Successfully launching a business remains one of the most difficult challenges that entrepreneurs face. According to the U.S. Bureau of Labor Statistics (BLS), approximately one-fifth of new businesses fail within the first year. Furthermore, the BLS reports that nearly one-half of new businesses fail within five years.
Considering the statistics, businesses need to give themselves every conceivable advantage to attract and convert potential customers. One way they can do that is by developing and implementing a comprehensive marketing strategy: the long-term plan a business follows to win over customers and gain a competitive advantage. Individuals should familiarize themselves with the best practices for creating a marketing strategy, examples of strategies, and specific steps to take to build one out.
The State of Marketing
Marketing and digital advertising spending will exceed $786 billion by 2026, according to the 2021 “Digital Advertising and Marketing: Global Market Trajectory & Analytics” report. A recent HubSpot survey revealed that 47% of respondents are increasing their marketing spend from the previous year. These statistics beg the question, Why are businesses investing so heavily in marketing? The reason is that it’s an essential part of connecting with customers, especially companies just starting out.
- According to TechJury, digital ads can increase brand awareness by 80%.
- Databox reports that content marketing and search engine optimization (SEO) yield the best return on investment (ROI).
- A total of 27% of consumers search for a business after they’ve seen one of its display ads, according to WordStream.
- SEO Inc. recently shared that 53% of search traffic comes from organic sources.
Marketing may comprise any combination of traditional and digital methods that support the long-term strategy to outperform business rivals.
Marketing Strategy vs. Marketing Plan: Understanding the Difference
When comparing a marketing strategy vs. a marketing plan, it’s important not to use the terms interchangeably, as some beginning marketers are prone to do. A marketing strategy speaks to what a company wants to do; a marketing plan is part of the overall strategy and speaks to the specific action-oriented steps the company will take. Marketing plans consist of a mix of marketing activities that support the strategy and that win over customers.
Factors to Consider When Developing a Marketing Strategy
Creating an effective marketing strategy is a complex process that requires a thorough understanding of the market, the consumer, and the value that an organization provides. Businesses must understand the wants and needs of their customers to effectively strategize how they’ll fulfill them. They must also understand the market they’re operating in and the factors that can potentially affect it.
Here are some factors to consider when developing a marketing strategy.
Internal Factors
Internal factors are the singular aspects of marketing that are under an organization’s control. These factors generally play a significant role in which marketing efforts are used and their scope. The main internal factors include the following:
- Financial position
- Corporate culture
- Corporate objectives
- Operational issues
- Communication tactics
- Workforce and human resources
Social Factors
Social factors are how the public thinks and feels about an organization. Being held in high regard in the court of public opinion can greatly influence conversions and sales. By comparison, poor public perception can damage a business. One method businesses use to determine public perception is social listening, which monitors social channels for mentions of the brand, its products and services, and competitors.
Competitive Factors
No business is without competition, so understanding the competitive factors is an essential part of a marketing strategy. To gain a competitive edge over their competition, businesses collect data about the products and services their main competitors offer, including how they market them and their target audience.
Regulatory Factors
Regulatory factors are the laws, regulations, and compliance issues that a business must be aware of when marketing strategy. Examples include tobacco products, which are subject to several regulatory factors that limit how a business can market and sell them. Additionally, according to the U.S. Food and Drug Administration (FDA), all tobacco products must include a warning label about them being a health hazard.
Technological Factors
Technology plays a significant role in how products can be marketed. With the advent of computers, smartphones, and the internet, technology changed the way that marketing is conducted in addition to how relevant marketing data is collected. For example, a company that runs a digital ad can see how many people saw the ad versus how many people clicked on it, a measure known as a click-through rate (CTR).
Pay-per-click (PPC) and paid search campaigns are longtime staples in digital marketing. However, new technologies, such as augmented reality and virtual reality, are considered the future of marketing, and businesses must determine how they’ll leverage them to stay ahead of the curve.
Economic Factors
Inflation, recession, and unemployment rates are just a few examples of economic factors that can affect a marketing strategy. Consumers living paycheck to paycheck are more likely to pay attention to products that provide more value or save them money.
Many businesses use coupon codes, limited-time offers, and Groupon specials in their marketing to appeal to budget-conscious consumers.
By comparison, when consumers have more disposable income, businesses are better positioned to charge more for their products and services and offer fewer discounts.
Elements to Consider When Developing a Marketing Plan
When comparing a marketing strategy vs. a marketing plan, it’s important to remember that the plan comprises the action-oriented elements that raise brand awareness with the target audience, generate leads, and drive conversions. Essentially, the plan supports the overall strategy using various methods and tactics.
Businesses should consider the elements below when developing a marketing plan.
Key Performance Indicators
Key performance indicators (KPIs) are essential for measuring the success of specific elements of the marketing plan and helping an organization determine the effective parts of the marketing plan. Examples of KPIs are cost per click (CPC), cost per lead (CPL), conversion rate, and website traffic.
Branding
Branding determines the unique look and feel of the business. This includes the color scheme, fonts, and design choices used on the website and in the promotional materials. Branding also extends to how a business sounds in its messaging, blogs, and copywriting.
Budget and Schedule
Marketing plans don’t run indefinitely. Effective marketing plans adhere to a strict schedule and budget that ensure that results are delivered quickly and with ROI-positive revenue.
Duties and Responsibilities
Comprehensive marketing plans generally involve a large team of people to execute all the individual tasks. When devising a marketing plan, it’s important to put the necessary human resources in place to create content, write blogs, design digital ads, analyze data, and perform other essential duties.
Content Strategy
Content strategy is a significant part of the marketing plan that determines the following:
- Goals for the content
- Target audience for the content
- How the content is managed
- Type of content to be generated
- When and where the content will be published
Businesses typically develop a content calendar to schedule when they’ll release blogs, social posts, and other forms of content.
Marketing Channels
Marketing channels determine how a business communicates with customers and potential customers. Common examples of channels are social media, email, blogs, and podcasts.
Marketing Strategy vs. Marketing Plan: Key Differences
To understand a marketing strategy and a marketing plan, it’s important to understand their key differences and what makes them distinct.
- Marketing strategy codifies what a business wants to do to achieve specific goals; a marketing plan comprises the steps a business takes to do it.
- The purpose of marketing strategy is to tailor marketing goals to the overall goals of the business. The purpose of a marketing plan is to tailor the marketing efforts to accomplish the strategy.
- Marketing strategy focuses on communication methods, competitor analysis, objectives, goals, and target audience; a marketing plan focuses on tactical steps and how to implement them.
Marketing Strategy vs. Tactics: Understanding the Difference
While marketing strategy determines the overarching direction of the marketing efforts, marketing tactics are the individual methods or series of methods that market products and services. When comparing marketing strategy vs. tactics, it’s important to remember that tactics are the singular elements that make up a marketing strategy.
Marketing Strategy vs. Tactics: Key Differences
Understanding the key differences between marketing strategy and tactics helps businesses stay on the same page when using marketing terminology.
Note the following differences when discussing marketing strategy vs. tactics:
- Tactics are the individual marketing activities within the overall strategy.
- Tactics focus on deliverables whereas strategy focuses on targeting and market segmentation.
- A business may potentially use hundreds of tactics but only one overall strategy.
Traditional Media Marketing Tactics
Traditional media marketing tactics are defined as marketing methods that were used in the pre-internet era. They include the following:
- Flyers
- Billboards
- Direct mail advertisements
- Print ads in magazines or newspapers
- Live events
- Customer referrals
- Radio ads
- TV commercials
- Cold calls
- Press releases
Digital Media Marketing Tactics
Digital media marketing tactics use new technologies and internet-based methods for the marketing strategy. Examples include the following:
- Email marketing
- Text message marketing
- SEO blogging
- Websites
- Digital display ads
- PPC advertising
- Paid search
- Video ads
- Video content
- Social media
- Social media ads
- Online events and webinars
- Online press releases
- Influencer marketing
- Online newsletters
- Podcasts
- Podcast advertising
- Online surveys
Marketing Strategy Steps and Best Practices
A comprehensive marketing strategy should adhere to certain best practices and include key elements to ensure its success. Use the marketing strategy steps below.
1. Conduct an Analysis: Strengths, Weaknesses, Opportunities, and Threats
Businesses must understand the value they provide before they can effectively market themselves. Furthermore, they must understand the market and their competitors. To do that, many of them conduct a SWOT analysis. The acronym stands for:
- Strengths
- Weaknesses
- Opportunities
- Threats
A SWOT analysis allows businesses to gain a greater understanding of the factors they can control and the factors that pose a risk. They can later apply this invaluable information to the marketing plan.
2. Determine Value Proposition
A value proposition establishes and communicates the value that a business provides to consumers. To create a value proposition, businesses must determine the morals and values they stand for, how they operate, and why consumers should give them a try versus their competitors.
3. Determine Unique Value of Products or Services
Consumers have plenty of choices in the marketplace. Whether they’re buying a new car, picking out a restaurant for dinner, or finding a hair salon, they have a wide range of options. To differentiate itself from the rest of the pack, a business must determine the unique value its product or service provides.
4. Determine Brand Guidelines
Brand guidelines are the rules and standards that a business creates so that its brand remains consistent across multiple channels. Most notably, businesses have strict guidelines about the use of their logos, including how the colors and fonts should be used. Adhering to brand guidelines helps facilitate brand recognition in the eyes of consumers.
5. Outline Specific Marketing Objectives
By creating an outline of the specific marketing objectives, the overall strategy organically becomes goal oriented and results driven. For example, a new company may want to increase brand awareness and market share. By comparison, a more established company may want to improve ROI or retain more customers.
The best marketing objectives are SMART:
- Specific
- Measurable
- Achievable
- Relevant
- Time-based
6. Conduct Competitive Analysis
Businesses must conduct competitive research to understand their rivals. Competitive analysis reveals the marketing methods that competitors are using, along with the methods that are most effective, and what can be improved to gain a competitive advantage.
7. Identify and Understand Target Audience
Businesses that best understand the wants and needs of their customers are better equipped to attract and retain them. During the research process, many businesses will create buyer personas: representations, or profiles, that help determine who their customers are and the best way to market to them.
8. Identify the Best Mix of Marketing Tactics
Organizations must identify which marketing tactics will reach their target audience in the venues they occupy and that’ll effectively promote their product or service. For example, a marketing strategy for an auto repair shop may include a multichannel marketing campaign that uses direct mail for people in a five-mile radius, text and email blasts to current customers, TV commercials, location-based YouTube ads, and website optimization for local searchers using the phrase “car repair near me.”
9. Set Specific Performance Benchmarks
After determining its marketing mix, the business must set specific performance benchmarks to effectively track the success of the marketing plan. A benchmark could be reaching a certain level of website traffic or generating a certain number of leads.
Meeting milestones lets the business know whether it’s on track to accomplish its long-term goal. However, the market and consumers are always subject to change, which is why consistent reevaluation is also critical. The business may need to create new benchmarks and milestones.
10. Execute the Marketing Plan and Collect Data
After launching the marketing plan, businesses can begin collecting relevant data. Marketing data includes the:
- CTRs
- Conversion rates
- Click-to-call (CTC) rates
- Email open rates
- Form completions
- Website clicks
- Website traffic
- Social media activity
- Subscribe/unsubscribe rates
- Customer information
- SEO keyword ranking
11. Apply the Data and Make Adjustments
Marketing data tells businesses about which marketing tactics work. Using the data, businesses can make informed decisions about which marketing channels deserve more budget and optimize accordingly.
Best Practices for Creating and Executing a Marketing Strategy
To ensure success, businesses should adhere to the best practices below when creating and executing the marketing strategy steps.
Understand the 4 Ps of Marketing
The four Ps of marketing are used to better understand the customer journey and the marketing process. The four Ps are as follows:
- Product: The product or service a business provides to customers
- Price: How much the business charges for the product or service it provides
- Promotion: The touchpoints that create awareness, generate leads, and ultimately drive conversions
- Place: Where the product or service is sold in relation to where the target audience spends its time
Evaluate and Reevaluate
Effective marketing is a moving target that requires constant monitoring. To ensure that nothing slips through the cracks, businesses should continually evaluate the performance of their marketing strategy and proactively identify and resolve problems.
Understand Each Marketing Tactic
Each inbound and outbound marketing tactic has its own advantages and disadvantages. Businesses that familiarize themselves with the pros and cons of each marketing tactic are best equipped to know which tactics to use and when to use them. This mitigates wasteful marketing spend and ensures that businesses meet their marketing goals.
Understand the Marketing Funnel
To effectively market to their customers, businesses must understand the customer journey, or marketing funnel. The marketing funnel is a visual representation of how customers go from becoming aware of a brand to becoming devoted advocates who speak favorably about it. Comprehensive marketing strategies target customers https://advertising.amazon.com/library/guides/marketing-funnelat each stage of the funnel, as follows:
- Stage 1—Awareness: Consumers become aware of a brand.
- Stage 2—Consideration: Consumers are considering giving a brand their business.
- Stage 3—Conversion: Consumers purchase a product or service.
- Stage 4—Loyalty: Consumers go from being one-time customers to loyalists and brand advocates.
Monitor for Changes
Businesses must diligently monitor for changes in the target audience, in the competition, in the market, and in the economy. Considering that these elements are always in flux, it’s in their best interest to identify and respond to these changes as soon as possible. For example, a sudden economic downturn can drastically affect consumer spending habits.
Personalize Marketing Tactics
Personalized marketing is a highly effective tactic because it’s designed to appeal to a highly specific target audience. For example, consumers are more engaged with emails that address them by name compared with emails that don’t. Businesses that directly engage with their audience on social media are another effective form of individualized marketing.
Marketing Strategy Examples, Resources, and Other Useful Information
To learn more about marketing strategy examples, marketing terminology, and other useful information, the following resources may be helpful:
- Individuals searching for useful marketing resources—paid or free—can check out Sprout Social’s top 42 recommendations. They include marketing resources for SEO, design, and continuing education.
- As part of its marketing project management guide, Wrike recently published a breakdown of how to create a marketing strategy. It defines what a marketing strategy is and how to create one, as well as providing examples.
- Sixads recently published a helpful article about marketing strategy that includes 12 different marketing strategy examples. It includes strategies for email, social media, and SEO.
- Those who wish to learn more about content marketing strategy can check out Semrush’s most recent guide. It defines what a content marketing strategy is and why it’s important and the steps to create one.
- Semrush’s breakdown of the marketing funnel is a great resource for those who wish to better understand the customer journey and the different stages of the funnel.
- KPIs and marketing metrics measure the success of a campaign. Indeed recently published an article that covers 20 different KPIs and metrics that marketers should know, including the conversion rate, web traffic, and CPL.
- Short- and long-term marketing strategies each have their pros and cons. Big Sea recently shared an article comparing short- and long-term marketing strategies, examples of each, and their benefits.
- Search Engine Journal’s breakdown of paid, owned, and earned media is a great resource for those needing a clear definition of each term, with examples.
- Statistics help marketers make data-driven decisions. WordStream’s recent article showcases 165 marketing statistics that help illustrate the state of digital marketing and where it’s headed in 2023.
- Digital marketing must be a core component of any corporate strategy. Learn more about the 7 Cs of marketing, why they should be used, and how to implement them.
Leverage Marketing Strategy for Success
Businesses that employ effective marketing strategies can yield many benefits, such as increased sales, an improved understanding of the competitor landscape, and a deeper understanding of the market. To fully develop a strong strategy, professionals should also understand all the facets and factors involved in marketing.