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Types of Marketing Strategy Development

Marketing strategy development has several approaches. The most appropriate approach depends on the organization, its offerings (products and services), and the market it serves. In some organizations, these different types of marketing strategy development are used sequentially, with each subsequent step building on the preceding one; in others, they’re combined.

There are a number of ways that a company can approach developing marketing strategies. Many businesses have trouble determining their own marketing strategy, but with a little research and outside-the-box thinking, you may be able to come up with one that will help your business grow in no time.

Marketing Strategies vs. Marketing Plan

In order to formulate strategies, it is necessary to have the marketing objectives in mind, since strategies must be implemented to achieve these objectives; but also the consumers that make up the target market, the competition, the resources and capabilities of the company.

It is important that before identifying and formulating the strategies, the difference between the marketing strategy and the marketing plan must be considered, since it can generate confusion about these two concepts that go hand in hand but are focused differently,

Marketing Strategy

Is the explanation of the objectives to be achieved with a company’s marketing efforts (what). These strategies are determined by the company’s objectives. Goals and strategy must go hand in hand.

The strategies must allow needs, desires, problem solving or take advantage of habits and customs that the target audience has.

Marketing Plan

This is how you’re going to achieve those marketing goals (how). It is the map that will guide you from one point to another of the desired situation (objectives).

Example

Objective: To achieve a higher market share.

Marketing Strategy: Enter a new market segment.

Market Plan: Develop a marketing campaign that reaches, identifies and focuses on the specific segment.

Marketing Strategy -> Marketing Plan-> Implementation = Successful Marketing Strategy

How to develop an effective marketing strategy?

For an effective marketing strategy it is necessary to know your competition and know that what you offer to your clients has the added value that the competition does not have (FAB ANALYSIS- features, advantages and benefits).

After this define your target market in a demographic and psychographic way, this will help to know why they need to buy products/services from you.

There are several ways to make marketing strategies effective, so it is necessary to focus on the most important communication channels (traditional and virtual media) and to be able to carry out the strategies with a successful follow-up of the implementation of the strategies.

Establish the objectives and the process:

  • Analyse the position in the market: identify the target audience, the competition and what is happening in the company. In addition, define which are the strong aspects and those that you should optimize
  • Establish goals: create achievable brand and sales objectives and determine the time frame to reach them
  • Design the tactics: after you examine the landscape, create the lines of action based on the strategies you know
  • Implement controls: define how you will measure goal achievement and how you expect performance to gradually improve

Types Of Marketing Plans And Strategies

1. Market Penetration Strategy

When a firm focuses on selling its current products to existing customers, it is pursuing a market penetration strategy. The marketing activities that will dominate in this type of marketing plan are those that emphasize increasing the loyalty of existing customers so that they are not vulnerable to loss to competitors, attracting competitors’ customers, increasing the frequency of product use, and converting nonusers into users.

Increasing awareness through marketing communications and increasing availability through expanded distribution are common marketing activities in this type of plan. Identifying new use occasions and new uses for a product may increase usage frequency or convert current nonusers into users. For example, the advertising campaign for orange juice that has the tagline “It’s not just for breakfast anymore” was an effort to expand usage. Price promotions might be used to encourage competitors’ customers to try the firm’s product if there is reason to believe that such a trial will result in repeat purchases. Loyalty programs can be very effective in retaining existing customers. This strategy reduces risk by relying on what the firm already knows well—its existing products and existing customers. It is also a strategy where investments in marketing should pay back more quickly because the firm is building on an existing foundation of customer relationships and product knowledge.

2. Market Development Strategy

The efforts to expand sales by selling current products in new markets are referred to as a market development strategy. Such efforts may involve entering new geographic markets, such as international markets. Creating product awareness and developing distribution channels are key marketing activities. Some product modification may be required to better match the needs of the local market. For example, as fast food restaurants have moved into international markets, they have often changed their menus to better match the food preferences of customers in local markets. Expanding into a new market with an existing product carries some risk because the new market is not well known to the firm and the firm and its products are not well known in the market. The return on marketing investments in such a strategy is likely to be longer than for a market penetration strategy because of the time required to build awareness, distribution, and product trial.

3. Product Development Strategy

Creating new products to sell to existing customers, a product development strategy, is a common marketing strategy among firms that can leverage their relationships with existing customers. For example, American Express has been able to leverage its relationships with its credit card customers to also sell travel-related services. Similarly, cable television companies have expanded their offerings into Internet and telephone services. Research and development activities play a dominant role in this strategy. The time required to develop and test new products may be long, but once a product is developed, creating awareness, interest, and availability should be relatively rapid because the firm already has a relationship with customers. A product development strategy is also riskier than a market penetration strategy because the necessary product may not be possible to develop, at least at a cost acceptable to customers, or the product developed does not match the needs of customers.

4. Diversification Strategy

A diversification strategy involves taking new products into new markets. This is really the creation of a completely new business. This is the riskiest of strategies and the strategy likely to require the most patience in waiting for a return on investment.

Contributed to Branding Strategy Insider by: David Stewart, President’s Professor of Marketing and Business Law, Loyola Marymount University, Author, Financial Dimensions Of Marketing Decisions.

Importance of Marketing in Business

At its core, marketing is what drives customers to your brand. Without it, your prospects aren’t aware of your products or services, and without reaching your ideal customers you’re likely missing opportunities to generate revenue. Here are several reasons why your marketing avenues are important to your business:

  • Offers your company the opportunity to share your brand’s vision, mission, and values.
  • Improves customer relationship marketing based on marketing data analysis.
  • Motivates and inspires audiences to share your products or services.
  • Supports the achievement of your company’s major goals, such as increasing revenue and building customer relationships.
  • Provides the ability to target different niche markets in your industry.
  • Ensures your company stays relevant and connected to your customer base.

Branding: The Foundation of Your Marketing Strategy

Your brand creates your business’s unique persona and differentiates your business, products, and services from all the others in the marketplace. Most companies build their marketing strategy on the foundation of their brand identity. That’s because successful marketing depends on effective branding. Taking the time to create a powerful brand can enhance your marketing activities and increase the profitability of your business.

Elements of Branding

Here are some of the key elements of creating a brand:

  • Vision and mission: What is your business’s purpose for existing? How will it improve the lives of your clients or customers?
  • Core values & beliefs: What distinguishes your company from its competitors? What principles does it abide by?
  • Brand/business name: A unique and compelling business name will be meaningful to your customers. While the word amazon has no correlation to Amazon’s business, the name is a daily part of many people’s lives.
  • Logo: A unique logo will set your brand apart in the marketplace and make it more memorable.
  • Visual brand elements: This includes the colors, fonts, graphics, and any other visual elements of a brand. When used effectively, a simple image becomes an icon and represents a brand.
  • Tagline, slogan, or jingle: Create a simple tagline relevant to your audience or your product. Phone numbers set to music can linger for years in the thoughts of your target audience.
  • Keywords or personality: What emotions do you want your brand to invoke? This helps develop the personality of your brand and creates an emotional connection with your customers.
  • Target market: Who is the ideal client of your business? Who do you serve?
  • USP (Unique selling proposition): Your USP helps you stand out from competitors and make your brand unique in the eyes of your customers.
  • Brand stories: Brand stories, such as the brand’s origin story or a customer’s significant testimonial, are powerful tools capable of creating a strong emotional connection with customers.
  • Consistency: Consistency over time and across platforms is necessary to establish a memorable brand.

Looking for more ways you can create an effective and recognizable brand? CopyPress has a newsletter that can provide you with tips and tools for building brand awareness and creating key content marketing strategies. Sign up for our newsletter today!

Conclusion

Identifying the types of marketing strategies that can be used to successfully build a business or gain traction for a product is an necessary exercise for entrepreneurs.

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