A great marketing strategy can be the difference between a growing business and a closing business. So here are some things you need to know before creating your marketing strategy. 

What markets can my business operate in?

Your marketing team needs to have a very clear understanding of the physical markets that your business is capable of serving.

Remember haste makes waste.

If your team takes the time to map out the physical markets your business can serve, that means your marketing dollars are at the very least being spent on consumers who can be served by your business.

So avoid marketing to consumers your business cannot serve and save yourself some money.

What problem does my business solve?

In order to create an effective marketing program your business needs to have an understanding of the problem they solve down to its root. Also known as a functional need, it is the solution your business provides to consumers that results in a direct change to their current state. Here is an example to clarify the concept.

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Ex ) Nike, a famous shoe brand, is known for many things but shares one thing in common with every other shoe in the world. That common point is the functional need that it serves.

• It is a covering for the foot meant to protect a person’s foot from the elements.

This is the primary need that must be fulfilled if Nike would like to be considered a credible offering in the footwear industry. 

If your business has a clear understanding of the functional need that it serves then identifying a broad market like the footwear industry becomes a simple matter.

What are the segments within the market that my business serves?

It is great that we have a clear understanding of which industries our business can serve but targeting an industry is still too broad. Nike by no means would be able to market itself to the entire footwear industry, and that’s where we bring in segmentation. 

We’ve made progress by identifying the foundational need that your business serves but that is only the starting line. Like Nike, your business needs to have a clear understanding of which market segments align with its offering. 

Meaning…

You have to drill down and identify the emotional needs that your product or service will serve for those who purchase it. Nike understood that its products aligned well for an athlete’s need for growth and that knowledge allowed them to identify the athletic community as its primary segment.

How does your solution impact the segments it serves?

Once your business has identified its primary market segment it will need to outline the benefits that the segment will experience after making its purchase. This will allow you to identify the information that your business needs to convey to its target market that will motivate it to make a purchase. 

Having a clear understanding of the benefits your product or service provides allows for the development of a clear value proposition. With a clear grasp of your value proposition you are ready to communicate it to your target market and your business will be one step closer to creating an effective marketing program.