How to develop a marketing strategy
This article was first published on BrandWerks: How to Develop a Marketing Strategy.
Marketing strategy is concerned with the what rather than the how. Many people confuse a marketing strategy with a communications plan. Rather, a strategy helps us decide where we’re going to compete and what we want to achieve in the market. A communications plan (alongside pricing, product and distribution) determines how we’ll be doing.
A good marketing strategy starts with research. Talking to customers (qualitative) and surveying the market (quantitative) to get a customer-orientated perspective. All strategic decisions should derive from good research.
Segment the market
The first place to start is with segmentation mapping. Segmentation is the practice of breaking up the market into niches using behavioural, attitudinal, demographic, and psychographic information.
For example, in the car market, a new driver under the age of 25 with low income who is motivated by their new found freedom will have different wants and needs to a 45 year old driver who uses their car to commute to work and as a symbol of their authority and success. These are two quite different segments in the market, but both still want a car. It’s useful to name the segments, such as The Young & Frees and Mid-Career Successes.
There will be plenty of segments in each market. It’s the job of the marketer to break this down so they have a full view of the market. The segmentation process requires mapping the whole market using data from research.
Target Segments
Once the marketer has a full view of the market, they need to make some decisions on who they’re going to target. There’s no science here, but there should be a couple of segments that ‘pop out’. It may be that it is a high value segment, or with lots of buyers. Perhaps it’s well suited to the company, or they’re underserved. Whatever it is, it’s important to make some choices and commit to them. Don’t pick too many segments, perhaps two or three will do — it will depend on context.
Position the Brand
Follow the 3Cs for positioning: Customers, Company and Competitor. What does each segment desire (customer), that you can offer (company) which is relatively superior to what other offer the same segment (competitor)?
There will probably be a few key features that a brand can offer that when bundled will make their product or service more desirable than a competitors, but rarely just a single feature.
It’s important to ensure these features are self-serving for the customer, to the most emotive level possible. A good tip to discover a good positioning angle is to consistently ask ‘So What?’. For example:
- Our new BMW has 350bhp and a carbon fibre interior — So what?
- It’s high performance and modern — So what?
- It’s sporty yet stylish — So what?
- It makes the driver feel excited and successful — Ok, I’m listening…
- It makes other people think you’re exciting and successful, giving you instant status that fits your life narrative — Blimey! Take my money!
Develop a Sales Funnel
By now, we know which segments we’re targeting and how we’re going to position the brand. Now the brands performance needs measuring. A sales funnel measures the number of customers on their journey from being unaware of the brand, to strong advocates.
Use the AIDA framework as a starting point: Awareness, Interest, Decision and Advocacy. Market research will help measure each stage. Each brand will have their own custom funnel, which may include visits to a website, meetings, quotes, brand preference etc.
Once the funnel is mapped and measured, it should become clear where the leaks are in the funnel by looking at the conversion rates between each stage of the funnel.
Create Objectives
Finally, objectives can be set for the next financial year. Objectives should be SMART: specific, measurable, achievable, relevant, and timely. You’ll only require a few objectives, perhaps two or three. Anymore and efforts will become diluted. For example:
- Increase aided awareness in the Young and Frees segment from 12% to 15% by March 2021.
- Increase market share in the Mid-Career Successes segment from 18% to 20 % by March 2021.
Plan your tactics
Now the brand knows exactly how it’s going to compete in the market and what winning looks like.
Using research and strategic marketing, you can now develop tactical moves for the next financial year to achieve your goals. By following the strategy, you will have the greatest chance of success in the market.
Your focus, diligence and commercial acumen will hopefully mean you outcompete competitors and deliver the greatest value to your customers.
