Free Essay: Marketing strategy is important for a company to stay competitive in the industry. A marketing strategy for a company may range from highly specialized to very simple depending on the company that uses it, and it is vital that business owners come up with effective strategies that will help their companies stay on top.
Marketing is one of the most important segments of any business. Marketing strategy is a ‘master plan’ based on research and is devised to produce profit in a successful way in a competitive business environment. The marketing strategy determines how a company will distinguish itself in a changing business world. The marketing strategy helps in establishing links with the internal and external stakeholders of the company. It acts as a distraction from any competitive pressures which can thwart growth.
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.
Plan the nature of products and services
Market research and study is a significant part of marketing strategy and this aspect helps management of the company to plan the features, and unique selling propositions of the products and services that are in pipeline or are in the launch planning phase.
There are thorough research and study on the current market scenarios, what do the competitors offer, government policies, the factor of profitability, and other such changing dynamics that can affect the sales and operations of the products and services. Hence, it is crucial for the company and its promoters to pay due attention to the Importance of Marketing Strategy.
Plan the marketing budgets
Every department of the company right from the marketing, sales, HR, and others are given annual budgets by the management that needs to be spent in the benefit of the company.
Having a planned and aligned marketing strategy makes sure that the allocated budgets don’t go haywire by spending on the promotional activities that have low return on the investments plus there is an optimal use and allocation of the marketing budgets on the marketing tools and promotional tactics that helps attaining not only marketing goals but the overall business goals and objectives too.
Next in the line of the Importance of Marketing Strategy is that the brand and all overall marketing and promotional activities get an edge of creativity as the brand cynosures and the marketing departments liaise with the design agencies, media planners, PR agencies, and other such vendors that dedicatedly understand the nature of the brand and its offerings and come up with the unique, out-of-the-box, and exclusive ideas that give the brand a creative edge and helps curating a distinguished personality in the market.
Assists with Marketing Communications
Your market research will help you create your 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.
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 sales people will talk with the people responsible for managing your image to determine if they can offer discounts, coupons or rebates without damaging your brand.
Effective distribution plan
Once the management understands and grasps the essence and Importance of Marketing Strategy, it can have an effective distribution plan in place. With the introduction of online selling and the growing impact of social media the company needs to have a wide network of distribution as the young generation prefers to buy the products and services online directly from the company website or through its online promotional partners.
This is different to the middle-aged or older generation who still believes in indulging and finalizing the purchase by visiting the physical store our outlet of the brand. The company needs to march ahead with the latest advancements and the evolving tastes and preferences of the customers of all age-groups.
With the competitive research and in-depth study of the market dynamics along with the spending capacity of the target market, the marketing strategy helps the company to arrive at an optimal pricing plan for its products and services that is as per the market yardstick, competitive in nature, and helps the company to generate higher sales and profits. This point holds a lot of significance in understanding the Importance of Marketing Strategy.
The overall growth of the firm
Marketing strategy facilitates enhanced brand value, increased market share, competitive advantage, higher sales, and elevated profits that result in the overall growth of the firm drawing a larger picture. It helps the company to carve a niche in the market with a distinguished brand identity and the offerings of the products and services that are planned with unique attributes and features.
For any organization to grow and sustain it needs strategies. Marketing strategies help businesses to grow and sustain in the market. Marketing strategies help the organizations to gain competitiveness as well as viability in the market, as it has been observed that product, pricing and promotion are key determinants of marketing strategy.