The Single Most Important Thing You Can Do for your Business: Marketing Strategy Part 2
Thanks for joining us for Part 2 of our Marketing Strategy blog series. If you haven’t seen Part 1, we highly recommend taking a look in order to get the most out of the information below. We dove deep into what a marketing strategy really is, why you need it and who should be a part of the planning party.
Now, onto the necessary components of your marketing strategy and your related (but different) marketing plans.
The 9 Key Components of a Valuable Marketing Strategy
If you search for the terms marketing strategy, marketing plan, etc. you’ll likely find the specific structure varies as does the terminology. The truth is, just like your killer dance moves, there isn’t only ONE way to do it. After working with many different brands and business owners on strategy development, our approach is to dive in from a customer-based mindset. We prefer to speak in a clear language that is easy for anyone to grasp and take action on. After all, you can’t have a business without people who:
a. think it’s valuable
b. worth spending time learning more about
c. later spending money and/or attention on it.
We like to dive right into what problem or need your offering solves/provides and who’s problem it's solving or need it’s fulfilling. Once you are super clear on those things (you know, why you are here and valuable as a business), developing a plan to reach and woo those ideal folks will be much more streamlined. Any other way is just backward banana business.
1. Business Concept & Offering
Why are you launching/expanding/growing this business? What is your business and what are you selling?
2. Value Proposition
In other words, what problem does your offering solve or what need does it fulfill, and why your offering is better than competitors?
For example, if you look at Peloton - they weren’t the first stationary exercise bike BUT they created lock-in (or should we say a clip-in. Get it?) for people to stick to their workouts by bringing the group/gym experience to the home workout experience. People want a convenient way to workout from home but other options on the market lack ongoing support, inspiration, accountability, and community - that is the need Peloton fulfilled and the problem that Peloton has figured out how to solve.
3. Positioning Statement
A clear and concise expression of your offering and value proposition.
Positioning Statement Templates:
For (your target audience) in need of (core need), (your brand name) offers (your offering) which helps/provides/gives/creates (core benefit of your offering). (your brand name) is unlike other (your business type) is focused on (primary value) and (secondary value).
(Your brand name) helps/provies/gives/creates (your offering) for (your target audience) who are in need of (need/problem). (your brand name) is focused on (primary value) and (secondary value) through/with (how you provide the offering differently from competitors).
4. Target Audience
Who are you selling to?
Demographics (age, location, gender, income level, education level, life stage, marital or family status, occupation, ethnic background, etc.)
Psychographics (personality, values, interests, lifestyle, behavior, etc.)
5. Primary Buyer Persona (a detailed description of your target audience)
Name
Photo
Brief Bio/Description
Age
Primary and secondary languages
Occupation/industry
Income level/range
Life status
Relationship status
Location (city & state)
Interests
Values
Favorite brands
Favorite media/publications/websites
How do they research or learn about new brands/products
Goals
Frustrations
Challenges
Needs
How your offering can do to help them achieve their goals, speak to their needs, and overcome challenges.
Buying concerns
How you might alleviate those concerns.
When it comes to defining a target audience and creating a buyer persona, it’s easy to fall into the trap of feeling everyone is your potential target. That truly isn’t the case and will only get you lost in a sea of options. And remember, just because they aren’t your primary target does NOT mean that you are excluding them. You are instead inviting your primary target by name to the metaphorical wedding (which now may be virtual - hi, COVID) and always allowing for a plus 1.
As the great Seth Godin says:
“Two things happen when you delight your minimum viable audience:
you discover it’s a lot larger group than you expected
they tell the others
On the other hand, if you aim for mass (another word for average), you’ll probably create something average. Which gets you not very far.”
6. Business Goal
Derived from your business plan, noted here for reference as objectives, tactics, and metrics are developed.
7. Marketing Objectives
By determining the objectives of marketing activities, the right KPIs will be put in place to support the overall mission and goals of the organization.
8. Competitive Analysis
Research and make note of direct and indirect competition. Consider those who your ideal target would consider as a potential option over your offering. We like to dig into all areas of a brand by looking at all marketing channels, visuals, messaging, frequency, selling channels, service policies, and more. While you never want to copy competitors it’s important to stay aware of the landscape.
9. Sales Strategy
To create a plan for how to market your offering, you need to be clear about available and desired sales channels as well as how the offering is priced by channels. In addition, arm yourself with a clear understanding of boundaries for special offers, packages/bundles, discounts, etc. based on sales margins.
The 7 Key Components of an Actionable Marketing Plan
1. Overview Summary
Business Goal
Marketing Objectives
Taken directly from your marketing strategy, including the business goal and marketing objectives in your marketing plan makes for easy reference.
2. Budget
Annually by channel - ideally based on a certain percentage of projected revenue
Quarterly - based on seasonality of the business and specific campaigns/tactics
4. Situational Analysis (SWOT)
Always a classic.
Strengths
Weak
Opportunities
Threats
5. Key Performance Indicators (KPIs)
This is where you determine which metrics will help keep you on the path towards achieving your stated objectives. There are a wide range of indicators and should be determined based on your business model. Ideally, you focus on metrics that are specific, measurable, action-based, and time-bound. A few examples of KPIs for a product-based brand with an e-commerce selling channel may include the following:
Gross Sales
Cost per Acquisition (CPA)
Social Follower Growth Rate
Overall Sales Conversion Rate
Sales Conversion Rate by Channel
Return on Ad Spend (ROAS)
Email Open Rate
Organic Website Traffic
Whichever you determine are important to track, make sure to keep it simple enough where you can take action based on the indicator.
5. Historical Metrics
(based on KPIs outlined in item 6)
6. New Goals (based on KPIs outlined in item 6)
Don’t forget to assign time frames/dates for all goals to keep them measurable and specific.
7. Marketing Mix - Your Marketing Ecosystem
Consider the variety of marketing tactics that you want to use based on how you will reach your target audience within the phases of the customer buy cycle to create a well-rounded marketing ecosystem.
Buy Cycle Phases:
Awareness
Consideration/Research
Intent/Preference
Purchase
Repurchase
Advocacy
Example Brand-Based Marketing Tactics
Brand Messaging
Pricing
Promotions
Product Packaging
In-store Display/Visual Merchandising
Customer Service/Purchase and Return Policies
Website User Experience
Distribution & Product Availability
Marketing Materials
Example Communication-Based Marketing Tactics
Advertising
Social Media
Influencer Marketing
Blogging
Email Marketing
Events
Trade Shows
Partnerships
Brand Ambassadors
Brochures
Catalogs
Direct Mail
Publicity
YOU MADE IT! If you are still here and reading along, you have already done more strategy work than many new businesses out there. You’ve got a leg up on the competition and can feel strong in your decisions when it comes to marketing your brand.
For someone (me) who likes to know the reason behind pretty much everything AND have a clear idea of what comes next, I couldn’t live without strategic planning - especially when it comes to the art and science of marketing. I hope the explanations and framework around both marketing strategy and marketing plans will inspire you to skip the game of marketing darts and get super efficient with your time and resources.
I’ll leave you with one last favorite quote of mine that speaks volumes about how planning and preparation in marketing is the key to bringing magical and creative ideas to life!
“I feel that luck is preparation meeting opportunity.”
—Oprah Winfrey
Written by Arica Rosenthal