5 reasons why every business needs a marketing strategy
A marketing strategy is a short-term and long-term plan to achieve company goals by determining the wants and needs of customers, therefore creates a sustainable competitive advantage for the company to increase sales. Depending on the industry and market, marketing plans should be updated monthly or fortnightly. By this way, you can be sure that your plan will survive at the next stages of the market. However, not every entrepreneur chooses a marketing strategy, because they don’t understand why they need it.
Here are 5 reasons why every business needs a marketing strategy:
Specific objectives and goals
A great marketing strategy always comes with ambitious but realistic goals for the business. Ambition from entrepreneurs is the key driving in achieving business goals, however it also needs to be realistic, otherwise desired goals and plans will not be achieved. Marketing strategy goals will be SMART (Specific, Measurable, Attainable, Relevant, Time-bound), which will ensure that all goals will be successful.
According to a Harvard University research, the 14% of people with specific goals are 10 times more successful than the one without goals, while the 3% with written goals are 3 times more successful than the 14% that have unwritten goals. Aiming at specific targets will help motivate workers and get your business to run in the right direction. A right marketing strategy will get your business on the right track.
Understand your target customers
42% of start-up business in Australia fail in the first year because there is no market need for their products or services (Business startup statistics Australia 2021). Therefore, understanding your target customers is extremely important, especially for new businesses. As it will impact the entire organisation from what products/services should be focused on, to how should your advertisements look like. Therefore, marketers when creating a marketing strategy will do a lot of market research and gather information from your existing customers to come up with a buyer persona, which is a representative of your ideal customer. By this way, you will be able to satisfy the right target customer in the right way by proving them your products or services. In the end, it will be beneficial for both businesses and customers if entrepreneurs understand and apply marketing strategies correctly.
An effective marketing plan will help everyone across the organisation to work more effectively. Like when a documenting process attends in a business setting, there are reduced errors, increased quality, decreased time to complete the tasks, while satisfying employees and customers. A marketing strategy enables everyone to know their tasks, how to do it, and what to do when problems occur. It also leads everyone to be on the same page and working towards a common goal across the organisation. Therefore, a marketing strategy will create less miscommunication and build a friendly environment in the workplace.
Allocate resources efficiently
With a marketing strategy, the resources within a business wil be allocated more efficiently, including tangible, intangible, and human resources. It identifies which part of the business requires what type of resources, as well as who is responsible for which part of the process. Therefore, it could reduce the cost of the business by minimizing the amount of wasted resources, and employees are able to work more efficiently, by having clear, defined roles.
Matrix to success
A marketing strategy is the matrix to success for every business. As it would provide essential data to help your business grow, choosing the right direction, increases efficiency, and attracts new customers. Entrepreneurs who implement a marketing strategy tend to be more successful. However, according to a survey for failing businesses in the USA, 86% of them would rather spend their time on another business than develop a marketing strategy, and more than half of them spend less than 5 hours a week to work on marketing. We could see the thing that failing businesses have in common is the lack of care about marketing. Therefore, as business owners you should understand that a good marketing strategy would be particularly important for your company.
In conclusion, every business needs a marketing strategy for many reasons. It helps your business to set specific goals and objectives, understand target customers more, increase productivity, allocate resources efficiently, and it is a matrix to success for all businesses. Understanding how a marketing strategy impacts every business will answer the question of why every business needs a marketing strategy. There are a lot more things that a marketing strategy could potentially due to your business such as reduce cost of marketing, point out the problems of the system and show you the ways to fix them. In general, the reasons why every business needs a marketing strategy is because it helps increase your sales and mitigates business costs, therefore creating a more profitable business.
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