5 components of marketing strategies

What is marketing strategy?

Marketing strategy is the foundation of a marketing plan. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan.

While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use. An organization's strategy combines all of its marketing goals into one comprehensive plan. A good marketing strategy should be drawn from market research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business.

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1. Description of the product or service

• Describe your product or services.

• List the Benefits of your products or service

• Describe your advantages over the competition

• Realistically assess the volume you can do

• Describe the business developmental stage

• List any potential or current contracts

2. Marketing budget

Without a Marketing Budget you cannot implement your Marketing Plan. A marketing Budget helps you estimate, track and monitor your spends on marketing including the advertising and promotion.

3. Description of the business location

For finding a perfect location for your business you should answer 2 important questions: Where should your business be located and Why.

As the location has a direct impact on your sales, you should consider several points concerning your business location:

• Do you buy, lease or build it?

• Is the place visible and accessible for the customers?

• Are there nearby businesses?

• Is it safe?

• Are there zoning and parking conditions?

4. Pricing strategy

You can choose any of these pricing strategies.

5. Market Segmentation

Market segmentation is the process of dividing a market into different groups of customers in order to create different products to meet their specific needs. It’s based on a chosen competitive advantage in a market, and the company’s ability to serve this segment most efficiently.

There are four types of Market segmentation:

• Geographic segmentation- divide market into location, regions, cities and so on.

• Demographic segmentation-divide the market into groups based on age, gender, income.

• Psychographic segmentation- divide the market according to social class and lifestyle

• Behavioral segmentation- divide the market according to knowledge, attitude, uses and response to products.

A marketing plan for a small business typically includes Small Business Administration

Description of competitors, including the level of demand for the product or service and the strengths and weaknesses of competitor.