The company must develop a marketing campaign in accordance with the overall marketing strategy. The most effective strategies are based on thorough research. Understanding the basics of market research, including segmentation, competitive analysis, and brand positioning, can help maximize return on your marketing budget while building a strong presence in your industry.
Basics of strategy
- Marketing strategy serves to inform and guide every decision a company makes related to its marketing. This may include pricing structures, product features, sales channels, and customer service policies. With a well-defined marketing strategy, every marketing decision can be evaluated in terms of its contribution or alignment with the strategy. When all elements of a campaign align with that strategy, each can improve on the other.
- Understanding the importance of competitive analysis is essential for a successful marketing strategy. It can provide an in-depth understanding of your competitors’ marketing strategies, including their pricing structure, target market, and brand identity. Analyze every element of your competitors’ marketing, including their total revenue and market share whenever possible. Define their brand identity and look for gaps in the market to find opportunities.
- Market segmentation is the process of grouping consumers by general characteristics. Identifying and defining a target market in this way can allow you to create advertising, promotions, and sales processes that resonate with the people who are most likely to buy your product. Analysis of demographic, psychographic, geographical, and market behavior characteristics to understand where potential customers might come from. Design products and marketing strategies according to your needs, preferences, and buying habits. Consider looking for underserved niche markets to provide highly targeted products and services that competitors can’t offer.
- The art of creating a well-known image for a brand is known as brand positioning. An effective marketing strategy revolves around this concept. When advertising, promotion, pricing, product features, and distribution are aligned to form a cohesive identity, every element of a marketing strategy can be the most effective. For example, if your research reveals that most of your local competitors offer high-end products, it might reveal a strategic opportunity to serve the budget end of the market. In this case, a combination of price promotion, wide distribution, economical pricing and simplified product features can help you win loyal customers who are looking for higher value.