What different ways can companies use to promote their products or brands?
There exit many ways that businesses can use in order to promote their products or brands. But at the end all those existing ways can be summarized in 3 basic competitive strategies.
The first competitive strategy is product differentiation; it involves the process of making people of your target market to perceive your product as different in a positive way, that is to say for them your product is viewed as better than the competitor´s products. A product can de different from the other products by the brand, the packaging, the advertising done, the post sale services… An example of company trying to be market leader trough product differentiation is for instance the supermarket Sanchez Romero.
The second source of competitive advantage is cost leadership, trying to be the company that offers the cheapest products. The problem of this second strategy is that only one company can be the one offering the lowest prices for a given product, while can exit many “different perceived companies” at the same time! An example of a company using this strategy is Lidel.
The last one is trying to be a focuser, that is choosing a particular narrow segment of the market and focus on it, by trying to one of the previous strategies.
However there exit some people that consider that other strategy is trying to get both at the same time (product differentiation and cost leadership), but experts state that it is close to impossible to get both, and the most probable is that the person who tries stack in the middle.