Offering a good product or service is not always enough to succeed in the market. A business also needs a clear idea of who it is for, how it differs from rivals, how it will reach customers and how it will know if it is working. That is a marketing strategy.
In this guide we explain what a marketing strategy is, how it differs from a marketing plan and an advertising strategy, its core elements (situation analysis, SWOT, PESTEL, market research, competitor analysis, target market, segmentation, personas, goals, positioning, value proposition, the marketing mix 4P and 7P), how to choose channels, SEO, content and social media strategy, B2B strategy, the customer journey, AIDA, CTA and landing pages, automation, budget, CAC and CLV, KPIs, conversion rate, and how to build a strategy step by step.
What Is a Marketing Strategy?
The long-term roadmap a business builds to reach target customers, differentiate from competition and meet its sales goals.
What Does Marketing Mean?
The process of understanding customer needs and creating, communicating and delivering value to meet them profitably.
What Does Strategy Mean?
A set of choices about where to focus and how to win.
What Is the Purpose of a Marketing Strategy?
To offer the right product or service to the right customer with the right price, message and channel.
Why Is It Important?
It ensures efficient use of the budget, brand consistency, correct targeting and measurable results.
Marketing Strategy vs. Marketing Plan
The strategy defines direction and goals. The plan defines the activities to carry out, their dates and the people responsible.
Marketing Strategy vs. Advertising Strategy
Advertising is only one of the communication tools of a marketing strategy. See digital ad management.
Core Elements of a Marketing Strategy
Market analysis, target audience, positioning, value proposition, marketing mix, channels, budget and KPIs.
Situation Analysis
- SWOT analysis: strengths, weaknesses, opportunities, threats.
- PESTEL analysis: political, economic, social, technological, environmental and legal factors. See PEST analysis.
- Market research.
- Competitor analysis: compare rivals’ offers, prices, channels and strengths.
Target Market
- Market segmentation: dividing the market into groups.
- How to define the target audience. See what is a target audience.
- Customer persona: a detailed fictional profile of a typical customer.
Marketing Goals
Set SMART goals: specific, measurable, achievable, relevant and time-bound. See what is OKR.
Brand Positioning
The place your brand takes in customers’ minds relative to alternatives. See brand awareness.
Value Proposition
What you offer, to whom and why it’s better. Formula: For [target customer] who [need], [brand] is a [category] that [key benefit], unlike [alternative]. A value proposition is not a slogan; a slogan is how you express it.
The Marketing Mix
4P
- Product strategy.
- Pricing strategy.
- Distribution (place) strategy.
- Promotion strategy. See the promotion mix.
7P for Services
Add people, process and physical evidence to the four.
How to Choose Marketing Channels
Choose channels by where your audience is, your goal, your budget and your capacity. Compare channels for cost, reach, speed and measurability.
- SEO strategy. See how SEO work is done.
- Content marketing strategy. See content marketing.
- Social media strategy. See social media marketing.
- B2B marketing strategy. See B2B marketing.
Customer Journey, AIDA, CTA and Landing Pages
Plan content around the stages people pass through: see the marketing funnel and the AIDA model. Give each stage a Call to Action and a landing page. Automate follow-up with marketing automation.
How to Set a Marketing Budget
Base it on goals, the cost of winning a customer and what the channel can deliver. An example split might allocate a share to acquisition channels, a share to retention and a share to testing. Track customer acquisition cost (CAC) against customer lifetime value (CLV).
Marketing KPIs
Traffic, leads, conversion rate, CAC, CLV, revenue and return on spend. Conversion rate = conversions ÷ visitors × 100.
How to Build a Marketing Strategy Step by Step
- Match business goals with marketing.
- Pick the priority customer segment.
- Create the marketing message.
- Define channel roles.
- Prepare a marketing calendar.
- Assign responsibilities.
- Set up measurement and review regularly.
For a broader view see what is digital marketing and our digital marketing service.
Frequently Asked Questions
What is a marketing strategy?
The long-term roadmap a business creates to reach target customers, differentiate in competition and achieve sales goals.
How is a marketing strategy created?
Analyze the situation and market, define the target audience, prepare positioning and value proposition, choose channels and set measurable goals.
What is the purpose of a marketing strategy?
To present the right product or service to the right customer with the right price, message and channel.
Why is a marketing strategy important?
It supports efficient budget use, brand consistency, correct targeting and measuring marketing results.
Are a marketing strategy and a marketing plan the same?
No. The strategy sets direction and goals; the plan sets the activities, dates and responsible people.
Are a marketing strategy and advertising the same?
No. Advertising is only one of the communication tools of a marketing strategy.
What are the elements of a marketing strategy?
Market analysis, target audience, positioning, value proposition, marketing mix, channels, budget and KPIs.
What is the 4P marketing mix?
A marketing model made up of product, price, place (distribution) and promotion.
What is the 7P marketing mix?
The service-marketing model formed by adding people, process and physical evidence to the 4P.
