Marketing Strategy is important part of any worthwhile business. Marking strategy is a plan for success. Marketing strategy requires the companies to use right and effective tools and techniques and involve accurate and quick decision making. It helps the company to think like a customer and serve the needs of the customers in right way.
The importance of marketing strategy in the business campaign is beyond the claims of an advertising slogan. Yet, most organizations do not pay enough attention to it. Marketing is like a tree with its roots, stem and branches spreading in every direction. It serves as the basis of business activity. Businesses must make sure that all their activities are directed towards satisfying customer needs and wants.
Streamlines Product Development
A marketing strategy helps you create products and services with the best chances for making a profit. This is because marketing strategy starts with marketplace research, taking into consideration your optimal target customer, what your competition is doing and what trends might be on the horizon. Using this information, you determine the benefit customers and clients want, what they’re willing to pay and how you can differentiate your product or service from the competition.
Helps Determine Optimal Prices
Part of a marketing strategy is setting the right price for your product or service based on what you learned in your market research. If you learned that customers want a high-end product in your category, your pricing strategy might require you to sell at prices that create a high-end perceived value. If your target customer is bargain conscious and is willing to accept fewer bells and whistles on your product in exchange for paying less, your pricing strategy will require you to sell at or below the competition’s price.
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.
Utilize The Proven SMART Strategy
SMART is a useful acronym to know and it has taken on many different but similar meanings over the years.
This is particularly so with marketing (just try doing a Google image search of SMART marketing).
In this case, we’re referring to the traditional meaning of SMART:
Without a SMART marketing strategy, you’ll be directionless.
You’ll have no actionable path to follow for gaining new customers or maintaining relationships with existing ones.
Your goals must also be SMART-ly translated into marketing initiatives.
Otherwise, you likely won’t put enough resources into reaching your goals, or you’ll put your resources into the wrong things.
That’s what happens when you don’t set goals and measure your success through analytics.
In order to be SMART, you must first be honest with yourself. Perform the steps below to incorporate SMART goals into your marketing strategy:
- Benchmark where you are now and compare this with where you want to be in the future.
- Identify the basic marketing goals that you want to accomplish this year.
Now set clear objectives for each goal so that you can measure your progress against the attainment of these goals.Use the SMART approach with each goal!
- Involve your business’s key players (or just yourself) and ask the following questions:-what are your revenue goals for this year?
-what percent of revenue will be from existing customers compared to new customers?
-what percent of leads will come from your marketing?
-what is your average sale size and deal closing ratio?
-how many leads do you require to reach your goals?
Keep Everyone On The Same Page
One of the key parts of the importance of a marketing strategy is keeping everyone in the organization on the same page.
This means that everyone should understand the marketing strategy.
That way no matter who’s in charge of the social media posts for the day, they will all have the same consistent message.
When everyone is on the same page, your organization will also be able to effectively utilize the skills of all employees and stakeholders.
But what happens when everyone isn’t on the same page? One word: duplication.
What is duplication? In the worst sense, duplication means inefficiently doing the daily tasks that need to be done.
Duplication will waste your time and money.
If everyone in the organization purchases/uses different tools and different agencies, but are performing similar online marketing tasks.
Then, duplication is probably happening.
Staying on the same page also means keeping everything integrated.
This includes your digital marketing activities and your traditional marketing activities.
You want your traditional media marketing and response channels to remain consistent along with your digital marketing channels.
This requires integration and embracing the importance of a marketing strategy for your business.
Helps to gain a competitive advantage
The first and foremost on the list of the Importance of Marketing Strategy is that it helps the firm gain a competitive advantage in the market amidst the tough competition with an edge over the existing players and the new entrants who are trying to establish their brand presence in the market.
A well-defined marketing strategy harps on the unique selling propositions of the brand along with the features and benefits of the products and services offered by the firm in a creative, strategic, and planned manner highlighting that how the brand and its offerings are better than the ones of the competitor. The consistent and continuous messaging and communication strategy helps the brand to curate a distinctive identity in the volatile and competitive market.
Attract a new set of customers
The management and the marketing department of the firm need to understand the Importance of Marketing Strategy if they want to attract the new set of customers from the same operational market plus from the untapped markets as well.
The promotional tools and techniques that are an integral part of the marketing strategy are planned and selected considering the taste, lifestyle, income levels, and other such parameters of the targeted customers that works as a pull factor for them and helps the sales department to convert the fence sitters to quality prospects and to the customers of the brand.
Marketing Strategy of any business is very important to help it grow and flourish, and learn about its position in the market. The marketing strategy and use of the right promotion techniques greatly influence the development of a business.