In business, the marketing strategy plays a crucial role in influencing customers’ purchasing decisions. The selected marketing strategy dictates how the product is presented, perceived, and promoted.
A well-executed marketing strategy has the potential to attract target customers and boost sales. So, what does an effective marketing strategy entail? Let’s delve into a comprehensive explanation below!
Also read: Iterative Process: Definition and Its Importance for Startups
What is Marketing Strategy?
marketing strategy
Before delving into examples of effective marketing strategies, it is essential to understand the meaning of a marketing strategy. A marketing strategy is a carefully devised plan created to promote goods and services with the ultimate goal of generating profits for the company.
The marketing strategy holds significant importance in ensuring the continuity of a company’s business. Without a well-developed marketing strategy, sales can experience a decline.
According to Management Study Guide, a marketing strategy encompasses a company’s plans to reach potential customers and convert them into regular customers. The company’s strategy document outlines the necessary steps and job descriptions required to achieve the marketing goals of the business.
A marketing strategy is formulated after thorough marketing research has been conducted by the marketer. The aim is to provide an overview and assist companies in allocating resources according to their needs while identifying the best opportunities to increase sales.
Also read: The Definition of Market Share and How to Calculate It
Objectives of Marketing Strategy
Creating a strategy should also include objectives so that the strategy is more focused and does not deviate. The following are several objectives of marketing strategy for companies:
-
Clarifying the company’s course of action
As previously explained, a marketing strategy is used as the main reference for determining the actions that should be taken by the company to achieve profits.
-
Acting as a compass
This means the marketing strategy is created as a tool to help marketers focus on short-term and long-term goals. If employees start to deviate from the initial goal in the future, they can refer back to the marketing strategy to realign their efforts.
-
Serving as a standard for work assessment
In a strategy, there should be targets to achieve. This is where the marketing strategy can be used as a standard for evaluating work—how much has been done to achieve the desired targets?
-
Anticipation
The business world, especially in today’s context, is subject to uncertainty. A marketing strategy can provide predictions about the business ecosystem in the future. From here, businesses can create anticipatory steps to prevent undesirable circumstances.
-
Facilitating decision-making
The marketing strategy also serves as a guide in making decisions. Making the right decisions is crucial to avoid missteps. By relying on a marketing strategy, the actions taken will be aligned with the objectives.
-
Evaluation
Lastly, a marketing strategy is formed to be used as an evaluation tool by making the points in it a measure of success. The evaluation results can then be used to create the next marketing strategy.
Also read: What is Profit: The Types and the Elements
How to Create a Marketing Strategy
An effective marketing strategy always precedes a successful marketing campaign. A good strategy can help the team set measurable and realistic targets. So how do you create a marketing strategy? Check out the full explanation below.
-
Market research
The first thing you need to do is find out about the market situation, both internally and externally. Then, look for added values that can be offered to customers. This includes not only product advantages but also customer needs.
-
Market segment analysis
Next, analyze the market segment based on the data obtained during the research to target the appropriate group for product sales. This analysis involves customer profiles, including how they buy, where they buy, and their behavior.
-
Competitor research
To compete in the market, every business needs to understand its competitors. Find the weaknesses and strengths of competitors to identify gaps that can be capitalized on. By knowing the competitors’ weaknesses and strengths, businesses can reorganize or improve their marketing strategy.
-
Set up a backup plan
Don’t rely solely on one plan for all marketing activities. As the saying goes, “prepare an umbrella before it rains.” Have a plan B ready to be executed immediately when things don’t go smoothly. Plan B can also be used for A/B testing to assess which strategy is more effective.
-
Strategy trial
When the strategy is ready, conduct a trial to determine how customers respond. After that, analyze the results. If customers have a positive response and sales increase, it can be concluded that the marketing strategy is successful. On the contrary, businesses can test their backup strategies if the initial results are unsatisfactory.
Also read: Gross Merchandise Value (GMV): Definition and How to Calculate It
Types and Examples of Marketing Strategies for Business
marketing strategy
After understanding the meaning, objectives, and how to create a marketing strategy, it’s time to explore the types and examples of marketing strategies. Here are 16 marketing strategies that can boost your sales. Read below!
-
Paid Marketing
Companies often use this marketing strategy. Here, marketers create customer advertisements based on their interests, goals, or interactions with the brand. Several digital channels are used, ranging from social media platforms and community-based websites to SERPs. They include display ads, sponsored posts on social media, and articles. B2C companies usually utilize paid marketing strategies.
-
Inbound marketing
The inbound marketing strategy is quite effective and unique. Unlike conventional methods, marketers produce content tailored to each customer’s needs. The principle is to develop a business by building long-term relationships with customers. Inbound marketing aims to accompany customers throughout their buyer’s journey.
-
Social media marketing
Social media marketing is one of the most powerful marketing strategies for B2B companies. This strategy focuses on providing content that interests customers to increase traffic. It involves sharing content such as articles, videos, and images on social media platforms. Social media marketing also enhances relevance in social media searches on platforms like Facebook, Twitter, YouTube, and Instagram, influencing SEO.
-
Organic marketing
Organic marketing is a strategy often used by large companies. It drives traffic to the website, increasing the conversion rate. Unlike paid marketing, this strategy prefers free methods that generate long-term profits.
-
Content marketing
Content marketing is another commonly used strategy. It focuses on creating and distributing relevant content to prospective customers. Regular content distribution aims to attract prospects and encourage them to purchase the company’s products. Content can be in the form of infographics, podcasts, videos, blog articles, and e-books.
-
Transactional marketing
The transactional marketing strategy effectively addresses today’s sales problems. It utilizes vouchers, discounts, promotions, and major events to drive sales.
Also read: Understanding Business Model Canvas (BMC) and Its 9 Elements
-
SEO
Search Engine Optimization (SEO) is used to increase website traffic by ensuring web pages appear on the main page of search engines. SEO combines several marketing strategies to achieve its goals.
-
Account-based marketing (ABM)
B2B companies often use this marketing strategy. ABM focuses on collecting prospective accounts and delivering personalized campaigns. The benefits range from more effective sales processes to cost-effectiveness.
-
Earned media
The earned media marketing strategy involves brand publications by parties other than the company, such as customers, influencers, and audiences. Examples include word-of-mouth, product reviews, and other content. The success of this strategy depends on considering the mentioned parties as they determine marketing success and how the brand is perceived in society.
-
Conversational marketing
B2C companies can utilize this marketing strategy. Conversational marketing involves real-time interaction using chatbots or live chat to directly involve customers. Information obtained from customers can be used for personalization. This strategy improves the quality of service and shortens the purchase time in the sales funnel.
-
SEM
Search Engine Marketing (SEM) aims to increase website traffic through paid online advertising. Pay-per-click (PPC) is a frequently used method, where companies buy links in search result ads related to keywords associated with their products or services. They pay when a visitor clicks on the link.
-
Email marketing
Email marketing refers to sending emails to the target audience. It is an effective strategy, but the approach should be carefully considered to avoid being perceived as spammy.
-
Guerrilla marketing
This unique marketing strategy uses interaction and surprise when promoting products. It differs significantly from conventional marketing and relies on audience interaction, considering promoters and costs.
-
Event marketing
Event marketing involves organizing or attending events to engage audiences, leads, or prospects face-to-face. Benefits include increased brand awareness, network building, team education on new products, and direct sales opportunities.
-
Point-of-purchase marketing
Retail companies use this strategy to attract audiences by displaying products and offering on-package coupons. It encourages impulse purchases through product bundling.
-
Service marketing
Service marketing is suitable for companies that offer services. Since services lack a physical form, it is more challenging to convince customers. The strategy focuses on showcasing how services can solve customers’ problems and increase brand awareness and sales.
That sums up the definition, objectives, and examples of marketing strategies. Companies can choose multiple strategies from the various options above based on their specific needs.
