Posts Tagged ‘marketing strategy’

How do I write a Marketing Strategy?

A marketing strategy is a process that enables you to optimize your resources (time, money, people, etc) and focus them on the best way to generate sales and achieve a sustainable advantage. An effective marketing strategy defines how you will attract prospects, engage customers and overcome competitors.

The marketing strategy is the underpinnings of the marketing plan which includes the tactics used to implement the strategy. The strategy is dynamic and interactive. It can change and evolve in real time based on changes in the company goals, competitor actions, or customer responses.

In a corporation, there is typically someone responsible for overseeing the entire marketing strategy for a product or business unit. There are then sub-groups responsible for a given tactical area such as advertising, distribution channels, internet and public relations. Each of these specialists then develops the detailed tactical plans for their area of expertise.

In a small business, it is usually the owner or maybe one marketing person responsible for the entire marketing strategy and implementation. As you can image, this gets very overwhelming. How do you begin?

The marketing strategy is where you define who your customers are (the customer segments), which ones you want to work with (your target), and the benefits you have to offer them (the positioning). As a small business owner, you want to identify the target customer that brings you the most joy and personal fulfillment to work with. That’s why you are in business for yourself, right? Don’t you want to be happy, have freedom and control your destiny? If so, you need to find the customer that is the best match for you and then talk directly to them.

Customer Segmentation

Customer Segmentation is when you divide the market into discrete customer groups that share similar traits. There are four basic ways to segment the market. They are based on psychographic, demographic, geographic or physiographic data. When you segment your customers, you want the division to be meaningful and measurable.

The Target Customer

Now that you know all you can about your customers, you need to identify which of these segments you are going to target. To do this, you will need to determine the profit potential of each segment by analyzing the potential revenue vs. costs of selling to that customer. As an entrepreneur, your costs also entail your time, effort and personal fulfillment. Which segments are easier for you personally to work with? Which ones will bring you the greatest joy? Profitability isn’t always measured in dollars.

Positioning

Positioning is the perception your customer has of you, your company or your product/service in relation to their perceptions of your direct competitors.

To effectively position your product or service, you need to know what makes your customer tick. What problems do they have that you can solve? How can you/your product help them better than anyone else? What makes your solution uniquely better than anyone else’s? Be sure to tweak your product/service and pricing to best meet the needs of your customer.

Now that you know who you are going to talk to and what you are going to say, you need to move to the next step in your planning process. The next step would be to clarify how you are going to deliver your message and where. This leads you out of the strategy phase and into the tactical phase of your marketing plan.

GET 5 Euro FREE FOR INTERNATIONAL CALLS!
Buy now a TravelSIM Card and save up to 90% on your international phone calls.    Use our promo code roamingfree and get Euro 5,00 for free!

What is Marketing?

What is marketing? Marketing is the core of your business. It entails identifying the needs and wants of your customer and how you can satisfy them with your products and services. Marketing is a communications-based process. Ok, let’s simplify that to,

“Marketing is the process of communicating that I have something that can help you.”

The American Marketing Association, AMA has an expanded and more detailed way of answering “What is Marketing?” The AMA says “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”

Some consider Marketing to be a creative industry. The creative areas of marketing include advertising and promotion. But, marketing also incorporates quantitative research and analysis which pulls from statistical, economic and mathematical disciplines. The disciplines of psychology, sociology, anthropology and neuroscience are drawn upon in understanding the consumer behavior and your customer wants and needs.

Marketing encompasses many disciplines such as sales, public relations, advertising and most customer-facing functions. It also encompasses product planning and market research which take external feedback and translate it internally to improve the business. While the Brand Manager or Product Manager is the person who oversees that all of the elements of the marketing plan are working together and delivering on the company vision, most functions in marketing are specialized.

As a small business owner it is imperative that you have a marketing plan (a component of your business plan). This is the roadmap that you follow to engage customers and create sales. It is the overriding strategy that you use to achieve your business success. Once you have a strategy for the company, you will eventually create a marketing plan for each product or service you offer.

This blog that you are reading has a marketing plan. And so does the business of which it is a part. Each is a component in a larger vision and each piece is created with definitive purpose, function and fit with the whole. Effective marketing is a fundamental key to the success of every business.

Take a look at Microsoft. They may not make the world’s best products, but they sure do market the heck out of them. And your consumer packaged goods companies are renowned for their branding and advertising, which all comes about through extensive research. Is Cheerios really any different than the generic brand of oaty-O cereal? Or, are we just convinced of that through effective marketing?

GET 5 Euro FREE FOR INTERNATIONAL CALLS!
Buy now a TravelSIM Card and save up to 90% on your international phone calls.    Use our promo code roamingfree and get Euro 5,00 for free!

I just came back this weekend from a seminar that focused on wealth consciousness. I define wealth consciousness to be the mindset one has that helps them attract more wealth into their life.

What does this have to do with marketing? Marketing is about creating a relationship with your customer. So, the more you know about your customer the more successful you will be at addressing their wants, needs and desires.

The wealth consciousness seminar looked at the relationship people have with money based on their socioeconomic class.

People in the Lower Class who are Poor tend to work for cash and then spend it on items that eventually wind up being discarded in a landfill. For example, they buy sneakers which wear out and then get thrown in the trash. They also are most likely to work with their hands and be laborers and artisans.

From a marketing perspective they tend not to have a long term view and don’t plan for the future. They tend to live paycheck-to-paycheck. So the quality of the product they are purchasing is not as important as the price and the style. They are satisfying immediate needs and urges.

The Middle Class has a tendency to work for cash and then buy liabilities. A liability is something that takes money out of their pocket. For example, they buy a house to live in and have to pay the mortgage. Or, they may buy cars and boats for personal use, all of which create an outflow of cash. A middle class worker is likely to work in a professional job that uses their head (thinking, education, knowledge). Managers and teachers would fall into this category.

The middle class will have a mid-term view on purchases. They will use their disposable income to buy perceived luxuries and toys. They do not expect items to last forever, and they want instant gratification. There is a tendency amongst this group to make purchases to improve their perceived status.

The Upper Class tends to take their cash and buy assets which then generate more cash. Then they take that cash and put it into more assets to generate more cash, and so on. An asset is something that puts money into your pocket. It could be a rental property (as long as the mortgage payment is lower than the rental income). It could be a business. It could be a tool that is used to create more cash. A “tool” like a snow plow could be considered an asset if it is used to create income rather than solely for personal use.

The Upper Class uses their network to generate income. They realize that wealth is created by connecting with people and offering them a service or product of value. They build their income through referrals and connections.

It takes time, patience and persistence to create assets, networks and thus wealth. In most cases, if you are targeting a wealthy customer, then they will be of an older demographic because it takes time to accumulate the wealth. They take a long term view on their purchases and want a quality product that will last for years; a good value. They will pay more to get quality of materials and craftsmanship and are drawn to items that give them years of enjoyment (think durable). They will be drawn to classic style, not too trendy, but it must be of high quality.

When you sit down and think about the ideal customer for your business, try to identify how that customer relates to money and income and how that relates to the product or service you are offering. How does this wealth consciousness change your relationship with your customer? How do you need to position your business so that you are appealing to the wants, needs and desires of your ideal customer? Is your marketing strategy in need of adjustment?

GET 5 Euro FREE FOR INTERNATIONAL CALLS!
Buy now a TravelSIM Card and save up to 90% on your international phone calls.    Use our promo code roamingfree and get Euro 5,00 for free!