There are some fundamental principles that you need to abide by when implementing your marketing strategy. These principles will help you develop your brand identity, establish your target market and define the tactics that you can use for the promotion of the product. It is important to have an effective marketing strategy in place so that you can communicate effectively with your customers. A good marketing strategy will help in creating a competitive advantage over other brands that offer a similar product or service. A good strategy is what makes a marketing campaign successful. It’s like a blueprint for your marketing activities. Without it, you’re looking at a disaster. This article will help you understand the importance of data-driven marketing and how to make it work for you.
Marketing strategy is an important ingredient to the success of a business as it serves as your guidebook on how you will market your brand and therefore, get more sales. However, many businesses find that they don’t have a marketing strategy and they struggle to get out of that situation. They waste time and money on various marketing campaigns and in the end, find that all their efforts are not paying off. To help you move forward with your business, we gathered tips about what constitutes a good marketing strategy for your business and how to develop one.
What is Marketing Strategy ?
Marketing strategy is the comprehensive plan formulated particularly for achieving the marketing objectives of the organization. It provides a blueprint for attaining these marketing objectives. It is the building block of a marketing plan. It is designed after detailed marketing research. A marketing strategy helps an organization to concentrate its scarce resources on the best possible opportunities so as to increase sales.
A marketing strategy is designed by:
- Choosing the target market: By target market we mean to whom the organization wants to sell its products. Not all the market segments are fruitful to an organization. There are certain market segments which guarantee quick profits, there are certain segments which may be having great potential but there may be high barriers to entry. A careful choice has to be made by the organization. An indepth marketing research has to be done of the traits of the buyers and the particular needs of the buyers in the target market.
- Gathering the marketing mix: By marketing mix we mean how the organization proposes to sell its products. The organization has to gather the four P’s of marketing in appropriate combination. Gathering the marketing mix is a crucial part of marketing task. Various decisions have to be made such as –
- What is the most appropriate mix of the four P’s in a given situation
- What distribution channels are available and which one should be used
- What developmental strategy should be used in the target market
- How should the price structure be designed
Marketing Strategy is Important for Your Business Because
1. You Know Who Your Customers Are
We can’t be all things to all people. From a marketing and sales perspective, there has to be a certain type of person or business that is the most likely to become a long-term customer. When you have someone specific in mind, you can take their fears, wants, needs, and desires and show them how your product or service will alleviate their fears, meet their needs, and solve their problems. Marketing strategy defines your target customer/market so that you know exactly who needs your business.
2. You Know What Your Business is and Why It Benefits Others
A major component of marketing strategy is determining who benefits from your product/service, how they benefit, and reasons to believe that benefit. Your business is better than your competitors’ businesses in some way and it uniquely benefits the people you serve. Defining these items strengthens your reason for being in business and enables you to stand out among a sea of competitors.
3. You Communicate Your Value In a Consistent Way
Marketing strategy is important because it defines how you communicate your value to others. You can give your marketing strategy document to anyone: colleagues, marketing agencies, contractors, salespeople, etc. and they will know exactly who you are, what you do, and why you do it. This gives you a consistent face in the marketplace and the confidence that your business will be accurately represented in all areas of sales and marketing.
4. You Have a Guide for Your Marketing Plan and Budget
A marketing plan is how you promote your business throughout the year, and your marketing strategy informs your marketing plan. Your strategy defines what marketing channels you’ll use (print, social media, commercials, digital ads, direct mail, etc.) and your plan define what activities you will do throughout the year within each channel and the timeline for doing those activities. Your marketing strategy ensures that the way you promote your company aligns with your overall goals, and it enables you to achieve the greatest value from your marketing.
5. You Know What Success Looks Like
Paraphrasing Peter Drucker, you can’t manage what you don’t measure. The marketing strategy will help you define what success looks like for your company and how you can measure that success. The goals you set within your marketing strategy will inform the metrics you use to measure the success of the marketing activities in your marketing plan. You’ll know which activities were successful for you and which need tweaking for the future.
6. You Know How You Stack Up Against the Competition
When you have a marketing strategy in place, you know exactly what you do, who you benefit from, how you go to market, and how you can measure success. You also know your competitive landscape and how you can best compete against similar businesses. It gives you a leg-up in your industry, especially if your competitors haven’t documented their marketing strategy. You have a clear vision of who your company is, its strengths, its weaknesses, and everything in between. You know where you win and how to promote your company to win.
7. You Exude Professionalism
When you have a clear understanding of who you are and know exactly how to talk about your business, you exude confidence and professionalism. When you are certain about who your customer is and how you will benefit that customer, you are able to focus your time, energy, and money on reaching that customer. Your business will seem more professional because it is more professional with a marketing strategy in place.
With a marketing strategy, every activity you do, every action you take leads towards helping your customers solve their problems. Marketing strategy builds brand loyalty and customers for life while giving you a clear path to follow and a concise way of explaining your value to others.
7. Establishes Effective Distribution
Once you know what product features you’ll offer, who your target customer is, and what your price points will be, you can select where you want to sell to maximize your marketing effectiveness. Younger customers will be more likely to shop using a smartphone or on a website, paying with PayPal or a credit card. Older customers might prefer to shop at retail outlets. If your market research shows you need to be in retail stores but you don’t have a sales force, you can use a wholesaler or distributor.
8. Assists with Marketing Communications
Your market research will help you create the brand or image you want to establish about your business. Without marketplace research and a strategic marketing plan, you might respond to solicitations from advertising salespeople on an individual, reactionary basis, sending messages that don’t fit in with the brand identity you’ve created based on your product development efforts. A marketing strategy lets you determine if a particular magazine, radio station, or website fits into your selling plans.
9. Organizational Impact and Communication
When you have a marketing strategy, your departments can better work with each other, because they are all working from the same plan. For example, your advertising people will talk with your product development people to determine what message you should send about your benefit. Your salespeople will talk with the people responsible for managing your image to determine if they can offer discounts, coupons, or rebates without damaging your brand.
No matter how large or small your company is, marketing plays an important role to make sure that you are noticed in the open market. Marketing plays a very important role in making your business visible and profitable. No matter how great your product is, if you don’t market that product correctly then no one will know about it. The importance of marketing cannot be stated enough.