To develop a successful marketing strategy, the manager must address two crucial questions. Who are the customer we are serving (what’s our market of choice)? What can we do to provide the best customer service (what’s our unique selling point)?
Selecting Customers to Serve
The business must first determine which customers it will be serving. It accomplishes this by breaking customer segments into distinct segments (market segmentation) and deciding which segments to pursue (target marketing). Many people view marketing management as locating as many customers as they can and growing the demand. However, marketing managers realize that they are not able to satisfy all customers in every way. In trying to satisfy every customer, they could not be able to satisfy all customers. Instead, they want to pick only customers it can serve efficiently and profitably. Marketing managers have to choose which customers they wish to focus on based on the scale, timing, and nature of their demands. Marketing management, in simple terms, is the process of managing demand and customer management.
Choosing a Value Proposition
The business must also determine what it is going to do to serve its customers. It must also make a strategy, how it will differentiate and place itself in the market. The value proposition of a brand is the list of advantages or values it pledges to offer consumers to meet their needs. It distinguishes the brand from its competitors. The companies must create compelling value propositions that provide them the most competitive advantage over their competitors in their markets of choice.
Marketing management is looking to develop strategies to build profitable connections with consumers who are in the target market.
What is the guiding principle for these strategies for marketing?
What importance should be placed on the customer’s interests or the business, as well as society?
Most of the time, these needs often conflict. Thus, there are five theories that companies use to develop and execute their marketing strategies: selling, production, product marketing, societal, and marketing theories.
Concept of production:
The notion is that consumers will prefer products that are readily available and affordable, and the business should thus concentrate on improving the production process and efficiency in distribution.
Concept of the product:
The notion is that customers will choose products with the best performance, quality as well as features and that an organization should thus dedicate its resources to making improvements to its products continuously.
Concept of selling:
The belief is that consumers won’t buy enough of the company’s goods until it has huge-scale advertising and selling.
Concept of Marketing:
A method of thinking that says that the achievement of organizational goals is contingent on understanding the requirements and desires of the target market and meeting their expectations better than the competition.
Social marketing concept:
The strategy is that a business’s marketing decisions should be based on the needs of consumers as well as the requirements of the company. As well as the long-term interests of consumers and the long-term interests of society.