A ship that doesn't know where to sail cannot catch a favourable wind
Why does a business need a marketing strategy, and is it possible to do without it?
A marketing strategy is a plan of action for a company to achieve its goals in the market.
The marketing strategy may include:
Market and competitor analysis.
Description of the target audience (TA), their needs, and pains.
Marketing communications plan and criteria for evaluating their effectiveness.
Description of the company's products.
Description of the business model.
According to the "State of Inbound" study by HubSpot in 2020, 70% of companies have their marketing strategy. Additionally, a 2019 study by Clutch revealed that 65% of small businesses also have their marketing strategy.
However, most clients who approach our agency do not have or have not had a marketing strategy.
Is it possible to do without a marketing strategy?
Let's consider cases when a marketing strategy is not needed
1. The company's management does everything intuitively correctly
Let's draw an analogy from a closely related field – medicine. Can a person who has never had any tests done or visited a doctor be healthy and live long? Of course, it is possible, but only in rare cases. Similarly, a businessman can be successful intuitively, making the right decisions without breaking certain rules. For instance, by being in business for a long time and dedicating oneself entirely to it, one may have a good understanding of the target audience's needs.
However, the higher the competition in the niche, and the faster new technologies emerge in the market, the more challenging it becomes for a business to survive without a marketing strategy.
2. The company operates in non-market schemes.
Another case where a marketing strategy is unnecessary is when a company operates within corrupt schemes and non-transparent competition. In such cases, market mechanisms do not work, and therefore, marketing becomes unnecessary.
Now, let's examine cases when a marketing strategy is necessary:
1. The company is launching a new product into the market
In this case, it is essential to understand the product's positioning, unique selling proposition, the problems it solves, and whether the company correctly understands the target audience's demands. Moreover, it is necessary to identify competitors in the market and determine the communication channels to convey messages to the target audience.
2. The company is entering a new market
When entering a new market, it is necessary to consider that user behaviour patterns may differ from those applicable to the current market. Therefore, a comprehensive analytical work is required as part of the strategy to study user preferences and decision-making factors. Additionally, it is crucial to understand how users on the new market solve problems related to the offered product functionality to find ways to improve it.
3. The company's management feels that it is losing the competition battle.
In such cases, in-depth interviews with the company's team, involved individuals, suppliers, distributors, and customers are essential. Understanding possible problems, growth points, and comparing the situation with competitors will help identify solutions that will form the basis of a plan to regain leading positions in the market.
4. The company is doing well, but there is no overall understanding of what to do next
This is a good scenario for starting the development of a marketing strategy for the company's growth. Using information about the company's strengths and resources, market novelties, technological trends, and promising directions, it is possible to plan the company's development vector, considering risk factors and market conditions.
A product idea has emerged, but it is unclear which market to enter, what business model to use, and how to position it correctly.
In such cases, search research is required to confirm hypotheses made during the product development. In our agency, we use our developed framework 3M2S to solve such tasks.
Who can develop a marketing strategy?
The business owner can do it independently if they possess the necessary competencies. Alternatively, the marketing department of the company or a hired strategic marketing agency can handle this task.
Starting a business, launching a new product, or entering a new market without a marketing strategy is extremely risky in terms of potential time and financial losses.
If your company needs assistance with developing a marketing strategy, we will be happy to help.