Business Owner's Manual

Why do I need a marketing strategy?

The benefits of a carefully planned marketing strategy are numerous. Too often, small business owners rely solely on their intuition to make business decisions. While this informal knowledge is certainly an important aspect of the decision making process, it may not provide you with all the facts and data you need to achieve the best results.

Developing a marketing strategy will force you to think about the various aspects of your business. In fact, you should really think of the "marketing strategy" as a set of strategies — for positioning, pricing, distribution, and promotion — developed with one goal in mind: to lead your enterprise to the destination you have chosen.

 

The four P's of marketing

Traditionally, marketers have referred to the four "P's of marketing" to explain the importance of a well-planned marketing strategy. In essence, the main purpose of marketing is to help you identify the needs and wants of your target market so that you can develop promotional strategies that will allow you to provide your customers with the "right" product at the best price.

• Product. What is the unique positioning of my product or service? Positioning your product in relation to similar products available on the market is essential if you want to distinguish yourself from the competition. Ask yourself what makes your product (or service) unique and how it compares to the competition.
  
  
• Price. How do I determine the best price for my product or service? There are many ways to establish the price of your product or service. An effective pricing strategy will help you stay competitive in your market. Determine how much your customers are willing and able to pay for your products, and whether they have the income required to pay for your product.
  
  
• Promote. How effective is my advertising? Even if you are offering the best, fastest, or least expensive product around, you will get nowhere if no one knows about it. An efficient promotional or advertising strategy will ensure that your efforts translate into sales.
  
  
• Provide. How do I make sure that my product or service reach my customers in the most efficient manner? The type of distribution network that is right for your product depends on many factors, such as the size of your business, the structure of the industry as well as the buying behaviors of your customers. The way you make your products available to your customers can give you an important competitive advantage