When competition is fierce in an industry, it is important to use marketing strategies to highlight product differences. Customers are more likely to purchase a product that stands out. And marketers use techniques such as discounts, promotions, and loyalty programs to attract customers and generate sales.
So, simply put, the right marketing strategy is very important for the sales and profitability of a business. But how does it achieve sales and profitability? And what does a marketing strategy look like? Here are six ways a concrete marketing strategy helps companies to achieve higher profitability and sales figures:
The right marketing strategy helps businesses differentiate their products and services. The difference doesn’t necessarily lie in the product itself. It could be a difference in the brand image of the product too. So, people would not be willing to spend much on a similar product sold without the brand name. However, they might be willing to spend double the money on a product whose Brand resonates with their beliefs.
With the right marketing strategy, brands can attain a positive image and build customer loyalty. But strategies aren’t made on gut feeling, nor are they successful every time. A lot is at stake when companies invest a huge chunk of money in marketing activities, including the brand image and future profitability. Companies hire people with knowledge and experience to develop and implement marketing strategies.
Aspiring professionals can enroll in a marketing strategy certification and get hands-on experience in business operations. This helps them understand the importance of strategizing for businesses and marketing activities that help companies achieve their desired goals.
Associating the Right Attributes to the Brand
Several elements are at play when the customer decides to purchase a product. Factors like price, packaging, and accessibility all contribute to the final purchase decision. Surprisingly, in recent times, these factors have also come to include the Brand’s sense of responsibility towards the community and its suppliers.
Nestlé’s Cocoa Plan is an example of a trustworthy brand. The company invests in educating cocoa farmers, helps, and even puts the emblem on its chocolates. In this case, the marketing strategy is simple – show customers that the company cares.
Resonating with the customer
The right marketing strategy also helps businesses develop a perception or an idea that resonates with the customer. An example of this is Nike – now a billion-dollar brand. Nike was keen to hire sportspersons initially. However, it did not attain success until it launched the slogan “Just Do It.” It was an idea that immediately clicked with the masses.
The idea applied to every situation. The campaign wasn’t only limited to athletes. It encompassed people with disabilities, those who were learning, and even those who loved traveling.
It disassociated Nike with only sports and instead associated it with every situation in which people felt they were not enough. This is an example of how a marketing strategy helps build a resonation with the customers.
Another example is Netflix, which has popularized the slogan “Netflix and Chill.” It has associated the Brand with relaxation and entertainment in a way that appeals to customers. It also ties in with the company’s mission of providing entertainment and leisure to its customers.
A marketing strategy isn’t only meant to do what is in the customer’s mind. The right marketing strategy can even help break stereotypes. When this happens, the Brand’s strategy becomes Blue Ocean – something that is new in the market.
Pamper’s is an example of one such Brand. The Brand propagated the fathers’ involvement in their children’s activities – including changing diapers! Initially, this strategy didn’t gain much audience, but it was just a start.
According to a survey in 2022, millennial dads are changing their children’s diapers more than their own fathers. This shows how big of an impact Pamper’s marketing strategy had and how it got the first-mover advantage because of propagating this idea in the market. However, the strategy was not popularized until they showed that dads could also be involved in changing diapers.
Evolve With the Market
Social media platforms get billions of users each day. These users get information about brands from social media. As a result of this quick means of communication, word-of-mouth marketing has gained importance. People rely on online testimonials before purchasing online or at a brick-and-mortar store.
The right strategy should encompass building a strong online presence in the modern era. If the strategy still utilized old marketing methods, it would quickly make the Brand seem outdated. So, the right marketing strategy is always assessing the market and industry changes and making those changes.
Develop New Products
The marketing mix doesn’t only mean advertisements and promotion. The mix includes the product, pricing, and placement of the product.
So, the product also comes within the marketing domain. So, the marketing department helps the business prosper by surveying the market needs and communicating them to the concerned departments.
Next, the marketing department is responsible for placing those products when the business launches a new product after thorough research. A strong marketing strategy ensures that the product is within reach of the target audience and presented in a way that propels customers to make a purchase. And finally, the marketing department helps determine the pricing of a product. The right marketing strategy looks at all aspects and helps enhance customer experience.
Marketing strategy is a very rich concept because there are a lot of factors at play when customers make a purchase decision. The right marketing strategy helps businesses develop a brand. The Brand then fetches a higher value for the business in terms of profit margins and sales figures.
The right marketing strategy also helps the business to grow and evolve. The new obsession with TikTok exemplifies a new trend that brands must follow. And this is only possible if the marketing strategy is well-thought-out. A good marketing strategy always helps businesses succeed!