29 Oct Importance, Types, Components, Characteristics of Marketing Strategy
Most of us have learned or understood the term marketing in our college days. Let’s remind the concept of marketing again to develop skills that help in to grow business. If you want to get a high return on investment in business then, you should know about the importance, types, components, characteristics of marketing strategy.
Before jumping into the concept of marketing strategy, we know about the fundamentals of marketing.
Marketing refers to buying and selling any product or service to reach the target audience or consumers at the right time. It includes developing and implementing a promotional strategy incorporating inbound and outbound marketing. Determine all eight Ps of the marketing mix, which helps to understand any product in detail.
8 Ps of Marketing Mix:
It is considered an integral part of marketing strategy that empowers marketers, and managers to discuss the opportunities and challenges to boost up performance.
Product refers to the elements of the marketing mix which consider the quality, packaging, specification, amazing features that will rectify for customers.
Price relates to the demand and supply of products and services in the market. Pricing correlates with your budget that ensures you turn a profit. It has a big impact on the success of your business to create demand and manage supply in the virtual market. For more clarification, we will come with
Place defines the specific location where the product or service sells out to the consumers. Your customers will play a vital role when it comes to your distribution channels. You can select any platform to engage the audience like e-commerce, cloud-based platform, social media, etc.
Promotion, that what we are all doing to build up and spread awareness among the audience via different types of channels whether we perform activities by traditional or digital marketing, the main motive is that to increase the sales and generate revenue.
People in the marketing mix represent anyone who comes in contact with more customers apart from this if you want to build a connection you should focus on CRM Customer Relationship Management which inspires loyalty on a personal level.
Process, this P of marketing mix takes time to manage all the activity which helps business to boost up in the market and deliver the product or service to the customer on time.
Physical Evidence, describe more than just proof of purchase, includes interior design, and layout, packaging, and branding.
Productivity and Quality measure an agency’s ability to transform its resources into results. Maintain the quality of the product while delivering to consumers.
Functions of Management:
For this we need to understand that, every business needs the right path to get a high return on investment by forecasting five functions of management:
Planning is the primary function of management that ensures proper utilization of human resources to avoid confusion and bridges the gap between where we are and where we want to be.
Organizing is the process of bringing together financial, physical, human resources and developing productive relationships among the employees for organizational goals. It involves:
- Delegation of authority and creation of responsibility.
- Classification of activities.
- Identifying all activities.
- Assignment of duties.
Staffing puts the right man on the right job through the effective selection, appraisal, and development of personnel to design a structure. It involves:
- Manpower planning, choosing the person and giving the right place.
- Performance Appraisal
- Promotion and Transfer
- Training and Development
- Recruitment, Selection & Placement.
Directing work effectively for the achievement of the purpose of the organization. It deals with supervising, guiding, motivating sub-ordinate to obtain the target, some elements are given below:
- Supervision is an act of directing the work of employees.
- Motivation relates to inspiring, encouraging the subordinates with zeal to work.
- Leadership is a process by which managers guide and influence the work of subordinates in the desired path.
- Communication is the way to convey messages between two or more person which builds the bridge of understanding.
Controlling is a dynamic process of management that requires taking reviewal method which ensures those activities in an organization and performed as per the plans, to ensure all resources are being used effectively to obtain predetermine objectives.
- Establishment of standard performance.
- Comparison and measuring actual performance with the standard and find out deviation, if any.
The comprehensive plan of the company formulates marketing objectives, providing a blueprint of a plan to find out feasible outcomes and increase the sales, awareness of product, and brand among customers. Apart from this, the ultimate goal of marketing strategy is to communicate a sustainable advantage over rival industries by understanding the needs, wants, and desires of consumers.
Importance of Marketing Strategy
- Helps in developing goods and services with profit-making potential.
- Streamlines product development.
- Determine optimal prices.
- Establishes effective distribution.
- Assists with marketing communications.
- Helps to gain a competitive advantage.
- Effective distribution plan.
- The overall growth of the firm facilitates enhanced value of the brand, and increase market share
Types of Marketing Strategy
We come with different types of marketing strategies that will give an idea about how to sustain growth in the virtual market:
- Cause-Related Marketing links company products and services to a social issue.
- Relationship Marketing focuses on the retention of customers, satisfaction to boost relations with an existing customer to increase brand loyalty.
- Scarcity creates a perception of shortage which aims to entice the customer to purchase out of fear that they may not be able to get in the future.
- Undercover or stealth marketing, focus on hidden marketing activities by using unconventional tactics.
Components Marketing Strategy
- Target Audience.
- Objectives and Goals.
- Competitor Analysis.
- Content Creation.
Characteristics of Marketing Strategy
- Knowing your target audience.
- Strategic with a definite purpose.
- Think outside the box.
- Credibility and competition.
- Performance friendly and measurable.
Auditing your Marketing Strategy
Let’s understand the term marketing audit, is the process that examines your complete promotional environment from direct mail newsletters to social media campaigns, its build the foundation of your future marketing decision, it will give a better understanding of what your audience wants from you and how you can serve their wants and needs.
Types of Marketing Audit:
- Micro Environment includes brand ambassadors, marketing channels, staff performance.
- Macro Environment SWOT analysis, competitors, and political, environmental, social, technological, legal, and economic factors (PESTLE).
- SEO Marketing combines keywords, click-through rate, domain authority, and keywords.
- Offline Marketing – business referrals, press coverage, banners, TV, radio, newspaper.
- Social Media Marketing – Engagement, likes, comments, youtube subscription.
Conduct Marketing Audit and Analysing Your Assets:
- Create an inventory of marketing assets.
- Align your audit with your goals.
- Collect data on your marketing performance.
- Compare your outcomes with the target.
- Optimize and adapt.