What is a Marketing Strategy?
A marketing strategy refers to a business’s overall game plan for reaching people in a certain target group to convert them into customers.
Each day entrepreneurs rely on strategy to determine how to use their limited resources to better their companies in the competitive market.
What are the 4 P’s of marketing and is that basic model enough?
All marketing professionals have been taught to build a marketing plan around the 4 P’s (Product, Price, Place, Promotion). The 4 P’s of marketing is a basic model for enhancing the components of your “marketing mix” – the way in which you take your product or service to market.
–Product refers to a product (or service) that a company offers.
–Price is the cost consumers pay for a product.
Marketers must link the price to the product’s real and perceived value, but they also must consider costs, competitors’ prices, etc.
–Place (distribution) refers to where a product should be sold and how to deliver it to the market. The objective is to get the product in front of the target groups that are the most likely to buy it.
– Promotion includes advertising, public relations, promotional strategy, etc.
The goal of promoting a product is to reveal to target customers why they need it and why they should pay a certain price for it. Promotion can be online and offline.
The 4 P’s of the marketing mix are the key factors that are involved in the marketing of a product or service. However even more important steps must precede the 4 P’s.
A good marketing plan starts with a proper market research.
Market research provides you with the essential information about the macro-environmental factors, competitors, prospect customers, etc. The results offer you insights into what it would take to succeed in your market.
As an example, the PESTEL analysis is a tool that you can use to analyze and monitor factors that may have an impact on your business. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. The PESTEL analysis is also used to identify threats and weaknesses which are used in the famous SWOT analysis for assessing the Strengths, Weaknesses, Opportunities, and Threats of your business.
Research reveals, among other things, that customers differ greatly in their needs, perceptions and preferences. Therefore, customers must be classified into segments.
Market segmentation
Market segmentation is the process of dividing a target market into smaller, more defined categories. It segments customers and audiences into groups that share similar characteristics such as demographics (age, gender, etc.), psychographic (values, interests, etc.), behavorial (purchasing habits) or geographic (location). You will be able to use this data to create a buyer persona that describes the exact type of customer you would like to attract.
Why does it matter?
Using different types of market segmentation allows you to target customers based on unique characteristics, and consequently create specific value propositions that truly resonate with their needs, attract the right people and increase your chances of conversion (sales).
Identify your target customer
Market targetting consist at evaluating the potential and attractiveness of each segment in order to select the most relevant one(s). A target market is a group of customers with shared characteristics who have been identified as the most likely buyers of a company’s product or service.
Identifying the target market is important for any company in the development and implementation of a successful marketing plan. Remember that you can’t stand for something if you chase after everything! You absolutely need to position your product or service in the mind of the prospect.
Define your Positioning
Positioning is the key element of your marketing strategy precisely because it cuts across the 4 P’s and adds consistency to them. This is the cornerstone of your marketing plan for creating and maintaining real differentiation in your market. A position that takes into consideration your own strengths and weaknesses but also those of your competitors. Positioning is the fundamental concept that will help you getting heard in the communication jungle.
Craft your unique customer value proposition
In addition, you will need to help your target customers understand and believe in the value of your offerings. The research you have done in preparation of your plan and the customer persona you created will allow you to understand the specific needs and preferences of the group(s) you want to target. This info will be of great help in order to craft a customer value proposition that will give prospects a compelling reason to do business with you. A strong value proposition will set your company apart from your competitors and you will be able to:
-Attract and convert more customers
-Increase customer loyalty
-Command higher prices
-Outperform your competitors
In other words, your value proposition is a simple answer to the question: “Why should I buy from you and not your competitors?“
It’s an easy to understand promise from you to your target customers, focusing on the few elements that matter most to them, and giving a clear reason to do business with you. Be prepared to substantiate and document your value claims to build trust with your target customers!
For most customers, the things they truly care about are:
-How will this product or service help me drive more revenues?
-How will this help me lower my costs?
-How will this improve my user experience?
The bigger the economic impact your product or service helps customers achieve at one of the three goals above, the more attention they will give it!
In a nutshell
Today, the STP marketing model (Segmentation, Targeting, Positioning) is a familiar strategic approach in marketing. It is one of the most commonly applied marketing models in practice. STP marketing model focuses on commercial effectiveness, selecting the most valuable segments for a business and positioning strategy for each segment, and then developing the consistent marketing mix.
If you like to discuss the specific challenges of your own business then please don’t hesitate to get in touch!