Marketing Strategies and Techniques

Once you have completed your market research to determine the potential for your
product or service, you are ready to prepare a marketing strategy for your business. Existing
businesses may use market research to remain current with the trends, keep ahead of their
competition or expand their business.
Developing a marketing strategy will help your business to focus its limited resources on
the greatest opportunities in order to help you increase sales and gain a competitive advantage.
Once you have completed a review of the internal and external environments for your business,
you are ready to develop your marketing strategy. A strategic plan can be created to identify
business alternatives, establish goals, determine the optimal marketing mix, and a plan for
implementation.
Marketing Mix
There are generally 4 P’s of marketing that make up the marketing mix for your strategy.
They are Product, Price, Place and Promotion. If you are selling a service, there are three
additional P’s to consider: Physical Evidence, Process, and People. This is also known as the
Extended Marketing Mix. The following pages will further explain all of these elements of your
marketing strategy.
Product
Product is the first “P” of your marketing plan. In this section, you will describe your
product or service in terms of its features or benefits. Features are product characteristics such as
size, color, horsepower, functionality, design, hours of business, fabric content, and so forth.
Benefits answer the customer's question: Why would I want to own it? The key features and
benefits you identify should help you determine the focus of your marketing plan. Consider your
customer’s point of view when trying to identify the benefits of your product.
Price
Price is the second “P” of your marketing plan. You will need to consider three important
factors when setting the price of your product or service: What does it cost you to produce or
purchase your product or service? What is your competition charging? What is your customer
willing to pay? Once you have determined your price, it is also important to complete a Break
Even Analysis.
Place (Distribution)
Place is the third “P” of your marketing plan. A good location means more than just your
chosen physical business address. Location also has meaning in your distribution strategy. The
characteristics of the product can play a determining role in the choice of distribution channel.
Perishable items, like fruits and vegetables, must be distributed quickly by using direct channels.
The producer may ship the goods directly to the retailer or even to the consumer. Whereas, mass
consumption items such as canned foods have a long distribution channel: from manufacturer, to
wholesaler, to retailer, to the consumer.
  What channels will you use to get your product(s) to the customer?
 Consider the benefits to the customer: time, accessibility and possession.
 Having the products on location when the customers wish to purchase them can save
precious time.
 Having the products accessible to the customer where they want to purchase them is
favorable.
 Possession is realized when the goods pass from the manufacturer or the retailer to the
end consumer.
Promotion
Promotion is the final “P” of your marketing plan. The promotion section of the marketing
plan is also known as the communication strategy. It serves to inform the consumers, to persuade
them to buy and influence their purchasing decision. The appropriate communication strategy
will be a combination of all the promotional factors (advertising, promotion, public relations and
personal sales) acting hand-inhand to transmit your business’ message.
 Provide a list of the media you plan to use. You may include newspapers, magazines,
radio, television, direct mail, Internet advertising, etc.
 Research the costs of each of your chosen marketing mediums
 Develop a monthly advertising schedule with planned budgeted amounts.
 Personal selling or service plan? (Personal one-on-one contact with your target
customers. It is the one personal and direct link between your business and your target
market.)
 Describe how you will prospect and find new customers.
 If you have letters of agreement, contracts or other sales tools, it is sometimes advisable
to include them as appendices to the business plan.
Examples of advertising ideas:
 Point of sales promotion (POP)  Postal or mail advertisements
 Promotional items (swag)  Social Media (i.e. Facebook, Twitter)
 Samples  Newsletters (print/online)
 Coupons/ discounts  Website
 Contests  Vehicle Decals
 Trade fairs  Online Ads/Banners
 Newspapers ads  Billboards
 Television ads  Signage
 Radio ads  Business Cards
 Public relations/Networking  Brochures
Physical Evidence
Physical evidence is the elements within the store (i.e. the storefront, employee uniforms,
signboards, etc). It is the environment in which the service is delivered, and where the firm and
customer interact, and any tangible components that facilitate performance or communication of
the service. It is the material part of a service. Strictly speaking there are no physical attributes to
a service, so a consumer tends to rely on material cues. There are many examples of physical
evidence, including some of the following buildings, equipment, signs and logos, annual
accounts and business reports, brochures, your website, and even your business cards.
Process
Process is the actual procedures, mechanisms, and flow of activities by which the service
is delivered – service delivery and operating systems. There are a number of perceptions of the
concept of process within the business and marketing literature. Some see processes as a means
to achieve an outcome, for example - to achieve a 30% market share, a company implements a
marketing planning process. However in reality it is more about the customer interface between
the business and consumer and how they deal with each other in a series of steps in stages, i.e.
throughout the process.
People
People include all humans who play a part in service delivery and thus influence the
buyers' perceptions. Generally this includes the firm's personnel, the customer, and other
customers in the service environment.
Types of Market Strategies
Marketing strategies may differ depending on the unique situation of the business.
Consider a mix of strategies to make the most of your strengths and capitalize on your
competitor’s weaknesses. Your chosen strategy should also reflect what your marketing goals
are. i.e. increase sales, gain brand awareness, etc. Below are some strategies to consider when
planning your marketing approach.
Market Leader
If you are the leader in the market, you may expand the total market by increasing the
total number of users. Lead the way by finding a new market or creating a new use for an old
product. Look for new markets in other demographics or expand into more locations. You also
need to defend your current share of the market. You can enhance your product offerings or
reduce weak products or services and build those that are strongest. Finally, expand your market
share by aggressively attacking your competitor by offering coupons, promoting sales and
advertising benefits your competitor doesn’t have (i.e. longer hours of operation or more
personalized service).
Market Challenger
 If you are the challenger in the market, look for a small, unmet need that your business
can fill. Specialize in something that is not currently being met in the marketplace. i.e. an eBook
reseller who specializes in books on basketball has significantly fewer competitors.
Market Follower
A market follower capitalizes on a market already identified and research by your
competitors. Watch your competitors for weaknesses, and then provide better solutions such as
longer hours or free training. i.e. Full-service restaurants which offer takeout or delivery, interior
design service free with purchase of furniture.
Market Niche
Becoming a niche marketer enables you to research and respond better to a smaller, fine-tuned
segment. This works especially well for small companies who are nimble and able to make quick
decisions in reaction to market trends. i.e. serving the demographic of women aged 55 to 70,
only consulting to engineering firms with revenues of more than $5 million.