Page 69 - Foundations of Marketing

36 Part 1 | Strategic Marketing and Its Environment

First-Mover Advantage
The Kindle was the first
e-reader to be introduced. What
advantages did Amazon, the
maker of the Kindle, experience
by being first to market?

Kristoffer Tripplaar/Alamy

developed a distribution infrastructure and educated buyers about the product. By the time
a late mover enters the market, there is also more data, and therefore more certainty, about
product success.
There are disadvantages of being a late mover too, though. The company that entered
the market first may have patents and other protections on its technology and trade secrets
that prevent the late mover from producing a similar product. If customers who have
already purchased the first mover’s product believe that switching to the late mover’s
product will be expensive or time-consuming, it may be difficult for the late mover to gain
market share.
It is important to note that the timing of entry into the market is crucial. Companies
that are relatively quick to enter the market after the first mover generally have a greater
chance of building market share and brand loyalty. Companies that enter the market later
on, after many other companies have done so, face strong competition and have more
disadvantages.

Developing Marketing Objectives and
Marketing Strategies

The next phase in strategic planning is the development of marketing objectives and marketing
strategies, which are used to achieve marketing objectives. A marketing objective states what
is to be accomplished through marketing activities. These objectives can be given in terms of
product introduction, product improvement or innovation, sales volume, profitability, market
share, pricing, distribution, advertising, or employee training activities. A marketing objective
of Ritz-Carlton hotels, for example, is to have more than 90 percent of its customers express
that they had a memorable experience at the hotel. Marketing objectives should be based on
a careful study of the SWOT analysis, matching strengths to opportunities, eliminating weak-
marketing objective nesses, and minimizing threats.
A statement of what is to Marketing objectives should possess certain characteristics. First, a marketing objective
be accomplished through should be expressed in clear, simple terms so that all marketing and nonmarketing person-
marketing activities nel in the company understand exactly what they are trying to achieve. Second, an objective

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