Strategic group

A group of companies with a similar marketing strategy that compete for customers by directing advertising messages to the same or very similar target group.

 

There are many similar industries on the market, which thus offer potential customers goods with similar characteristics and properties. In this situation, they are forced to use such an advertising message that will stand out from other competitors, have an appropriate impact on the target group and encourage them to choose products offered by this particular company.

 

The competition of strategic groups may concern many aspects, not only the offering of substitute goods. Competition between enterprises may result, for example, from offering similar goods by companies, but also from using similar distribution channels, conducting similar advertising campaigns and providing buyers with products available at almost the same prices as competing products.

 

In addition, we can talk about several features that characterize strategic groups, such as sensitivity to the appearance of new substitute goods in a given industry or constant control of marketing activities undertaken by competitive companies.