What’s the difference between the confident entrepreneurs who lead growing businesses and owners who can’t get out of survival mode? It all comes down to this: All successful businesses have a clear marketing strategy that makes everything they do more effective.
Unfortunately, many busy small business owners get so caught up in tactical daily marketing execution like building a website, sending email, tweeting, advertising, optimizing a landing page, blogging and so on, that they are not taking the time to work on the decisions that’ll improve the performance of their tactics.
Strategy is simply the decisions you need to make so your tactics work better. Your marketing strategy is the foundation for creating awareness, generating interest, closing new sales and continuing customer engagement. Your marketing strategy guides your company culture, your products and services mix and your pricing.
There are many things to consider when crafting a successful strategy, but there are five key decisions that over the years I have seen help hundreds of small business owners grow their sales and create sanity in their businesses.
Understanding Your Business and Target Audience
Understanding your business and target audience is the cornerstone of a successful marketing strategy. It involves conducting thorough market research, identifying your competition, and defining your unique value proposition. By gaining a deep understanding of who you are as a business and who your potential customers are, you can tailor your marketing efforts to meet their needs effectively.
The 5 Keys of Marketing Strategy
- Who is your narrowly defined target customer?
- In which category does your business exist?
- What is your unique benefit?
- Who is your real competition?
- How are you clearly different from your competitors?
A well-structured marketing plan is essential for guiding your business in achieving its promotional and branding objectives.
To make your tactics work better, to grow your business and bring sanity to your world, you have to decide on the single, simple answer to each of these questions and commit to not changing it for a year or two.
This is focus. And focus is almost always the difference between a business that grows profitably and one that never seems to gain any momentum. You can continue to hope that “next time that email is going to work better,” or you can develop a clear focus and a realistic strategy.
Who is Your Target Customer?
The first decision in any marketing strategy is to define your target customer. “Who do you serve?” always needs to be answered clearly before you can execute any tactic effectively. This means you have to say “no” to other potential customers who might buy from you but who are clearly bad fits for your narrow focus. This takes time to develop the discipline, but you can’t do effective marketing without it.
Focusing on a well-defined target may make you uncomfortable at first, but stay the course and follow through. An accountant friend of mine changed his business from “doing taxes for anyone in Phoenix” to “a CPA who does taxes and investments only for physicians” – his best customers who have special needs. He made this change over a period of two years and tripled his business, narrowed his service offerings and strengthened his pitch.
If you are spending time and money on marketing but your efforts are not driving enough sales, the problem is almost always that you haven’t narrowed your target market definition enough to be effective. The narrower you define your market so you can focus on those that you can best serve and those that can best service you, the more effective your entire business will be.
Conduct Market Research
Conducting market research is essential for understanding your target audience and their needs. This process involves gathering data and information about your potential customers, including their demographics, interests, and behaviors. Online tools such as Google Trends, social media analytics, and customer feedback platforms can provide valuable insights. Additionally, conducting surveys, focus groups, and interviews can offer more in-depth information about your target audience. By understanding who your potential customers are and what they want, you can create a marketing strategy that resonates with them.
What is Your Category?
Your category is simply the short description of what business you are in, which is especially important for small businesses. What few words would someone say to describe your business? Starbucks is “high-quality coffee” Chipotle is “fresh Mexican burritos.” My friend’s tax business is simply “tax accounting for physicians in Phoenix.”
Most business owners can’t resist over-complicating their company descriptions. This leaves people unsure of what you actually do, which weakens your marketing effectiveness. Here’s a simple rule: If someone can’t clearly remember your category description a month after you meet them, they were never clear about what you do in the first place.
Clearly defining your category helps amplify your marketing and sales efforts. Think of what it would take to be the best – the leader – in your category. You’re not the leader? Then narrow your category definition (or your target market focus) until you are the leader. A focused laser can melt steel at a distance, but the same light undirected has no effect. Be laser-like in your focus.
What is Your Unique Benefit?
Your unique benefit should highlight the one (or two) main things your product or service actually delivers (benefits) that your target customer really wants, not a long list of all the things your product does (features).
Highlighting your unique benefits is crucial for effective small business marketing efforts.
At Infusionsoft, we know our customers don’t just want our software: They want to grow sales and save time. We don’t describe everything our software does or the hundreds of benefits, we keep our focus on those three key benefits in everything we do. And the simpler we describe it, the better our marketing works.
Who is Your Competition?
Identifying your competition is crucial for understanding the market landscape and differentiating your business. This involves researching your competitors’ strengths, weaknesses, and marketing strategies. Tools like Ahrefs, SEMrush, and Moz can help you analyze your competitors’ websites and marketing efforts. Additionally, conducting a SWOT analysis can help you identify your competitors’ strengths, weaknesses, opportunities, and threats. By understanding who your competitors are and what they offer, you can position your business to stand out in the market.
Who is Your Competition?
When someone is looking to buy a solution to a problem, they will quickly make sense of the alternatives to compare against – your competition. However, most entrepreneurs haven’t specifically defined who their real competition is and don’t focus their messages to create clear differentiation for their buyers. This frustrates the buying decision process and makes your marketing efforts weaker.
Utilizing search engine optimization (SEO) can help you understand and outperform your competitors by improving your online visibility.
You need to be clear in your own mind about what your biggest competition is. If you are a tax accountant, is your competition really the other tax accountants in town? Other CPAs or financial planners? DIY tax software? Doing taxes manually? National tax accounting chains? Each competitor type would create different comparisons, so you need to narrow it down to one or two main competitor types.
Why Are You Different and Better for Your Target Customer?
Once you have defined your competition, make a list of all the things you do differently and better. Then rank each of them by how important these factors are to your target customer. Pick the top one or two and put them on your homepage and include them in your elevator pitch.
Effective marketing campaigns can help highlight your unique differentiators and attract your target customers.
Don’t overcomplicate this. People just want to know one or two things to move their decision along. Is it cheaper? Do you have faster delivery? Best personalized service? Are you the only accountant who exclusively serves physicians in Phoenix?
What Does Your Marketing Strategy Statement Look Like?
A marketing strategy statement is a clear and concise declaration that outlines your business’s marketing goals and objectives. It should include your target audience, unique value proposition, and marketing channels. A well-defined marketing strategy statement can help guide your marketing efforts and ensure that everyone in your organization is aligned. This statement serves as a roadmap for your marketing initiatives, helping you stay focused and on track.
What Does Your Marketing Strategy Statement Look Like?
When you put the five key decisions of marketing strategy in a sentence form, it looks like this fill-in-the-blank statement:
Your company name is the leading category for target customers that provides unique benefit. Unlike competitors, your company does unique differentiator.
Our growth rate doubled when we focused and committed to this clear and simple marketing strategy.
Aligning your small business marketing efforts with a clear strategy is essential for achieving your business goals.
Try it for yourself: Fill in the blanks to create the marketing strategy statement for your own business. Get some perspective from employees, friends and best customers. List all the possibilities and then make some decisions. Say it out loud a few times. You should feel clarity and power coming through. It will also show you a few things you could stop doing in your business that would create more focus.
Can you see why it makes no sense to Tweet, to send a broadcast email or build a new website if you are not clear about your marketing strategy that has laser-like focus? Doing these tactics without a road map – your marketing strategy – will not deliver the right customers and will give you fewer sales than if you had invested the time to implement a focused marketing strategy.
Here’s the real secret that successful companies practice with extreme discipline: Creating a clear marketing strategy is not what companies do after they get big, it’s what small companies do to grow and get bigger in the first place.
Integrating Marketing Strategy with Overall Business Goals
A key aspect often overlooked in small business marketing is the alignment of the marketing strategy with the overall business goals. This alignment ensures that every marketing effort contributes directly to achieving broader business objectives, such as increasing market share, entering new markets, or enhancing brand reputation. Understanding how your marketing initiatives fit into the bigger picture of your business goals can lead to more focused efforts and better resource allocation.
Set Core Metrics and Key Performance Indicators (KPIs)
Setting core metrics and KPIs is essential for measuring the success of your marketing efforts. This involves identifying the metrics that are most important to your business and tracking them regularly. Common marketing metrics include website traffic, social media engagement, lead generation, and conversion rates. Tools like Google Analytics, HubSpot, and Marketo can help you track your metrics and KPIs. By monitoring these metrics, you can assess the effectiveness of your marketing strategy and make data-driven decisions to improve your marketing efforts.
By understanding your business and target audience, you can create a successful marketing strategy that drives results. Remember to conduct market research, identify your competition, define your unique value proposition, and set core metrics and KPIs to guide your marketing efforts.
The Core Elements of Effective Marketing Strategy
Crafting a successful marketing strategy is the linchpin between entrepreneurial triumph and perpetual survival mode for small businesses. The secret lies in five pivotal decisions, each bearing the potential to propel growth and restore equilibrium in the realm of small business. As you ponder these crucial choices, bear in mind that strategy’s essence is in the decisions that refine your tactics and amplify their impact.
- Define Your Target Customer:
- Articulate a clear, precise description of your ideal customer.
- Refrain from diluting your focus with unsuitable prospects.
- Discernment and discipline are essential for effective marketing.
- Categorize Your Business:
- Distill your business into a succinct category description.
- Simplicity fosters memorability and clarity.
- Strive for leadership within your category, and narrow as necessary.
- Unveil Your Unique Benefit:
- Identify the core benefits that resonate with your target audience.
- Focus on what your product or service truly delivers, not an exhaustive list of features.
- Simplify and emphasize key benefits to enhance marketing efficacy.
- Define Your Competition:
- Pinpoint your primary competitors in your customer’s mind.
- Offer clear differentiation against each competitor type.
- Facilitate the decision process by clarifying your unique value.
- Highlight Your Distinct Advantage:
- Enumerate what sets you apart from competitors.
- Prioritize these differentiators based on their significance to your target audience.
- Infuse these advantages into your homepage and elevator pitch.
| Core Elements | Description |
|---|---|
| Define Your Target Customer | Define your ideal customer with precision, avoiding distractions from incompatible prospects. Discernment and focus are essential for effective marketing. |
| Categorize Your Business | Simplify your business into a memorable category description. Aim for category leadership and adjust as needed for clarity. |
| Unveil Your Unique Benefit | Identify core benefits that resonate with your audience. Focus on tangible deliverables, not exhaustive feature lists. Emphasize key benefits to enhance marketing effectiveness. |
| Define Your Competition | Identify primary competitors from your customer’s perspective. Differentiate clearly against each competitor type to streamline decision-making for your target audience. |
| Highlight Your Distinct Advantage | List what sets you apart from competitors. Prioritize advantages based on audience relevance. Infuse differentiators into your homepage and elevator pitch. |
When these five strategic decisions converge, a compelling statement takes shape:
[Your Company Name] is the leading [Category] for [Target Customers], providing [Unique Benefit]. Unlike competitors, [Your Company Name] excels in [Unique Differentiator].
Embrace this formulaic declaration, harness it for your business, and seek input from stakeholders. Deliberate, decide, and vocalize until clarity and vigor permeate your strategy. Remember, deploying tactics without a cohesive roadmap is akin to a ship without its navigational compass—purposeless and adrift. Ultimately, it’s not just what successful companies do after attaining greatness; it’s what propels small enterprises to ascend and expand in the first place.
Strategy Photo via Shutterstock
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