Marketing methods and strategies

The terms marketing plan and marketing strategy are often used interchangeably. While they are distinct concepts, they are closely related.

The marketing strategy is the overarching framework that outlines the business’ approach to achieving its marketing goals. It defines the company's value proposition, target market, competitive positioning, and overall direction for marketing activities. The marketing strategy provides the foundation for the marketing plan.

The marketing plan details the marketing initiatives that will be implemented to execute the marketing strategy. This includes specifying the campaigns, promotions or advertising activities for each initiative and the timelines, budget and resource allocation.

For small businesses, it is often practical to incorporate the strategy and plan into one document which is called the marketing plan. This document tends to be for internal business use but could potentially be provided to an external stakeholder if requested.

Let’s start with the marketing strategy.

A marketing strategy will typically include:

1. Market analysis: Thorough analysis of the market including the target market and competition.
2. Marketing goals: Goals specifically concerning marketing that align with the business goals. It should also be specified how the achievement of these goals will be measured and reported on.
3. Marketing mix: Key decisions related to product features, pricing strategies, distribution channels, and promotional activities.

Market analysis

Researching and analysing your market was part of the previous module. For one of your previous assessments, you conducted a market analysis using either the SWOT or PESTLE analysis method.

The 5 C’s of marketing is an analysis framework that is often used in conjunction with these methods. You can use the 5C method to capture anything that you may have missed in your previous analysis. The 5 C’s are also a good structure for explaining key aspects of your market analysis in the marketing plan.

The image below summarises the 5 C’s of marketing.

Creating a target market profile (also known as target audience profile or ideal customer profile) is a very useful tool for developing a marketing strategy.

Watch

Audience Profile (Marketing for the Real World)

Target market profiles were raised in the previous module. Watch the video for a recap.

Expected Duration: 1:50 minutes

Marketing goals

Business goals were covered earlier in this module, along with key performance indicators (KPIs) and reporting processes that are linked to them. Marketing goals and business goals are interconnected but serve different purposes within a business. While business goals are broader objectives that encompass the overall success and growth of the company, marketing goals are specific objectives related to the marketing function that contribute to achieving those broader business goals.

Here are some examples of marketing goals:

• Increase brand awareness among target demographics by 30% within the next nine months.
• Increase social media engagement by 20% within the next three months.
• Increase website traffic by 25% within the next six months.

As with business goals, each marketing goal should have between one and three KPIs and a process for how these metrics are reported.

For the last goal example – increase website traffic by 25% within the next six months – a KPI could be website traffic growth rate. This KPI measures the percentage increase in website traffic. The reporting data for this measurement would be sourced from a website analytics tool.

If you have a website, website analytics can provide extremely useful insights, not just for measuring performance but many other aspects of business. Website analytics refers to the collection, measurement, analysis, and reporting of data related to website usage and performance. It involves tracking various metrics and user interactions on a website to understand how visitors engage with the site, where they come from, what actions they take, and how the website can be optimised to improve user experience and achieve business and marketing goals. You have probably heard of Google Analytics, though it isn’t the only web analytics tool out there. Matomo is another option, created by a New Zealand developer.

Watch

Website analytics

This video provides a case study of how Dunedin’s The Print Room see the benefit of utilising website analytics.

Expected Duration: 1:46 minutes

Marketing mix

The marketing mix, also known as the 4Ps, is a foundational framework used to define the key elements of a marketing strategy. It consists of four controllable factors that a company can adjust to influence the demand for its products or services in the market. The 4Ps of the marketing mix are:

• Product
• Price
• Place
• Promotion.

We will explore each of these elements shortly, first, a reminder about marketing concepts. Marketing concepts were explained in the previous module and you were prompted to consider which concept best suits your business. Keep this in mind while determining your marketing strategy.

Product

Product refers to the goods or services offered by a business to meet the needs and wants of its target market. Product decisions involve aspects such as product design, features, quality, branding, packaging, and warranties. It is important to consider how to differentiate your product from competitors and ensure it meets the needs of the target market.

To define the product element of the marketing mix:

1. Start by thoroughly understanding your product or service.
   1. What are its features, benefits, and unique selling points?
   2. What customer needs does it fulfil?
   3. How does it differentiate from competitors?
2. Consider product development and innovation strategies to enhance your offering and meet evolving customer demands.
3. Determine your target market and tailor your product offerings to address their specific needs and preferences.

Price

Price refers to the amount of money customers are willing to pay for a product or service. Pricing decisions involve determining the appropriate pricing strategy and considering factors such as perceived value, competition, costs, and pricing objectives.

To define the price element of the marketing mix:

1. Conduct a thorough pricing analysis to determine the optimal pricing strategy for your product or service. Consider factors such as production costs, competitor pricing, and perceived value.
2. Choose a pricing strategy that aligns with your business objectives, whether it's to maximise profitability, gain market share, or penetrate new markets.
3. Implement pricing tactics such as discounts, promotions, bundling, or value-based pricing to attract customers and drive sales.

Earlier in this module, we looked at the break-even pricing strategy. As a reminder, break-even pricing is often used as a baseline for pricing decisions, providing insight into the minimum price necessary to sustain operations and make a profit.

From this baseline you can then look at other factors to help price your product service. The following pricing strategies were introduced in the previous module:

1. Cost-based pricing
2. Competitor-based pricing
3. Customer-based pricing

Ideally, you would consider all three pricing strategies in conjunction with each other in order to ensure your product/service is sustainably priced.

Place

Place refers to the distribution channels and methods used to make the product or service available to customers. Distribution decisions involve selecting the most appropriate distribution channels, such as direct sales, retailers, wholesalers, or e-commerce platforms, and determining factors such as inventory management, logistics, and channel relationships. The goal is to ensure that the product is conveniently accessible to the target market.

1. Identify the most effective distribution channels to reach your target customers and deliver your product or service to them.
2. Evaluate different distribution options, including direct sales, retailers, wholesalers, e-commerce platforms, and partnerships, based on factors such as reach, cost, efficiency, and customer preferences.
3. Determine distribution methods that ensure your product is available where and when customers want it, whether it's through physical stores, online channels, or a combination of both.

Don’t forget about the importance of managing relationships. Supply chain management is covered earlier in this module.

Online distribution channels refer to the various platforms and channels through which products or services are made available to customers via the internet. These channels facilitate the sale, delivery, and fulfilment of goods and services to consumers in the digital environment.

Online distribution channels have become increasingly important in the modern business landscape, offering businesses the opportunity to reach a wider audience, streamline operations, and expand their market reach. Here are some common types of online distribution channels:

• E-commerce websites: E-commerce websites are online platforms where businesses sell their products or services directly to consumers. These websites typically feature product listings, shopping carts, secure payment processing, and order fulfilment capabilities. Examples include Shopify and WooCommerce.
• Online marketplaces: Online marketplaces are platforms that connect buyers and sellers, allowing businesses to list their products or services for sale and reach a larger audience of potential customers. Examples include Trade Me and Etsy.
• Social media platforms: Social media platforms offer businesses the opportunity to sell products or services directly to users through integrated shopping features and e-commerce functionalities. Examples include Facebook Shops and Instagram Shopping.
• Digital platforms and apps: Digital platforms and apps provide businesses with opportunities to distribute digital products, such as software, games, e-books, music, and streaming content, directly to consumers. Examples include Apple App Store and Google Play Store.
• Online booking platforms: Online booking platforms enable businesses in the travel, hospitality, and service industries to sell bookings, reservations, tickets, and appointments directly to consumers. Examples include Booking.com and Airbnb.
• Subscription services: Subscription services offer businesses the opportunity to sell recurring subscriptions or memberships to consumers, providing access to digital content, products, or services on a recurring basis. Examples include Spotify and Dollar Shave Club.

Watch

Improving online sales

This video provides a case study of Woolcraft’s journey to improve their website.

Expected Duration: 4:18 minutes

Promotion

Promotion involves the various activities used to communicate the value of the product or service to the target market and persuade customers to make a purchase. Promotion strategies may include advertising, sales promotions, public relations, personal selling, direct marketing, sponsorship, and digital marketing tactics such as social media marketing and content marketing. The goal is to create awareness, generate interest, stimulate demand, and ultimately drive sales.

As mentioned earlier, the strategy does not detail the actions to be taken to achieve the marketing goals, these are outlined in the strategic initiatives in the marketing plan. The strategy, however, should identify the marketing methods that the business will utilise. Marketing methods are covered in the next section.

Marketing initiatives

Your marketing strategy combined with the knowledge of common marketing methods will inform your marketing initiatives. Marketing initiatives are projects implemented by a business to achieve marketing goals. Business initiatives were covered earlier in this module. Business initiatives and marketing initiatives are the same concept, the key difference is their focus, being either more generally on the business or on the marketing of it.

An example of a marketing initiative could be: Develop a content calendar with a mix of informative, entertaining, and interactive content tailored to each social media platform, encouraging user-generated content and audience participation.

This initiative aims to help the business meet the marketing goal: Increase social media engagement by 20% within the next three months. Key actions to implement this marketing initiative could include:

1. Conduct market research and gather insights to understand what content resonates with the target audience.
2. Plan a mix of informative, entertaining, and interactive content tailored to the preferences of each platform's audience.
3. Develop a content calendar for when which content is to be posted on each social media platform.
4. Create high-quality content, including images, videos, graphics, and written posts, that align with the planned content.
5. Tailor content to fit the format and requirements of each social media platform (e.g., character limits, image sizes, hashtags).
6. Utilise platform-specific features such as stories, reels, polls, and live streams to maximise engagement.
7. Encourage comments, likes, shares, and reposts to increase reach and visibility.
8. Respond promptly to customer inquiries, feedback, and concerns.
9. Use social media analytics tools to track the performance of the content.
10. Measure key metrics such as engagement rate, reach, impressions, clicks, and conversions to evaluate the effectiveness of this initiative.

Return on investment (ROI) is a KPI that measures the financial return generated from marketing efforts relative to the cost of those efforts. By calculating ROI, you can determine which initiatives deliver the highest returns.

ROI is calculated by dividing the net profit generated from an investment by the initial cost of the investment, and then multiplying the result by 100 to express it as a percentage.

For example, if a business invests $10,000 in a marketing initiative and generates $30,000 in revenue as a result, the net profit would be $20,000 ($30,000 - $10,000). Dividing the net profit by the cost of the investment and multiplying by 100 would yield an ROI of 200%.

A positive ROI indicates that the investment has generated more profit than the initial cost, while a negative ROI indicates a loss.

Online presence

An online presence for businesses refers to their visibility and accessibility on the internet through various digital channels and platforms. It encompasses the entirety of a business's online footprint, including its website, social media profiles, online directories, e-commerce platforms, and any other online platforms where the business interacts with customers, prospects, and stakeholders. Having a strong online presence is essential for businesses in today's digital age as it allows them to:

1. Reach a wider audience: An online presence enables businesses to extend their reach beyond physical locations and target a global audience of potential customers.
2. Build brand awareness: Through consistent branding and messaging across online channels, businesses can increase brand visibility and awareness among their target audience.
3. Engage with customers: Online platforms provide businesses with opportunities to engage directly with customers through social media, online forums, and other interactive channels, fostering relationships and loyalty.
4. Showcase products and services: Businesses can use their online presence to showcase their products, services, and offerings through websites, e-commerce platforms, and digital catalogues.
5. Provide information and support: An online presence allows businesses to provide valuable information, resources, and support to customers, helping them make informed decisions and resolve issues effectively.
6. Generate leads and sales: By optimising online channels for lead generation and sales, businesses can drive traffic, capture leads, and convert prospects into customers through targeted marketing and sales efforts.
7. Gain insights and analytics: Online platforms provide businesses with valuable data and analytics on customer behaviour, preferences, and interactions, allowing them to make data-driven decisions and optimise their online strategies.
8. Stay competitive: In today's competitive business landscape, having a strong online presence is essential for staying competitive and keeping up with industry trends and consumer expectations.

Websites

When it comes to building a website for your business, you can either:

Search engine optimisation (SEO), was mentioned in an earlier article, it is the process of optimising a website to improve its visibility and ranking in search engine results pages for relevant keywords and queries. SEO aims to increase organic (non-paid) traffic to a website by making it more accessible and relevant to search engines like Google and Yahoo.

Watch

SEO (search engine optimisation)

In this video we revisit Dunedin’s The Print Room from an earlier case study. This time, they tell us about SEO and how they have applied this for their business.

Expected Duration: 1:48 minutes

You can work on your website’s SEO yourself or hire professional services such as SEO agencies or freelance SEO professionals. There are many guides and tools available if you’re thinking about working on SEO yourself.

Social media

Building a social media presence for your business involves strategic planning, consistent engagement, and targeted content creation to attract and engage your target audience. To create and maintain a social media presence:

• Choose the right platforms: Select social media platforms that align with your goals and target market. Consider factors such as platform popularity, audience demographics, and content format preferences. Some popular platforms include Facebook, Instagram, X (formerly Twitter), LinkedIn, and TikTok.
• Optimise your profiles: Create or optimise your social media profiles with branded images, logos, and consistent messaging. Use keywords relevant to your business in your bio, and include links to your website and other relevant resources.
• Create compelling content: Develop content that aligns with your brand. Create a mix of content types, including informative posts, visual content (images, videos, infographics), user-generated content, and promotional offers. Aim to provide value to your audience.
• Engage with your audience: Foster meaningful interactions with your audience by responding to comments, messages, and mentions promptly. Ask questions, run polls, and encourage user-generated content to increase engagement and build community.
• Monitor and improve: Track key metrics such as reach, engagement, clicks, and conversions to measure the effectiveness of your social media efforts. Use social media analytics tools to gain insights into what's working and what can be improved.

You can create and maintain your social media presence yourself or you can hire professional services such as:

• Social media managers to monitor, engage, and grow your social media audience by responding to comments, messages, and mentions.
• Content creators, graphic designers, or social media managers to develop high-quality content, graphics, and videos for your social media channels.
• Social media consultants or agencies to develop social media campaigns

There are also tools you can use to help maintain your social media presence:

• Content creation tools: Use tools like Canva or Adobe Spark to create visually appealing graphics, images, and infographics for your social media posts.
• Social media management tools: Use tools such as Hootsuite or Buffer to schedule posts and monitor conversations across multiple social media platforms.
• Analytics and reporting tools: Use analytics tools like X Analytics or Sprout Social to track key KPIs and generate custom reports for your social media campaigns.

Digital advertising

Digital advertising refers to the promotion of products, services, or brands using digital channels and technologies, primarily on the internet. It encompasses a wide range of tactics and platforms, including websites, search engines, social media, email, mobile apps, and more. Digital advertising offers several advantages over traditional advertising, including greater targeting capabilities, real-time performance tracking, and the ability to reach a global audience. Common types of digital advertising include:

• Search engine marketing: Search engine marketing involves placing ads within search engine results pages to target users searching for specific keywords. Search engine marketing platforms include Google Ads and Microsoft Advertising (formerly Bing Ads).
• Display advertising: Display ads appear on websites and apps in various formats such as banners, images, videos, or interactive content. They can be targeted based on demographics, interests, or browsing behaviour. Display advertising offers a wide reach and can be highly visual, allowing advertisers to engage users across different websites and platforms. Display advertising platforms include Google Display Network and Microsoft Display Advertising.
• Social media advertising: Social media platforms provide tools such as Facebook Ads Manager and Instagram Ads to reach their users with sponsored posts, ads, and promoted content. Social media advertising enables precise targeting based on user demographics, interests, behaviours, and connections. Ad formats include carousel ads, video ads, sponsored posts, and more.
• Email marketing: Email marketing involves sending promotional messages directly to a targeted list of email subscribers. Email campaigns can include newsletters, product announcements, special offers, and more. Effective email marketing requires building and nurturing a permission-based email list and crafting personalised, relevant content to engage subscribers and drive conversions. Email marketing platforms include MailChimp and MailerLite.
• Video advertising: Video ads can be displayed on platforms like YouTube, as well as within other video content across the web. Video advertising allows businesses to convey messages through engaging visuals and storytelling. Key types of video ads include:
  • Pre-roll Ads: These are short video ads that play before the start of the main video content on platforms like YouTube. They typically range from a few seconds to 30 seconds in length.
  • Mid-roll Ads: These are video ads that appear in the middle of longer video content, such as during breaks in a YouTube video or within streaming content on platforms like Hulu.
  • Post-roll Ads: These are video ads that play after the main video content has finished. They are less common than pre-roll and mid-roll ads.

Whichever platform you use to create and manage advertising should also provide you with guides on how to do this. Alternatively, there will be other resources available online or you can hire a professional service such as a marketing agency.

Watch

What is Display Advertising & Types of Display Ads

This video provides further information and guidance on display advertising.

Expected Duration: 6:04 minutes

Traditional marketing

Traditional marketing refers to non-digital forms of marketing that do not rely on digital technology or the internet to reach audiences. It encompasses various offline channels and mediums to promote products, services, or brands. Common types of traditional marketing include:

• Print advertising: Print advertising includes ads placed in newspapers, magazines, brochures, flyers, posters, and direct mail. Print ads can be highly targeted based on the publication's audience demographics and circulation.
• Broadcast advertising: Broadcast advertising involves placing ads on television and radio. Television ads (TV commercials) air during breaks in programming and can range from short spots to longer infomercials. Radio ads are broadcast between songs or during commercial breaks.
• Outdoor advertising: Outdoor advertising, also known as out-of-home (OOH) advertising, targets consumers while they are outside their homes. Common outdoor advertising formats include billboards, transit ads (on buses, trains, and taxis), street furniture (bus shelters, benches), and digital screens in public spaces.
• Direct mail marketing: Direct mail marketing involves sending promotional materials such as postcards, catalogues, brochures, and letters directly to targeted recipients' mailboxes. Direct mail campaigns can be personalised and highly targeted based on demographic and geographic data.
• Event sponsorship: Event sponsorship involves sponsoring events such as sports competitions, festivals, conferences, and concerts to gain brand visibility and engage with target audiences.
• Trade shows: Trade shows are events where businesses within a specific industry or sector gather to showcase their products, services, and innovations. These events often have a focused theme or topic, such as technology, healthcare, automotive, or fashion. Trade shows primarily cater to businesses and professionals rather than individual consumers. They provide networking opportunities, knowledge sharing, and business-to-business transactions.
• Markets: Markets are events where vendors, artisans, craftsmen, and small businesses gather to sell goods directly to consumers. These events may feature a diverse range of products such as handmade crafts, artisanal foods, vintage items, artwork, clothing, and more. Markets primarily target individual consumers rather than businesses and contribute to local economies and community engagement by supporting small businesses, artisans, and local entrepreneurs.

Some traditional marketing methods you can do yourself, while others require engaging professional services such as marketing agencies, print houses, or graphic designers. These services may be approachable either online or through a local office or workshop.

Non-digital advertising remains an essential part of marketing for many businesses, particularly for reaching audiences who may not be as accessible through digital channels or for creating impactful brand experiences in the physical world. While digital advertising continues to grow in importance, traditional advertising methods still offer unique opportunities for building brand awareness, driving engagement, and reaching target audiences in offline environments.

Remember that many aspects of business must comply with legal requirements, including marketing. Key legislation mentioned throughout this module and the previous module that relate to marketing include:

• Consumer Guarantees Act 1993
• Fair Trading Act 1986
• Privacy Act 2020
• Unsolicited Electronic Messages Act 2007

Summary

To plan marketing efforts effectively, you must conduct market research and analysis, establish clear marketing goals, define your marketing mix, select suitable marketing methods, and develop initiatives that align with your marketing strategy.

Assessment

You can now complete the following assessments:

• SBE02A1: Legal compliance
• SBE02A2: Business plan and marketing plan

Once you have completed SBE02A2: Business plan and marketing plan you can then move onto SBE02A3: Refined business plan.