An effective marketing strategy is vital for firms because no business can grow without a consumer market. Therefore, entrepreneurs should tell the difference between their products or services and those of their competitors and why they should be considered.
What is a Marketing Strategy?
An effective marketing strategy defines an extensive plan put together to achieve the marketing objectives of an organization. It provides a method for reaching the marketing objectives put in place. A marketing strategy comes after detailed research on the market to help an organization concentrate its funds on the best opportunities to increase its sales.
Marketing strategy is drafted by:
Identifying a Target Market
Identifying a target market involves figuring out who the organization wants to sell its products and services to. Not every market section is profitable to an organization. Some market sections guarantee profits, and others show great potential but have high entry barriers. Therefore, a prudent decision has to be made by the organization. Extensive research has to be carried out for buyers’ preferences and particular needs in the target market.
Meeting the Marketing Mix
Marketing mix means the process by which the organization plans to sell its products and is crucial for a marketing plan. The organization has to master the 4Ps of marketing appropriately. The 4Ps always help in maximizing your profits. The 4Ps stand for:
Product
The first P stands for product, referring to the process of coming up with a product with unique selling benefits by adding or removing features concerning your target market. It involves evaluating the competitors, analyzing industrial statistics, and conducting surveys.
Price
Don’t rely on just simple math, strategic planning is a vital step to take when determining your pricing. It’s not just about knowing the costs of making a product and the desired profit margin. Based on your target customer and product strategy, you should set a fee to maintain an image for your business. For example, you could set your prices higher than normal to be profitable and also convey an idea of higher perceived value than your competitors. Conversely, you might decide to put your costs low to have an image of higher perceived value and make more profits or set low prices to make profits from an increased volume of sales.
Place
Where you are selling the product relies on brand management and cost-effectiveness. The place you choose should depend on selling methods and how you communicate and reach your target customers. For example, it is cost-effective to sell online, but you might go for a retail store or a print catalog for customers who decide to buy locally. The marketing strategy informs you about where and when to start your business operations.
Promotion
It is critical to send messages to your customers consistently to ensure that the work you put in pays off eventually. Since it’s a volatile and competitive market, customers should be reminded about the merits of a product or service in order to create awareness, increase interest and generate sales and brand loyalty.
Importance of an Effective Marketing Strategy
An effective marketing strategy helps serve as a road map for the entire business’s success. By creating and establishing a logical and well-considerate marketing strategy, organizations can efficiently promote their business.
The following are reasons why you need to have an effective marketing strategy…
