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Marketing Strategy Analysis: Types Of Marketing Strategies
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We are exposed to hundreds, if not thousands, of marketing messages every day. Why would we be receptive to all of them? That would be mental chaos. So, in response, we tune out all but the most relevant ones. Our brain is actually very good at tuning out stuff that it does not want or need. We do this automatically. This prevents us from going insane. You probably remember the experience of learning a new word--as a child or even as an adult--and all of a sudden you see and hear that word everywhere. This is an example of how our brains smooth over the parts of our environment that are not relevant to us. That word was always there, of course, but it was effectively invisible to our mind until learning its meaning gave it relevance. As a result, pop! like magic that word is now there where seemingly it never was before. A marketing message operates exactly the same way. Market strategy is sorting out who the audience actually is, and then finding out what has meaning for them. What do they care about, and how does this relate to the offer? What messages can one deliver that is both true and meets consumer squarely at the level of their needs? Market strategy is the process of uncovering messages that can be heard. Market strategy allows one to answer the crucial question one offer must address: “Why should I care?” To paraphrase Peter Drucker: Consumers do not buy what you sell. They buy what has value to them. There is strategy and there are tactics. A lot of marketing, in practice, is preoccupied with what we call tactical experimentation. This is the act of throwing all kinds of things out at the world or at broad demographic targets to see what works. As one does this, one is spending money, potentially lots of it. The idea in this method is to do this until one find some actions that work, and when one find them one can then do more of those. This process often results in the classic Wanamaker dilemma—”Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” He was speaking of advertising, but the principle applies. Market strategy allows one to use pathways and footholds that apply limited budget more effectively (everyone’s budget is limited). Market strategy facilitates the ability to apply money to the correct half of the Wanamaker equation--the half one is not wasting on audiences who do not value the message. To illustrate this principal with one of our own rather straightforward examples, when we looked at the South Bronx as a marketplace for the Bronx Museum, the situation we saw was reflected by the first competitive advantage diagram below; here, there is nothing in their offer, as understood by the consumer, that is of any perceived value. The strategy, therefore, could not be to simply support the institutional desire to communicate about all the great art that was on exhibit.
Developing a market strategy is vital for any business. Without one, efforts to attract customers are likely to be haphazard and inefficient. The focus of the strategy should be making sure that products and services meet customer needs and developing long-term and profitable relationships with those customers. To achieve this, one need to create a flexible strategy that can respond to changes in customer perceptions and demand. It may also help identify whole new markets that can successfully target. The purpose of the market strategy should be to identify and then communicate the benefits of business offering to target market. Once the strategy has been created and implemented, monitor its effectiveness and make any adjustments required to maintain its success. We shall help identify which customers to focus on and key objectives in reaching them. We explain what to include in the market strategy and how it can be used as the basis for effective action. Let us now help you understand some key elements of a successful market strategy. One of the key elements of a successful market strategy is the acknowledgement that the existing and potential customers will fall into particular groups or segments, characterized by their "needs". Identifying these groups and their needs through market research, and then addressing them more successfully than competitors, should be the focus of strategy. After that one can create a market strategy that makes the most of strengths and matches them to the needs of the customers one want to target. For example, if a particular group of customers is looking for quality first and foremost, then any market activity aimed at them should draw attention to the high quality service one can provide. Once this has been completed, decide on the best market activity that will ensure the target market knows about the products or services one offer, and why they meet their needs. This could be achieved through various forms of advertising, exhibitions, public relations initiatives, Internet activity and by creating an effective "point of sale" strategy if one relies on others to actually sell the products. Limit activities to those methods one would think will work best, avoiding spreading budget too thinly. A key element often overlooked is that of monitoring and evaluating how effective the strategy has been. This control element not only helps to see how the strategy is performing in practice, it can also help inform the future market strategy. A simple device is to ask each new customer how they heard about the business. Once the market strategy has been decided, draw up a market plan to set out how one plan to execute and evaluate the success of that strategy. The plan should be constantly reviewed so it can respond quickly to changes in customer needs and attitudes in the industry, and in the broader economic climate. The strategy must take account of how business' strengths and weaknesses will affect marketing. We can begin market strategy document with an honest and rigorous SWOT analysis, looking at strengths, weaknesses, opportunities and threats. It is a good idea to conduct some market research on the existing customers at this point, as it will help to build a more honest picture of reputation in the marketplace. Strengths could include: personal and flexible customer service, special features or benefits that the product offers, specialist knowledge or skills. Weaknesses could include: limited financial resources, lack of an established reputation, inefficient accounting systems. Opportunities could include: increased demand from a particular market sector, using the internet to reach new markets, new technologies that allow improving product quality. Threats could include: the emergence of a new competitor, more sophisticated, attractive or cheaper versions of the product or service, new legislation increasing costs, a downturn in the economy, reducing overall demand. Having done the analysis, we can then measure the potential effects each element may have on the market strategy. For example, if new regulations will increase the cost of competing in a market where one is already weak, one might want to look for other opportunities. On the other hand, if one has a good reputation and key competitor is struggling, the regulations might present the opportunity to push aggressively for new customers. With an understanding of the business' internal strengths and weaknesses and the external opportunities and threats, we can develop a strategy that plays to the strengths and matches them to the emerging opportunities. We can also identify weaknesses and try to minimize them. The next step is to draw up a detailed marketing plan that sets out the specific actions to put that strategy into practice. Questions to ask when developing strategy include: What changes are taking place in our business environment? Are these opportunities or threats? What are the strengths and weaknesses? What does one want to achieve? Set clear, realistic objectives. What are customers looking for? What are their needs? Which customers are the most profitable? How will one target the right potential customers? Are there groups that can be targeted effectively? What's the best way of communicating with them? Could the customer service be improved? This can be a low-cost way of gaining a competitive advantage over rivals, keeping customers, boosting sales and building a good reputation. Could changing products or services increase sales and profitability? Most products need to be continuously updated to maintain competitiveness. Could extending product list or service provision meet existing customers' needs more effectively? Remember that selling to existing customers is generally more cost effective than continually trying to find new ones. How will be the pricing strategy for product or service? Although prices need to be competitive, most businesses find that trying to compete on price alone is a poor strategy. What else are the customers interested in? Quality? Reliability? Efficiency? Value for money? What would be the website marketing strategy? What is the best way of distributing and selling products? How can we best promote the products? Options might include advertising, direct marketing, exhibiting at trade fairs, PR or marketing on the web. How can we tell is the marketing is effective? A small-scale trial can be a good way of testing a company marketing strategy without committing to excessive costs. So let’s discuss about tips and pitfalls.
Before looking at new markets, think about how one can get the most out of the existing customer base - it's usually more economical and quicker than finding new customers. Consider whether one can sell more to the existing customers or look at ways of improving the retention of key customers. Focus on the market. The companies marketing strategy document can: analyse the different needs of different groups of customers, focus on a market niche where one can be the best, aim to put most of the efforts into the 20 per cent of customers who provide 80 per cent of profits; Don't forget the follow-up; Approach a third party for feedback about the strategy - they may be able to spot any gaps or weaknesses that one can't see; Put the market strategy into effect with a plan that sets out the aims, actions, dates, costs, resources and effective selling programs; Measure the effectiveness of what to do. Be prepared to change things that aren't working. Pitfalls to avoid include: Making assumptions about what customers want; Ignoring the competition; Trying to compete on price alone; Relying on too few customers; Trying to grow too quickly; Becoming complacent about what one offer and failing to innovate. Do note that this above information is provided only as a guideline and would vary from customer to another or from one project to another.
Thus it to be accepted that marketing is now accepted as a strategic discipline or general management function and in this respect must care for the health of a business in the future - especially against competitive influences. This is because it is increasingly realized that although making a profit is important, an organization should also develop its market share and search for brand leadership as well. So the marketer must monitor the profitability of the business and attempt to anticipate the likely trends. At the same time rival companies should be monitored and examined for vulnerable points. Successful marketers must therefore be concerned with every aspect of their business, including future project and other areas of their industry. Successful companies plan five or ten years and more in advance and often know as much about their competition as they know about themselves. It takes a lot of time and effort to develop and maintain a market campaign that resonates with your intended audience. As a strategic thinker, however, the development of a campaign takes even more consideration. After all, we're always searching for ways to gain the oh-so important competitive edge. There are times, though, when we all hit the proverbial wall. If you find yourself in that situation, then you may want to use our strategies that will definitely spark your creative energy.
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