The current unstable world situation is affecting many businesses and brings to light unexpected challenges. In unstable situations, businesses re-examine their expenses and all too often they first begin to cut from marketing.
Businesses certainly have a business strategy – vision and purpose formulated, strategic priorities defined, and KPI calculated. The brand and its visual identity are clear and guided, and marketing’s annual plan done. But the marketing strategy is missing.
Marketing strategy is based on business strategy and affects how marketing is carried out for the business to reach its strategic goals. Marketing strategy helps to define and clarify the true value, which is created through efficient and appealing marketing, in tight connection with the business strategy goals.
Marketing strategy creates a common language between business units
Marketing strategy is an excellent tool as it helps marketing to recognize focus areas which require measuring and how to allocate the marketing budget. It also helps to crystalize and demonstrate the positive effects marketing has on the success of the business.
Thus, marketing strategy helps the business and marketing to create a common language which is understood by all. Marketing does not only increase business’s attractiveness through branding campaigns, but it also helps to understand how much more can be achieved through sales measures and how many more clients or hot leads can be brought into different touchpoints. And this is the talk that sales understand!
Marketing strategy also brings awareness of the consequences of the marketing budget cuts and what kind of effect certain cuts can have on the company’s business results. It is easier to examine sale’s goals through a new perspective when marketing’s effect on business is included to the discussion. Therefore, instead of making budget cuts in marketing, it is imperative to understand the multiplier effect of different actions. Naturally, sometimes it is necessary and useful to streamline marketing, but it should be done in a controlled way – not causing problems elsewhere (e.g., sales) and just moving them to a different time.
Benefits of marketing strategy in everyday use
- Marketing strategy defines your goals, focus areas and priorities. Based on these, business area specific MWBs are drawn up and the marketing budget is distributed accordingly. Furthermore, media investments are considered and allocated following the prioritization. KPI’s and other measures then follow up the progress. Prioritization becomes easier – if a marketing activity and its results do not support the objectives, it is not worth doing and then it is easier to justify the stop-doings to the rest of the organization.
- Leading the marketing team also becomes clearer – team knows what to do and why. Following the results and making needed adjustments happen faster. Marketing will be more systematised and there will be data showing what works and what does not. Thus, marketing will become an integral part of business strategy which will have a positive effect on understanding the undertaken measures and their success on the management level.
- The dialogue between sales, category management, product development, communication and other relevant parties usually improves. Marketing strategy is a common tool for business strategy and marketing which enables teamwork and commitment to common goals.
Thus, our advice to marketers is to have a well-defined marketing strategy as it will make marketing more efficient and highlight its value to the business.
Need support in defining your marketing strategy – we are happy to help.