4 Reasons Why You Need a Marketing Strategy
Behind every successful business, there is a successful marketing strategy. The fact is, no matter how exceptional your product or service is, unless word gets out to the right people, through the right channels, it will never find an audience. In contrast, a marketing strategy can maximize the return on just about any investment in product or service development.
What exactly is a marketing strategy? In simple terms, it's a company's overall game plan for turning prospects into paying customers. It should be comprehensive, flexible, and customized to meet the company's specific needs and objectives.
But what if your company doesn't have a marketing strategy? Well - then it’s time to develop one!
Here are 4 key reasons why a marketing strategy is so important:
It Helps You Identify and Market to Your Target Demographic(s)
Many businesses waste precious time and resources on blanket advertising campaigns. They operate under the assumption that the more consumers they reach, the higher their profit margin will be.
The reality is that most companies should focus their marketing efforts on a very specific subset of the consumer base — in other words, the consumers most likely to purchase from them. A solid marketing strategy always includes a process to identify this target demographic and even develop a "buyer persona" from the raw data. Once you know who your target customers are, you can customize your message to be most persuasive for that group.
It Solidifies Your Brand's USP
Your Unique Selling Proposition (USP) is what makes you stand out from your competitors. It's the reason why consumers should buy from you, as opposed to another company. For example, over the past several decades’ Apple's collection of unique designs, patents, security measures, and yes, storytelling ability, has formed a USP worth billions of dollars. For our clients, it will be something different, maybe your geographic location, maybe your price point, your personalized service, your length of time servicing the local community, whatever it is, your marketing needs to underline your USP.
As you develop your marketing strategy, you'll see more clearly what it is that separates you from your industry peers. Armed with that knowledge, you'll be able to leverage your USP into convincing and motivational marketing. In essence, you'll be able to tell your company's story in the most appealing way for your target audience.
It Informs Your Price Points
Now that you know to whom you are selling, and why they should buy from you, the next logical question to address is: How much should they pay? For that reason, part of your marketing strategy should focus on finding that "sweet spot" in your pricing. You don't want to sell yourself short. At the same time, you don't want to scare away customers with exorbitant price tags.
An effective marketing strategy serves as an excellent foundation for finding that perfect price point since it yields insights into the circumstances, interests, desires, and concerns of your target buyers. For instance, if your consumers live from paycheck to paycheck, they are likely more concerned with functionality then with luxury. On the other hand, if you are targeting affluent buyers, then you will likely want to highlight the premium quality and unique features of your product — and also charge more.
It Enables the Best Use of Resources
Finally, a marketing strategy allows you to allocate your resources for maximum effect. Many companies decide to ramp up their marketing game only when "things have gotten too quiet." However, it's much more effective to have a game plan throughout the year, and stick to it.
For example, if your business involves a peak season during a certain time of year, your marketing strategy may include a focus on increased content delivery and advertising during that period. Then you can scale back once the busy time has passed. That way there's no guesswork — you have a plan, you have a budget, and you know where your resources are going. The beauty of the whole thing is that there should be enough built-in flexibility to account for unexpected opportunities.
The Importance of a Marketing Strategy
The fact is, every business needs a marketing strategy, no matter how big or small the budget is. To support your marketing strategy, you must be able to tell your company's story — where it came from, why it's great, and how it relates to your audience. If you need some help, talk to us today about how to begin the process.