There are over a thousand different marketing strategies which can be used to promote a product or a service. Each technique requires different combinations of financial and human resources. While each marketing strategy can help in improving business substantially, smaller marketing budgets limit your ability to implement them all. Critical choices need to be made in order to gain the maximum return on marketing investment.
Here are a few pointers on which marketing decisions are based to improve the return on marketing investment.
Market Research
Before thinking about marketing strategies for improving business, it is important to “study” the market conditions. If a product is not required in the market, it is likely to stay on the shelves and collect dust.
Forward-thinking companies conduct market research in relation with their products to identify market trends and the demand for their products well before heavy investment is made. Admittedly, there is a market for every product – some folks like to buy unique things. The trick is to identify whether your product or service is targeted at a specific audience or to the general population.
Channel Preference of Your Target Market
It is imperative to ask whether the target market is reachable through the advertising medium under consideration. The outreach of each medium is different. For instance, people reading economics magazines are likely to be middle-aged and older, employed in business management positions, and interested in the changing trends. Therefore it is a viable medium to promote real estate opportunities instead of baby products.
The key to improving business is identifying the best possible channels to reach your relevant audience.
Market Segmentation
Some products are specialized to the demographic characteristics of end users/customers. The users of financial products are likely to be adult, earning males instead of infants. Hence improving return on marketing investment demonstrates a higher success when marketing these products to a more focused segment.
Mass marketing undoubtedly facilitates in reaching out to the entire population; however, this will increase the cost of marketing against the benefit, thereby lowering the return on marketing investment. The crux of a successful marketing campaign involves creating maximum conversions with the least investment.
Budgeting
Your marketing budget plays an important role in deciding which marketing channels are viable and/or “too expensive”. While our current financial system creates a catalyst for overspending, it is important to strike the right balance between cost and benefit. Marketing is least likely to help in improving business if your budget doesn’t meet channel requirements or you don’t have the staying power to achieve your sales goals and objectives. Constant testing, evaluation and revision are all important aspects in making the marketing plan work for your company.
