What is a Business Marketing Strategy, and How Does It Work for Small Businesses and Startups?
In today’s competitive market, having a well-defined business marketing strategy is crucial for the success of any small business or startup. But what exactly is a business marketing strategy, and how does it differ from other business planning processes? More importantly, how can small businesses and startups use it to carve out a unique position in their industry and achieve long-term success?
This blog will explore the concept of a business marketing strategy, explain the importance of positioning, and provide a practical checklist to help you develop a successful business and brand strategy tailored to your unique situation.
What is a Business Marketing Strategy?
A business marketing strategy is a comprehensive plan that outlines how a company will achieve its marketing goals by understanding its:
Internal strengths
The needs of its customers
The competitive landscape
The potential market size.
It involves determining the unique position your business will occupy in the market and then crafting a strategy to communicate that positioning effectively to your target audience.
For small businesses and startups, a marketing strategy is not just about promoting products or services; it’s about identifying and leveraging the unique aspects of your business to stand out in a crowded market. A well-thought-out marketing strategy can help you attract the right customers, build brand awareness, and drive sustainable growth.
The Importance of Business Positioning
Understanding Your Unique Resources
Your business’s unique resources are the foundation of your positioning. These resources can include your team’s skills and expertise, proprietary technologies, unique processes, or any other asset that sets your business apart from competitors. By deeply understanding these resources, you can identify what makes your business truly unique and how you can use this to your advantage in the market.
Understanding Your Customers' Needs
No business can succeed without a deep understanding of its customers' needs. This involves more than just knowing the demographics of your target audience; it requires a thorough analysis of their pain points, desires, and buying behaviors. By understanding what your customers need and how they make purchasing decisions, you can tailor your products, services, and messaging to meet those needs effectively.
Analyzing the Competition
Competition analysis is a critical component of positioning. By understanding who your competitors are, what they offer, and how they market their products, you can identify gaps in the market that your business can fill. This analysis can also help you avoid direct competition with larger, more established companies by focusing on a niche or underserved market segment.
Assessing the Potential Market Size
Understanding the potential market size for your product or service is crucial for determining the viability of your business. A large market size with high demand can indicate significant growth potential, while a smaller market may require more targeted strategies. This assessment helps you allocate resources effectively and make informed decisions about scaling your business.
Crafting Your Unique Positioning
Once you have a deep understanding of your unique resources, customers' needs, competition, and market size, you can determine your unique positioning. This is the process of defining what makes your business different and why customers should choose you over the competition. Your positioning should be clear, concise, and resonate with your target audience.
Avoiding Random Positioning: The Importance of Research
One of the biggest mistakes small businesses and startups make is developing or positioning their business based on personal preferences, anecdotal advice, or what has worked for others. (Or they simply think this is something they need to worry about later when they grow.) While it’s tempting to replicate the success of others, it’s crucial to remember that every business operates in a unique context. What works for one business might not work for another.
To minimize risk and maximize your chances of success, it’s essential to conduct thorough research. This includes analyzing market trends, customer behavior, and industry competition to find the highest potential direction for your business. This research-driven approach is what we call business or brand strategy.
Turning Business Strategy into Marketing Strategy (From Internal to External!)
Once you’ve defined your business and brand strategy, the next step is to turn this internal strategy outward into a marketing strategy. This involves deciding how you will communicate your unique positioning to your target audience, what methods or channels you will use, and who you will reach out to.
Messaging
Your messaging should clearly convey your unique positioning and value proposition. It should address the specific needs and pain points of your target audience and explain why your product or service is the best solution. Consistency in messaging across all marketing channels is crucial for building brand recognition and trust.
Methods and Channels
Choosing the right marketing methods and channels is essential for reaching your target audience effectively. Whether it’s social media, email marketing, content marketing, or paid advertising, your chosen channels should align with where your audience spends their time and how they prefer to engage with brands.
Target Audience
Knowing who your target audience is and tailoring your marketing efforts to reach them is critical. This involves segmenting your audience based on demographics, psychographics, and behaviors and creating targeted campaigns that resonate with each segment.
Practical Checklist for Building a Successful Business and Brand Strategy
To help you develop a successful business and brand strategy, here’s a practical checklist that you can follow:
1. Conduct a Thorough Market Analysis
Identify your target market: Define your ideal customer and understand their needs and pain points.
Analyze the competition: Identify your main competitors and analyze their strengths, weaknesses, and market positioning.
Assess the market size: Determine the potential demand for your product or service.
2. Identify Your Unique Resources
Evaluate your strengths: Assess the unique resources, skills, and capabilities your business possesses.
Leverage your unique assets: Identify how these resources can be used to differentiate your business in the market.
3. Define Your Unique Positioning
Develop a clear value proposition: Articulate what makes your business different and why customers should choose you.
Position your brand: Decide how you want to be perceived in the market and create messaging that supports this positioning.
4. Create a Comprehensive Marketing Strategy
Develop your messaging: Craft clear and consistent messages that convey your unique positioning and resonate with your target audience.
Select your marketing channels: Choose the most effective channels to reach your target audience based on their preferences and behaviors.
Set measurable goals: Define clear, measurable objectives for your marketing efforts, such as increasing brand awareness, driving website traffic, or boosting sales.
5. Implement and Monitor Your Strategy
Execute your marketing plan: Launch your marketing campaigns across your chosen channels, ensuring consistency in messaging and branding.
Track your performance: Use analytics tools to monitor the success of your campaigns and measure progress against your goals.
Adjust as needed: Be prepared to refine your strategy based on the performance data and feedback from your target audience.
6. Continuously Refine Your Strategy
Stay informed: Keep up with industry trends, market changes, and new marketing techniques.
Test and learn: Continuously experiment with new ideas, channels, and approaches to optimize your marketing efforts.
Evolve your strategy: As your business grows and the market evolves, update your business and marketing strategies to remain competitive.
Case Study: ON RUNNING – Carving a Unique Position in a Saturated Sportswear Market
Background:
Founded in 2010 in Zurich, Switzerland, ON RUNNING entered a sportswear market dominated by giants like Nike, Adidas, and Asics. Despite the competitive landscape, ON RUNNING successfully carved out a unique position, becoming one of the fastest-growing sportswear brands in the world. The brand's distinctive approach to product innovation, customer experience, and brand identity has enabled it to stand out in a crowded market.
Unique Positioning:
Innovative Technology: ON RUNNING's key differentiator is its proprietary CloudTec® technology. Unlike traditional running shoes that focus primarily on cushioning, ON RUNNING shoes are designed to provide a unique "running on clouds" experience, combining soft landings with explosive take-offs. This innovation directly addresses the needs of runners seeking a blend of comfort and performance, setting ON RUNNING apart from established competitors.
Design Aesthetics: While many sportswear brands emphasize bold, aggressive designs, ON RUNNING takes a more minimalist and sleek approach. The brand's design philosophy focuses on clean lines, neutral colors, and a sophisticated aesthetic that appeals to both athletes and fashion-conscious consumers. This blend of performance and style has helped ON RUNNING attract a broader audience, including those who value aesthetics as much as functionality.
Sustainability Commitment: In a market increasingly concerned with sustainability, ON RUNNING has made significant strides in developing environmentally friendly products. The brand introduced the Cyclon project, a fully recyclable running shoe made from castor beans, which is part of a subscription model where customers return their old shoes to receive new ones. This commitment to sustainability resonates with eco-conscious consumers and strengthens ON RUNNING's brand identity as a forward-thinking, responsible company.
Targeted Marketing Strategy: Instead of competing head-to-head with industry giants through mass marketing, ON RUNNING has focused on grassroots efforts and partnerships with niche running communities and athletes. By building a strong presence in specialized markets, such as trail running and ultra-running, ON RUNNING has cultivated a loyal customer base that values the brand's unique offerings. The brand's marketing emphasizes personal stories of athletes, highlighting how ON RUNNING shoes help them achieve their goals, further reinforcing its position as a brand that prioritizes performance and individual achievement.
Results:
ON RUNNING's unique positioning has paid off. The brand has seen exponential growth, expanding into over 50 countries and securing partnerships with high-profile athletes like tennis star Roger Federer. ON RUNNING has successfully established itself as a premium brand in the sportswear market, with a distinct identity that appeals to both performance-driven athletes and style-conscious consumers.
Conclusion
Developing a business marketing strategy is essential for the success of any small business or startup. By deeply understanding your unique resources, customers' needs, competition, and market size, you can position your business effectively in the market. Remember, success in business is not about copying what others have done but about finding the right strategy for your unique situation.
A well-crafted marketing strategy will help you communicate your unique positioning to your target audience, build brand awareness, and drive growth. Use the practical checklist provided to guide you through the process of creating a successful business and brand strategy, and remember to continuously refine your approach based on market feedback and performance data. With a strategic and research-driven approach, your business can achieve long-term success in a competitive market.
