There are different types of marketing strategies throughout the world. Each day it seems that new ones are being created, yet a lot of the time people aren’t sure what type is best for their business.
A successful marketing strategy is more than just a catchy tagline. It’s the strategy you use to mold your marketing efforts into one cohesive message. Marketing strategies examples have to be the foundation of any marketing campaign. To create a successful marketing campaign, you have to include the right kinds of marketing strategies. There are several kinds and some companies may use only one kind, but it is ideal to use more than one kind of strategy because it will allow for better results. In this post, we will discuss the three main types of marketing strategies and how they can help your business succeed.
In marketing, a strategy is a plan for achieving your marketing objectives. A marketing strategy defines how you will achieve your business goals through the use of marketing channels and tactics.
What Is a Marketing Strategy?
A marketing strategy refers to a business’s overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements. A thorough marketing strategy covers “the four Ps” of marketing—product, price, place, and promotion.
- A marketing strategy is a business’s game plan for reaching prospective consumers and turning them into customers of their products or services.
- Marketing strategies should revolve around a company’s value proposition.
- The ultimate goal of a marketing strategy is to achieve and communicate a sustainable competitive advantage over rival companies.
Understanding Marketing Strategies
A clear marketing strategy should revolve around the company’s value proposition, which communicates to consumers what the company stands for, how it operates, and why it deserves their business.
This provides marketing teams with a template that should inform their initiatives across all of the company’s products and services. For example, Walmart (WMT) is widely known as a discount retailer with “everyday low prices,” whose business operations and marketing efforts are rooted in that idea.1
Marketing Strategies vs. Marketing Plans
The marketing strategy is outlined in the marketing plan, which is a document that details the specific types of marketing activities a company conducts and contains timetables for rolling out various marketing initiatives.
Marketing strategies should ideally have longer lifespans than individual marketing plans because they contain value propositions and other key elements of a company’s brand, which generally hold constant over the long haul. In other words, marketing strategies cover big-picture messaging, while marketing plans delineate the logistical details of specific campaigns.
Benefits of a Marketing Strategy
The ultimate goal of a marketing strategy is to achieve and communicate a sustainable competitive advantage over rival companies by understanding the needs and wants of its consumers. Whether it’s a print ad design, mass customization, or a social media campaign, a marketing asset can be judged based on how effectively it communicates a company’s core value proposition.
Market research can help chart the efficacy of a given campaign and can help identify untapped audiences to achieve bottom-line goals and increase sales.
Why Does My Company Need a Marketing Strategy?
A marketing plan helps a company direct its advertising dollars to where it will have the most impact. A 2019 study found that firms with a documented marketing strategy were 313% more likely to report success in their marketing campaigns.2
What Does a Marketing Strategy Look Like?
A marketing strategy will detail the advertising, outreach, and PR campaigns to be carried out by a firm, including how the company will measure the effect of these initiatives. They will typically follow the “four P’s”. The functions and components of a marketing plan include market research to support pricing decisions and new market entries, tailored messaging that target certain demographics and geographic areas, platform selection for product and service promotion—digital, radio, Internet, trade magazines, and the mix of those platforms for each campaign, and metrics that measure the results of marketing efforts and their reporting timelines
What Do the 4 Ps Mean in a Marketing Strategy?
The 4 P’s” are product, price, promotion, and place. These are the key factors that are involved in the marketing of a good or service. The 4 P’s can be used when planning a new business venture, evaluating an existing offer, or trying to optimize sales with a target audience. It can also be used to test a current marketing strategy on a new audience.
Is a Marketing Strategy the Same As a Marketing Plan?
The terms marketing plan and marketing strategy are often used interchangeably because a marketing plan is developed based on an overarching strategic framework. In some cases, the strategy and the plan may be incorporated into one document, particularly for smaller companies that may only run one or two major campaigns in a year. The plan outlines marketing activities on a monthly, quarterly, or annual basis while the marketing strategy outlines the overall value proposition.
3 Types Of Marketing Strategy
There are three ways to compete–product, service, and price. That’s it! The rest is about execution. Sure, there are all kinds of other details to be worked out to craft a killer strategy. Decisions related to marketing, distribution, operating models, physical location, and the like are all essential considerations. But the choices made in those areas only serve to further inform your product, service, and pricing strategies. Indeed, these three strategic elements are the only levers you need to create a successful business. Let’s explore how they work.
1. Product strategy.
This lever is about what is being delivered to the marketplace and consumed by the customer. The opportunity for differentiation relates to perceptions about quality, value, features, and functions. Commodity companies spend little time with product strategy, relying more on service and pricing to compete, while other businesses fine-tune their product strategy by varying their combination of quality, value, features, and functions to meet the perceived needs of a specific market niche.
To illustrate, let’s compare Lamborghini and Ford. The former is offering superior quality and feature-rich products, while the other ratchets the product lever down a bit to produce a value-based product for the market. Both are competing on products but they move the lever in very different ways.
2. Service strategy.
This lever is about defining how to provide customer support to the marketplace. Differentiation happens on the quality of the service provided and the customer experience. Lloyds of London, for example, provides concierge-level service to its high-end insurance clients, who are willing to pay higher premiums to receive exceptional service. Lloyds is competing on service. Its product (i.e., insurance coverage) is very similar to what can be obtained elsewhere, but Lloyds has made a strategic decision to attract its clientele by offering impeccable service.
3. Pricing strategy.
This lever is about determining the rate to be charged for the product or service being offered. Walmart is competing on price, so don’t expect outstanding service to be part of the package. By comparison, your local boutique may have a personal shopper option to go with the hot lattes and imported wood paneling that covers the walls at the store, but don’t expect to find bargain-basement pricing there–because the boutique’s strategy is tipped toward an emphasis on product and service differentiation.
How you deliver your specific combination of product, service, and price can make your business unique and compelling in an ever-diverse and discerning marketplace. So, don’t let the gurus scare you into thinking strategy is only for the big guys. Everyone can learn to adjust these three levers and compete very successfully.
How Market Research Can Help Improve The Three Types of Marketing
As marketers, it’s important to remember that the only way we get into the minds of our audiences is to spend time learning about how our customers flow through their buyer’s journey. Sure, this comes down to marketing research, but more importantly, it comes down to being strategic.
Remember, the difference between strategy and skill is knowledge.
Whether it’s B2B or B2C, whether it’s F&B or DTF, whatever you’re selling, the marketing process needs to take better advantage of each of the three types of marketing – CTA, TOMA, and PoP – to maximize their value in the process.
If you’re looking for a market research partner, we can assist you to improve your CTA, TOMA, and POP marketing. At S2 Research, we conduct field surveys, focus groups, and more to determine which type of marketing best suits you. We provide market research for agencies, regardless of industry.
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Most marketers understand the importance of having a marketing strategy that is consistent and aligns with the overall company goals. It’s the type of marketing strategies you choose to implement that makes a difference in your effectiveness and potential for growth.