Marketing strategy refers to the method of planning and executing marketing activities in order to reach specific goals.
Marketing strategy involves a variety of activities such as product development, pricing, sales promotion, advertising, distribution, research and design. Marketing strategy also includes the selection of customers, channels, and target markets.
Marketing strategy should be used to develop an overall plan for achieving business objectives. It should be flexible enough to adapt to changing conditions and circumstances.
arketing strategy may involve one or more of the following areas:
- â€¢ Product development
- â€¢ Pricing
- â€¢ Sales promotion
- â€¢ Advertising
- â€¢ Distribution
- â€¢ Research and design
In the beginning, marketing strategy is used to determine the best way to achieve business objectives. In other words, it’s a strategic planning tool. The ultimate goal of marketing strategy is to create a profitable business.
Marketing strategy can be applied to any type of business. However, there are some types of businesses that require a different approach. For example, a restaurant owner would have to consider the food supply chain and how to get his products to the consumer in the most efficient way.
A marketing strategy is usually developed by a marketing manager who has responsibility for all aspects of marketing.
A marketing strategy must be based on sound principles. There are three basic principles:
1. Know your market
2. Be consistent
3. Stay focused
If you don’t know your market, then you can’t understand what will work and what won’t. You’ll waste time and money.
It is important to remain consistent with your marketing strategy. If you change strategies without a good reason, then you will confuse your customers.
You should stay focused on your business. When you focus on your business, you’ll make fewer mistakes.
here are many ways to measure your marketing strategy. You could look at the following:
- â€¢ Cost per customer
- â€¢ Customer lifetime value
- â€¢ Customer acquisition cost
- â€¢ Gross margin
- â€¢ Return on investment
- â€¢ Net profit
- â€¢ Sales
- â€¢ Revenue
- â€¢ Turnover
- â€¢ Profit margin
In addition to these, you could also look at the following:
- â€¢ Market share
- â€¢ Market penetration
- â€¢ Market growth
- â€¢ Market growth rate
- â€¢ Market growth rate
Market share is the portion of the market that your company controls. Market penetration is the percentage of the market that has been reached. Market growth rate is the percentage increase in the number of customers. Market growth rate is calculated by dividing the increase in customers by the increase in the number of years.
Marketing strategy is a tool that helps you to make decisions. You need to evaluate your current situation and see if you need to make changes.
The following questions can help you determine if you need to change your marketing strategy:
- Are you reaching your objectives?
- Do you have the resources needed to meet your objectives?
- Are you able to keep up with your competitors?
- Is your marketing budget too small?
- Is your marketing budget too large?
- Is your marketing budget adequate?
- Are you getting enough return on your marketing investment?
- Are you getting too much return on your marketing investment?