Marketing strategy - what it is, elements and examples for companies

What is a marketing strategy?

A marketing strategy is a comprehensive and long-term plan of action that is aimed at achieving the intended marketing and business goals of an enterprise. It is based on a detailed analysis of the market, consumer needs and competitive situation. The marketing strategy includes a number of activities, such as the selection of the target audience, the establishment of communication channels, the development of a unique value proposition (eng. Unique Selling Proposal, USP) and determination of pricing and promotion strategy.

For example, according to the “Statista Digital Market Outlook 2023" report, companies that consistently invest in well-thought-out marketing strategies report an average of 25% higher revenues than companies without a clearly defined strategy. Therefore, it is essential that the marketing strategy is dynamic and adapted to changing market trends, such as the development of e-commerce or the increase in the importance of personalization.

Why is a marketing strategy important?

A well-planned marketing strategy is not only a tool to support marketing activities, but also a fundamental element of building a competitive advantage. For example, in the retail sector, as many as 72% of customers indicate that they prefer brands that present consistent and authentic messages (data from the Edelman Trust Barometer, 2022). A marketing strategy helps companies focus on specific actions, eliminating chaos and randomness in the decisions they make.

In practice, this means that companies can avoid unsuccessful advertising campaigns and inefficient budget allocation. With well-defined goals, such as a 10% increase in sales in the next 12 months or a 20% increase in newsletter subscribers, companies are able to measure the effectiveness of their activities. One example of the success of a well-thought-out marketing strategy is Coca-Cola's “Share a Coke” campaign, which boosted U.S. beverage sales by 2% at a time when the soda market was struggling with a clear decline.

Marketing strategy — should every company have it?

Every company, regardless of its size, industry or experience in the market, should have a marketing strategy, since it is the foundation for effective operation in a competitive market. Small businesses often assume that a marketing strategy is only needed by large corporations. In fact, the lack of a coherent plan can lead to inefficiency of activities and waste of resources such as time and budget. According to the 2023 Small Business Trends report, 64% of small businesses that do not have a marketing strategy are struggling to acquire new customers, which translates into poorer financial performance. For large companies, marketing strategy is crucial in building a competitive advantage and maintaining a leading position in the market. An example is Amazon, whose marketing efforts, based on the personalization of the customer experience and fast delivery, allowed it to achieve revenues of more than $500 billion in 2022.

Marketing strategy also plays a key role in times of dynamic market and technological change. In the digital age, when the channels of communication with customers change at lightning speed, the lack of strategy can leave a company behind the competition. An example would be the rise in popularity of platforms like TikTok, which have revolutionized the way of reaching a younger audience. Companies that have quickly adapted their activities to this medium, such as Gymshark or Fenty Beauty, have gained enormous reach and sales growth. In summary, a marketing strategy not only allows you to optimize activities and respond to changing market conditions, but also translates into a long-term increase in profitability and stability of the activity of any company — from start-ups to multinational corporations.

Elements that make up a marketing strategy

1. Market Analysis

Every marketing strategy begins with market analysis, which includes the study of trends, consumer behavior, and the actions of competitors. For example, a company can use tools such as Google Trends or analytics platforms to understand which products are most in demand at a given time.

2. Determination of the target group

A precise definition of the target audience allows you to personalize your marketing activities. In practice, companies can use demographic, behavioral or psychographic segmentation. For example, the luxury watch brand Rolex targets high-income people who value prestige and quality, while Nike uses emotional marketing to reach younger audiences and physically active people.

3. Communication plan

An effective marketing strategy must take into account a variety of communication channels, such as social media, email marketing, or search engine advertising (SEM). Statistics show that omnichannel campaigns increase customer retention by an average of 89% compared to activities conducted in a single channel.

4. SEO Strategy

One of the most important elements of modern strategies is search engine optimization (SEO). With the right positioning, a company's website can be on the first page of Google search results, which according to a HubSpot report can increase organic traffic by up to 300%.

Types of marketing strategies

1. Market penetration strategy

It consists of increasing market share by lowering prices, intensifying promotional activities or better positioning of products. An example is Lidl, which uses an aggressive pricing policy to win customer loyalty in the food sector.

2. Differentiation strategy

This strategy aims to differentiate products or services from the competition by offering unique characteristics. Apple is a leading example, emphasizing innovation, design and ease of use of its products.

3. Concentration strategy

It focuses on the selected market segment. For example, Tesla focuses its activities on customers interested in premium electric vehicles.

4. SEO Strategy

The SEO strategy is to optimize the website for search engines. Thanks to it, companies can achieve better positions in search results, which translates into more traffic and conversions. For example, e-commerce stores like Zalando invest significant resources in SEO to ensure high visibility in search engines for key phrases such as “online fashion” or “sports shoes”.

The process of creating a marketing strategy

Stages of creating a strategy:

1. Situational analysis
   At this stage, companies analyze market data, trends, as well as strengths and weaknesses using SWOT analysis. For example, companies in the technology industry can use Gartner reports to identify opportunities in areas of new technologies.
2. Determination of objectives
   Goals must be concrete, measurable, achievable, realistic and time-bound (SMART concept). Example: “Increase market share by 5% in the next year”.
3. Planning of advertising activities
   Companies should determine which advertising channels will be most effective. In the B2B industry, it can be LinkedIn, while in B2C it can be Instagram and TikTok.
4. Monitoring and optimization
   A marketing strategy is not static — it requires regular evaluation and modification. According to McKinsey research, companies that constantly monitor the results of their marketing activities achieve a 15% higher return on investment (ROI).

Examples of Successful Marketing Campaigns

• Coca-Cola: “Share a Coke”
  Personalizing bottles with consumers' names contributed to sales growth in many markets by more than 7%.
• Nike: “Just Do It”
  A strategy based on storytelling and motivation inspires consumers and strengthens brand loyalty.
• IKEA: “Where Life Happens” Campaign
  Its focus on the everyday lives of customers and the excitement of home furnishing has made IKEA one of the most recognizable furniture brands in the world.