inevitable share increase in declining of the market and finally focusing on the addition of strength in other substantive segments (Eweje & Perry, 2011). These are potentially for profits returns and revenue sustenance for future company or organization business performance. The market in overall at a time may decline drastically while one segment may remain while demand was declining slowly. At the same time, the future market may go on the decline, but may later occur at a steady or lower rate.
The decline phenomena occur at a substantial rate having pockets of demand to cope with in business. To maintain this, markets that experience recent declines should attractively focus in controlling directions that become hard in predicting. When competition is stiff, small exit hurdles should be expected because rivalry may not be immense at the point in time. In profiting survivorship, always have a sustainable advantage in competitive target segments that are overall though the resources may be limited (Desai & Hines, 2004). Also, find a leading share of the market in becoming strong in the position against other superior resources or competencies by encouraging the rivals to exit or possess them. Furthermore, have a leading share in the market on substantial proportion by maintaining Brand Loyalty. In that way, the customers retain the purchase pattern even if the market supports faces challenges and competitive position.
The rebranding of commodity products is another critical factor in the decline of market decline. This tactically combats the challenge of extinction in the market by a decrease in sales or market in general. Businesses should target its consumers by establishing their interests first. They can do this by probably surveying if the target constitutes youthful members of the public. The company should then brand their products with the material they can relate with in profitable sales. This can be either by having a trendy or fancy appearance appealing and conforming to their interests. In essence, strategies of declining in markets are part of management and should be carried out with an approach that solves to maintain the profit making agenda as well as maintaining reputation in the market (Laeven et al., 2008).
References
Boz, E., Boz, E., Durdu, C., & Li, N. (2012). Emerging Market Business Cycles. Washington, D.C.: International Monetary Fund.
Desai, M., & Hines, J. (2004). Market reactions to export subsidies. Cambridge, Mass.: National Bureau of Economic Research.
Eweje, G., & Perry, M. (2011). Business and sustainability. Bingley, UK: Emerald Group.
Laeven, L., Dell'Ariccia, G., Laeven, L., & Igan, D. (2008). Credit Booms and Lending Standards. Washington, D.C.: International Monetary Fund.
