Strategic Marketing can be defined as the way a company differentiates itself in a effective way from its competitors by capitalizing on its strengths to provide consistently better value to customers than its competitors. Your marketing strategy is the key element which will determine your success or failure in the market as such this is of prime importance for any organization.
There are four key principles in strategic marketing which determines your success or failure as a business. Let’s take a look at these four key principles today.
Specialization: The key term here is specific. The company should clearly specialize in a particular area where it can serve its customers. The company can specialize is serving a specific type of customer. For example we have mid mass perfume companies targeting the common man who wants the luxury of perfumes but cannot afford to pay for high brands. On the other hand big brands like Versace, Boss and Carolina Harrera concentrate on serving the high income group who would afford to pay for high end luxury. The company can specialize in serving a particular geographical market focusing on a single country or a particular neighborhood or specialize in overseas market concentrating more on exports. The company can specialize in providing a particular product category. For example we have companies specializing in product category which serves the masses as shown above and we have companies concentrating in product category for the wealthy people. We need to decide and specialize in a particular product category. Similarly if we are into services then we need to specialize in providing a particular service to the market. Examples of these would be accounting firms, hair dressers etc.
Differentiation: In today’s competitive world your success depends on how well you are able to communicate as to how your product or service is different, how your product or service would be a better choice for the customer than anything else available in the market. Your business success is determined by your competitive advantage. How is your product or service superior to your competition in one or more ways. Peter Drucker rightly said: “If you don’t have a competitive advantage , you must develop it or get out of the market. Why should the customer buy from you and not your competitor. You need to brain storm on this by asking questions like: Why does your ideal customer buy from you ? What does he seek when he buys your product ? How can you provide more value to the customer and make him happy ? This differentiation is of prime importance and should be recognized and emphasized in all your promotions and marketing. This should be your unique selling proposition.
Segmentation: Segmentation is focusing and finding that segment of customers who can and will buy your product from you repetitively and will pay the price you charge. You need to find that segment of customers who can benefit most from your product or service. Once you find this segment concentrate on them as this is your target market. In finding your target market you need to answer questions like who is your customer ? what does your customer think before he buys the product ? what are the likely fears in the customer’s mind when he decides to buy? How you can remove the fears from your customer mind and push them to buy from you ? For example your target customer may be living in a particular geographical region, he might be of a particular age group. He might be in a particular income group. Brain storming is needed to plan out the marketing strategy.
Concentration: This is another prime principle in terms of strategic marketing planning. This involves concentration of the company’s resources to the best possible use. Normally according to the 80/20 rule, 20% of your customers are likely to give you 80% of your total turnover. In this scenario it makes sense to concentrate the company’s marketing budget or resources on attracting these 20% category of customers. You need to question yourself and analyze as to who are the 20% potential customers who can give you your cream revenues. Then concentrate 80% of your efforts in keeping this 20% happy and you will be happy most of your time. Happy Marketing.