A marketing strategy is esse ntial to any company’s operation. That said, strategies could, therefore, make or break a business or brand. Marketing strategy refers to a comprehensive plan formulated to achieve the objectives of the organisation.
A good marketing strategy has become, increasinly, more important, because it helps organisations to concentrate its scarce resources on the best possible opportunities to drive revenues.
Marketing strategy informs a marketing plan, so it is very important to focus on a strategy before thinking about implementing it. Many marketers are very comfortable with implementing and executing marketing initiatives; however, sometimes it may be difficult to find time to properly undertake strategic marketing planning.
Nevertheless, there are three main points which you need to focus on when driving your marketing strategy.
1. Focus on selected target markets.
2.Focus on selected products and service offerings.
3. Focus on your company’s strengths. Play towards your strength and away from your weaknesses, and take advantage of the opportunities ahead.
In this article, I it will further explore why focus is important.
WHY IS IT IMPORTANT TO FOCUS ON DRIVING MARKETING STRATEGY?
1. Helps to Gain Competitive Advantage
Foremost on the list of the importance of a marketing strategy is that it helps the firm gain a competitive advantage in the market, amid tough competition, with an edge over the existing players and the new entrants who are trying to establish their brand presence in the market.
2. Attracts a New Set of Customers
The management and the marketing departments of the firm need to understand the importance of a marketing strategy if they want to attract a new set of customers from the same operational market, plus from the untapped markets as well.
3. Helps to Plan the Nature of Products and Services
Market research and study is a significant part of a marketing strategy, and this aspect helps the management of the company to plan the features and unique selling points of the products and services that are in the pipeline or are in the launch-planning phase.
4. Effective Distribution Plan
Once the management understands and grasps the essence and importance of a marketing strategy, it can put an effective distribution plan in place. With the introduction of online selling and the growing impact of social media, the company needs to have a wide network of distribution, as the younger generation prefers to buy their products and services online, directly from the company website, or through its online promotional partners.
5. Helps to Gain Brand Recognition
Along with the promotion of the goods and services offered by the firm, having a powerful marketing strategy helps the brand and the overall company attain a remarkable feat in the target market and industry as a whole, with customers and industry peers looking up to the brand and its offerings in a positive manner.
The fundamentals of a marketing strategy are to highlight and promote the attributes, legacy, and unique selling position (USP) of the brand to start with followed by its offerings.
Let us look at how Amazon focused on its marketing strategy to satisfy its consumers through its services.
At first, Amazon describes their vision: “Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise.”
The vision of Amazon’s marketing strategy was communicated both online and offline. Of course, achieving customer loyalty and repeat purchases have been key to Amazon’s success. Many dot-coms failed because they succeeded in achieving awareness, but not loyalty. Amazon achieved both, and they intentionally focused on their strategy by consistently delivering customer value.
In practice, as is the practice for many online retailers, the lowest prices are for the most popular products, with less popular products commanding higher prices and a greater margin for Amazon.
Free shipping offers are used to encourage increase in basket size, since customers have to spend over a certain amount to receive free shipping. The level at which free shipping is set is critical to profitability, and Amazon has amended this position or offering over the years as their competition changes as well as for promotional reasons.
Amazon communicates the fulfillment promise in several ways, including through presentation of latest inventory availability information, delivery date estimates, and options for expedited delivery, as well as delivery shipment notifications and updated facilities.
This focus on the customer has translated to excellence in service with the 2004 American Customer Satisfaction Index giving Amazon.com a score of 88, which, at the time, was the highest customer satisfaction score ever recorded in any service industry, online or offline.
Nichole Brackett Walters is a Certified Professional Marketer (PCM®) with over 20 years’ experience in strategic marketing development and application. Brackett Walters is a member of the American Marketing Association (AMA). Follow her blog at marketingmoves.net or on LinkedIn.