How to write a Marketing Strategy by Lynda Gray Part 1.
As I said in my blog I will explain this as Albert Einstein advises. “If you can’t explain it simply enough, you don’t understand it well enough.”
Take whatever it is you are trying to sell. Take out a big white chart and a thick marker pen any colour :). Draw a picture of the product in the centre and then lines coming outwards. Think who your target market is. Draw a circle at the first end of the line and write who this is. Who is your market? It is your customer base. Define your customer base. In marketing terms your target market. For example: If you were selling an upmarket handbag your target market could read teenage to middle-age high income female earners. (or women with huge limits on their credit cards 🙂 and partnered women from middle to high income households.
The handbag market is an established market in marketing terms has reached maturity stage (Cohen 2001). In an established market penetration at 1% to begin is usually a great starting point. For example, if the handbag business you were targeting was a $20,000,000 (20 million) per year business and you were able to reach 1% of that market in your first year of selling your handbags you would make $200,000 (200 hundred thousand).
Marketers use market segmentation variables to define their customer bases. These fall into categories geographic, psychographic, demographic and behavioural (Cahill 2006). Geographic another words places were people live urban (city) and rural (country) areas. (Hand bags urban city centres, speciality boutique chains and the potential for global consumers (buyers) through e-commerce development (selling the handbags on the internet).
To source a lot of information regarding geographic information to develop your marketing strategy firstly look at http://www.census.gov/ (American bureau of statistics) and/or http://www.census.gov/ (Australian Bureau of Statistics). It all depends on where you want to sell your product.
Next, psychographic segmentation (What customers think, believe, how they spend can help understand how to develop your specific marketing strategy). Using the handbag example there has been a huge increase in the financial independence of professional women and women have the most buying influence in households/families. Most of these women want to buy handbags and usually more than one. In developing marketing strategies think about how they are solving a problem/challenge and what opportunity they representing to the buyer. A handbag is more that just a bag – it represents an image for some customers, a convenience for others, and your handbag must be seen to solve this to generate those sales.
Next, demographic segmentation (Age of customers, gender, family size, income, occupation and family life cycle). For example, teenage to fifty-five plus customers with middle to high incomes due to the price of the handbag).
Finally, behavioural segmentation (Who will use the handbag/product and how they will respond to the handbag/product). Your strategy will involve convincing the customer of the many benefits of the product to create a positive response. For example, the handbag includes a pocket for mobile phone, internal zip for keys, 3 compartments, two zipped for security, safety and convenience.
The next topic to look at when developing a marketing strategy is: What are your marketing objectives?
1/ For example: To gain a 1% share of the Global Handbag market by mid-July 2013. How? Through a global advertising strategy. Advertising will include in store promotions, internet advertising and television commercials. This strategy will be further developed once market research is completed after twelve months of the product being available.
2/ Your goals: To become a handbag that is seen as the handbag of choice for teenage to fifty-five consumers. Market share will be increased through employing a well-known person to market the product in television commercials.
to be continued……