Essay Sample on Marketing and Market Share

Introduction

Marketing should be understood as the performance of activities that seek to achieve objectives of an organization by anticipating customer or needs of a client and then directing a flow of goods and services that tend to satisfy the demands from producer to the customers. Both the profit and non-profit organizations are eligible to carry out the marketing process (Comstock et al., 2010). On the other hand, market share is the percentage of an industry or the total sales of a market that is earned by a given company during a given specified period. It is always calculated by dividing the sales of a company during a given period by the total sales of the industry over the same period. This measurement is in most cases used to provide a general idea of the size of a company about its market as well as competitors (Best, 2012).

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In a bid to shed more light into the topic of discussion, the company chosen would be General Electric Company which is dealing in various technological goods and services. Examples of products that are manufactured by the General Electric are the jet engines in its aviation section which are designed for commercial as well as for military air-crafts, transportation services, appliances and lighting, oil and gas, energy management services among others. The major markets that the company is serving includes and not limited to; automation and protection companies, software companies, aviation among others.

It is important to note that a marketing strategy is a section of a business plan that outlines the overall game plan for getting customers and other clients for the business. Companies can increase their market firstly through ensuring increased innovation, smart hiring practices, strengthening customer relationships among others (Comstock et al., 2010).it is true that higher market share puts a company at a competitive advantage. Those companies with a higher share in the market in most cases receive better prices from suppliers because of their larger order volumes which increase their buying power. Additionally, increased market share go hand in hand with greater production because greater production helps to reduce a company's cost to produce a single unit due to improved economies of scale.

As stated earlier, increased innovation is one of how a company may increase its market share. By bringing in a new technology that competitors are yet to bring into the market, then consumers who are wishing to have such technology will subscribe to it even if they had previously done business with the company's competitor. They become loyal hence adding to the market share of the company (Best, 2012). Another essential marketing strategy is by strengthening the relationship with the company's customers so that the existing customers are protected from shifting their loyalty especially when a competitor rolls out a new offer into the market.

General Electric being a technologically oriented company, the best strategy it should adopt is innovation so that it can increase its market share (Cravens & Piercy, 2006). When a company introduces new technologies into the market, in this case, General Electric could design its products, for example, the aircraft engines to suit innovative specifications, aviation companies who wish to have such technology will automatically buy such products even if they are engaged with other business competitors. The companies will become loyal to the new company which will add to the market share of General Electric Company. However, for the company to succeed, it took a strategy that directly ensured that it completely collaborated with its customers as it thought this would provide the engine that is required for it to have the market share.

It is important to note that for General Electric Company to grow internationally by acquiring external market shares, then it needed to establish new marketing strategies that would suit international marketing standards (Cravens & Piercy, 2006). In this regards, one of the surest ways to do this is by acquiring a competitor. By partnering with an international competitor, General Electric shall have accomplished to things. Firstly, it reduces the number of companies fighting for the same customers, and secondly, it taps into the customer base of the newly acquired firm. Therefore, it is prudent for the company to use a different strategy from the ones used domestically.

Conclusion

In looking at how the strategy selected would be applied domestically, when General Electric Company acquires a competitor, they become one business and does the production collectively. This has the positive effect of the enhanced customer base as well as reducing the level of completion locally hence increased profits due to improved brand loyalty (Comstock et al., 2010). In the international context, when a company acquires a competitor, it becomes part of it, and they get involved in the same production lines. This provides the chances of improved international customers which in turn reduces international competition that was posed by such foreign companies (Jeannet & Hennessy, 2005). In this sense, General Electric will be able to expand its sales volume by serving a larger customer base hence making more profits because of the increased customer loyalty. This has the effect of creating monopolistic tendencies thus the firm makes production as well as pricing decisions in the market.

References

Best, R. (2012). Market-based management. Pearson Higher Ed.

Comstock, B., Gulati, R., & Liguori, S. (2010). Unleashing the power of marketing. Harvard Business Review, 88(10), 90-98.

Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York, NY: McGraw-Hill.

Jeannet, J. P., & Hennessey, H. D. (2005). Global marketing strategies. Dreamtech Press.