A company that aims to reach a wide scope of target market and increase public awareness develops important strategic marketing decisions out of the results of marketing research for the purpose of targeting more potential customers and increasing company profit and revenue.
Various marketing strategies are developed according to the needs of the customers and the positioning of competitors based on the results of marketing research. Marketing strategies are designed to target an increase in the business profit and revenue growth by addressing customers’ needs and increasing the level of competitiveness against other companies.
Developing marketing strategies is an important part of the entire marketing plan process. These tactical programs are aimed at specific target market segments in which the company can directly benefit from. A certain company may aim at specific objectives and these goals can be achieved with effective marketing strategies.
Types of Marketing Strategies
The concept of marketing strategy has two basic types: general marketing strategies and decision area strategies.
General marketing strategies are broad and are aimed at various specific business objectives. Some of these goals could be targeted on the market share, long-term profitability, market growth, positioning, and other goals.
One of the general strategies focuses on the status quo where the company aims at maintaining the current position in the business and in the market. Another kind of general strategy that looks to increase overall sales is market expansion. There are two ways to expand the current market. One approach is to grow the sales with existing products. Alternatively, marketers can also grow the sales with the introduction of new products in the market.
A marketing strategy designed for the niche market aims at achieving a certain position on a particular segment of the entire market. The niche market is relatively smaller in the number of customers and sales volume compared to the overall market. This tactic is to let that specific market view the product differently from other companies targeting the bigger market.
Strategies on market share growth are designed to augment overall market share percentage by attempting to lessen the sales from competitors. This type of marketing strategy is a more aggressive approach. Lastly, a general market strategy on market exit focuses on taking away the product from the current product lines by either selling the product to another company or removing it from the product offerings.
Decision area strategies are used to accomplish the general marketing strategies through effective marketing decisions. For instance, if the company is planning to launch a new product in the market, specific tactical programs may be targeted on the market segment, pricing, product distribution, and promotion.
As cited earlier, designing marketing strategies is a crucial concept in the whole marketing plan. Marketers depend on plans as one of the factors for business success. An effective marketing plan should consist of important things needed to help a company succeed.
First, the business must know and understand not just the product but the industry as well. Next, it is important to identify the target market for your product. Knowing your competitors is an important step, too. Then, the company must define product pricing, distribution, and positioning in the market. A single marketing concept must be coined to identify a position in the overall market.
In designing a marketing plan, mission and vision statements must be identified as these are the bases of the entire marketing process. A company should highlight the objectives it wants to achieve. A market analysis or research is needed to come up with effective marketing tactics. Action plans must be developed for each marketing strategy.
Importance of Marketing Strategies
A business organization that uses effective marketing strategies is able to survive in the ever competitive nature of the business world and is far from getting dissolved. Stability is a key factor for a company to succeed and these marketing tactics are just what a successful business makes it.
Product knowledge is not all that sells your products and services. A company has to have style and unique approaches in introducing the product and making it sell. A business has to have unique ways in competing with other businesses. These things mentioned are the essence of marketing strategies.