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.
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.