Why Strategy is Imperative in Today's Marketing
Almost a month into 2024 and we’re still seeing so much directionless activity by small businesses in marketing - heck, even the big brands are doing crazy things that don’t seem strategic (Solo Stove - what have you done?)
Here are some key reasons to be strategic - instead of going for “let’s throw a bunch of money at a mega influencer” and then firing our CEO after we miss projections by 9 figures.
- Direction and Focus:
A marketing strategy provides a clear direction that is aligned with business objectives. It outlines the goals and the path to achieving them. This helps the entire organization to align efforts and resources. - Understanding the Market:
Knowing the market we’re speaking to and creating a customer persona (the person that buys the product or service, en masse) is a key component of all marketing and advertising efforts. Knowing market share, competitor information and other pieces of market research equip us with market knowledge. With this knowledge, the business can make informed decisions and tailor its offerings to meet customer needs effectively. - Resource Allocation:
With a marketing strategy in place, businesses can allocate their resources (financial, people(internal and external), tools/tech, and time) efficiently. Also known as a marketing budget, this should often be between 10-20% of revenue depending on the industry. - Consistency and Brand Image:
A marketing strategy helps maintain consistency in messaging and branding across all marketing channels. The amount of brands that deviate from the brand and what it means to be ON brand can be hair-pulling from a marketer's perspective. We must keep it simple when it comes to recognition and confidence for our target audience. - Knowing our WHY & Values:
From the top down in an organization, we have to live out our core values, have people aligned in sharing those values, and all drive the ship in the same direction. Internal success often leads to external success. Knowing differentiators, values shared internally and externally, and our why can propel major success. - Customer Engagement:
More commonly understood as the funnel, effective marketing strategies include plans beyond just the transactional customer action. Customer engagement and relationship building are years long when done correctly. This goes beyond just acquiring customers; it involves retaining them and fostering loyalty through ongoing communication and value delivery. - Measurable Result
A marketing strategy typically includes setting key performance indicators (KPIs) and metrics for tracking success. From there we build live reporting dashboards to look at the numbers, the ROI or ROAS, and make calculated decisions on what to continue to do, pivot away from, or continue on with. This allows the business to measure the effectiveness of its marketing efforts and make data-driven adjustments for continuous improvement. - Risk Management:
With a clear strategy, businesses can identify potential risks and develop contingency plans. A great question often asked is “What’s the worst case scenario” and planning for that - so if things go awry we can be prepared to adjust. Oftentimes, it’s a good scenario that we never have to fall back on. This proactive approach helps in mitigating risks and handling challenges more effectively.
Long story summed up, a marketing strategy serves as a roadmap for success in the highly competitive business environment. Rarely do you see small businesses creating a new product or service, but often do you see a small business innovating a new way to reach an unhappy customer segment. Here’s to finding the ways to talk to those customers and let their needs be met 🤝🏼.