Marketing strategy is a company’s plan of action for promoting business, describing ways to solve specific strategic tasks. The ultimate strategic goal is to increase sales by converting potential customers into real ones. The plan reflects the actual position of the brand in the market, evaluates the company’s resources, and shows how to most wisely manage them to achieve the desired result.
The document is official and is fixed in the company’s policy. For small and medium businesses, the marketing strategy is built for a period of 1-3 years, which is due to the instability of the market situation. Longer-term planning is available to large companies: they develop a set of measures to promote the brand for an average of 10-15 years.
Marketing Strategy Objectives
A marketing strategy acts as a kind of personal “guide”, and not only for new companies. A clear action plan will help those who have been on the market for a long time, but for specific reasons found themselves in a disadvantageous position, to continue moving forward. For example, after a sharp change in positioning, when everything had to be started from scratch, or due to the emergence of stronger competitors and, as a result, “sagging” sales.
Some need a document to outline a new vector of development, others – to move from a dead point specific database by industry after stagnation. Let’s consider what tasks can be solved by developing a combat-ready marketing strategy.
- Expanding market influence. Thanks to a competent strategy, a business can not only strengthen its position in already occupied niches, but also occupy new segments. The more space you can “capture” in the sales market, the greater and more stable the profit will be.
- Increasing the company’s income. It is necessary to think about how to stimulate sales without significantly reducing the cost, or find ways to compensate for the discount provided. An effective strategy is a reflection of the needs of the target audience in the USP, as well as choosing the right time and channels for interacting with potential buyers.
What are the marketing strategies?
In total, marketers distinguish 4 main marketing strategies – basic, global, competitive and growth strategies. Each of them provides its own vector of development. The choice depends on the set goals, characteristics of the company, its strengths, and other points. Strategies are rarely used alone, often it is a mix of different types.
Basic
This marketing strategy is based on the company’s positioning. Its construction determines whether the business plans to scale in the future, or will begin to reduce its presence in the market, or development will remain at lead generation: what is it and why is it needed in simple words the same level. According to the concept of economist Michael Porter, basic strategies can be classified by direction.
- Specialization. It involves winning leadership in its niche. That is, the company directs all resources to the development of a specific segment, but does not seek to cover the entire market. To bypass competitors, a deep study of the needs of the target audience is necessary.
- Differentiation. The goal is to scale the company. Here, either an umbrella brand can be organized (expansion of the product range) or the properties of existing products can be improved. The second option works more effectively: products/services “not like everyone else’s” are more attractive to the audience and are maximally dangerous for competitors.
Global
Marketing promotion strategy is suitable for projects that plan to develop outside their country. It involves drawing up a large-scale plan to expand the company’s geography of activity. The global strategy is developed in several directions.
- Internationalization is the development of new distribution channels in the global market.
- Globalization is the development of products that meet international standards.
- Diversification is the parallel development of fundamentally new types of activities.
- Segmentation is the creation of product variations for different categories of consumers.
- Cooperation is mutually beneficial business cooperation with foreign companies.
Competitive
Marketing strategy of this type implies development of a program of struggle with direct competitors. Division in the competitive environment depends on the market position of a specific business at the current moment.
Market leader. Market dominance can be short-if you stop working on developing the company. How should leaders act? To maintain their positions, they need to constantly attract new audiences and remind the existing ones about themselves.
Growth Strategies
A plan is develop on marketing research, which allows us to understand what the company’s further movement should be to achieve key goals. There are 5 types of marketing growth strategies, 2 of which are frequently used: intensive (aggressive) and diversified. Which option to choose? Depends on the internal potential of the company, as well as external threats (level of competition). We will tell you about each strategy in more detail.
The Main Components of Marketing Strategy
Preparation for developing a marketing strategy includes several stages. It begins with an analysis of the target audience and competitors. Marketers study what techniques have allowed them to advance in the market. Then begins the planning stage, taking into account the company’s resources. What does a marketing strategy consist of.