6 Things Every Marketing Strategy Should Include
Businesses are constantly competing with one another to gain more customers and drive sales; therefore, it is imperative that key marketing strategies are carried out thoroughly and effectively. Without effective marketing strategies put in place, there is ultimately a lack of focus resulting in your ability to target any of your business goals to diminish.
A successful marketing strategy comes from many different components which positively impact each other. Without understanding what these components are and why they are necessary, your business will fail in standing out. Some vital components of a business’s strategy should include a competitor analysis, target market, direct and indirect competitors, audience segment, SWOT analysis and budget. Continue reading to find out more.
Know your competition
It is imperative to know who your competitors are so that you can determine gaps in the market, leading to the ability to enhance your own business strategy. To be able to successfully identify who your competitors in the market are, you need to be able to target numerous factors. The most effective way of doing so is to create a competitor analysis, where elements of your business are compared with your competitors, and subsequently you will be able to create ways to supersede them.
What is a competitor analysis?
A competitor analysis is a strategic method of determining current and future threats presented by other companies to the prosperity of your business. It analyzes numerous factors to identify strengths and weaknesses of a potential competitor, and how they compare to your business.
To get the ground running, you need to begin with looking at what your competitors’ products are and who their customers are. This assists you in being able to see which companies can be identified similarly to your business. Once you have completed this step you are able to put your competitors into two categories, these being your direct and indirect competitors. Direct competitor are the companies that offer the same products or services to customers as you do whilst also implementing the same marketing channels. An accurate example of direct competitors is McDonald’s and Burger King.
Indirect competitors are the companies who offer different products and services to yours, however they target the same segments as you do whilst also satisfying the same need as yours. An example of this could be a fast-food chain such as Pizza Hut and Subway.
Ultimately, it is imperative that your company conducts a competitor analysis to make sure your marketing strategy is differentiated enough to compete with your competitors/
How to complete a competitor analysis?
Begin by using the RACE acronym. Each letter represents a broad area of analysis to focus on.
- Reach – Look at where your competitors are attracting audience traffic from. Explore website traffic, backlink profiles, social media following, stores and accessibility of these.
- Act – Understand how customers act when interacting with your competitors’ products and services. What kind of content do they use to attract customers? Is it interactive? How often do they publish content?
- Convert – What barriers and pathways to conversion exist within your competitors’ brand? For example, are customers required to ‘sign up’ before browsing or buying? If so, how simple is this process? Do customers need to pay and how much personal information do they have to give out?
- Engage – How do your competitors choose to engage with prospective customers? Does your competitor use social media, blogs, templates, emails or guides?
Identify your target audience! Every company needs to know who their target audience to create content which will successfully appeal to them. Once your target audience has been identified, you need to create segments. Segments are made up of subgroups of your audience. Identifying segments allows a company to personalise messages to the audience.
- Demographic Segmentation
This form of segmentation is creating groups based on factors such as age, gender, education, marital status, religion, race, income and occupation.
- Geographic Segmentation
This form of segmentation is grouping consumers together based on where they live. Depending on how big or small your company is, it can be beneficial to narrow geographic segmentations down to cities and neighbourhoods.
- Psychographic Segmentation
Psychographic segmentation focusers on personality types within your target market, from traits, values and interests to lifestyle, opinions and motivations. This type of data is predominately collected when looking into focus groups.
- Behavioral segmentation
This type of segmentation is where we look at customers past interactions with our brand. For example, when they would browse the product and whether it was via online or in shop. Understanding customer behaviors optimizes chances of understanding your customer better.
When having a sufficient understanding of your target segments, you are given the ability to set more accurate objectives catered to your audience leading to positive, increased brand impact
Conduct a SWOT analysis
A SWOT Analysis is an effective marketing technique used to finalize a company’s marketing strategy. In implementing a SWOT Analysis, we can identify the brands strengths, weaknesses, opportunities, and threats.
- Strengths are the areas that your company does well in also helping you stand out against your competitors.
- Weaknesses on the other hand are the elements within your business that need improving.
- Opportunities refer to factors either internal or external from your brand that you can capitalize on. For example, if a new external trend that aligns with your product or brand is established this will benefit your business. An internal opportunity can be explained as establishing greater outreach through a recent influx of followers on social media.
- Threats are any anything that can have a negative impact on your business.
One of the most vital components in creating an effective marketing strategy is the ability to budget currently. Your marketing budget provides a clear overview of all costs associated with your marketing activities ensuring every expenditure is duly. Budgeting is also an effective way of reducing financial risks whilst also assisting you in making good business decisions.
To build a successful business, it is vital to put an effective marketing strategy in place. The key is to utilize multiple marketing strategy components which will in turn positively affect each other leading to a strong marketing strategy. So, make sure to keep track of who your competitors are and what they are doing to attract customers. Identify your segments and conduct a SWOT analysis to ensure the strategy is effective giving you the best possible ability to thrive. Always be looking for a gap in the market to develop an idea that will help in differentiating you from other businesses. If this process seems too daunting, feel free to contact Robotic Marketer so that we can help you to ace your market strategy.
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