What is Marketing Strategy
Marketing strategy is an integral part of every business success. It is used to promote a new product, increase the sales, improve brand awareness and other purposes which boost business growth. Unlike marketing tactic the goal of which is virtually the same, marketing strategy is developed for a longer term. Tactic, on the other hand, is a short term and often only a one-time action such as grand opening.
Marketing Strategy and the Four Ps
The development of a marketing strategy is based on a detailed study of the so-called external environment (consumers, competitors, cultural/economic/political factors, etc.) and internal environment which includes the so-called marketing mix or the four Ps (according to some sources, there are five, seven or even eight Ps) which stand for: product, price, place and promotion, with all being equally important. Let’s see why.
Product. Obviously, the product must be made to meet the needs of the target audience. Even if it is presented in a way to make the potential buyers want to buy it, have the right price and be easily accessible, it won’t generate profit if it doesn’t meet the customers’ needs and expectations.
Price. All consumers are seeking to get more for less and as a result, they are more likely to choose a competitor’s product if it has a lower price, especially if the price difference is significant. However, those looking for premium quality products are wary of excessively low prices, convinced that they indicate inferior quality. Ideally, the price of the product should be within the reach of the target audience but above all, the price should reflect the product’s quality. Only then consumers won’t be tempted to choose less expensive competitor’s product or doubt its quality.
Place (of distribution). In addition to manufacturing product(s) that meet the target audience demands and budget, it is also highly important to distribute them to the right places in order for them to reach the target audience. For example, if the product is targeting seniors, online retailers may not be the best choice because firstly, the elderly account for the minority of the Internet users and secondly, they prefer to buy products in the traditional brick and mortar stores.
Promotion. It is highly important to be aware that consumers choices are influenced greatly by product promotions. They associate products they know with trustworthiness, reliability and quality. Every marketing strategy therefore must include promotion in order to attract the attention of the target audience, build a brand name and of course, encourage consumers to choose yours and not the competitor’s products.