Marketing Strategy

What is Marketing Strategy?

Investopedia defines marketing strategy as the business’s core goal for getting customers¹. There are many types of marketing strategies and the best way to market your business will vary from business to business depending on many different aspects, such as who your target audience is and what kind of product or service you are selling.

Four of the most important tools for marketing are promotion, place, price, and the product itself. These are known as the “4ps of marketing”². While most businesses know the type of product they want to sell and where they want to sell it, how to promote their products and what prices to set are harder to decide.

There are various types of pricing strategies, such as basing prices on the competition’s prices or on production costs or tactics such as “price skimming”³ or “penetration pricing”⁴, where the business charges a high or low price and gradually decreases or increases it as time goes on. Like marketing strategies in general, different pricing strategies will work better not only for different industries, but also at different times in a business’s development. For instance, penetration pricing, as its name indicates, usually works better for burgeoning businesses to help attract attention from new customers unfamiliar with these new businesses.

Similarly, there are many ways to promote products, like pull vs. push marketing strategies.

References:

¹ Barone, A. “Marketing Strategy Definition”. Investopedia. 4 July 2021. Retrieved 6 Aug 2021.

² Ibid.

³ Dawson, T. “What is Price Skimming?”. Profit Well. 28 Jun 2021. Retrieved 9 Aug 2021.

⁴ Vaiana, D. “What is Penetration Pricing? 2021 Definition, Examples & Advantages”. Intuit QuickBooks. 5 Aug 2020. Retrieved 9 Aug 2021.

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