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Importance of Study of Marketing Strategy

Sales and marketing are strategies of a business. Sales strategy defines the manner through which sales are made. The marketing strategy looks after the product as well as its manufacturing process. A perfect blend of both the strategies is known as sales and marketing strategy which can have high impact on the financial performance of a firm.

Marketing Strategy is a plan of action or a policy designed to achieve marketing objectives. This is an important aspect of the firm’s business. Since the term “Marketing” has different meanings and connotations, organizations use Sales and Marketing Strategy to limit their focus on achieving specific objectives. The relationship of Sales and Marketing is more effective when both functions are synergistically joined together at every stage of planning, implementation, and resource allocation. An organization’s Sales and Marketing strategy must be based on the analysis of customer needs, competition, and the operational capacity enhancements. It should aim at the achievement of a good reputation of the organization among its customers by offering exemplary service. It should expand market share by providing new value-added products or services. A sales and marketing strategy should also be flexible so that it can quickly respond to changing customer needs and norms for product/service delivery.

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 to increase sales.

Guy planning the marketing strattegy

The Marketing Strategy: Why Is Important for Your Business?

Currently, there is a very powerful tool to grow your business, this tool is Marketing. This tool is dedicated to analyzing the behavior of the market and consumers, marketing should correspond to one of the most important departments in your organization to study and analyze commercial management, satisfy the needs of the audience, and achieve new customers.

Marketing strategy is the best tool to get to know your customers.

The true connection between your business and your customers is achieved through marketing strategies, knowing when, how, and where your product is demanded, it is just when you create a strong relationship with your audience, and thus your sales will increase considerably.

A good marketing strategy helps you get new business opportunities for your company, promote your products or services, and as a result increase sales and income. Analyzing every detail should always be an activity in your marketing strategy, so you can create a suitable website, develop attractive content based on what interests your audience, you can also choose the appropriate social networks to launch your business and adapt plans Promotions to your users based on your location and theirs.

What does the marketing strategy include?

Designing your product, defining prices, advertising, promotion and much more are some of the steps to develop the marketing strategy for your business. Creating good content about your products or services is crucial to increasing the profitability and demand of your business. When people learn about your product, analyze the benefits, read your descriptions in social media promotions and advertisements, the chances of attracting more loyal customers will grow.

Your business can take advantage of technology and social networks, through a marketing strategy. Blogging is a good technique if you want to publicize your products and services in greater detail, and also share valuable information that may be useful to your clients and even other similar companies. Video platforms like YouTube are great for launching your business and promoting powerful ideas; some applications such as Instagram and Facebook are ideal for posting daily content about products, sales, and services in real-time.

If you are looking for good Marketing strategies, you should choose the company that meets your needs and increases the promotion of your business, that is why LM Two Marketing is a good option, regardless of your business model, will manage to position you at the top.

A marketing strategy is designed by:

  1. 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.
  2. 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

Importance of Marketing Strategy

  • Marketing strategy provides an organization an edge over it’s competitors.
  • Strategy helps in developing goods and services with best profit making potential.
  • Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps in creating an organizational plan to cater to the customer needs.
  • It helps in fixing the right price for organization’s goods and services based on information collected by market research.
  • Strategy ensures effective departmental co-ordination.
  • It helps an organization to make optimum utilization of its resources so as to provide a sales message to it’s target market.
  • A marketing strategy helps to fix the advertising budget in advance, and it also develops a method which determines the scope of the plan, i.e., it determines the revenue generated by the advertising plan.

Basic Steps in Developing a Marketing Strategy

A marketing strategy must not be confused with a marketing plan. A marketing strategy defines your overall direction and objectives, while a marketing plan outlines the specific actions to be used to achieve your marketing strategy. The market strategy is forward-looking, defining your goals for the next few years. While marketing plans are actions that are currently being employed by your business.

Effective marketing starts with a professionally developed marketing strategy. A well-executed marketing strategy enables you to define your business objectives and create a plan to achieve these goals. The marketing strategy sets the direction of your business and affects every aspect of its operation. Your marketing strategy should:

  • Contain your value proposition (what makes you better than the competition)
  • Clearly describe your products and services
  • Provides analysis of your competitors and customers
  • Defines the different marketing strategies to be employed
  • Creates the basis for developing your marketing plan

Step 1: Perform a SWOT Analysis

A SWOT (Strength, Weakness, Opportunities, Threats) analysis is performed to make an initial assessment of all the factors that can affect a business decision. It was developed by Albert Humphrey of the Stanford Research Institute in the 1960s to help businesses plan to start and grow their companies. A SWOT analysis should also be performed regularly to analyze if all your business processes are working efficiently. It is performed to help you assess if your current marketing strategy is still delivering its objectives.

A SWOT analysis gives you a clear perspective on what you do best (Strength), areas that need improvement (Weakness), factors that can give you an advantage (Opportunities), and factors that can harm your business (Threat). The information generated by a SWOT analysis can help you build the foundation for your marketing strategy.

Step 2: Determine the Value Proposition

Your marketing strategy must be based on your company’s value proposition, which revolves around your strengths. In simple terms, a value proposition describes the unique benefit that your business provides and how you do it well. It includes your target market, the problem that it solves, and what makes you better than your competitors.

When developing a marketing strategy, an essential factor to consider would be your value proposition. Building your market strategy based on your strengths makes it easier for you to focus your resources on that will yield the best results.

Step 3: Identify your Objectives

In developing your marketing strategy, you must identify your business objectives. Your goals must be measurable and set within specific timeframes. It enables you to evaluate the success and effectiveness of your marketing strategy accurately.

Having clear business goals makes it easier for you to monitor if plans are consistent with your objectives. And check if individual team members are delivering expected results. When creating your marketing objectives, be sure to create 3 to 5 goals. Examples of these business objectives include:

  • sell more products
  • reach out to a new market
  • increase brand awareness of your products and services

Your marketing goals must be practical and measurable. These should be based on your current resources and value proposition. Setting realistic goals makes it easier for your marketing strategy to move forward. Be sure to check your progress regularly. A good marketing strategy must also be flexible.

Step 4: Market Research and Customer Profiling

Research plays a critical role in developing your marketing strategy. It is involved in gathering market information (size, trends, growth potential, and customer demographics). Research should be continuously performed to identify any changes in the market. A marketing strategy allows you to adjust your marketing plan and helps you keep your marketing strategy relevant to your objectives.

Customers are the lifeblood of business. Successful businesses understand this and employ marketing strategies that identify their needs. Customer research enables you to create products that answer customer needs, develop sales tactics based on accurate, timely information. Research tools give in-depth information, including where your customers work, what they watch, and where they look at advertising. It also helps you understand their purchasing behaviors and attitudes towards different brands and products. Customer research allows you to:

  • determine the most competitive price for your products
  • create an attractive marketing message
  • improve sales numbers
  • refine customer services
  • improve business efficiency
  • attract more customers
  • improve customer retention
  • increase how much your customer spends on your products

Step 5: Competitor Research

Analyzing and understanding what your competitors do best is half the job done. Rather than experimenting on several untested marketing strategies, employing some of the tested and proven marketing strategies of a competitor is a great idea. You could also take this one step higher and improve their marketing strategy.

Profiling your competitors gives you an in-depth look into what makes their business work. This information includes their prices, who their customers are, and how they market their products. Competitor research also helps in developing your value proposition. It lets you know what sets you apart from the competition and what you do best.

Competitor research helps you create a competitor profile that lets you identify areas for improvement and opportunity. A competitor without an online presence, for example, allows you to take the upper hand by having your products and services available online.

How to Create a Competitor Research

Identify your Competitors. If you’re a small business that operates locally, there’s a good chance that you’ve already identified your competitors. It is also vital for those establishing a new business or planning to provide their services to a wide area.  Doing an internet search or even checking the phone book could give you a good idea of competing businesses. When identifying your competitors, here are some things you should include in the research:

  • Who are their customers and market they serve?
  • Why do customers buy from them?
  • What is their most significant competitive advantage?
  • Where do they advertise?

Collecting data for Competitor Analysis. The easiest way to gather information about your competitors is to visit their physical store and website. It can give you an idea of product prices, quality of customer service, discounts, promos if any. You could also conduct a customer survey to get a more accurate view of why customers buy their products.

Data can also be gathered from the information they readily provide publicly. Sources of information include magazines, newspapers, and online publications. Press releases could also give a ton of information about their latest product offerings.

Competitor Analysis. It is the most important step in competitor research. This process involves digesting the data collected and making it useful for business objectives. Study every information you’ve collected from your competitor and use this to create a marketing strategy that allows you to compete with them. The most critical part of competitor research is to identify your market niche and how you can capture these customers. In conducting competitor analysis check for these:

  • Is there a specific market segment that your competitor missed?
  • Is there a product or service that your competitor does not provide that its customers are searching?

The objective of competitor research is to get a competitive advantage by identifying opportunities such as offering better products and services over your competitor.

Step 6: Developing your Marketing Methods

Your marketing methods mainly depend on the target market. You should select the best marketing medium that communicates your brand messaging. This information can be located on your customer’s profile. When creating your marketing strategy, it is also essential that you determine how much time and budget you’ll be allocated to advertising. Content marketing, search engine optimization, public relations, events, and printed media are just some of the marketing methods you could utilize. To achieve maximum results, consider using a combination of multiple marketing methods.

Benefits of a Marketing Strategy

The development of a marketing strategy is an integral part of any business operation. It is used to develop the company’s marketing plans that help the company achieve its overall objectives plus help it enhance its brand value.

Gives you a competitive advantage

A marketing strategy helps you identify your strengths and weakness and compares them with your competitors. With this information, you can improve on your weaknesses and focus on your strengths. A marketing strategy enables you to gain a competitive advantage in the market and strengthens your position against emerging competitors. A marketing strategy helps you showcase the benefits of your products and services.

Builds your Customer Base

A marketing strategy makes it possible for you to identify new markets and tap additional customers from an existing one. Customer research enables you to create a more customer profile based on taste, income levels, and taste. It makes it easier for your marketing department to create a more targeted advertising strategy that ultimately improves conversion and brand recognition.

Premium Pricing

Given similar products of the same quality, a customer is most likely to purchase the lower-priced product. Competitive research enables you to understand market dynamics and more importantly, the spending power of your customer base. Marketing strategy helps your business identify the optimum pricing plan for products and services.

Build your Brand

A marketing strategy highlights the strengths of your products and why it better than your competitors. A consistent and uniform messaging approach helps build your brand and gives you a unique identity in a volatile and competitive market.

Helps in the Development of Better Products and Services

Competitor and customer research gives you an in-depth look into the market and what specific products and services it needs. It helps you in the development of new products or how you can improve your current offerings. Marketing research also gives you a clear picture of the current market, competitor offerings, government regulations, and other factors that influence sales.

Part of improving your products and services is to have an effective distribution plan. It includes conventional brick-and-mortar stores and online selling. A marketing strategy can suggest the development of a more robust distribution network. It can involve the creation of an online service for products and services or the use of affiliate partners for distribution.

Helps in the Planning of Marketing Budgets

Every department in the company plays a role in its promotion and future development. A marketing strategy takes this into account and identifies what specific role each department should take and how much resources should be allocated.

A well-coordinated and planned marketing strategy ensures that budgets are distributed accordingly. It helps you focus on marketing strategies that provide the best return on investment. It also helps align overall company efforts to achieve business goals and objectives.

Critical for your Company’s Future Success and Growth

Marketing strategies improve brand value, give you a competitive advantage, improve sales numbers, increase market share, and more importantly improve profit. Its benefits run the gamut of all business operations helping your company grow and preparing you for the future. It gives your company a competitive advantage that enables you to carve a niche in the market. A market strategy allows you to build your brand, helping your products and services stand out from the competition.

A marketing strategy goes a long way in achieving your company’s objectives. It enables you to create a roadmap to success and keep your company’s short-term and future goals on track.

Conclusion

Business management needs a lot of effort for success and this is where many of the companies of today are failing. If one invests money in reaching the consumers, how can one succeed in attaining more sales and earning more profit? This is where online marketing comes in.

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