The Importance of Using Marketing Strategies

Whether you are in a small, medium or large business, you’d do well with a marketing strategy. Companies that want to excel in today’s competitive economy require not just any marketing strategy but the best they can find, whether in-house, customized or out-sourced.

There are many types of strategies to promote your company products or services. There are simple or sophisticated strategies which have been proven, and can be easily applied to most organizations.

Campaigns are different from strategies; a marketing strategy is an approach to market or promote the business products or services to confirm transactions that will keep the company viable. It can also be called a plan which is used to give the company an added advantage or project a more attractive image to its intended buyers of its products or services.

Purpose of Marketing Strategy
A strategy must bring in the sales when implemented; otherwise, it is a failed strategy. Time, effort and money are wasted which are considered losses to the company. Different strategies are employed not only for the different products and services of the company, but also target at different market segment or users. Hence, it is important to identify what the focus of your strategy is.

Marketing strategies Media
Some marketing strategies include print campaigns like advertisements in the newspaper or billboards. These are meant to instill awareness of the company’s products and services to a larger audience. Nowadays, the Internet provides a most conducive platform as part of the company’s strategies. Some companies may choose the television or radio media to execute their strategies if they are focusing on certain types of audience for their goods and services. For example, companies which manufacture household products may choose to market their products through the television medium as a commercial which targets housewives.

Factors involved in Marketing Strategies
Whichever strategy you may choose for your company’s products or services, you will need to consider the item to be promoted, the targeted audience or buyer, the duration of the strategy, the budget and the expected results. At times the company may be able to use a strategy for several of its products and services while at other times, not.

There must be a specific audience identified to that chosen item to be promoted so that, that specific category of buyers will be tuned in on the promotion. A marketing strategy cannot go on and on as the target audience may feel bored with it or develop negative feelings or opinions about the company’s status.

There must be a budget to work on a specific strategy for a specific product or service identified for promotion as there may be other products and services which will demand the same attention and priority for good sales. A specific budget is also necessary to ensure that the strategy does not exceed the expected expenses to promote the identified product as the bottom line is to recoup these expenses and more.

Hence, the most important aspect of a marketing strategy is the expected results. The strategy employed should bring in more revenue to the company which covers the expenses expended on that particular product or service.

Direct Marketing Products – Good, Better, and The Best

When a home business owner is considering which direct marketing products they want to sell several questions should come to mind:

1. How much manual labor is involved per sale?
2. What are the operating expenses for my business?
3. If my goal is X amount per month, how does that break down?

I Didn’t Work This Hard For The Man

Running a business demands work, but the home business community all agrees that we’re after a certain lifestyle. We want the time with family and friends that our job makes impossible.

Setting aside the time it takes to set everything up, what sort of time demand will my new business ask of me daily?

Different home business opportunities will insist you only need to spend 2 hours per day but no two people work exactly the same way.

If we understand what we’ll have to do in advance, our own estimate would probably be more accurate. When we have the advantage of a working system or model it is easier to break down the daily tasks, which makes it easier to anticipate how long each will take.

Why Am I Still Losing Money?

Direct marketing products require some type of advertising either by mail, email or online. While advertising can be expensive, there are many ways to promote our products with little to no cost.

Some companies pay thousands in advertising to generate millions in profits. We can expect a ratio based on our advertising and our return on investment.

It’s important to advertise without overspending. Setting the budget limit per week or per month should prevent this from happening.

What Financial Return Do I Need Per…

We usually set our goals for a new business on a per month basis to follow billing cycles. This amount needs to be broken down into daily goals. By holding ourselves accountable to the activity necessary to reach daily goals, we’ll reach the monthly goal.

For instance if we need the business to generate $10,000.00 per month, we’ll need at least 2500 per week and 500 per day on a 5 day workweek.

If I know this prior to deciding which direct marketing products to sell, it’s easier to answer my other two questions.

The Good Products

Using an online store or website, any number of common products can be sold through the drop shipping method. This is also true for many MLM businesses.

Profits are calculated on the difference between our price and the purchase price. Shipping can either be added to the customer’s price or reduced from our profits. Either way we can calculate how many items per day we would need to sell in order to reach that $500.00 goal.

In the case where the items we sell have a wide range of prices, we might need several months to determine an average order. When we have the average we’d know how many orders per day are needed to reach our goal.

The Better Products

Any item that can be downloaded, whether we created the product or not, has a more profitable margin for several reasons:
a) No inventory costs, storage costs, manufacturing costs etc…
b) No importing, exporting or shipping costs are necessary.
c) Cost per item is usually low enough to attract more buyers.

Owners of intellectual products make it a point to tell prospective marketing affiliates the profit margin on their material.

Business for e-books is booming because most marketing professionals understand how to quickly setup campaigns to move these resources. Every one of these direct marketing products represents a unique income stream; most are capable of reaching our monthly goal on their own.

The Best Products

The top tier isn’t simply reserved for items that cost a lot and produce generous income to the marketer. These are the products that perform.

Whether in the form of a physical product, a membership or an investment, these products are typically designed for increasing wealth.

People aren’t going to buy top tier products unless they have faith that these products will benefit them far beyond the purchase cost. These products stand upon a proven track record, not the endorsement of late night infomercial actors.

Finding What We’re Looking For

The law of attraction is at work for these products for two reasons:
1. The people who want them are already prepared to meet the cost.
2. Once the marketer has managed to introduce these products to the people who want them, their work is done.

Not everyone has the self confidence necessary to act upon their desire for great wealth. Most people are too timid to overcome the purchase price. The marketer can do nothing more than bringing together the people who want a product, with that product.

Marketing Products Through Advertising

Advertising is the art of promoting the sales of goods or services based on a market selection. It is affected through various media, particularly through newspapers, magazines, radios and T.V. services and bill boards along the highways. Advertising affects the market in one way or another. Expenditures on advertisements amount to large sums of money and they are rising every year.

The fact that expenditures on advertising are increasing from year to year indicates that advertising is important to market a product or services. As a country becomes more industrialized and as competition in business becomes keener for the firms, marketing strategy through advertising will become more important and expenditures on advertising will rise.

Advertising is regarded as “the life-blood of marketing” simply because it gives information to prospective consumers of the goods or services which are made available in the market. It tells a group of selected market of the existence of a new product or of new uses for or new or better qualities of an existing product, or reminds a market of the existence of a product. Without such information given through the various advertising media, the prospective market may not be aware of the existence or the uses of a product and the producer may not be able to sell it. A product that is not sold or cannot be sold is of no value to the producer and to the selected market. Therefore, it is obvious that informative advertising is very important to a firm or to an industry and is also important to consumers and the market at large.

Generally, advertising as practiced by most firms is competitive rather than informative in motive. This is particularly true where there is a great deal of product differentiation brought about by the practice of branding a product. A firm advertizes mainly because it wants to push the sales of its products. When its products are differentiated from the products of other firms by just its brand, then it hopes to increase the sales of its branded products to their selected markets. It can do so by marketing, through advertising techniques, to create a special image for its brand of products and to build up brand loyalty for its products to a given markets.

Once customers’ loyalty for its brand of products is established, the demand for its products will be less price-elastic and it is able to make some monopoly profits to a given specified markets. Competitive advertising, as we can see, is wasteful. Experts may tell us that there is no real difference, physically or chemically, between different brands of a product.

Whatever difference there may be between two brands is strictly psychological in nature built up through large sums of money spent on marketing through advertising campaigns. It can, therefore, be argued that the consumers would benefit more if firms spent less on competitive advertising and passed on their savings to consumers in the form of lower prices or in the form of genuinely better quality products obtained through more research which could be made possible with savings from unnecessary marketing activities.

However, it can be counter-argued that competitive advertising may not be a waste after all, because very often a consumer derives extra satisfaction from owning or consuming a widely-advertized product. Since he obtains more satisfaction, the higher price which he has to pay for the product because of the advertising is, therefore, justified.

Further, it can be pointed out that because of the large amount of revenue from marketing activities through advertising, newspapers and magazines are sold more cheaply to readers and they are within the reach of more people and, further, radio and T.V. stations are able to produce or buy better or more programs. Also, the advertising industry itself gains with more jobs created for the market community.

In conclusion, it can be said that one cannot deny that marketing trough advertising is the life-blood of industry. But it is really difficult to conclude that it is a waste of economic resources because much depends on one’s judgment of what is good or bad for the society.