Key Marketing Factors for Businesses
A number of factors affect the goals, strategies and tactics set by businesses. Marketing is the design, development and promotion of products and services. Thus, the nature of your industry, company attributes and preferred promotional tools all go into decisions on marketing strategy development.
In the early 21st century, one of the most important factors in marketing is the target of your business activities. When you have a marketing orientation, the customers you select as your primary audience for business and marketing dictate the design of your product and the way you promote it. Identifying the right customers who need your product benefits the most gives you the best opportunity to generate loyalty and profits.
Marketing is about playing up your strengths and advantages relative to the industry and competitors. Conducting market research helps you assess what customers truly want from a solution and how your brand is perceived in its ability to meet those expectations. Design and development to cater to those needs and effective promotional strategies to present them are critical. For smaller companies, emphasis on specialization, customer service and local involvement are possible advantages to promote against larger chains or organizations.
The amount of money you have to invest in marketing also greatly affects your strategies. Smaller businesses are normally more confined by money than corporations with larger wallets. Thus, being efficient and strategic in research, design, supply chain management, inventory control and promotions is important. Newspapers, radio and direct mail are common promotional tools used in local markets by companies looking for an efficient, affordable way to promote to a small geographic market.
Pricing strategy is one of the central influences in the marketing mix, or 4 P's of marketing. Choosing the right price point and aligning it with your overall product or service value is key to attracting customers and creating profits. Few low-cost providers last, but those that do have extremely efficient production, distribution and service solutions. Most companies must operate at mid-level or high-end price points. If you have a high price, customers expect high product and service value. If you promote luxury, status or top quality and deliver, you can establish a strong marketing position. Smaller businesses often land in the value position, promoting the best mix of affordable prices, specialty products and "hometown" service.