The Importance of a Well-Defined Marketing Strategy

Subject: Strategic Marketing
Pages: 17
Words: 774
Reading time:
3 min

Introduction

A well-defined and cost-effective marketing strategy is most often determined by successfully connecting customer needs with the most likely feasible goals. While most companies are now engaged in extensive marketing, only a few of them have created or managed to create good conditions for customer loyalty and loyalty to the brand in a small business environment. Strategic marketing is the process of planning, developing, and implementing maneuvers to gain a competitive advantage in a company’s chosen market niche. This problem is currently driven by the possible threat of a new competitor from Amazon Go, a technological advantage that will ideally provide time savings for customers. In this regard, the goal of a marketing strategy should be focused precisely on this aspect to maintain a leading and competitive position in the market.

Conceptions

The 4C concept highlights one of the essential points of the success of a marketing strategy – communication with customers through various channels. Given the remoteness of the management from the end consumer in retail, this aspect becomes crucial for this situation of possible competition. Small business already has a particular influence in the regions represented, and therefore can strengthen their reputation before the emergence of a new competitor (Huijing et al., 2020). The PESO model allows for a detailed look at the channels of communication and impact on consumers, as well as the correct use of this information (Dakouan & Benabdelouahed, 2019). The four groups of different channels will have different purposes, which should be directed toward a predetermined company goal. The information obtained needs to be interpreted to understand the needs of consumers and find ways of their loyalty. The solvency and frequency of purchases, as the most important indicators of customer loyalty, reflect the RFM model, with which it is also possible to conduct a more detailed analysis of consumer activity (Heldt, Silveira & Luce, 2019). This understanding can improve the current market segmentation to adjust the marketing strategy accordingly.

Marketing Planning Process

The marketing planning process will include all of the above concepts to retain and expand the target audience of small businesses. First of all, it is needed to set a specific goal and highlight individual tasks, as well as allocate a budget. Then, relying on the 4C model, analyze and accordingly change the point of view on the assortment, service, and communication with customers, keeping prices low in the face of fast competition. With the help of the PESO model, the channels of communication with the end user and the styles of work with each of them will be clearly defined. Finally, the resulting data will be analyzed using an RFM, the results of which can suggest new solutions to start a new cycle of change.

Branding Strategy

Amazon has a long history of online presence that already creates a competitive advantage. Amazon is now a giant in the retail market, and therefore it will be difficult for small businesses to compete on an equal footing in the technological development, financial, and marketing capabilities of the company. Branding is the subtle art of active brand building. A brand can create a personality that stands out from the competition and engages with its audience through creativity, skill, and strategy. Branding is what gives a company its reputation and, ultimately, the future, which is especially important in the context of minor business prospects. Because of the importance of branding, businesses and organizations must build a strong brand from the start to sustain it continuously as they grow. Amazon has not changed its name in its entire history, and now behind this word, every Internet user has a strong association with the retail giant. Thanks to competent leadership, Amazon continues to support its brand with technology development activities, which created the occasion for this presentation.

Conclusion

Two more concepts for understanding the problem and prospects are presented on this slide. The brand pyramid allows identifying and differentiation of the different objectives assigned by each level of the pyramid. At its top, as one of the main goals, is customer loyalty, which is especially important in a retail environment in the context of success. Brand positioning makes it possible to clearly define in which aspect a small business faces the threat of a new competitor, namely in the sales process, and which aspects in this regard can be improved: product range, price, and values. Brand management, another important concept, describes the direct activity to achieve the designated goals and objectives that do not contradict the mission and vision of the company. Only with such an integrated approach will the small business provide excellent resistance to a new strong competitor.

References

Dakouan, M. C., & Benabdelouahed, M. R. (2019) “Digital Inbound Marketing: Particularities of Business-to-Business and Business-to-Customer Strategies” in Strategic Innovative Marketing and Tourism (pp. 119-128). Springer, Cham.

Heldt, R., Silveira, C. S., & Luce, F. B. (2019). Predicting customer value per product: From RFM to RFM/P. Journal of Business Research.

Huijing, J., et al. (2021) “Practical Exploration of Rural E-commerce Boosting Rural Revitalization Based on 4C Model” in 2021 2nd International Conference on E-Commerce and Internet Technology (ECIT) (pp. 74-78). IEEE.

Yu, Y., Rothenberg, L., & Moore, M. (2020) “Exploring young consumer’s decision‐making for luxury co-branding combinations”, International Journal of Retail & Distribution Management, 49(3), pp. 341-358.