Does YOUR marketing have a strategy?

In its simplest form, any type of marketing strategy is resource allocation. Michael Porter, the famous marketing academic, says that “the essence of strategy is choosing what not to do”.

However, “marketing strategy” is a very scientific concept, with space for creative thinking, to ensure that the product or service reaches the correct customer.

Investopedia defines “marketing strategy” as a business's overall game plan for reaching prospective consumers and turning them into customers of their products or services. A marketing strategy contains the company’s value proposition, key brand messaging, data on target customer demographics, and other high-level elements.

Why should a company have a marketing strategy?

A company has to know where to direct its advertising and marketing efforts and budgets for maximum impact. It is therefore crucial for a company to develop a marketing strategy – B2B or B2C – that guides its actions and efforts.

A company should develop and implement a marketing strategy to identify and build upon a competitive business advantage over competitors that can be sustained over at least the medium term. Any type of marketing strategy should prioritize the understanding of its consumers’ needs and wants and should allow the development of marketing assets that can communicate the company's core value proposition.

What are the 4 Ps in a marketing strategy?

A strong and effective marketing strategy should always cover "the four Ps" of marketing —product, price, place and promotion. These four Ps of marketing should be the central point of any type of marketing strategy and should be used when planning a new business venture, evaluating an existing offer, or trying to optimize sales with a target audience. They can also be used to test a current marketing strategy on a new audience or in a new geography.

What is the difference between a marketing strategy and a marketing plan?

Any type of marketing strategy can be broken down into multiple actionable areas, called a “marketing plan”. The marketing plan details various types of marketing initiatives, a timeline for implementing them and expected deliverables from the initiatives. These deliverables could be of various kinds: increased brand or market share, increased profitability, lower costs, higher market penetration or higher brand awareness.

In large companies, the marketing strategy is distinct from a marketing plan, and has a longer life span. Smaller companies may blend strategy and plan into one action document which is reviewed and renewed at regular intervals, usually one year.

What are the main types of marketing strategy?

There are two main types of marketing strategies:

1. B2B marketing strategies: In this type of marketing strategy, a company markets its products or services to another company. This type of marketing strategy is usually deployed by companies in industries such as engineering, technology, construction or aviation.

2. B2C marketing strategies: In this type of marketing strategy, a company markets its products or services to an individual consumer (called “the end consumer”). This type of marketing strategy is used by companies in industries such as FMCG, consumer finance, retail housing or airlines. This is the most common and “most visible” type of marketing strategy.

It should be noted that companies using a B2B marketing strategy can be part of a value chain that extends into a B2C marketing strategy. For instance, a company producing wholesale wheat flour uses a B2B marketing strategy to market its products to a company producing bread or biscuits. This bread / biscuits company uses a B2C marketing strategy to market its products to individual consumers.

What are the different examples of marketing strategy?

The explosive growth of e-commerce, digital and social media over the last few years has led to a major re-thinking on types of marketing strategies. Any type of marketing strategy today has to identify and leverage opportunities in both traditional marketing channels and digital / online channels.

Let us find out more about the different types of marketing strategies that companies can use for both B2B and B2C marketing.

Here are some examples of types of B2B marketing strategies used by organizations:

1. Inbound Marketing: videos, blogs, pillar pages on website, E-books or newsletters

2. Account Based Marketing (ABM) and Retargeting: one-to-one accounts, one-to-few accounts or one-to-many accounts

3. Social Media Marketing: FaceBook (part of Meta), LinkedIn, Twitter, YouTube or Instagram

4. Earned Media and PR: social media testimonial, word-of-mouth publicity or mention in print / TV / radio

5. Referral Programs: direct referrals, email referrals, incentive-based referrals or social media referrals

6. Industry Events: company or product launches, trade shows or conventions

7. Conversational Marketing: live chats, chatbots, SMS marketing or voice assistants

All these types of marketing strategies use education, selling and insights to influence buyer behavior towards a desirable / favorable outcome.

Here are some examples of types of B2C marketing strategies used by organizations:

1. Social Networks and Viral Marketing: shares of content such as videos, images or content

2. Paid Media Advertising: pay-per-click marketing or traditional media advertising (print, radio, television, out-of-home)

3. Internet Marketing: umbrella term for different strategies such as email marketing, influencer marketing, SEO or affiliate marketing

4. Email Marketing: newsletters, acquisition emails or promotional emails

5. Direct Selling: database marketing, coupons, catalogs or outdoor advertising

6. Point-of-Purchase (POP) Marketing: shelf talkers, branded displays, retail gondolas or on-pack communication

7. Co-Branding, Affinity, and Cause Marketing: brand partnerships, common group marketing programs or brand tie-up with a non-profit organization.

8. Earned Media/PR: social media testimonial, word-of-mouth publicity, mention in print / TV / radio

These types of marketing strategies use emotion, affinity, insights and “last-mile conversion” tactics to influence buyer behavior and accomplish a sale.

Communicate the marketing strategy to the entire company

Every employee of a company should understand its marketing strategy, whether B2B or B2C. Leadership plays a strong role in maximizing every employee’s understanding of their role in a company’s marketing strategy.