E-Marketing Professionals

The Porter generic strategy model examines two major marketing planning concepts and the alternatives available with each: competitive scope (broad target or narrow target) and competitive advantage (lower cost or differentiation). By combining the two concepts, the Porter model identifies these basic strategies: cost leadership, differentiation, and focus.

With a cost leadership strategy, the firm appeals to a broad market and manufactures products in large quantities. Through mass production, the company is able to minimize per-unit costs and offer low prices. This allows the firm to have better profit margins than competitors, respond better to cost increases, and attract price-conscious consumers.