4 Sources of Strategic Change that all marketers need to know
Strategic change arises in four different ways including market evolution, technological innovations, market redefinition, and change in marketing channels. These four elements provide insight as to what is going on in the world of business which will help determine an organization next steps.
1. Market Evolution
The first factor that plays a role in strategic changes is market evolution. Market evolution arises through changes in primary demand. Primary demand is fomented by consumers who are looking for products that have beneficial traits such as non-GMO, or calcium. Therefore, Marketing efforts are conducted to educate consumers about the benefits of their products.
2. Technological Innovation
Second is technological innovation and format wars. The medium in which information is transferred and/or viewed has changed many times over. For example, we started with video cassettes to DVD’s and now digital videos. There was also the phonograph invented by Thomas Edison, which was used to produce sound. However, today we use radio and other music streaming applications to listen to music. Technological innovations lead to format wars where an advance in a specific medium is made and eventually replaces its predecessor.
3. Market Redefinition
The next factor that influences strategic change is market redefinition. This strategic change occurs when there is a heavy demand from buyers or it can be brought up by competitors. For example, price wars result from a firm undercutting its competitors. Therefore, in most cases, the logical next is to match your competitor’s price to prevent loss of customers. By doing this the market is redefined, and instead of charging the original hundred dollars for your services you now have to charge eighty dollars.
4. Marketing Channels
Last, but not least is the change in marketing channels. Traditionally businesses operate out of brick-&-Mortar locations, but with advancements in technology, we now have internet channels in which we can sell products/services. With this technology, people can also make purchases without ever leaving their homes. The use of a website may not be for all businesses; however, it is a great way for businesses to make themselves more accessible and convenient to their customers.
Knowledge of these 4 types of strategic change will enable marketers to foresee possible problem areas and urge them to search for a pivot so that they can be better prepared for the changes to come.