Optimizing marketing strategy is an essential step for every business. Marketing strategies pertain to a company’s plan to reach viable consumers and get them to either purchase or engage with their product or service. The optimization of a company’s marketing strategy is of utmost importance should the company want to be successful in its field of operation and experience growth in its consumer base. This blog will explore some of the key aspects a marketing strategist or marketing agency must consider to optimize its marketing strategy fully.
Segmentation, Targeting, and Positioning (STP):
A company cannot engage in optimizing marketing strategy without a defined STP plan. It is key for any business to understand the consumer base or niche they wish to target with their product or service. Subsequently, it is essential to understand how the company can target these consumers and position their product in such a way that distinguishes them from the rest of the market. Put simply, marketing strategists cannot create a complete marketing strategy without an effective STP plan.
Segmentation is the division of a market into different groups of consumers with distinctly similar needs, who respond similarly to a marketing situation. Companies should strive to identify consumer segments in the market that meet these key criteria. Firstly, the segment should be distinct from other segments within the market. Segments should also be accessible through the company’s promotional programs and distribution channels. The identified segment must be measurable to ensure that results can be monitored. Finally, any segment identified with the intent to pursue selling within it must be profitable. Multiple segments within a market may be identified with key distinguishing factors such as gender, age, income, location, etc. This process is an essential first step towards optimizing marketing strategy.
Subsequently, it is important to evaluate these segments to select which to target. In doing so a company must evaluate the segment against two key criteria. Firstly, is the identified segment attractive for the company to pursue? Segment attractiveness can be evaluated by researching the profitability of the segment, the potential for market growth, the size of the segment, and the competitive intensity within the segment. Equally, a firm must determine whether it has the capabilities to win within a specified segment. A firm is far more likely to have success targeting a neglected segment in a market than they are trying to compete against established firms in a more exploited segment. Following this evaluation, a decision about targeting approaches must be identified. A firm may opt to adopt an undifferentiated marketing strategy appealing to the entire market as one large segment with only one marketing mix. Whilst this may be efficient it may also be less effective at growing a defined consumer base. Alternatively, a differentiated marketing strategy may be utilized, in which a firm provides a different marketing mix to each segment identified that they wish to target. This enables them to more effectively reach the consumers they wish to target. Finally, a concentrated approach may be utilized in which a company focuses its entire marketing mix on usually either one or two segments identified - an effective method for ensuring that a specific message reaches its intended audience.
Finally, once segments have been evaluated and a targeting strategy selected, a company must decide how it will position its offering. Positioning denotes the act of designing the company’s offering and image so that it can distinguish itself from competitors in a meaningful manner. This can be achieved in two ways: either through the physical attributes of the product itself or the method of communication utilized by the company. Ultimately, to be successful in optimizing marketing strategy a company must ensure that it occupies a unique position within the market that allows its offerings to stand out amongst competitors. What is also clear is that firms must be careful to conduct clear market research both to aid their STP plan and overall marketing strategy.
Search Engine Optimization (SEO):
Equally and increasingly important to a company’s marketing strategy is SEO. SEO refers to the actions taken by a company to increase its visibility within different search engines. SEO is increasingly important within the ever-more digital world we live in ensuring that a company’s content is easily discoverable thus increasing their chances of reaching a wider consumer base. Both consumer research and keyword research are essential for effective SEO strategies to be implemented. Ultimately SEO practices are an essential part of optimizing marketing strategy and must be considered by any marketing strategist or marketing agency - it is even suggested that SEO is a more effective marketing tool than Pay-Per-Click advertising.
Multichannel Marketing:
Finally, multi-channel marketing is increasingly becoming essential when optimizing marketing strategy. Whilst traditional methods of marketing remain prevalent, the increasing importance of digital marketing and social media marketing means that it is essential to utilize a variety of channels when advertising their product or service. Equally, the emergence of content marketing is also something that has to be carefully considered by marketing strategists. Companies must acknowledge that different consumers - even within the same segment - will be reached through different channels and therefore preparing for extensive channel coverage through a variety of platforms will help a company's marketing efforts. Indeed, it is safe to say that a marketing strategy cannot be fully optimized without effective multichannel marketing.
Ultimately, there are a variety of considerations that must be taken into account when optimizing marketing strategy. Within this blog, several potent ideas for consideration have been discussed and any business aiming for success must take these into account when optimizing a marketing strategy.
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