3rd assignment:

1. 6 stages of the Customer life cycle

The 6 Stages of the Customer Lifecycle

Awareness, Engagement, Purchase, Retention/Loyalty, Growth, and Advocacy.

Whenever you communicate with your audience, it’s important to keep their buyer journey and the
customer lifecycle — from awareness to advocacy — in mind.

Understanding where each individual is in their unique buyer’s journey allows you to have relevant
conversations with them.

Your buyers have a goal — to fill a need or solve a problem they have.

To help, you need a clear understanding of the different stages of the customer lifecycle, where each
buyer is in their unique journey, a call-to-action in your marketing (to facilitate the buyer’s movement
toward the next conversion — whether that’s sharing content, making a purchase, or recommending
you to a friend), and a way to tie each of your marketing activities to business outcomes.

Each buyer’s unique journey is fluid and can traverse between these stages, both forward and backward.

Let’s examine how these stages shape your social media marketing goals:

Awareness

Buyers in this phase are at the beginning of the customer lifecycle.

This is where good branding, a high ranking on search engines, and a strong social media presence are
useful.

Your goal in this phase is to drive brand awareness and capture audience interest, reaching them on the
right channels with relevant, personalized messages.

For your social media marketing, this means offering plenty of early-stage messages and having a
thorough understanding of the social media platforms where your buyers engage on, so you can always
reach them where they are.

Engagement

Buyers in this phase have displayed interest in your company and are a potential customer.

Your goal is to listen to their behaviors and then engage them with targeted messages to nudge them
closer and closer to the next conversion.

This includes creating specific offers and nurture tracks based off of their preferences and behaviors.
Useful content is a great way to maintain a connection with your audience, educate them until they are
ready to buy, avoid the dreaded “unsubscribe” or “unfollow,” and, ultimately, build a lasting relationship
with them.

For social media marketing, this means incorporating mid-stage messages into your social media
editorial mix and using paid advertising to target specific audiences with content and offers that will
push them forward to make a purchase.

PURCHASE

In this stage, your buyers are ready to purchase from you, so your job is to make the process convenient
for them.

Monitor your purchase process to ensure an easy transaction for your new customers.

If other teams are involved, such as sales or support, align your communications so that you’re guiding
your buyers through the transaction.

Retention/Loyalty

While converting a buyer into a customer is considered a success for most marketers, creating trusting,
long-term relationships with your customers is one of the most effective ways to increase revenue —
ensuring that you get the most value out of your customers, and they get the most value out of your
offerings.

For social media, this means understanding that your customers are part of your audience and ensuring
that you continue to provide them value with relevant content and messages.

It also means having a plan and process in place when your customers encounter customer service
issues so you can rapidly respond and deliver on your brand promise over social media.

Research from Lithium Technologies found that 70% of users expect to hear back from the brand they’re
interacting with on Twitter, and 53% want a response within the hour.

And if they don’t hear back, there are major consequences. The majority of respondents said they would
tell their friends and family about the experience and escalate concerns through other forms of
communication. This means that you not only need to have a social media presence, but be actively
listening and engaging as well.

Growth

Marketing doesn’t end after the sale.

Continue to provide value to your customers by identifying crosssell and upsell opportunities.

You can use your marketing automation platform to segment your current customers and share that list
with digital advertising platforms, allowing you to target current customers with new offers.
Advocacy

Engaging with customers throughout their lifecycle isn’t just about individual value — it’s also about the
value of their networks.

Turning your loyal customers into advocates can expand your reach by accessing their networks to
promote your brand.

It’s important that you treat your existing customers well by continuing to engage them with special
perks and incentives.

Your goal is to offer a great customer experience to encourage your customers to become brand
advocates and refer your brand to their friends and family. Like retention and loyalty, it’s important that
you recognize that your advocates and potential advocates are part of your social media audience.

Show them recognition, sometimes in the form of a retweet or through special offers and promotions
that are targeted just for them — that offer value and ask them to refer you.

6 STAGES IN CUSTOMER LIFECYCLE MANAGEMENT

February 6, 2019

 
 2

BLOG, INSIGHTS

6 Stages In Customer Lifecycle Management

Customer lifecycle management is a technique essential for every business for its sustainability. It helps
in efficiently managing your customers throughout their purchase journey.

Customer lifecycle management has become a key differentiator for brands today. Knowing their
customer need better would yield a competitive advantage for brands.

Organizations are continually trying out innovative means to boost customer experience. The main aim
of customer lifecycle management is to deliver exceptional customer experience.

Stages in Customer Lifecycle Management

Let’s explore the Six main stages in Customer Lifecycle Management.

Audience Reach 
Build awareness through relevant marketing content and speak to the right audience.

Reach is the stage where the prospects/visitors interact with their brand for the first time. If you strike a
chord with your prospects right here, there is a high chance of winning them.

Ensure your website, social pages, email campaigns, etc., contains consistent messaging that excite your
target audience.

For instance, Let’s assume Nissan is running a campaign for their 2019 launch of Nissan Patrol.

The marketing efforts by the brand across social media, email, etc., must follow its brand identity and
uniform messaging style. The website/landing page too must reflect the same look and feel.

Doing so would help the customers/prospects engage with the brand more intensively. As they are
already aware of the brand identity, there is always a higher chance of relevant engagement.

Acquire Customers

Understand customer behavior and offer solutions that solve customer requirements. It will increase
conversion.

Market survey, customer feedback, customer satisfaction levels, etc., are few ways to determine
customer’s unmet needs.

Building strategies to solve this requirement will result in high customer acquisition.

Customer survey would provide insights into customer buying habits. It will help in creating benefit-
based communications to the diverse audience base.

As a result, more prospects would find value in the brand’s proposition. They would sign-up for availing
your product/service.

Develop/Nurture Customers 

 Continue the relation with your first-time buyers. It will boost engagement and customer satisfaction.

Nurture your first-time buyers with product updates and recommendations. Engage them to stay with
your brand by providing exclusive promotions and special offers. Trigger them for the next purchase.

Customer profiling is essential before you step into nurturing your existing customers. Understand the
customer journey to identify where are the drop-offs are. Channel your marketing efforts to tap the
gaps.

Customer nurturing involves building a long -term relationship with the customer. Leverage marketing
tools like customer segmentation to identify the right customer profile. Incentive them for every
purchase. Nurture them with the right communication as they progress through their purchase journey.

Customer Connect
Use of analytics comes handy here. Predict the needs of your customer based on their previous
purchase. Send them personalized marketing communication. Conduct regular customer surveys to
understand customer behavior and tailor the services accordingly.

To build a special rapport with your audience, learn everything about them. Gather customer
information through research, social media, email surveys, CRM logs, etc. Interact with the customers in
real-time using automated marketing solutions.

CRM based automated email marketing allows you to store customer information. It can also trigger
communication-based on customer actions like downloading white-paper, signing up for a free service,
etc. It would result in a more personalized and focused communication with your prospects.

Customer Retention

Maintaining a continuous engagement with repeat customers will enhance retention rate. Surveys,
feedbacks, etc., would boost customer engagement as it captures the customer’s voice.

Brands must channel their marketing efforts based on customer feedback. It would build confidence
among the customers.

82% of the companies agree that retention is cheaper than acquisition – Direct Marketing Institute
Customer retention could increase your profit margin too. Increasing customer retention rates by just
5% increase the profits by anything from 25%-95%.

Execution is the key to customer retention. Few of the top customer retention techniques are social
media-based customer service, content marketing, automated email marketing, etc.

Stay tuned for our next blog on customer retention techniques. It helps you in framing a robust
customer retention strategy for your brand.

Brand Advocacy

As you succeed in customer retention, customers will become your brand advocates. They will
recommend your products to friends and family. Brands must try to reach this stage to win the game.

Brand advocacy and customer loyalty is the end goal for customer lifecycle management. But you
cannot say it as the last step in the purchase journey. Customer lifecycle management is a cycle.

Brands that attain the advocacy stage must focus on further brand awareness efforts. They must reach
out to a new audience and grow business value to sustain in the market.

Customer lifecycle management helps in successfully executing your customer engagement efforts. It
helps in structuring your marketing efforts by knowing your customer needs, targeting the right audience
and deliver exceptional customer experience.

There are six steps in that relationship; that is, the customer lifecycle: discovery, evaluation, purchase,
use/experience, bond, and advocacy. Almost any company with a reasonably incentivized sales team can
get through the first three or four parts of the lifecycle. But when they get to bonding, many companies
fall down. Their customers get frustrated, some leave, and some spread unflattering words. When
bonding fails it’s usually because the vendor failed one or more moments of truth.

If we prepare for moments of truth rather than trying to “be ready for anything,” we have a much better
chance of success, because there are a limited number of moments to prepare for. Lets look at these six
phases and do some analysis.

9 KEYS

Just 9 keys to reinventing your business.

get it now!

DISCOVERY
Discovery is an almost entirely customer-driven process that identifies a need and then a solution that
fulfills that need, but understanding moments of truth can give you greater visibility even at this early
stage. Asking what happens before discovery is like asking what happened before the Big Bang – its a
mystery.

In the beginning were happy creatures minding our business, not realizing there is something that we
need to make our personal or business lives complete. Usually this involves finding a small list of
products or vendors that fit the need (at least approximately). Then its off to the evaluation.

EVALUATION

Some evaluation has to happen, whether you intend to buy a solution online or through a conventional
sales process involving retail stores or professional salespeople. You have to weed out what you don’t
want and to settle on what you can afford.

Today customers perform discovery and, depending on the product, do much or most of their
evaluation independent of a store environment or the charms of a salesperson. This gives most vendors
heartburn. In the recent past vendors controlled information flow: If you wanted to know about a
solution you had to talk to the vendor, its representatives, or a store associate.

It took time to set up meetings, go to the meeting, take notes, and have your horizons limited to a
couple of choices to make the decision quick and easy — for the vendor. That was fun, wasn’t it? Today,
with much of discovery and evaluation happening off a vendor’s radar, its understandable that they
might be a little uptight about procedure. No heroic attempts at controlling process are going to change
this, but understanding moments of truth might.

PURCHASE

Everyone loves purchase. Vendors love it because it brings in revenue and puts another unit into the
world. Customers love it because it satisfies a need, to say nothing of the tiny bit of dopamine (a
pleasure hormone), released into the brain of a buyer. (Shopping malls are at their essence, like drug
stores, in my humble opinion.)

Everyone gets a little high on a purchase, and people need to make another purchase soon after the first
to keep the dopamine flowing. For a merchant, a purchase is a milestone. It’s the point at which most
vendors begin to earn their keep.

USE EXPERIENCE
The bliss of purchase is followed by the joy of use and knowing that you now have a solution to that
problem that surfaced the last time you were happy. The first-use experience is a tricky time. It often
involves a learning curve for the customer. Smart vendors learned long ago to do everything they could
to provide customers a positive first experience.

They built customer service centers and hotlines, and many also built websites and other online aids to
new customers on board and over the first-use hump as quickly and effortlessly as possible. Most
customers quickly wean themselves from vendor support and become happily engaged with their
products. They may even brag to others about the great deal they got on a swell purchase.

BONDING

Happily engaged customers bond with their products and then their vendors. This is important: A
bonded customer is more likely to contribute to a positive Net Promoter Score for the vendor, product,
or even the brand. If vendors miss this bonding step, it can lead to a big-time failure.

While bonding might be listed as a phase in the life cycle, this can be deceiving because customers don’t
bond all at once. Bonding is the accumulation of positive experiences that can come either directly with
experience of the product or service, or from the satisfaction of having a problem taken care of
promptly for instance. So failure to bond goes back farther in the cascade to the many things that
customers expect in their moments of truth that a vendor may have failed to deliver. And, every
unbonded customer is unbonded for different reasons.

Failing to bond is a break in a cascade that too often results in the wheels falling off the advocacy
wagon.

ADVOCACY

Happy customers are all alike: They got as far as they did unscathed sometimes by luck but other times
through dint of a vendor’s perseverance. So, customers become advocates (to one degree or another).
They’re alike because everything that could go wrong in the discovery, evaluation, purchase, use, and
bonding phases didn’t or because failures were detected and repaired before they caused lasting
damage.

Because it’s a lifecycle, nothing ends when you get to the advocate stage; instead, advocates help
recruit the next wave of new customers through word of mouth, or word of social — better yet, they
buy more.

If you don’t have a large number of customers that go on to become advocates for your company or
brand, you need to go back to each of the lifecycle phases and ask your customers what you can do to
secure their advocacy. Don’t ask your staff members unless they talk frequently and consistently to
customers: Customer-facing feedback is opinion, not engaged-customer user experience, which is what
you want to improve.

Customer Lifecycle
The customer lifecycle refers to the process people go through to learn about, engage with, and buy
from a company. Its stages fall under the processes of attracting, engaging, and delighting customers,
and the specific steps involve awareness, conversion, purchase, activation, renewal, and referral.
1. Awareness

During this first stage, your customers are realizing they have a problem needing solving, and they
become aware of your solution or your brand by doing online research and finding your free resources,
like blog posts, YouTube videos, or on social media.

2. Conversion

At the conversion stage, your customers have learned about your solution and have signed up for free
resources to learn more -- like an ebook, a webinar, or a free trial or free version of your product. At this
stage, lead nurturing with targeted offers relevant to their needs will help push them closer to
purchasing from you.

Here, it's important that you quickly demonstrate value by helping the customer reach key milestones
with your product. Provide helpful onboarding and educational resources to make it easy to adopt your
product.

3. Purchase

At this point, your sales team has done its job, and they've successfully closed a new paying customer.
Now, it's important to keep proving and demonstrating value by providing dedicated onboarding,
providing proactive customer success management, and asking for (and responding to) their customer
feedback.

4. Activation

The goal isn't just to get a customer to purchase your product -- you want them to become weekly or
daily active users, too. Because most SaaS products are sold on a monthly subscription basis, it is easy
for customers to cancel and switch to a competitor if they're unhappy or not seeing utility with your
product. Make sure to provide outreach, education, and resources to prevent common roadblocks that
lead customers to churn.

5. Renewal

After months or even a year of successfully using your product, your customer has to renew to keep
using it. Before these times, it's important to maintain close communication with your customer to
make sure you know if there are any possible objections that could cause customers not to renew. Make
sure your customers are familiar with the benefits of being a member of your loyalty program so they
can be rewarded for being customers.

6. Referral

At this point, not only have your customers renewed their subscription and joined your customer loyalty
program, but they're such happy customers that they're power users who tell their friends and
colleagues about your product. Through word-of-mouth marketing, writing customer reviews, serving as
testimonials and case studies, and becoming affiliates, your happiest customers become your SaaS
product's best sales rep.

Using the Flywheel to Visualize the Customer Lifecycle

Here at HubSpot, we've started using the flywheel -- not the funnel -- to visualize and summarize these
phases of the customer lifecycle. The flywheel model depicts the stages of the customer lifecycle as
flywheel that speeds up and spins faster the more you invest in each stage. Using this methodology, site
visitors, prospects, and customers are all invested in to fuel the flywheel to attract more customers and
retain happy, loyal ones.

So, below are the stages of the customer lifecycle as depicted by the flywheel.

1. Attract

This stage of the customer lifecycle represents the inbound methodology you may already be familiar
with: creating educational content for buyer personas and sharing it on blogs and social media to make
people aware of your brand so they start visiting your site and learning about your product or service.
After reading your content, visitors will be more interested in lead-generation content or tools you
publish behind a form that they have to fill out to access more helpful content.

2. Engage

Once you've started connected with leads, you can nurture them with content offers, free tools,
webinars, and other trainings until they reach a point where they are qualified to talk to your sales
team. They might be using a free tool, or they may have requested a demo, or performed another
behavior that suggests they may be ready to purchase. This makes them more likely to purchase when
they're contacted by the sales team, when they become a customer.

3. Delight

The delight stage is where the flywheel really starts cranking. This stage is all about continuing to delight
your existing customers to improve their satisfaction, increase their loyalty, and build a word-of-mouth
engine that fuels the "Attract" phase and brings in new customers.

By prioritizing reactive customer support and proactive customer success to help customers derive value
from your product or service, they'll continue to subscribe or re-purchase, they'll give you referrals and
positive reviews, and they'll tell friends and colleagues to buy from you, too -- which is one of the most
impactful things prospective buyers consider when deciding between products.
2. Differentiate Customer Relationship Marketing vs Customer
Relation Management
Relationship marketing and customer relationship management (CRM) are closely-related business
concepts. However, most experienced marketing professionals agree that CRM is an evolution of
relationship marketing that enhances key concepts of customer retention.

customer retention basics

Both relationship marketing and CRM are grounded in the long-held belief that customer-retention and
building customer loyalty over time is the key to long-term business success. Each concept relates to
implementation of business rules that attempt to turn one-time business transactions into ongoing
customer relationships.

relationship marketing

Relationship marketing emerged in the 1980s and into the 1990s as businesses moved away from
transaction-centered operations. It centered on the idea of taking new customers and positioning them
into individual customer groups, or market segments, and then marketing to groups based on their place
in the customer life cycle. Key points are customized marketing for consumer groups and interactive
communications.

customer relationship management

Customer relationship management, believed to have been coined in 1999, initially emerged as a
technology-driven business process leveraging database marketing capabilities. While the main
emphasis of CRM is still building and maintaining strong customer relationships, it is a much more
complex and more universally referenced component of general marketing activities for most
companies. CRM attempts to go one step further than relationship marketing by customizing marketing
and business solutions to each individual customer, relying on infinite data storage and retrieval
capabilities.

Relationship Marketing and CRM

Relationship Marketing is being spoken of as one key Business Philosophies of the progressive
Organizations who are Customer Oriented or Customer Centric. Companies have realized that to be
successful on the long term trajectory of successful business, they need to be closer to the market, get
under he skin of the Customer, anticipate his needs and engineer products and services to satisfy the
customer and engage his loyalty.

As competition is increasing, product innovation is definitely one of the key important elements that the
Organizations need to depend upon to steer themselves ahead in the market. Along with the technical
leadership the companies necessarily need to know how to reach out to the Customer.

Engaging the Customer, Understanding the Customer and building relationship has become the need of
the day.

No wonder that every individual today is bombarded with calls, emails, personal visits, mailers and all
sorts of marketing communications from different companies trying to vie for your attention. From the
Credit card Company, bankers to the shopping mall as well as the local restaurant you frequent try to
engage you into a relationship that goes beyond a single transaction.

One of the outcomes of the evolution of Relationship Marketing has been the birth of CRM solutions.
Besides CRM we have also seen the birth of new departments and disciplines in Organizations namely
Customer Service Department as well as Key Account Management. It is very easy for students to
equate RM with CRM and that both are one and the same.

Relationship Management forms part of the vision and business ethics that the Company envisages to
imbibe as its core value system. When an Organization chooses to build its business blocks around
Relationship Management, the Organization is marrying its Profit Making goal with Customer
Relationship to build a synergy by which all the divisions as well as the functions of the Organization
look at their function and business through the RM lens. This helps build a strong customer orientation
and culture of Customer Sensitivity across the Organization at all levels, branches and functions. In any
Organization several of its departments are involved with the external customers. Starting with
Marketing, Sales, Distribution to After Sales Service, Quality as well as Finance Departments are involved
with Customers and their orientation towards the Customer interaction is fashioned by the RM outlook
of the Organization.

CRM on the other hand can best be described as an enabler of RM in any Organization. CRM involves
process including software and hardware components that automates and helps manage customer
engagement. While RM works at a strategy level, CRM helps implement the Strategy. The success of
CRM as a concept is widely seen due to the aggressive marketing of CRM solutions by the IT companies
who have developed the CRM packages. This has helped the Multi National Organizations to implement
standardized process of Customer management on large scale across geographies and markets.

Besides Software driven Packages, there are several services and schemes that are available locally that
are tailor made to suit particular industry. In a market place where every company is vying for space in
the minds of the customer what helps the company gain that customer loyalty is the RM outlook that
comes across via the CRM channel.

As a small-business owner, you work hard to get new customers, and once they visit your website or
walk in the door, you should do everything you can to make sure they stay a happy customer and return
to your company in the months ahead.

What a business owner does to build and maintain this relationship between marketing and
management is called 'Relationship marketing', and how a business keeps records of customer
interactions is usually done with a process using customer relationship management software. These
two customer-centric methods are two of the most common marketing strategies used by businesses
owners to help grow their business.

Understanding how to use these methods can help you keep a happy customer, which can help you
increase sales and grow your business. And by implementing both of these concepts, a business owner
can help to establish mutually beneficial relationships with customers, which in turn leads to long-term
repeat business.

Customer Relationship Management Software

Customer relationship management (CRM) software is what companies use to organize customer
records, interactions and loyalty to the company. When you call your favorite pizza place, and they ask
for your phone number? The worker is plugging it into their customer relationship management
software to see your order sales history and how they can serve you better.

CRM software provides marketing, sales and customer service assistance. This data collected includes
information about customers' purchasing history, demographics, details of purchases and returns, and
anything that will help salespeople assist the customer in future interactions. Much of this data must be
entered by the sales team. CRM systems are also mined to identify new sales leads and potential new
product or service areas.

What is Relationship Marketing?

Relationship marketing is a sales approach focusing on building a long-term relationship that benefits
both the customer and the business. Another way to view relationship marketing, according
to Medium.com, is that it's a method that businesses use to turn website visitors into customers, and
lead them through your services and products to keep them as loyal customers.

Some of the techniques businesses use in relationship marketing include:

  providing consistently excellent customer service, 

 getting to know the individual and anticipating their future needs, and 

 offering discounts and special perks through loyalty programs for repeat customers.

Small businesses can also use their daily interactions on the Internet as opportunities to build
relationship marketing ties with its customers, according to Podium.com. This leads to higher rates of
engagement with customers, though inviting them to visit their websites and comment on blogs. This
mutual interactions may also happen frequently on social media sites such as Facebook, Twitter,
Pinterest, YouTube and LinkedIn.

See the Key Differences

In general, relationship marketing is a sales and marketing method, while the CRM concept refers to the
software and processes used to manager the marketing methods. Relationship marketing is
implemented as a strategy and includes activities such as identifying long-term sales and retention goals,
public relations, marketing and advertising campaigns.

The use of customer relationship management includes the operational tasks that support the
relationship marketing strategy. Activities may include gathering data about the customers, then
organizing and analyzing it to create target customer profiles. CRM data is also effective in finding
opportunities to create special offers to reward long-time customers for their loyalty, further building
the relationship.

Using CRM and Relationship Marketing

Relationship marketing seeks to increase sales by building trust and engaging customers. A CRM guide
at SuperOffice.com notes that by using a customer relationship management system effectively, a
salesperson can quickly and consistently deliver what customers are looking for with each and every
interaction, because their preferences and buying history are recorded.

The system benefits the customers, in a way, because they see the business "knows" them. CRM
systems coordinate, automate and deliver online and offline advertising and marketing activities that
help build long-term customer relationships. This is the essence of modern marketing, and it is by using
these methods that companies can create a successful relationship marketing strategy.

The Difference Between Customer Relationship Management Vs Customer Relationship Marketing

Customer relationship management is the process of identifying and understanding customer needs,
then meeting those needs.

On the other hand, customer relationship marketing (CRM) is the process of attracting new customers
by making them aware of your products or services. But, what are the differences?
Here are the key differences between customer relationship management and customer relationship
marketing:

Customer Relationship Management (CRM)

Customer relationship management is the process of identifying and understanding customer needs,
then meeting those needs.

CRM is a process that can help you to make better decisions about the customer. 

It can help you to learn more about your customers, such as their wants, needs, expectations, and
problems. 

With this knowledge, you can develop strategies to meet their needs and help them achieve their goals.

Some of the aims of CRM include:

 Attracting new customers

 Improving existing relationships with customers
 Increasing repeat business by retaining customers
 Reducing customer churn by adapting products and services to customer needs
 Improving the efficiency of sales and service processes by automating routine tasks
 Managing resources more effectively by analyzing data on customers, products, and sales
channels
 Enhancing marketing efforts by segmenting customers according to demographics,
psychographics, and buying behavior
 Improving customer satisfaction by developing a closer relationship with customers
 Improving competitiveness by observing competitors’ actions and anticipating their moves.

Customer Relationship Marketing

Customer relationship marketing is the process of attracting new customers by making them aware of
your products or services. 

It is a subset of marketing that focuses on building relationships with potential customers. So, they will
buy from you instead of from your competitors.

Also known as inbound marketing, it includes activities that make potential customers aware of your
products or services without requiring you to actively sell to them. 

The Similarities Between Customer Relationship Management Vs Customer Relationship Marketing

Customer relationship management and customer relationship marketing are similar in the following
aspects:

Both terms are often used interchangeably and can be used to refer to the same thing.
Both CRM and CRM marketing have the same goal of keeping a good relationship with customers.

The Value of Managing Customer Relationships

It’s easy to underestimate the importance of customer relationship management systems.

But, if you want to succeed, you need to understand that they can boost your business performance.

The best way to improve customer relationships is with CRM software.

CRM software can improve sales, reduce costs and increase customer loyalty.

It can help you to improve the profitability of your business by offering more personalized products and
services to the right customers. If you want to achieve better results with your business, you need to
connect with your customers on a personal level. A good customer relationship management solution
can help you do just that.

Conclusion

Customer relationship management and customer relationship marketing are two terms that are often
used interchangeably. But, they refer to two different things. Customer relationship management is a
process that aims to keep your customers happy by meeting their needs. On the other hand, customer
relationship marketing is the process of attracting new customers by making them aware of your
products or services. However, both CRM and CRM marketing have the same goal of keeping a good
relationship with customers.

3. 4 benefits of Customer Relationship Marketing

What is Relationship Marketing

Relationship marketing is a form of marketing that centers on building long-term relationships with
customers. It emphasizes customer retention and satisfaction rather than simply acquiring new
customers. In this sense, it is the flip side of transactional marketing.

Building strong customer relationships requires excellent customer service, a deep understanding of
customer needs, and a sense of trust and loyalty. By doing so, businesses can create repeat customers
who are more likely to recommend the company to others. Relationship marketing is a powerful tool for
ensuring long-term success in today’s competitive marketplace.

Relationship marketing has several benefits that make it well worth the effort.

We will discuss the significant benefits that your B2B company can do well out of.

The 10 Benefits of Relationship Marketing in Your B2B Business

Let’s unpack each of the ten benefits a bit further.

1. Establish trust and loyalty with customers

Trust is the foundation of all thriving business relationships. It is the belief that your partner will act in
your best interest, even when it is not in their self-interest. Loyalty is a strong commitment to
maintaining that relationship, even in the face of difficulties or temptations.

For a business to succeed, it must cultivate trust and loyalty among its customers. Trust is essential for
building customer relationships, as it creates a sense of safety and security. Meanwhile, loyalty ensures
those relationships are maintained over the long term, even in tough times. Together, trust and loyalty
are the cornerstones of a successful customer relationship.

2. Improve customer retention rates

Customer retention is a critical metric for businesses. It measures how well a company keeps its
customers over time and is a key indicator of customer satisfaction. There are several reasons customers
may leave a company, including poor customer service, inferior product quality, or simply because
someone offered a better deal elsewhere. The customer relationship marketing strategy aims to help
businesses retain their customers by building strong relationships that keep them returning.

When clients feel valued and appreciated, they will stick around. They know they can count on the
company to meet their needs and provide excellent service. A good retention rate is essential for any
business that wants to maintain a steady stream of revenue.

3. Increase word-of-mouth marketing

Excellent customer service creates a positive brand image. With that, businesses can encourage
customers to stick around and continue doing business with them. It can lead to increased word-of-
mouth marketing, as satisfied customers are likelier to tell others about their good experiences.

Furthermore, repeat customers are often more valuable than new ones, as they tend to spend more
money and are less price-sensitive. Therefore, investing in relationship marketing campaigns can be a
great way to boost word-of-mouth marketing and drive long-term growth.

4. Gain a competitive advantage

A successful relationship marketing strategy can give companies a competitive advantage by

differentiating them from their rivals. Customers with a strong relationship with a company are less
likely to switch to a competitor, even if they offer lower prices or souped-up deals.

Companies that focus on customer relationships are more trustworthy and reliable. It can attract new
customers looking for a business they can rely on. A strong relationship with customers can be the key
to success in today’s competitive marketplace.

5. Enhance customer lifetime value

Customer lifetime value (CLV) is a metric that measures the total value a customer brings to a company
throughout their relationship. CLV regards not only the revenue from initial purchases but also any
repeat business and referrals generated by the customer. It offer a more holistic view of customer worth
than traditional measures such as single purchase value or annual spending. You can also use it to
inform marketing and retention strategies to maximize long-term profitability.

Relationship marketing can enhance CLV by encouraging customers to buy more, buy more often, and
refer others to the company. When CLV is high, businesses can afford to invest more in acquisition and
retention efforts. It forges a virtuous cycle that leads to even higher LTV over time.

6. Improve customer satisfaction levels

In a highly competitive marketplace, customers have more choices than ever before and are
consequently more demanding. They expect businesses to provide a high service level and resolve
problems quickly and efficiently. As a result, achieving customer satisfaction can be a challenge for even
the most experienced businesses.

A recent study by the National Customer Service Association found that relationship marketing is one of
the most efficient methods of boosting customer satisfaction. The study surveyed over 1,000 businesses
and found that those who had implemented relationship marketing strategies reported significantly
higher levels of customer satisfaction than those who had not.

7. Boost brand awareness and equity

Brand awareness is the extent to which your customers know your brand. It is often measured by the
percentage of potential customers who recognize the brand.

Brand equity is the value of a brand based on customer perceptions and associations. Strong brand
equity can help a company charge higher prices, as customers are willing to pay more for a brand they
know and trust.

Relationship marketing can help boost brand awareness and equity by creating positive associations
with the brand. Customers who have a positive experience with a company are more likely to remember
the brand and recommend it to others.

8. Reduce marketing costs

Marketing costs are the expenses associated with promoting and selling a product or service. These
costs can vary widely, depending on the marketing mix used. Common marketing costs include
advertising, public relations, market research, and product development. Companies also often incur
high costs for promotion.

With relationship marketing, businesses can reduce costs by focusing on existing customers instead
of customer acquisition which is way more costly. We’ve already mentioned how satisfied customers are
more likely to make referrals, which can result in new customers at a fraction of the cost of traditional
acquisition methods.

9. Generate higher quality leads

The quality of a lead is determined by how likely it is to convert into sales. Low-quality leads are less
likely to result in sales, while high-quality leads are more likely to become customers.

One of the major advantages of relationship marketing is that it can help generate higher-quality leads.
By building relationships with potential customers and developing a rapport, businesses are more likely
to receive detailed and accurate information about their needs. Satisfied customers are also willing to
provide contact information for friends and family members who may be interested in the product or
service. It increases the probability of generating higher quality leads more inclined to convert into sales.

10. Increase sales and revenue

Ultimately, the goal of any business endeavor is to increase sales and revenue. When done right,
relationship marketing pays for itself many times over. Focusing on customer retention and brand
loyalty can increase sales, as customers are more likely to buy from businesses they know and trust.
Also, satisfied customers are motivated to make referrals, resulting in new customers and even more
ROI.

After knowing all these perks, who wouldn’t want to implement this marketing strategy in their
business?

The following section will answer the question, “how do I get all these for my own business?”

7 Steps to Implement a Relationship Marketing Strategy

Here are seven practicable ways that you can follow to implement your strategy.

1. Implement a customer loyalty program.

A customer loyalty program is a system designed to encourage customers to continue doing business

with a company. There are different ways to implement a customer loyalty program, but most programs
share some standard features like offering incentives that customers value. These can include points
that they can redeem for discounts or free merchandise, exclusive access to sales or special events, and
personalized service.

The key is to design a program that meets the needs of your particular business and customer base. To
be effective, a customer loyalty program must be well-designed and properly promoted; businesses
should also tailor it to the needs of the company’s target audience.

2. Personalize your marketing messages.

Your marketing message is the foundation of your marketing communications. It should be clear,
concise, and engaging. But most importantly, it should be personal. Your audience should feel like you’re
communicating directly to them. When your message is personalized, it will resonate with your
audience and encourage them to take action. Personalization means tailoring your content and offering
to your audience’s specific needs and interests.

3. Create valuable content that people will want to share.

Valuable content is:

 accurate and well-researched

 be well-written and easy to understand

 timely and relevant

 new and unique

It’s not enough to simply produce material that is informative or entertaining. To be truly successful, you
need to create content that people will want to share with their friends and followers. After all, viral
content is the Holy Grail of online marketing.

4. Foster a sense of community among your customers.

There are many ways to foster a sense of community among your customers. Perhaps the most
important thing is to create a safe and welcoming environment where people feel like they can be
themselves and connect with others.

You can do this by establishing ground rules that everyone agrees to, such as being respectful and
supporting one another. You can also encourage community building by organizing group activities and
events, such as charity drives or potlucks. Additionally, it’s important to provide opportunities for
customers to give feedback and share their ideas.

5. Respond to customer feedback quickly and effectively.

One of the best practices of relationship marketing is responding quickly and effectively to customer
feedback. Whether it’s a positive review or a negative complaint, businesses must show that they are
listening to their customers and taking action to improve their service.

Customers who feel heard and valued are likelier to remain loyal and continue doing business with a
company. On the other hand, those who feel ignored or dismissed are more likely to take their business
elsewhere. Therefore, businesses must have a system to respond promptly to customer feedback. It
shows their commitment to providing the best possible experience for their customers.

6. Make it easy for customers to stay connected with your brand.

Customer interactions are imperative to maintaining a healthy relationship. There are several means to
stay connected with your customers. Social media platforms like Facebook, Twitter, and Instagram are
great for keeping people updated on your latest news and offers. You can also send emails or text
messages to keep people in the loop.

However, avoid bombarding people with too much information; otherwise, they’ll tune you out. Instead,
focus on sending quality content that people need.

7. Choose the right channels to reach your customers.

When reaching B2B customers, businesses need to be strategic about their channels. They should focus
on using channels their target customers use. It may include online directories, trade publications, and
industry websites.

It’s also important to ensure that your website is optimized for search engines, as this will help potential
customers find you when doing research online. By carefully choosing the right channels, businesses can
ensure that they are reaching the right people with their marketing messages.

How to Measure the Progress of Your Relationship Marketing Efforts

There are many ways to assess your success in relationship marketing, but we will discuss the top three.

1. Customer satisfaction surveys

Customer surveys help you to understand how your customers feel about your products or services, and
they can also identify areas where you can improve your business. They can also help you track changes
in customer satisfaction over time, which can help you adjust your relationship marketing strategy.

2. Net promoter score

Net promoter score (NPS) is a measure of customer loyalty. You calculate by asking customers how likely
they are to recommend your products or services to their friends or family. Customers who answer 9 or
10 are categorized promoters, 7 or 8 are neutral, and those who answer 0 to 6 are detractors.

3. Customer churn rate

Customer churn rate measures how many customers stop doing business with you over a certain period.
It is an important metric to track as it helps you identify issues with your products or services and areas
where you need to improve your customer service.

A high churn rate indicates that your customers are unhappy with your company and will likely take
their business elsewhere. Therefore, it’s important to keep track of your churn rate and work to reduce
it.

There are many other ways to measure the success of your relationship marketing efforts, but these are
three of the most important metrics to track. Regularly assessing your performance ensures that you are
making the most of your relationship marketing strategy and achieving your desired results.

Conclusion
Combined with other marketing efforts, relationship marketing can be a powerful tool for driving growth
and success. Forging and sustaining strong relationships with your customers can create a loyal
customer base that will continue to partner with you for years to come.

FAQs

Here are other questions about relationship marketing that we have not discussed in the article.

What are the four elements of relationship marketing?

The four basic elements of relationship marketing are communication, customization, cooperation, and
contact frequency. 
1. Communication refers to how you communicate with your customers or clients. Are you responsive to
their inquiries? Do you proactively reach out to them with updates or offers? Good communication is
key to building and maintaining strong relationships. 
2. Customization involves tailoring your interactions and offerings to the individual customer. Invest
some time in learning their preferences; it will pay off in the long run! 
3. Cooperation: Strong relationships are built on a foundation of cooperation. Whether working
together to solve a problem or simply being available when they need you, cooperating with your
customers shows that you are invested in the relationship. 
4. Contact frequency: How often do you reach out to your customers? Are you present in their lives
daily, or only when they need something from you? The frequency of your contact will affect the
strength of your relationship. 

Why is relationship marketing important?

Relationship marketing is important because it helps businesses create and maintain loyal customers.
When customers feel connected to a company, they’re more likely to return again and again, buy more
products, and recommend the company to others.

What is customer relationship management?

Customer relationship management (CRM) is a business strategy focusing on building and maintaining
strong customer relationships. CRM involves using technology to manage customer data, track customer
interactions, and automate sales and marketing processes. When used effectively, CRM can help
businesses improve their communication with customers, better understand their needs, and increase
sales and profits.

A Definition of Customer Relationship Marketing

Customer relationship marketing (CRM) is a technique based on client relationships and customer
loyalty. Using customer data and feedback, companies utilizing this marketing strategy develop long-
term relationships with customers and develop laser-focused brand awareness. Customer relationship
marketing varies greatly from the traditional transactional marketing approach that focuses on
increasing individual sale numbers.
Companies that prioritize customer relationships, on the other hand, strive to create strong customer
connections, which may be emotional, to their brand to promote customer loyalty and increase
customer lifetime value. They benefit from word-of-mouth promotion and develop brand ambassadors.

Customer Relationship Marketing Strategies

Customer relationship marketing builds upon customer experience management and puts improving
customer interactions to foster brand loyalty at the core of marketing activities and efforts. There
are several ways that companies go about customer relationship marketing, including providing
excellent customer service at all times, getting to know individual customers to anticipate their needs,
and offering loyalty program perks and rewards for repeat customers.

Companies typically turn to the internet and social media to pursue customer relationship marketing
initiatives, which means that small businesses also can benefit from it by inviting customers to visit their
websites, read and comment on blog posts, and communicate via social media platforms like Twitter
and Instagram.

The goal of customer relationship marketing is to build trust with and engage customers to build brand
loyalty and reduce customer churn. One of the best strategies for building relationships with customers
is focusing on emotion. Brands who excel in CRM use nostalgia in their campaigns because it is one of
the most powerful connections consumers can have to a brand, according to BDA CEO Jay Deutsch.
That’s why branded merchandising is becoming part of some of the most successful marketing
campaigns.

Other strategies in customer relationship marketing include:

 Show customers you value them with every interaction – Consider spontaneously
recognizing them and delighting them in unexpected ways
 Listen to customers and respond – Use social media monitoring tools to reply to comments
and complaints and address customers’ concerns
 Give customers free information – Identify topics and interests customers have and then
create content to address them and give customers free access to it, such as informational
videos on products they recently purchased or newsletters that highlight individual
customers and share their stories
 Expanded loyalty rewards – Any company can offer perks and rewards, but you need to
expand beyond the typical reward program and give people stuff they love or recognize
them in unexpected ways
 Communicate frequently – A relationship is nothing without communication, so make sure
you communicate with customers often via social media, email, messages, etc. (just be sure
the communication provides value to customers and does not become intrusive or too
frequent). 

Benefits of Customer Relationship Marketing

When companies implement customer relationship marketing, they make good use of their customer
data and identify customers that will be of more value to the company itself. With customer relationship
marketing campaigns, companies save time and money by focusing on customers that will not be as
costly in terms of maintaining relationships with them; they also make
better decisions about which customers have underdeveloped
potential.

Another advantage of utilizing customer relationship marketing is that

it increases customer satisfaction and communication levels.
Customers who have strong relationships with companies interact with
them more frequently, which makes it easier to learn more
about customers via customer data platforms. These companies also
save money by building relationships with existing customers rather
than spending to attract new customers.

Other benefits of using a customer relationship marketing strategy include:

 Delivering a consistent customer experience – By becoming customer-centric and focusing

on customer relationships, companies align their touchpoints and work across the
organization to meet customer needs, improve satisfaction, and deliver an exceptional
experience
 Gathering customer feedback – Building strong relationships with customers requires
communication, and companies put more stock in gathering feedback and analyzing it to
make better business decisions to build stronger relationships
 Improving customer profitability – Customers that are loyal to brands spend more with
them; in fact, consumers are now putting customer experience ahead of cost when making
purchasing decisions
 Creating customer advocates – The happier your customers are, the better the chances they
will spread the word about you to others; when you build a strong relationship with them
and deliver a consistent experience, they have better reviews to share
4. 5 P's of product Marketing mix

The Marketing Mix 5 Ps is a significant tool to help you select and create the right marketing strategies
for your business. It forces you to think about which areas of your business you can change or improve
on, to help you meet the needs of your target market, add value and differentiate your product or
service from your competitors.  The 5 areas you need to make decisions about are:  PRODUCT, PRICE,
PROMOTION, PLACE AND PEOPLE.

Although the 5 Ps are somewhat controllable, they are always subject to your internal and external
marketing environments. Read on to find out more about each of the Ps.
PRODUCT/SERVICE

The product or service element refers to what you are offering as a whole to your customers. Product
decisions include functionality, branding, packaging, service, quality, appearance and warranty terms.

When thinking about your product consider the key features, benefits, and the needs and wants of
customers. For example, if you are a food manufacturer you may decide to add some new flavours to
extend your range.

PRICE

The price element refers to the way you set prices for your products or services. It should include all the
parts that make up your overall cost, including the advertised price, any discounts, sales, credit terms or
other payment arrangements.

Your pricing will also depend on your businesses position in the market, for example, if you advertise
your business as a budget car rental service, your pricing should reflect that choice. Or if you are a
premium food product then your price should be at a premium to lesser quality products to reflect the
better packaging and quality of ingredients you offer.

PROMOTION

Promotion refers to all the activities and methods you use to promote your products/services to your
target market. It includes sales, public relations, direct marketing, advertising, sponsorship and social
media.

Since promotion costs can be substantial, it is sensible to conduct a return on investment analysis (ROI)
when making promotion decisions. Firstly, you need to establish who your target market is, what media
do they consume, what the cost of that media will be, how many more sales you need to cover your
investment and how you will gather the information that shows how the promotion has worked.

PLACE

The place element refers to how you get your product or service to your customers at the right time, at
the right place, and in the right quantity. It includes distribution channels (e.g. via a shopfront, online or
a distributor), location, logistics, service levels and market coverage.

For example, if you’re thinking of expanding your business online, you’ll need to think about how your
customers use the internet, if they would feel comfortable purchasing your goods online and if they
would be willing to pay shipping costs for your products.

If you’re looking to grow your business, you might consider changing or expanding the way you sell your
products and services. For example, if you’re a homewares distributor, you might think about setting up
a new store in a different location or offering franchises.

PEOPLE
The people element refers to your customers, yourself and your staff. You need to consider both your
staff and customers if you’re thinking of growing your business. It includes understanding what your
customers’ needs and wants are, setting targets and measuring your customer service levels so that you
attract and keep loyal customers.

You’ll also need to consider staff training so they have the skills to offer the best experience and meet
customer expectations.

5 P’s of Marketing

Product, Price, Promotion, Place and People

Written by CFI Team

Updated November 26, 2022

What are the 5 P’s of Marketing?

The 5 P’s of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements
used to position a business strategically. The 5 P’s of Marketing, also known as the marketing mix, are
variables that managers and owners control to satisfy customers in their target market, add value to
their business, and help differentiate their business from competitors.

Product

Product refers to the products and services offered by a business. Product decisions include function,
packaging, appearance, warranty, quality, etc.
Customers need to understand the features, advantages, and benefits that can be enjoyed by buying
goods or services. When thinking about a product, consider the key features, benefits, and the needs
and wants of customers.

Price

Price refers to the pricing strategy for products and services and how it will affect customers. Pricing
decisions do not include just the selling price, but also discounts, payment arrangements, credit terms,
and any price-matching services offered.

When determining a pricing strategy, it is important to consider the business’s position in the current
marketplace. For example, if the business is advertised as a high-quality provider of mechanical
equipment, the product pricing should reflect that.

Promotion

Promotion refers to the activities that make the business more known to consumers. It includes items
such as sponsorships, advertising, and public relations activities.

Since promotion costs can be substantial, it is essential to conduct a break-even analysis when making
promotion decisions. It is important to understand the value of a customer and whether it is worth
conducting promotions to acquire them.

Place

Place refers to where the product/service of the business is seen, made, sold, or distributed. In essence,
place decisions are associated with distribution channels and ways of getting the product to targeted
key customers.

It is important to consider how accessible the product or service is and ensure that customers can easily
find you. The product or service must be available to customers at the right time, at the right place, and
in the right quantity.

For example, a business may want to provide their products over an e-commerce site, at a retail store,
or through a third-party distributor.

People

People refer to the staff, salespeople, and those who work for the business. People decisions are usually
centered around customer service – how do you want your employees to be perceived by customers?

Example of the 5 P’s of Marketing

John is considering operating a jet ski shop catering to travelers and tourists. To position his business,
John may consult the 5 Ps of marketing in the following manner:
  Product: By-the-hour jet ski rentals for people who are in the city for a short duration of
time. A limited liability form to be signed by people who participate in the service and a
monetary deposit in case of damages.
 Price: Cheap jet ski trips to cater to the budget constraints of travelers and tourists. A 10%
discount on jet ski trips when referred by a travel agency.
 Promotions: A Facebook page, Instagram page, and a Twitter handle to promote the
business. Also, paid promotions on travel agency websites.
 Place: An easy to access location from existing transit systems.
 People: Friendly staff members who love meeting travelers and offer exceptional customer
service.

Breaking Down the 5 P’s of Marketing

So, we have Product, Place, Price, Promotion, and People. Some experts also talk
about Process and Physical evidence and transform the mix into the 7 Ps. Let’s break
them down one by one.

Product

The product is something that you have that serves the needs of the customers. It is
tangible (a physical item) or intangible (like digital items or services). Now, we all know
that the product is what you are selling and what you have to market. So, the question
is, how does it connect to the marketing strategy? You have to assess your product and
connect the dots to the needs of customers. Demand can’t be created for a desire that
does not exist. If the customer is not aware of what your product does, they will
definitely have a need or a desire that your product solves and that you need to
connect.

Marketing may also demand a modification of the product or its positioning, a pivot if
you will. Or simply an addition of features based on user demand. For example, many
Slack users often go to Meet or Zoom for their calls. Slack now provides this in its own
app.

This brings more things to the scope of marketing, such as distribution of the product,
the context where customers of this product directly think of the product, habits, and
how frequently they need to come to your product. We think that’s why the ‘People’ and
‘Positioning’ part is as important as the ‘Product’ in this day and age.
Pricing

Pricing is one of the key determiners of a customer’s decision. Especially if you have
accessible competitors, a customer will often vet all options before choosing one. So, a
marketing strategy needs you to correctly price your product while not only considering
what your customers can pay but also considering what your competitors are charging.

If we look at the determiners for setting a pricing model, they are:

 Internal costs – Costs of manufacturing the product or running the business.

 Competitors – What competitors are charging for the same product
 Accessibility – How accessible are products of competitors?
 Buying power – How much buying power do your customer profile have to pay for your
product?
 Market condition – Is the market condition favorable to charge a particular price?
 Model – How are you going to charge for the product? (Lumpsum, Monthly, Annual,
etc.)
 Quality – Does the quality you provide match the price you want to charge?

There are also some psychological elements to pricing, and going into them will need a
separate article. To provide a quick example, many vendors often use the pricing of a
plan to prime users to another plan. For example, if you get 10 packs of chips for $100
and 30 packs of chips for $200, the latter would seem like a greater deal even if you
don’t need 30. There are many more strategies that you can read up on. We
recommend that you start by reading on Porter’s five force analysis for analyzing the
competitive landscape of an industry.

Place/Placement

Both place and placement are used to talk about this second P. It includes both location
and placement. Let’s start with location. Where does your target audience reside? If you
are targeting a particular geographic area, you are dependent on several things: the
population of the area, the buying power of the area, the spending patterns of people in
the area. Or, if you are in B2B, you could replace it with the type of company. A
prospect in a third-world country will not have the same buying power as the prospect in
a first-world country. With digital marketing, the lines have now gotten thinner as you go
global, but the geographic properties still need to be kept in mind while marketing.
Coming to placement, where you put your ads matters greatly. Are you putting them in
places where your buyer already has intent and searching for something you already
offer? (e.g., Search Ads) Or, are you putting them in a place where they are not actively
looking for something? (e.g., Display ads)

Which platforms you are placing them at only greatly affects the outcome of your
marketing strategy. Different websites, platforms, and communities have different types
of buyers, and you need to keep that in mind.

Promotion

Placement and promotion go side by side, and there are some overlaps with what we
discussed already. Promotion is how you promote your product.

Do you want to run ad campaigns? Do you want to send outreach emails? Do you want
to promote your products in certain groups? Do you want to promote certain websites?

The promotion covers every strategy you use to sell your product, and it is what
connects to revenue. Inbound marketing, direct sales, press launches, everything
comes in the promotion.

Quick plug, if you want to track how all of your promotions are doing and connect

marketing operations with sales, Salespanel can help you.   

People

Big brain moment here, people. The amendment to the list that kind of seems obvious
but needs to be pointed out anyways. People include both your staff and your
customers, and they make your business.

Every marketing strategy needs to consider people – their behavior, their fears,
psychosocial elements, and everything that connects a person to the business.

Now, coming to staff, they are your colleagues and employees. Who you hire, what
motivates them, how they work, and the overall atmosphere in your company will shape
how you grow.
We also cannot forget the importance of positioning as it exists in your audience’s mind.
To quote Wikipedia again, “Positioning refers to the place that a brand occupies in the
customers’ minds and how it is distinguished from the products of the competitors and
different from the concept of brand awareness.”

If you ask your audience to name three popular soap brands, you can guess what they
would say. But if you ask the same audience what the top herbal soap brands are then
chances are that you will hear different names. That’s positioning!

When it comes to framing your position in your audience’s mind, it will take strategic
planning, authentic messaging, and packaging of your product. What is the differentiator
that you want to highlight that should be the prime driver of purchasing criteria and
retention of existing customers? Are you positioning in a category that is growing?

Honorable Mentions

Including the other two to make 7 Ps.

Process – The process constitutes the delivery of your products and services to your
customers. How do you deliver them?

Physical Evidence – What evidence do customers have of your product? Can it be

looked at? If digital, do you have a free trial? Do you have testimonials or reviews?
What are people saying about your product on review sites or Capterra? Do you have
customers to put on display?
 

Final Thoughts

The 5 Ps are reference points for you to consider when orchestrating your marketing
strategy. It is something that you can get back to at any point when you are lost or when
you need to think about the box. In that way, it serves both professional marketers and
new marketers or business owners to frame their strategy. The marketing mix keeps
evolving as the world changes, and more P’s can be standardized in the future.

#1. Product in Marketing Mix

Product refers to the products and services offered by a business.

Product decisions include function, packaging, appearance, warranty or guarantee for quality assurance
(not all businesses provide these), etcetera.

When thinking about a product consider what customers need in terms of features/benefits such as key
features/advantages.

Also, like warranties for peace of mind with regards to quality!

A product can have many features, but the most important thing to consider is how it will meet your
customer’s needs.

Think about what they want and need when you decide on a specific item for sale in your store or online
shop.

Product decisions are a central part of running a successful business, and it’s important to find what
differentiates you from the competition.

When thinking about your product, consider key features like a function that make it competitive in the
marketplace.
 As an example: if your idea is for snow boots with heaters on them (yes this exists), then obviously they
need to work well as both winter shoes AND booties!

Last, but not least, quality products are essential to any successful business model. It should be taken
seriously at all levels within your company or organization.

You may conduct surveys with customers in order to determine what they want from a certain product
before you even enter the manufacturing stages for this particular item!

It is possible that some features will need tweaking based on feedback so it pays off if you incorporate
customer service into every aspect as well when trying to meet their needs – no matter how small those
adjustments might seem like initially!

#2. Price in Marketing Mix

Pricing decisions are one of the most important parts of the business.

It can help make or break a company if pricing is not done correctly.

The price of a product or service is an important factor to consider when determining how to sell it.
It refers to all aspects of how much something costs, including discounts, payment arrangements like
credit terms, and price-matching services offered by businesses themselves (i.e., offering cheaper prices
than competitors).

Pricing strategies should be carefully planned out to ensure profit and customer satisfaction.

When deciding on the pricing strategy, business owners should take into account their position in the
current marketplace.

Also imagining whether they want discounts for certain customers.

Payment arrangements with credit terms are offered as well as any other products that are being sold at
different prices than usual (such as items during sales).

The selling price isn’t even included when considering the full cost associated with any product or
service because it’s just part of what customers must pay for their purchase.

There are also taxes on top that they have no control over!

Considering these factors before establishing an agreed-upon set rate will allow you as a manager.

#3. Promotion in Marketing Mix

Promotion is important to any business as it’s also the key to getting your company’s name out there.

It includes items such as sponsorships, advertising, and public relations activities that are designed for
the purpose of giving customers more information on your products or services so they will know where
to find them in stores.

Though promotion costs are often high so it might not make sense unless you conduct a break-even
analysis first.

Nevertheless, it’s a necessary expense because businesses want their consumers to feel confident about
buying from them again with good reason!

 Understanding what each customer brings in terms of revenue helps with understanding if promotional
efforts will pay off or not for the business.

Before you launch an expensive promotional campaign make sure you do some research into what kind
of return investment these campaigns promise.

After all, not every promotion pays off when looking at cost versus reward payoff!

#4. Place in Marketing Mix

In the modern age, it is important to consider how accessible your product or service will be.

Your product or service should always be available to customers.

Examining how accessible it is and ensuring that they can find you will help them make a purchase with
ease so that your business thrives

The more convenient you make that process for customers and potential buyers of your
products/services, the better chance they have at purchasing from you in a timely manner.

You know the business world is always changing, but have you ever wondered why?

Companies are constantly making choices based on what they think will best help their customers.

One of these decisions involves “place”.

What does “place” mean to your company and how do you go about determining its location?

Place refers to where a product or service can be seen, made, sold, or distributed.

In essence, this decision should take into account distribution channels as well because that helps
determine accessibility for key customers!

#5. The last P in Marketing Mix -People

How do you want your employees to be perceived by customers?

Businesses need to create a positive environment and engage in customer service practices that are
friendly, open-minded, respectful.

A business’s people decisions should center around this principle because it helps the company
maximizes its potentials while also creating an atmosphere where everyone can thrive without feeling
weighed down with negativity or judgmental attitudes from other staff members.

Your employees are your business, and they deserve to be treated as such.

If someone has a bad experience with one of your staff members, it reflects poorly on you as their
employer; so make sure that the people in charge have good customer service skills!

People refer to those who work for the company – including salespeople and managers amongst others.

But how do you want them to be perceived?

This is where customers come into play because if something goes wrong while shopping at our store,
this affects us too!

How does the marketing mix work?

Marketing is a crucial part of any company’s success.

By marketing their products, companies are able to increase sales revenue and achieve market
dominance in the industry they specialize in.

There are many ways that this can be accomplished:

Advertising campaigns on television commercials for example;

By sponsoring events at schools or churches and giving out samples during holidays such as Halloween;

Through an event like Oktoberfest where people enjoy German delicacies while drinking beer from one
place table host brewery after another until each has been thoroughly sampled

It all starts with promotion!

Without it, there would be no need for distribution or point-of-sale activities because nobody would
know about your product – not even you!

Promotion refers to the underlying goal of getting people interested in your company or brand so they
will purchase their products.

Marketing professionals use a variety of techniques for promoting themselves and their brands such as:

 Advertisement campaigns on TV commercials, radio ads.

 Social media platforms like Twitter

 Word-of-mouth recommendations from friends who have already purchased an item.

 Guerrilla tactics that often include dressing up in costumes to promote awareness about the
business through public displays at places where large numbers of people gather (e.g., sporting
arenas)

 Publicity stunts with high visibility potential but low-cost per capita impact.

 Trade shows provide exhibitors with promotional opportunities via booths staffed by employees
representing companies’ goods.

Conclusion: Marketing Mix

The marketing mix is a well-known term in the business world and one that you will need to know if your
company wants to succeed.

No one knows how to make a better, more appealing product than you know about your own business

As explained above, it contains five elements: product, price, place of distribution (place), promotion or
advertising, and people.
All these factors affect each other. Without proper consideration for all the variables within this system,
it could be detrimental to any future success with customers.

The Five Elements of Marketing Mix

The first element is Product – what are you offering?

Price needs adequate research before putting on an advertisement because consumers must find value
in their purchase after they see how much money they have spent.

A dollar isn’t worth as much when there are so many, right?

The Place should also consider where potential buyers spend time shopping online vs IRL (IRL means “in
real).

Promotion- making sure customers have heard of me in order to come into my store and purchase from
me at any time they wish.,

People – recruiting employees that represent everything we stand for as an organization with integrity.

Thus, the five Ps in the Marketing Mix is a simple yet powerful framework.

It has been used by marketers and businesses alike since it was first introduced by Neil Borden back in
1970.

So, the 5 P’s of the marketing mix are essential and applicable for any business to thrive.

If you want your company to be successful then these elements should always be considered before
coming up with an effective strategy.

Thank You

5. Customer Relationship in marketing strategies

According to Techopedia, customer relationship marketing is “a business process in which client
relationships, customer loyalty, and brand value are built through marketing strategies and activities.”

The takeaway? Relationship marketing is a long-term strategy focused on the customer relationship, not
on a single transaction. It focuses on ensuring customer satisfaction for the long-hual rather than simply
for a quick sale.

Levels of relationship marketing

Relationship marketing can be divided into four stages:

  Establish the initial relationship. This stage is also called “exploratory,” better known as the
first step in the customer acquisition process. It includes initial activities and conversations
to determine if a customer and company are a good fit for each other’s needs. Consider it
the first impression whether that’s on social media or at an event.
 Get to know each other. The “basic” stage takes the customer relationship a step further. A
company attempts to prove to potential customers that they understand their needs,
sharing helpful resources and communicating the value of their product/service perhaps via
an email marketing campaign or other inbound marketing efforts.
 Develop a deeper relationship. A potential customer shouldn’t stay in the “basic” stage too
long. Multiple departments need to become involved in this, the “collaborated” stage, and
work together to nurture the customer relationship.
 Become committed partners. The “interconnected” stage means that your company has
forged a connection with your customer that’s hard to break. Departments are working
together to create a seamless experience. Customers completely trust your company and
are incentivized to stick around for the long-term.

Relationship marketing examples

An excellent example of successful relationship marketing is PrescribeWellness.

According to Human Marketing, the B2B company (which works with thousands of local pharmacies
across the U.S.) created “a separate site showing their solutions to expand their services, reach more
patients, improve adherence and loyalty, and streamline operations.” The site is easy to navigate and
aesthetically pleasing for customers.

The PrescribeWellness website is specially designed to generate new leads as it shows that the company
cares about customer needs, which strengthens the customer relationship and builds an overall better
customer experience.
[Source]

Levels of customer relationship management

On the flip side, customer relationship management is managing potential and current customer
relationships through collecting and analyzing customer data. It’s powered by the customer relationship
management software.

The four stages of customer relationship management are

 Collect data. Insert contact and business information into a CRM.

 Analyze data. Automatically pull into insightful reports about customers.
 Develop customer strategies. Use the data to create things like personalized campaigns.
 Act on strategies. Make the customer’s life better based on what you know about them.

Examples of customer relationship management

Zendesk Sell is an example of a CRM tool. Contact information for potential and current customers is
easily added into the platform. Sell then automatically pulls this information into helpful reports such as
Deal Sources to see which deal sources bring your company the most business.

[Source]
For example, in the chart above, the website is proving to be a reliable deal source. Your sales team
could use this information to work with marketing on further improving lead generation capabilities on
your website. In other words, the info provided by your CRM tool could give you insights to revamp your
site — similar to PrescribeWellness’ customer relationship marketing strategy of overhauling their
website.

Relationship Marketing Strategies

Here are the main elements you need for a relationship marketing campaign:

Prioritizing customer service

We all know customer service can be make or break, with 50 percent of customers saying they would
switch to a competitor after just one bad experience. Excellent customer service is a vital component of
relationship marketing, as it demonstrates that you care about people’s needs rather than just wanting
their money.

Everyone involved in a customer-facing role should be fully trained in best practices. Representatives
must remain polite at all times, even if the customer is being unreasonable. They must know how to
placate angry callers and when to escalate problems to a manager.

Try Affise today! Submit for a free trial and

check out all platform’s functionality by yourself!

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However, these are basic values that customers expect from a business. Relationship marketing takes
things a step further by personalizing the whole experience and by being more proactive. You need an
in-depth picture of your customers, their potential pain points, and the questions they might ask.

You’ll need the right tools to deliver great customer service, such as a CRM that puts customer details at
your fingertips and a call management system to ensure speedy responses to inquiries.

Engagement

In relationship marketing, you’re not just encouraging a customer to buy something. You’re aiming to
promote your brand values and position yourself as a trusted industry leader so customers want to
engage with you on a human level.

You need to make it as convenient as possible for people to get in touch, whether via your website or
social media. Thanks to the huge variety of communication channels available, it’s much easier for
customers to engage with brands, but there’s also plenty of competition.

As well as maintaining a presence on a wide range of channels, the key is to provide content that holds
people’s attention and makes your brand part of their lives. The more they interact with you, the more
you’ll understand their needs, which gives you extra scope for personalization.
Source(neilpatel.com)

This could include sharing stories of how your business supports the local community and inviting
customers to share their own content. You might even encourage super-engaged followers to join your
company’s partner marketing program and promote you on their channels.

As we mentioned, relationship marketing covers all stages of the customer journey, so you should offer
value to both new and existing customers. Think about brand awareness rather than immediate
conversions—they may not be ready to make a purchase right now, but they’ll remember you when
they are.

Social media 

Social media is ideal for relationship marketing, as there’s so much opportunity for interaction. You can
provide regular content with plenty of visuals, show off your expertise, and build an online community
of followers. If you partner with influencers, you’ll reach far more users by piggybacking on their
popularity.

Encourage people to like or share your posts with incentivization, such as free offers and competitions.
User-generated content, such as photos of people using your product, also gets people involved (as well
as making sure you don’t lack for content ideas!)

Another tip is to include social media buttons in all your content marketing and emails, including each
just-checking-in email, to direct people to your pages and make it easier for them to interact. However,
be aware that social media users demand fast responses to any comments or inquiries.
Your social media marketing campaign should be in line with your brand personality and appeal to your
target audience. For example, you might use LinkedIn if you’re targeting professionals or Snapchat if you
want to come across as young and fun.

Source(recommend.pro)

Email marketing

Despite the huge popularity of social media, email is still a great way to engage with customers. It helps
you reach out to them directly, with your message landing right in their inbox instead of appearing
among a heap of other content. (Of course, you can’t guarantee they’ll read it, but email does have a
pretty solid open rate—and an ROI of $42 for every dollar spent.)

From welcome emails to regular newsletters to special birthday offers, email gives you the chance to say
more than you could in a text or social media post. You can share links to your other content, which
recipients can choose to discover at their convenience.

Using automation tools is ideal for email marketing, especially if emails are sent based on behavioral
triggers like cart abandonment. Some software uses smart targeting to segment your audience and send
the right emails to the right people at the right time.

Loyalty programs
Loyalty programs are a great way to make customers feel special. When you reward them for using your
services, they know they’re a valuable part of your business. Reward schemes are also a great way to
encourage engagement (and repeat purchases) for new customers.

You might offer a points scheme where people earn every time they make a purchase and get money off
future transactions. Frequent flyer rewards would be an example of this. Or you could offer a reward
after a certain number of purchases, such as buying five coffees and getting a sixth for free.

Another idea is to reward customers for referrals. When they recommend you to a friend, and that
friend signs up to your newsletter or buys something, the customer gets a gift. You could do this by
giving customers a set of unique codes to pass on to others, so you can track where the referrals came
from.

Source(outcry.io)

Utilize surveys

If you really want to know how your customers feel about the experiences you offer, the best way is to
ask them. Encouraging customer feedback is an important element of relationship marketing, as it lets
them know their opinions matter. You also have to demonstrate you’re prepared to act on this
feedback.

A simple way to manage feedback is to send out customer surveys. These might be CSATs (customer
satisfaction scores), polls on social media, or longer questionnaires. Whatever you use, it’s best to keep
them short—decide in advance what you aim to discover and create the questions accordingly.

Content

This marketing approach generates more leads than paid advertising, probably because it doesn’t seem
so blatant. Even if you know the author is being paid, it still seems less biased than the company tooting
its own horn. This is especially true if the writer is a known expert or influencer in the industry.

To build strong relationships, make sure content appeals to your target audience and provides value to
them, such as helping them make the most of your services. Creating personalized content for specific
customers shows how well you understand them. A diverse range of content on multiple channels will
keep people engaged, especially if it’s easily shareable.

Implementing Relationship Marketing Strategies

When it comes to implementing these customer relationship strategies, you’ll need to bear in mind the
following points: 

Customer data
Because relationship marketing involves understanding your customers, you need to collect as much
information about them as you can (while staying compliant, of course). As well as gathering personal
data such as birthdays, track past purchases, browsing habits, and previous interactions.

To stay on the right side of compliance laws, take advantage of zero-party data. What is zero party
data? It’s information customers actively choose to share with your business through things like surveys,
polls, and registration forms. Most customers are happy to provide this if they get something in return.

Customer data also allows you to check which of your campaigns are working and to test different
options. Smart software with business intelligence makes it easy to track metrics like customer lifetime
value, conversion rate, and website traffic.

Source(freshdesk.
com)

Great CRM tools

On the subject of tools, you’ll need CRM software to make a success of relationship marketing. These
tools, which include solutions like Hubspot, help you catalog customer interactions and manage data to
deliver personalized experiences.

By centralizing the data and making it accessible to the whole team, CRMs give marketers and customer
service teams instant insights into customer preferences. Whether you’re sending targeted emails or
handling an ongoing complaint, you’ll have the information you need.

CRM tools also help you automate your marketing efforts. This might not seem very personal, but it’s
the only way to keep up with a large customer base and make each one feel important. For example, it
ensures you don’t forget to send birthday greetings or renewal notices.

Customer presence facing

Customers need to know you care, and that includes being available to answer inquiries at all times. If
you’re operating on multiple channels, ensure there are designated employees to handle each method
of communication so there are no delays.

It should also be easy for people to get in touch—customer satisfaction will take a hit if they have to
scour your website to find contact details. Make it seem like you want to hear from them. Consider a
toll-free number to encourage calls.

The right tools go a long way, including things like digital voicemail and call forwarding to pick up
inquiries when you’re out of the office. This means you won’t miss an opportunity for meaningful
interaction.

Source(revechat.com)

Challenges in Relationship Marketing

Despite its many upsides, relationship marketing does have some inherent challenges. These include: 

Adopting omnichannel methods

It’s good to reach customers on all platforms, but there are challenges involved. Every channel must be
monitored so customers aren’t left waiting for a response. You also need to be confident that all content
fits your brand values, especially if you’re using affiliate networks and influencer marketing.
The more channels you have, the more customer data you’ll be able to access, so make sure you have
the means to collate and analyze this with intuitive dashboards and reports. Look for software that helps
you track campaign performance and monitor links in affiliate content to see what’s working.

Responding to customers quickly

According to one report, 46 percent of customers expect companies to respond in less than four hours,
while 12 percent expect a response within 15 minutes or less. 

Meeting these high expectations can be tricky when you have a high volume of inquiries, especially for
small teams, but it’s essential in relationship marketing. Tools like call management and CRMs can help.

Personalized content

The trick here is to make every customer feel like they’re your priority, but it can be hard to keep track
of everyone’s details and preferences across multiple channels. Plus, you have to be mindful of data
compliance regulations.

To help personalize content, use smart targeting tools to segment your audience. For email marketing,
include links to other relevant content (blogs, webinars, listicles) you know the customer is interested in,
as well as sending messages based on triggers like browsing patterns.

Rekindling the interest of previous customers

Although relationship marketing is big on retaining current customers, you can demonstrate the caring
nature of your business by trying to re-engage people who’ve slipped off the radar too. The challenge is
to find out why they lost interest, and see what you can do to win them back.

Incentives like a free sample or gift can be useful, as can cart abandonment emails. It’s also good to be
proactive—for example, sending a message well before someone’s subscription expires, as it’s much
harder to get them to renew after the fact.
Company-wide adoption

You need buy-in at all levels of the company if you’re going to make relationship marketing work.
Everyone must be dedicated to making customer happiness a priority, and the challenge is to make
people understand why it’s so important. 

All departments should be on the same page to ensure consistency, so you’ll need regular catch-ups to
monitor how things are going.

Complex software tools

Introducing new software can be difficult, because it takes time for everyone to figure out how it works
and how to get the best out of it. It certainly helps if you choose user-friendly tools with robust
onboarding support and provide training to all users. If you’re migrating your in-house partner
marketing to SaaS, Affise makes it simple by seamlessly transferring all your data.

Best Practices in Relationship Marketing Strategies

Now, onto some all-important best practices…

Focus on customer needs and feedback

It’s crucial you’re there when your customers need you and that you listen to what they have to say.
That way, everything you do will revolve around them. Whether you’re launching a new product or
creating a podcast, ask yourself: will this appeal to our target audience? Are we adding value to their
lives?
Encourage feedback, and use it to make improvements. Follow-ups and ongoing support are important
in effective relationship marketing—check how someone’s getting on with a purchase or show your
appreciation with a thank-you note.

Be authentic and informative

Don’t promise what you can’t deliver, and be honest if you don’t know the answers. Customers
appreciate transparency and accountability, so own your mistakes and make a commitment to
improving things.

You should always focus on giving customers something of value, not just promoting your company.
Make sure your content marketing keeps people informed as well as entertained. You can ask experts to
contribute to your articles, and partner with affiliates to increase your brand awareness on trusted
channels.

Tell your customers about the good things you do, such as eco-friendly policies or supporting worthy
causes. People appreciate this more and more, and they’re even starting to value it above prices.

Personalized offers

Use the data you gather to your advantage. Take note of your customers’ birthdays and anniversaries,
and send them a special offer. Most people like to receive greetings on their special day, and they’ll be
happy you were thinking of them.

You can also incentivize customers to purchase additional products by sending tailored offers based on
previous interactions and browsing history. If you’re part of a partner marketing program,
Affise’s CPAPI tool is handy for pulling together offers from different sources.

Implement loyalty programs

Relationship marketing is all about boosting loyalty, and a rewards program helps you give something
back to the repeat customers who support your business. It’s a great way to develop long-term
relationships that benefit everyone.
Referral schemes help you grow your customer base through repeat business, but you must ensure the
rewards provide real value to your customers and fit with your brand identity.

Final Thoughts

Relationship marketing is a long game; you won’t see fast results or hard numbers. The aim is to create
emotional connections and build trust through a great customer experience. By providing personalized
content and listening to feedback, you can show customers you really care about them.

Whether you’re managing a small business or an enterprise, you can turn your loyal customers into
brand advocates who will stay with you for a lifetime. 

It’ll be worth it in the end: 52 percent of customers say they go out of their way to buy from brands
they’re loyal to.

9 Relationship Marketing Strategies and Tools

Post Author: Joe D365 | July 16th, 2015

In previous blogs, we discussed what relationship-based marketing is, and why it is more important than
ever in today’s business world. Today, we’re going to give you some actionable relationship marketing
strategies that we hope will be successful for you and your business. While reading, be sure to be on the
lookout for mentions of tools that can help you along the way!
1. Networking

Networking, online and off, can be a powerful relationship marketing technique. This isn’t just for job
seekers! Think about the interests that you have as a business, and then join groups that share your
affinities. This not only helps your brand awareness, but also expands your potential customer base. It’s
a win-win. Not to mention that the only tool you’ll need for this is your brain. Pick something you like
and keep in mind what people similar to you might enjoy.

2. Cherish Each Customer

Not just in the way that every company says that they do. Make sure that every interaction you have
with your customers shows them that they are valued. Spontaneous recognition of your current
customers can go a long way. When people feel valued, they let others know. Delight your customers
with the unexpected (in a good way) and be there for them no matter what. Social monitoring tools,
such as Brandwatch, can help you gauge your impact. Particularly with tying a physical campaign to
digital gains.

3. Listen to Your Customers

Listen to your customers! Every business says they do, but not all follow through or apply what they’ve
heard. Even listening and responding to compliments can be beneficial. People love knowing they’ve
been heard. Even complaints can be a blessing in disguise. People often just want someone to share
their concerns with. By listening to these concerns, you ensure that your customers feel valued. Plus, if
you learn what people love and dislike about you, you can leverage the feedback to improve your
business. If you use Microsoft Dynamics CRM, PowerSurvey and PowerSurveyPlus are great tools that
allow you to get this kind of feedback. They also allow for anonymous responses, meaning you can
survey the web!

4. Build a Brand Identity

A memorable brand will make it easy for customers to find you and your product(s). Customers will
gravitate toward what they find that is memorable. If your brand resonates, they will likely remember
you and you can develop the relationship further. Once you have a strong brand identity, those that
wish to become a raving fan will know what you stand for and why they should care.

5. Give Your Customers Free Information

What's better than free? Not much. Your customers are seeking information about your product(s). They
have questions. Give them answers! Identify the topics and interests your customers have. Then, create
something cool around those topics and give it to them free access. People know that you are just trying
to get their contact information to sell to them if you gate it. You can certainly generate leads this way,
but you’ll want to also give away some stuff for free. Answer the people!

6. Loyalty Rewards
No, I'm not talking strictly about loyalty cards and perks programs. Though those are great, if you want
to truly succeed at relationship marketing, and you should, you need to expand beyond the traditional
types of programs. People love getting stuff and people love being recognized. Combine the two along
with some of what we’ve been mentioning. Cherish your loyal customers and reward them! You can
create the perfect loyalty program and manage it with a tool like BigDoor.

7. Communicate Often

Relationships are based on communication. Your customers and users want to communicate with you,
so be sure to communicate with them often. Relationship marketing works well when you strive to be
there for your customers. Social media, email, advertising, and content are all ways to communicate to
your customers that want to receive messages that way. Be sure to send follow-up communications
where appropriate.

8. Special Events

Holding a special event for your existing or prospective customers is a great way to build relationships. If
you put on a great event about a topic that your customers care about, they will remember that
experience and remember your business. Likely, they will rave about the event you held and how great
it was. You can also leverage exclusivity here by holding an event for your top customers. It’s a way to
add incentive, but it is also a way to simply thank your customers.

9. Face-To-Face Time

Similar to a lot of what we’ve been mentioning, it comes back to interactions. While electronic
communication is great, and often preferred, having a face-to-face meeting can help the customer feel
valued. Consider stopping by your customer’s place of business, or work in some face-to-face time by
holding a special event. Whichever method you choose, you can be sure that it will bring a level of
personalization to your relationship marketing strategy.

There you have it! Nine strategies to help you really win when it comes to relationship-based marketing.
Of course, you’ll also want to tie your efforts to an ROI. Dynamics CRM can help you manage your
customer relationships seamlessly, which makes it one of the most important tools for this kind of
strategy. Check out these relationship-based marketing examples!

What is a Relationship Marketing Strategy?

A relationship marketing strategy is a mix of tactics used by companies to build strong relationships with
customers, and usually includes methods to improve customer experiences. There are five phases of
relationship marketing that should be built into a relationship marketing strategy:

1. Attract: This is when the brand and customer-first engage

2. Connect: Now, it’s up to the brand to pique the customer’s interest

 3. Courting: You’ve got their interest, now woo them into a relationship. Start by asking for a name
and email address

4. Relationship: Your nurturing campaign worked, and now the customer is your new beau. Don’t
let them go!

5. Marriage: You treated the customer so well that they said yes to your proposal. Congrats, you
have a lifetime customer!

What are some Examples of Relationship Marketing?

Remember, the purpose of using relationship development strategies in marketing is to create lifelong

customers. This means focusing heavily on the customer experience. Here are a few relationship
marketing strategy examples you can build into your plan:

 Simplify your website and checkout process (and other customer actions, like the onboarding
experience)

 Create loyalty rewards programs

 Ask for – and really listen to – customer requests and feedback

 Send birthday and holiday greetings – and not just around the December holidays!

 Send corporate gifts to your customers at key relationship milestones

 Implement omnichannel marketing experiences

 Create personalized communications

How do Brands Use Relationship Marketing?

Relationship marketing isn’t a new concept, but it’s quickly becoming a priority for all businesses.
Several well-known brands have adopted relationship marketing best practices.

Starbucks

Starbucks changed the way the world drinks coffee. The company taps into the power of social media to
connect with their loyal customers, using their social channels and app to send special offers to their
followers and build anticipation for product launches. When they bring back seasonal favorites, they
have long lines of returning, loyal customers patiently waiting. They also share quick videos and images
of customers drinking their product on Instagram. Sharing user-generated content shows that you
appreciate your fans, and those fans will come back for more.

Amazon

Amazon is the master at making things easy for their customers, which drives loyalty and repeat
business. They drive sales through customer wish lists, make the purchase and shipping process easy,
and offer lightening fast, free delivery for customers who pay for prime membership. They also make
returns easy – and free – with their drop-off locations or return shipping labels. People like simple.
Amazon makes things simple.

IKEA

The popular Swedish furniture store uses customer feedback as a means to drive the direction of its
branding. An example of this is when they chose to change the font in its catalog. Customers hated it,
and they let IKEA know about it all across the internet. The brand took notice and made sure the next
catalog contained the traditional font everyone was used to. They also offer perks in their stores that
bring customers back, like babysitting services and their popular Swedish meatballs.

How Do You Implement an Effective Relationship Marketing Strategy?

Building and implementing a relationship marketing strategy starts with understanding the various
tactics and then choosing the right mix best for your customer base. Here are 10 ways B2B marketers
can build in relationship marketing within their strategy.

Strategy #1: Listen to Customer Feedback (and Make Changes)

The example of IKEA changing their catalog font is just one of many you’ll find used by companies across
industries. The internet has made it easier to not only see your customers but hear their complaints and
feedback as well.

Take advantage of this by soliciting feedback from your customers, and ask them their requests, ideas,
and challenges so you can better accommodate them. You can ask for feedback via email, SMS, or a
survey/poll on social media. You may just be surprised at what you find out!

Strategy #2: Invest in Technologies that Help with Customer Relationship Management

There are various tools on the market that can help you deliver a great customer experience. Customer
Relationship Management (CRM) software can help you manage customers, personalize messages, and
maintain regular communication and touchpoints.

Another tool is an Enterprise Resource Management (ERP) platform, which streamlines your operations
and eliminates departmental silos.

Moving beyond the mainstream tools, you can tap into a platform for sending branded swag and
personalized gifts, which can be used to send and track corporate gifts to new and existing customers –
or leads who are still on the fence.

Strategy #3: Build an Excellent Customer Service Team

One factor that can make or break a customer’s experience with a brand is its customer service. If your
staff aren’t knowledgeable, nice, and responsive, your customers will get frustrated – and not come
back.

Invest your time and money into hiring and training a team to support your client’s needs. Consider
creating a customer service Q&A template based on the demands of different customers. This will help
your team prepare for and navigate through positive and negative situations.

Strategy #4: Take an Omnichannel Approach

People today are used to engaging with brands in different ways. They may visit their website one day
and then reach out to the company via its Facebook or LinkedIn page the next day. Making it convenient
for your audience to interact with your business in the way that they’re most comfortable with is vital.

This means having a presence on the web, social media, corporate apps, email, SMS, phone, and online
chat. If you can incorporate a chatbot, even better.

Strategy #5: Reward Customer Loyalty

Make your customers feel special by rewarding them! You can create a loyalty program where
customers earn points when they use your product or service. For instance, if you’re a SaaS, you can
offer points for using your product regularly, which can be used to reduce their next month’s bill. You
can also reward customers for referring leads that convert into paying customers.
Strategy #6: Nurture Relationships with Email Marketing

Email marketing is a useful tool for nurturing leads into buyers and customers into loyal fans. But, you
need to deliver the right message at the right time. This will require segmented campaigns. A CRM or 
Customer Data Platform (CDP) with AI capabilities can support your email marketing efforts.

Through these tools, you can quickly analyze customer behavioral data and use it within your
campaigns. For example, if you see customers asking about a new product, you can send an email about
its features. You can deepen the interaction by including links to your blog that showcases how it can
benefit them.

Strategy #7: Incorporate Proactive Retention Methods

When a customer’s subscription is about to expire, what do you do? The answer is not to sit back and
hope they remember to renew! Reach out and remind them to renew before the date passes and
drive customer retention proactively. Doing this boosts the odds of customers completing the renewal
process. You can even send along a corporate gift as a friendly reminder vs. a typical email.

Strategy #8: Automate Your Customer Communications

Just because customers want a personal touch doesn’t mean you have to send each message manually.
You can implement automation tools that are faster and more reliable.

For instance, you can create lead nurturing emails that are automatically sent to new customers. Or you
can use triggers to automate relevant emails to be sent. For example, when a customer is logged in and
visits your website’s blog posts, you can trigger an email with a download for an eBook on a related
topic.

But email isn’t the only thing you can automate; you can do the same with SMS messages, social media
posts, and chatbots.

Strategy #9: Make Tracking Detailed Customer Data a Priority

It’s nearly impossible to win customers’ hearts without collecting lots of data about them. Outside of the
general information like their name, company, position, and technologies used, you can use technology
to track their behavior:

 Past purchases

 Browsing habits

 Birthdays and anniversaries (excellent time to send a corporate gift)

 Engagements with your brand (across all departments and channels)

This is easier to pull off when using the right data management platforms.
Strategy #10: Track and Analyze Your Relationship Management Campaign

Not every method is worth adding to a relationship management strategy. And while it’s good to test
different options, you want to ensure your tactics are actually working.

To do that, you will need tracking tools that determine whether specific metrics are improving,
declining, or remaining stagnant. Some of the metrics you should be tracking include:

 Customer lifetime value

 Conversion rates

 # of referral conversions

 Strength of your network (are your followers engaged?)

 Website metrics (traffic, social monitoring, CX ratings)

 Customer support team metrics (case resolution time, duration of calls, # of follow-ups, etc.)

 Onboarding success

Whatever methods you’re using within your campaign, be sure you’re tracking the right metrics to
determine success.

What are the Challenges of Relationship Marketing?

Figuring out how relationship marketing can help build a loyal customer base is one thing. Overcoming
common challenges you’ll face while implementing it is another. Here are some common roadblocks you
may have to overcome:

 Adopting omnichannel methods if you don’t have the staff or tools to do so

 Responding to customers questions and concerns quickly

 Personalizing content and campaigns based on data

 Trying to rekindle interest from an old customer

 Getting company-wide adoption of a relationship marketing approach

 Dealing with complex software tools

Best Practices for Relationship Marketing

Building a relationship marketing strategy with a solid foundation is possible when you follow
relationship marketing best practices. Here’s what to focus on when adding relationship development
strategies in marketing:
  Focus on the needs of your customers

 Listen to your customers’ feedback

 Be available on your customers’ terms

 Be authentic and informative with your content and message

 Add a personal touch to your customer experience (i.e., personalized offers)

 Offer ongoing support to customers

 Show customers you appreciate them (i.e., send gifts or use loyalty programs)

Using Sending Platforms in Relationship Marketing Strategies

If your corporation is ready to dip its toe into relationship marketing, we can help. We will guide you
through how to start, build, and maintain relationships with prospects, clients, and employees through
corporate gifting.

6. Define Target market

A target market is the overall group of people a business is trying to reach through its marketing efforts.
Meanwhile, a target audience is a specific subset of the target market that a company attempts to reach
through targeted marketing efforts.
For example, imagine a tech company has developed a smartwatch capable of taking phone calls,
answering text messages, opening apps, and keeping track of the wearer’s blood pressure and step
count.

Although the watch likely appeals to many people (the target market), the company might craft a
specific advertising campaign emphasizing the watch’s health features to attract an older audience of
health-conscious consumers. This group of older health-conscious people is an example of a target
audience. 

Target market segmentation: Defining a target market

Market segmentation is the process of dividing a market into smaller groups of people, or segments, to
identify areas for possible market growth. Through segmentation, marketers can identify the key
characteristics that define their target market and direct marketing efforts to their unique needs,
interests, and personalities. 

To help you define your target audience, the section below contains descriptions of four of the most
common types of market segmentation. Though each segmentation is distinct and offers its own view of
a target market, it is also common for marketers to use many of them together to paint a more complex
and telling portrait of their potential customers.   

Demographic segmentation

Demographic segmentation classifies consumers based on specific attributes, such as age or income
level. Demographic segmentation offers a glimpse of consumers as actual people in the real world using
common data collection methods. Typically, this segmentation is best used for business-to-customer
(B2C) marketing efforts. 

Typical attributes that to consider during demographic segmentation include: 

 Age 

 Gender identity

 Ethnicity 

 Sexual orientation

 Income level 

 Household size

 Education level

 Geographical location

Psychographic segmentation
Psychographic segmentation classifies consumers based on their psychological and personal traits, such
as values and attitudes. Unlike demographic segmentation, which describes who consumers are,
psychographic segmentation offers a glimpse into the motives behind why they buy something.
Typically, this segmentation is as helpful for  B2C and business-to-business (B2B) marketing efforts.

Common psychological characteristics and traits to consider during demographic segmentation include:

 Personal values 

 Religious beliefs 

 Opinions

 Attitudes

 Aspirations

 Political leanings

 Lifestyle

Firmographic segmentation

Firmographic segmentation classifies companies and businesses into a set of shared attributes, such as
their industry and number of employees. In effect, firmographics is akin to demographics, except that it
focuses on the characteristics of businesses rather than people. As a result, it is used exclusively for B2B
marketing. 

Common attributes to consider for firmographic segmentation include: 

 Industry 

 Location

 Size

 Status or Structure

 Performance

Behavioral segmentation

Behavioral segmentation classifies consumers based on their behaviors surrounding products or

services, such as when they decide to purchase them and how they use them. By focusing on consumer
behavior, behavioral segmentation provides a look into how consumers interact with businesses, which
allows marketers to improve the effectiveness of their efforts. Typically, this segmentation is as useful
for  B2C as B2B marketing efforts.
Common areas of consideration for behavioral segmentation include:

 Usage frequency

 Occasion

 Brand loyalty

 Benefits needed

Target market strategies

A range of strategies allows you to market your product or service to your target market. Typically, these
strategies are broken down from the broadest target market to the most narrow and specific. The exact
method you use will largely depend on the target market you have identified. 

Read on to learn more about four of the most major target marketing strategies. 

Mass marketing

Mass marketing is a marketing strategy that forgoes segmenting a market and instead advertises to the
broadest possible number of people. Unlike other marketing efforts, mass marketing doesn’t create
different campaigns for different market segments but instead runs a single campaign for the entire
market.

Mass marketing is particularly attractive to companies selling products or services with broad appeal.
For example, gas companies, telecommunications companies, and manufacturers of salt and sugar
typically only conduct mass marketing campaigns because nearly the entire market uses their products. 

Differentiated marketing 

Differentiated marketing is a marketing strategy in which a business creates different marketing

campaigns to appeal to different target audiences. By differentiating their marketing campaigns,
businesses are able to more effectively articulate their value proposition to various market segments
and, ideally, increase the success of their marketing strategy. 

In order to reach diverse segments, differentiated marketing requires businesses to dedicate more of
their budget to the creation of different marketing campaigns. As a result, differentiated marketing is a
strategy well-suited to businesses selling goods and services to a target market composed of distinct
target audiences. 

Niche marketing 

Niche marketing is a marketing strategy in which a business focuses all its marketing efforts on a highly
specific and unique target market. As a result, niche marketing often targets gaps in the marketplace,
where the needs of specific customers are not currently being met. 
In targeting a niche, businesses can craft highly targeted advertising campaigns that appeal to their
specific market. In turn, these efforts are well-suited to smaller businesses looking to enter an already
crowded marketplace that nonetheless includes several, specific gaps that are currently not being
serviced.

Micromarketing 

Micromarketing is a marketing strategy that specifically targets a narrow segment of a niche market.
Typically, the target audience of a micromarketing campaign is defined by specific characteristics such as
age, job title, geographic location, or gender. 

As a marketing effort that targets a highly specific group, micromarketing can also be more costly than
other marketing strategies, such as mass marketing. In effect, micromarketing is best suited for target
audiences where the rewards outweigh the potentially costly effort to reach them.

Get market ready

To help you hit a bullseye on your next business undertaking, you might consider obtaining a
professional certificate in Social Media Marketing offered by Meta. The University of Illinois, meanwhile,
offers a specialization in Digital Marketing that provides insight into the data collection and analysis
methods used by marketing professionals. 

Whatever you decide, though, just remember that thoroughly identifying your target market can help
you hit your marketing targets. 

What Is a Target Market?

A target market is a group of people that have been identified as the most likely potential customers for
a product because of their shared characteristics such as age, income, and lifestyle.

Identifying the target market is a key part of the decision-making process when a company designs,
packages, and advertises its product.

KEY TAKEAWAYS

 A target market is a group of customers with shared demographics who have been identified as
the most likely buyers of a company's product or service.

 Identifying the target market is important in the development and implementation of a

successful marketing plan for any new product.

 The target market also can inform a product's specifications, packaging, and distribution.

How Do I Define My Product's Target Market?

Part of creating a new product is envisioning the consumers who will want it.

A new product must satisfy a need or solve a problem, or both. That need or problem is probably not
universal unless it reaches the level of indoor plumbing. More likely, it is needed by a subset of
consumers, such as environmentally-conscious vegetarians, or science nerds, or outdoor enthusiasts. It
may appeal to a teenager or a middle-aged professional, a bargain-hunter or a snob.

Envisioning your likely target market is part of the process of creating and refining a product, and
informs decisions about its packaging, marketing, and placement.

What Are the 4 Target Markets?

Marketing professionals divide consumers into four major segments:

 Demographic: These are the main characteristics that define your target market. Everyone can be
identified as belonging to a specific age group, income level, gender, occupation, and education
level.
 Geographic: This segment is increasingly relevant in the era of globalization. Regional preferences
need to be taken into account.
 Psychographic: This segment goes beyond the basics of demographics to consider lifestyle,
attitudes, interests, and values.
 Behavioral: This is the one segment that relies on research into the decisions of a company's current
customers. New products may be introduced based on research into the proven appeal of past
products.1

What Is an Example of a Target Market?

Each of the four target markets can be used to consider who the customer for a new product is.
For example, there are an estimated 100,000 Italian restaurants in the U.S. Clearly, they have enormous
appeal.2

But a corner pizza joint might appeal mostly, although by no means entirely, to a younger and more
budget-conscious consumer, while an old-fashioned white tablecloth place might be dominated by older
folks and families who live in the neighborhood. Meanwhile, a newer place down the street might cater
to an upscale and trend-conscious crowd who will travel a good distance for the restaurant's innovative
menu and fancy wine list.

In each successful case, a savvy business person has consciously considered the ideal target market for
the restaurant and has tweaked the menu, decor, and advertising strategy to appeal to that market.

Why Are Target Markets Important?

Few products today are designed to appeal to absolutely everyone. The Aveda Rosemary Mint Bath Bar,
available for $23 a bar at Aveda beauty stores, is marketed to the upscale and eco-conscious woman
who will pay extra for quality.3 Cle de Peau Beaute Synactif Soap retails for $110 a bar and is marketed
to wealthy, fashion-conscious women who are willing to pay a premium for a luxury product.4 An eight-
pack of Dial soap costs under $5 on Amazon, and it is known to get the job done.5

Part of the success of selling a good or service is knowing to whom it will appeal and who will ultimately
buy it. Its user base can grow over time through additional marketing, advertising, and word of mouth.

That's why businesses spend a lot of time and money in defining their initial target markets, and why
they follow through with special offers, social media campaigns, and specialized advertising.

What Are Market Segments?

Dividing a target market into segments means grouping the population according to the key
characteristics that drive their spending decisions. Some of these are gender, age, income level, race,
education level, religion, marital status, and geographic location.

Consumers with the same demographics tend to value the same products and services, which is why
narrowing down the segments is one of the most important factors in determining target markets.

For example, people who fall into a higher income bracket may be more likely to buy specialty coffee
from Starbucks instead of Dunkin' Donuts. The parent companies of both of these brands need to know
that in order to decide where to locate their stores, where to stock their products, and where to
advertise their brand.

A business may have more than one target market—a primary target market, which is the main focus,
and a secondary target market, which is smaller but has growth potential. Toy commercials are targeted
directly to children. Their parents are the secondary market.6
Target Market and Product Sales

Identifying the target market is an essential part of a product development plan, along with
manufacturing, distribution, price, and promotion planning. The target market determines significant
factors about the product itself. A company may tweak certain aspects of a product, such as the amount
of sugar in a soft drink or the style of the packaging, so that it appeals more to consumers in its target
group.

As a company’s product sales grow, it may expand its target market internationally. International
expansion allows a company to reach a broader subset of its target market in other regions of the world.

In addition to international expansion, a company may find its domestic target market expands as its
products gain more traction in the marketplace. Expanding a product's target market is a revenue
opportunity worth pursuing.

How Detailed Should a Target Market Be?

It depends. Broadly speaking, a product may be designed for a mass market or a niche market, and a
niche market can be a very small group indeed, especially in a product's early introductory phase.

Some carbonated beverages aim for a practically universal market. Coca-Cola had to branch out to 200
markets abroad to continue growing its customer base.7 Gatorade is owned by Pepsi Cola, but the brand
is positioned as a drink for athletes.8 The soda brand Poppi, which is branded as a "Healthy, Sparkling,
Prebiotic Soda with Real Fruit Juice, Gut Health, and Immunity Benefits," is clearly aimed at a younger,
healthier, and more trend-conscious target market.9

What Is an Example of a Target Market?

Consider a casual apparel company that is working to build its distribution channels abroad. In order to
determine where its apparel will be most successful, it conducts some research to identify its primary
target market. It discovers that the people most likely to buy their products are middle-class women
between the ages of 35 and 55 who live in cold climates.

It's reasonable for the company to focus its advertising efforts on northern European websites that have
a strong female audience.

But first, the company may consider how its apparel can be most attractive to that target market. It may
revise its styles and colors and tweak its advertising strategy to optimize its appeal to this new
prospective market.

What Is the Purpose of a Target Market?

A target market defines a product as well as vice versa.

Once a target market is identified, it can influence a product's design, packaging, price, promotion, and
distribution.

A product aimed at men won't be packaged in pink plastic. A luxury cosmetic won't be sold in a
pharmacy. An expensive pair of shoes comes with a branded cloth drawstring bag as well as a shoebox.
All of those factors are signals to the target audience that they have found the right product.

The Bottom Line

Identifying the target market is part of the process of creating and refining a new product.

A target market can be translated into a profile of the consumer to whom a product is most likely to
appeal. The profile considers four main characteristics of that person: demographic, geographic,
psychographic, and behavioral.

Target market definition

A target market is a specific group of people that you want to reach through your marketing campaign.
These people are more likely to visit your online shop and make a purchase that any other random
group of people. They have certain characteristics in common, such as their demographics or
psychological and behavioral patterns.

When you zoom in on this market segment at the individual level, you have your ideal customer. The
type of customer that you don't have to convince to buy your products or services because he or she will
naturally be interested in them. All you have to do is get your brand name and online store in front of
their eyes.

So, in effect, your target market is really your target audience.

And that's where your target market analysis will begin, with your ideal customer, so don't be afraid to
be super specific when identifying your target customer.

That's not to say that other individual consumers outside of this group won't buy your products. They
can.

But identifying your target audience is all about creating an effective marketing strategy so that your
marketing dollars have the biggest bang for their buck. And that happens when your marketing
campaign reaches the people who are MOST likely to make a purchase.

What is a target market?

A target market is the segment of consumers most likely to want or need a business's products or
services. This group of people is a subset of the business's total market. It involves a specified series of
customer qualities that the business believes its products or services will appeal to. The target market
can be a type of person for a business-to-consumer (B2C) company or a type of business for a business-
to-business (B2B) company.
The target market is not the same as the target audience. The audience is narrower—it refers to the
group of consumers the business expects to actually purchase the product. They may or may not overlap
with the target market. For example, a children's toy may have boys ages 9–11 as the target market and
the boys' parents as the target audience. It may also be defined as the consumer segment most likely to
be influenced by an advertising campaign.

The target market is also distinct from the buyer persona. While the target market describes a type of
person in general, the buyer persona is a complete but hypothetical individual. The buyer persona can
help narrow down an advertising strategy for B2B businesses depending on who they speak to when
selling within their target market.

Read more: What Is the Difference Between B2C and B2B?

Why are target markets important?

Well-defined target markets can help a business increase its profits and attract new customers by
boosting marketing efficiency. This is because the business does not waste resources and time
marketing to consumers who are unlikely to be interested in its products. Having a good understanding
of target markets can help small, startup and niche businesses compete with bigger companies.

Related: Comprehensive Guide To Creating a Marketing Plan (With Tips, Template and Example)

Data points to include in your target market

Here are some factors to consider when defining your target market. It may help to reflect on your
product or service's distinguishing features when you assess your consumers.

Demographics

Demographics describe who your target customers are in terms of categories like their age, gender,
employment status, life stage, family structure, religion and income. Here are a few examples of
demographic descriptions of your target market:

 College students with a part-time job

 Women ages 40–50 who are employed full time with a yearly income of at least $60,000

 Retired men who are married without children

Read more: What Is Demographic Segmentation and Why Is It Beneficial?

Geographics

Geographics describe the physical location of your target customers. Factors to consider include:

 Whether they live in a rural, suburban or urban environment

 Which area of the country they live in

  Their local language and time zone

Also, consider whether your target market uses your product or service in the same place they purchase
it. Ask yourself if they are likely to travel with it or send it to someone else.

Related: What Is Geotargeting?

Psychographics

Psychographics describe the intrinsic personal qualities of people in your target market. This includes
things like their hobbies and leisure activities, entertainment interests and preferred sources of
information.

Behavioral patterns

Behavioral patterns are those that define your customers' purchasing habits. When considering your
target market's behavioral patterns, ask yourself what qualities your consumers are looking for in the
item or service and why they want to purchase it. Think about when and how frequently they buy and
use your product or service.

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Target marketing examples

To better understand target markets, here are six hypothetical examples:

Example 1: Target market for a farm supply store

Barn Goods is a farm supply store in a rural environment. The local area includes many family cattle
farms. Due to the community's remote location, delivery times from online retailers can be long. Barn
Goods defines its target market as middle-aged family men who live in the area, farm for a living and
need convenient access to farming equipment and feed for their animals.

The business closely follows the farmers' cyclical needs. This way, Barn Goods can buy extra inventory
before demand grows. They understand that it is important for their business to be a reliable source of
essential items.

Example 2: Target market for a fashion boutique

Lovely Dresses is a fashion boutique in a populous city. It has a small showroom and offers a personal
shopper to help customers select customized items. Purchases are then made to order and fitted to each
buyer. Because of their high level of service and attention to detail, their products are costly.
They define their target market as women ages 35–50 with a high income relative to the area's cost of
living. Customers in their target market prefer a personalized shopping experience. Finally, they target
shoppers who enjoy socializing in the community and want to wear their purchases to events.

Example 3: Target market for a sandwich shop

Speedy Subs is a sandwich shop adjacent to a gas station in a suburban town. Because it is close to the
highway, Speedy Subs expects many of its customers will be traveling. It defines its target market as
adults with low to moderate incomes looking for a fast but filling meal. They use their billboard to
advertise low prices and package deals, and their marketing features race cars to emphasize their quick
service.

Example 4: Target market for a beachfront shop

Maggie's Memories is a beachfront shop in a popular coastal town. Because this business is next to a
shop that caters to teenagers and people who enjoy beach sports, Maggie's Memories chose a different
target market. Their customers are retirees, with a moderate to high income who are looking for a
relaxing getaway.

The customers in this target market are interested in buying unique gifts to commemorate their trip. To
appeal to their target market, Maggie's Memories sells home décor items, jewelry and small accessories
with a peaceful seaside aesthetic.

Example 5: Target market for a hiking supply shop

Climbers is a hiking supply shop in a city known for its active population. Their target market includes
men and women ages 18–30 who enjoy being in nature and take pride in their outdoor gear.

These customers are very knowledgeable about their equipment, and they expect Climbers' staff to be
knowledgeable too. The company's onboarding process includes training for the team, and they hold
monthly meetings to update everyone on the latest developments and recalls in their industry. They post
pictures of their employees and customers using their products on their social media page and inside the
store.

Example 6: Target market for a photography studio

Everybody Smile is a photography studio in a suburban town that specializes in family portraits. Their
target market includes adults with children looking for professional photos to display at home and send
to their friends and family. Because the customer in this target market sees the photography session as a
special event and is very hopeful about getting a good result, Everybody Smile offers personalized
packages and a satisfaction guarantee.

7. Life cycle of the products

 A product life cycle is the length of time from a product first being introduced to consumers until it is
removed from the market. A product’s life cycle is usually broken down into four stages; introduction,
growth, maturity, and decline.

Product life cycles are used by management and marketing professionals to help determine advertising
schedules, price points, expansion to new product markets, packaging redesigns, and more. These
strategic methods of supporting a product are known as product life cycle management. They can also
help determine when newer products are ready to push older ones from the market.

How Does it Work?

As mentioned above, there are four stages in a product’s life cycle - introduction, growth, maturity, and
decline – but before this a product needs to go through design, research and development. Once a
product is found to be feasible and potentially profitable it can be produced, promoted and sent out to
the market. It is at this point that the product life cycle begins.
The various stages of a product’s life cycle determine how it is marketed to consumers. Successfully
introducing a product to the market should see a rise in demand and popularity, pushing older products
from the market. As the new product becomes established, the marketing efforts lessen and the
associated costs of marketing and production drop. As the product moves from maturity to decline, so
demand wanes and the product can be removed from the market, possibly to be replaced by a newer
alternative.

Managing the four stages of the life cycle can help increase profitability and maximise returns, while a
failure to do so could see a product fail to meet its potential and reduce its shelf life.

Writing in the Harvard Business Review in 1965, marketing professor Theodore Levitt declared that the
innovator had the most to lose as many new products fail at the introductory stage of the product life
cycle. These failures are particularly costly as they come after investment has already been made in
research, development and production. Because of this, many businesses avoid genuine innovation in
favour of waiting for someone else to develop a successful product before cloning it.

Stages

There are four stages of a product’s life cycle, as follows:

1. Market Introduction and Development

This product life cycle stage involves developing a market strategy, usually through an investment in
advertising and marketing to make consumers aware of the product and its benefits.

At this stage, sales tend to be slow as demand is created. This stage can take time to move through,
depending on the complexity of the product, how new and innovative it is, how it suits customer needs
and whether there is any competition in the marketplace. A new product development that is suited to
customer needs is more likely to succeed, but there is plenty of evidence that products can fail at this
point, meaning that stage two is never reached.  For this reason, many companies prefer to follow in the
footsteps of an innovative pioneer, improving an existing product and releasing their own version.

2. Market Growth

If a product successfully navigates through the market introduction it is ready to enter the growth stage
of the life cycle. This should see growing demand promote an increase in production and the product
becoming more widely available.

The steady growth of the market introduction and development stage now turns into a sharp upturn as
the product takes off. At this point competitors may enter the market with their own versions of your
product – either direct copies or with some improvements. Branding becomes important to maintain
your position in the marketplace as the consumer is given a choice to go elsewhere. Product pricing and
availability in the marketplace become important factors to continue driving sales in the face of
increasing competition. At this point the life cycle moves to stage three; market maturity.

3. Market Maturity

At this point a product is established in the marketplace and so the cost of producing and marketing the
existing product will decline. As the product life cycle reaches this mature stage there are the beginnings
of market saturation. Many consumers will now have bought the product and competitors will be
established, meaning that branding, price and product differentiation becomes even more important to
maintain a market share. Retailers will not seek to promote your product as they may have done in
stage one, but will instead become stockists and order takers.

4. Market Decline

Eventually, as competition continues to rise, with other companies seeking to emulate your success with
additional product features or lower prices, so the life cycle will go into decline. Decline can also be
caused by new innovations that supersede your existing product, such as horse-drawn carriages going
out of fashion as the automobile took over.

Many companies will begin to move onto different ventures as market saturation means there is no
longer any profit to be gained. Of course, some companies will survive the decline and may continue to
offer the product but production is likely to be on a smaller scale and prices and profit margins may
become depressed. Consumers may also turn away from a product in favour of a new alternative,
although this can be reversed in some instances with styles and fashions coming back into play to revive
interest in an older product.
Product Life Cycle Strategy and Management

Having a properly managed product life cycle strategy can help extend the life cycle of your product in
the market.

The strategy begins right at the market introduction stage with setting of pricing. Options include ‘price
skimming,’ where the initial price is set high and then lowered in order to ‘skim’ consumer groups as the
market grows. Alternatively, you can opt for price penetration, setting the price low to reach as much of
the market as quickly as possible before increasing the price once established.

Product advertising and packaging are equally important in order to appeal to the target market. In
addition, it is important to market your product to new demographics in order to grow your revenue
stream.

Products may also become redundant or need to be pivoted to meet changing demands. An example of
this is Netflix, who moved from a DVD rental delivery model to subscription streaming.

Understanding the product life cycle allows you to keep reinventing and innovating with an existing
product (like the iPhone) to reinvigorate demand and elongate the product’s market life.

Examples

Many products or brands have gone into decline as consumer needs change or new innovations are
introduced. Some industries operate in several stages of the product life cycle simultaneously, such as
with televisual entertainment, where flat screen TVs are at the mature phase, on-demand programming
is in the growth stage, DVDs are in decline and video cassettes are now largely redundant. Many of the
most successful products in the world stay at the mature stage for as long as possible, with small
updates and redesigns along with renewed marketing to keep them in the thoughts of consumers, such
as with the Apple iPhone.

Here are a few well-known examples of products that have passed or are passing through the product
life cycle:

1. Typewriters

The typewriter was hugely popular following its introduction in the late 19 th century due to the way it
made writing easier and more efficient. Quickly moving through market growth to maturity, the
typewriter began to go into decline with the advent of the electronic word processor and then
computers, laptops and smartphones. While there are still typewriters available, the product is now at
the end of its decline phase with few sales and little demand. Meanwhile, desktop computers, laptops,
smartphones and tablets are all experiencing the growth or maturity phases of the product lifecycle.

2. Video Cassette Recorders (VCRs)

Having first appeared as a relatively expensive product, VCRs experienced large-scale product growth as
prices reduced leading to market maturation when they could be found in many homes. However, the
creation of DVDs and then more recently streaming services, VCRs are now effectively obsolete. Once a
ground-breaking product VCRs are now deep in a decline stage from which it seems unlikely they will
ever recover.

3. Electric Vehicles

Electric vehicles are experiencing a growth stage in their product life cycle as companies work to push
them into the marketplace with continued design improvements. Although electric vehicles are not new,
the consistent innovation in the market and the improving sales potential means that they are still
growing and not yet into the mature phase.  

4. AI Products

Like electric vehicles, artificial intelligence (AI) has been in development and use for years, but due to
the continued developments in AI, there are many products that are still in the market introduction
stage of the product life cycle. These include innovations that are still being developed, such
as autonomous vehicles, which are yet to be adopted by consumers.

Conclusion

Understanding how a product’s life cycle works allows companies to work out whether their products
are meeting the needs of the target market and, thereby, when they may need to change focus or
develop something new.

Examining a product in relation to market needs, competition, costs and profits allows a company to
pivot their product focus to maintain longevity in the marketplace.

Knowing when a product is going into decline prevents your company from following as a result of being
overly reliant on a fading market. A product life cycle strategy means that you can reinvigorate an
existing product, develop a new replacement product or change direction to stay abreast of a changing
marketplace.

While all products have a life cycle, many of the most successful ones are able to maintain the mature
stage of the life cycle for many years before any eventual decline.

What Is the Product Life Cycle?

The term product life cycle refers to the length of time from when a product is introduced to consumers
into the market until it's removed from the shelves. This concept is used by management and by
marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce
prices, expand to new markets, or redesign packaging. The process of strategizing ways to continuously
support and maintain a product is called product life cycle management.

KEY TAKEAWAYS
 A product life cycle is the amount of time a product goes from being introduced into the market
until it's taken off the shelves.
 There are four stages in a product's life cycle—introduction, growth, maturity, and decline.
 A company often incurs higher marketing costs when introducing a product to the market but
experiences higher sales as product adoption grows.
 Sales stabilize and peak when the product's adoption matures, though competition and
obsolescence may cause its decline.
 The concept of product life cycle helps inform business decision-making, from pricing and promotion
to expansion or cost-cutting.

How the Product Life Cycle Works

 Products, like people, have life cycles. The life cycle of a product is broken
into four stages—introduction, growth, maturity, and decline.

 A product begins with an idea, and within the confines of modern

business, it isn't likely to go further until it undergoes research and
development (R&D) and is found to be feasible and potentially profitable.
At that point, the product is produced, marketed, and rolled out. Some
product life cycle models include product development as a stage, though
at this point, the product has not yet been brought to customers.

 As mentioned above, there are four generally accepted stages in the life
cycle of a product. Here are details about each one.

Introduction Stage

 The introduction phase is the first time customers are introduced to the
new product. A company must generally includes a substantial investment
in advertising and a marketing campaign focused on making consumers
aware of the product and its benefits, especially if it is broadly unknown
what the item will do.

 During the introduction stage, there is often little-to-no competition for a

product, as competitors may just be getting a first look at the new offering.
However, companies still often experience negative financial results at this
stage as sales tend to be lower, promotional pricing may be low to drive
customer engagement, and the sales strategy is still being evaluated.

Growth Stage
 If the product is successful, it then moves to the growth stage. This is
characterized by growing demand, an increase in production, and
expansion in its availability. The amount of time spent in the introduction
phase before a company's product experiences strong growth will vary
from between industries and products.

 During the growth phase, the product becomes more popular and
recognizable. A company may still choose to invest heavily in advertising if
the product faces heavy competition. However, marketing campaigns will
likely be geared towards differentiating its product from others as opposed
to introducing the goods to the market. A company may also refine its
product by improving functionality based on customer feedback.

 Financially, the growth period of the product life cycle results in increased
sales and higher revenue. As competition begins to offer rival products,
competition increases, potentially forcing the company to decrease prices
and experience lower margins.

Maturity Stage

 The maturity stage of the product life cycle is the most profitable stage, the
time when the costs of producing and marketing decline. With the market
saturated with the product, competition now higher than at other stages,
and profit margins starting to shrink, some analysts refer to the maturity
stage as when sales volume is "maxed out".

 Depending on the good, a company may begin deciding how to innovate

its product or introduce new ways to capture a larger market presence.
This includes getting more feedback from customers, and researching
their demographics and their needs.

 During the maturity stage, competition is at the highest level. Rival

companies have had enough time to introduce competing and improved
products, and competition for customers is usually highest. Sales levels
stabilize, and a company strives to have its product exist in this maturity
stage for as long as possible.

 A new product needs to be explained, while a mature product needs to be

differentiated.

Decline Stage
 As the product takes on increased competition as other companies
emulate its success, the product may lose market share and begin its
decline. Product sales begin to drop due to market saturation and
alternative products, and the company may choose to not pursue
additional marketing efforts as customers may already have determined
whether they are loyal to the company's products or not.

 Should a product be entirely retired, the company will stop generating

support for it and will entirely phase out marketing endeavors.
Alternatively, the company may decide to revamp the product or introduce
a next-generation, completely overhauled model. If the upgrade is
substantial enough, the company may choose to re-enter the product life
cycle by introducing the new version to the market.

 The stage of a product's life cycle impacts the way in which it is marketed
to consumers. A new product needs to be explained, while a mature
product needs to be differentiated  from its competitors.

Advantages of Using the Product Life Cycle

 The product life cycle better allows marketers and business developers to
better understand how each product or brand sits with a company's
portfolio. This enables the company to internally shift resources to specific
products based on those products' positioning within the product life cycle.

 For example, a company may decide to reallocate market staff time to

products entering the introduction or growth stages. Alternatively, it may
need to invest more cost of labor in engineers or customer service
technicians as the product matures.

 The product life cycle naturally tends to have a positive impact on

economic growth, as it promotes innovation and discourages supporting
outdated products. As products move through the life cycle stages,
companies that use the product life cycle can realize the need to make
their products more effective, safer, efficient, faster, cheaper, or better
suited to client needs.

EXAMPLE:

Coca-Cola
On April 23, 1985, Coca-Cola announced a new formula for its popular
beverage, referred to as "new Coke." Coca-Cola's market-share lead had
been decreasing over the past 15 years, and the company decided to launch
a new recipe in hopes of reinvigorating product interest. After its launch,
Coca-Cola's phone line began receiving 1,500 calls per day, many of which
were to complain about the change. Protest groups recruited 100,000
individuals to support their cause of bringing "old" Coke back.6

A stunning 79 days after its launch, "new Coke's" full product life cycle was
complete. Though the product didn't experience much growth or maturity, its
introduction to the market was met with heavy protest. Less than three
months after it announced its new recipe, Coca-Cola announced it would
revert its product back to the original recipe.

What Are the Stages of the Product Life Cycle?

The product life cycle is defined as four distinct stages: product introduction,
growth, maturity, and decline. The amount of time spent in each stage will
vary from product to product, and different companies have different strategic
approaches to transitioning from one phase to the next.

What Are Product Life Cycle Strategies?

Depending on the stage a product is in, a company may adopt different
strategies along the product life cycle. For example, a company is more likely
to incur heavy marketing and R&D costs in the introduction stage. As the
product becomes more mature, companies may then turn to improving
product quality, entering new segments, or increasing distribution channels.
Companies also strategically approach divesting from product lines including
the sale of divisions or discontinuation of goods.

What Is Product Life Cycle Management?

Product life cycle management is the act of overseeing a product's
performance over the course of its life. Throughout the different stages of
product life cycle, a company enacts strategies and changes based on how
the market is receiving a good.

Why Is Product Life Cycle Important?

Product life cycle is important because it informs management of how its
product is performing and what strategic approaches it may take. By being
informed of which stage its product(s) are in, a company can change how it
spends resources, which products to push, how to allocate staff time, and
what innovations they want to research next.

Which Factors Impact a Product's Life Cycle?

Countless factors can affect how a product performs and where it lies within
the product life cycle. In general, the product life cycle is heavily impacted by
market adoption, ease of competitive entry, rate of industry innovation, and
changes to consumer preferences. If it is easier for competitors to enter
markets, consumers change their mind frequently about the goods they
consume or the market becomes quickly saturated. Then, products are more
likely to have shorter lives throughout a product life cycle.

The Bottom Line

Broadly speaking, almost every product sold undergoes the product life cycle.
This cycle of market introduction, growth, maturity, and decline may vary from
product to product—or industry to industry. However, this cycle informs a
company of how to best utilize its resources, what the future outlook of their
product is, and how to strategically plan for bringing new products to market.

What Is the Product Life Cycle?

The Product Life Cycle is a management tool that makes it possible to analyze how a product
behaves from its development to its withdrawal from the market. It covers every stage of
growth, from launch through to adoption, and sales maturity.

It is like a product journey, or to refer to a more well-known example in marketing, the

customer journey.

The mind behind this concept is Theodore Levitt, a German economist who lived in the United
States and worked at the celebrated Harvard Business School.

Levitt proposed a five-stage model that he named the Product Life Cycle.

The stages are development, introduction, growth, maturity, and decline.

Before I explain each of them, it’s interesting to understand why Levitt thought defining this
model would be useful.

During his research, he discovered something that seems obvious but hadn’t been mapped until
then: the characteristics of a product change a lot during its life cycle.

All the strategies surrounding a product need to consider the specific issues and characteristics
of each of these stages.
This applies to sales and marketing, but also to product development and decision-making in the
management sphere.

For example, when is the right moment to invest so a product explodes in the market?

When is it time to step on the brakes and maybe even replace an item that was very successful
with something new?

These are the questions you can answer with a Product Life Cycle analysis.

A Note on Product Life Cycle Stages

Before I describe each of the Product Life Development Cycle stages below, it’s important to
note that some definitions have different numbers of stages. Some have four and ignore the
development phase. Others have six and include a saturation phase. Levitt’s original diagram
has four stages, but I’m going to add an introduction phase between his development and
growth stages.

That’s because there are hundreds of products that have finished a development phase and been
released to market, but never catch on and start growing. When they are first introduced to the
market, some products — particularly innovative ones — need very specific marketing
strategies to help them reach the growth stage. Ignoring this fact may hamper your product
marketing efforts.

The 5 Stages of the Product Life Cycle

It’s time to explore more deeply the Product Life Cycle model.

Now that we know the stages, we’ll the characteristics of each of them, and also the best
practices to achieve your marketing goals.

1. Development Phase of the Product Life Cycle

Product development is always a leap into the unknown. Companies can spend millions of
dollars on product research and development, but there’s no guarantee the product launch will
be successful.
At this stage, companies are spending money on the product without corresponding revenue.
Proposals are made, tests carried out, hypotheses validated, and changes implemented.

This stage is naturally integrated into the process of startup companies but is not restricted to
them. For example, an automobile manufacturer won’t launch a new car without first having an
intensive project development phase. The only difference is that established companies are able
to fund this phase from revenue generated by other products.
Given the innovative nature of this product, we can imagine that this launch was preceded by
careful planning and research, which resulted in the shape of the pieces, the material used, and
the patterns selected.

There may also have been some initial promotional efforts, too. When a product is in
development, it doesn’t require intensive sales efforts, but some level of promotion may be
required if the product is new.

Imagine the success potential of a marketing campaign from Walkee Paws announcing this
novelty to dedicated dog lovers. It could involve teasing posts on social networks, generating
curiosity, and encouraging engagement. There may also be press releases, billboards, or even
interactive campaigns on the streets.

The fact is that the company must consider all this even during the development stage.

2. Introduction Phase of the Product Development Life Cycle

Once you have created a product and it’s ready for launch, you move into the introduction phase
of the Product Life Cycle.

Launching a new product is a huge marketing endeavor. You’ll need to carve out a target
market and invest significantly to reach them with broad awareness campaigns. TV ads are a
popular choice at this stage. You only need to turn on a TV for a few minutes to see ads for a
new flavor of soda, a different motorcycle model, and a smartphone that promises new and
superior features.

It is no accident that this stage of the Product Development Life Cycle is the one that demands
the most marketing investment from the company. In fact, it is not uncommon to be in the red at
this stage, even if sales are already trickling in. Costs will be even larger if you are the first
company bringing a new product to market. First movers may have an advantage, but they pay
for it financially. It’s why many companies wait until a market has already been established
before launching a new product.

Reduce costs by defining the target audience and persona that represents the ideal customer
profile for your products.

This exercise makes it possible to optimize your marketing investments, using the right
platforms to convey the best message and reach the exact audience you want.

You can also use inbound marketing to reach early adopters.

3. Growth Phase of the Product Life Cycle

The next stage is the growth stage. By now, sales of your product should be soaring and it will
start becoming an established product in the market.
Of course, your success will attract competitors. The speed at which competitors react will
depend on the market you have entered. In a crowded market, competitors will react fast. If the
market is uncrowded, however, you may be able to continue to grow without much competition.

Inevitably, however, you will need to continue investing heavily in marketing to continue
growth.

Even though you’re experiencing growth, many companies still fail at this stage and their
products’ sales decline without having ever experienced maturity.

You might remember a beer brand that made fun TV ads with a short and chubby actor with a
mustache as the protagonist. For a long time, it was one of the leading brands, and the
advertisements generated comments on the only social network in existence back then: word-of-
mouth. The product is still in the market, and there is no news of changes to its formula, but it
was swallowed by the strong competition in the industry.

So the lesson is clear: if a product is in the growth stage, it is important to have a strategy to
keep it there even as new competitors start fighting for its audience.

4. Maturity Phase of the Product Life Cycle

Maturity is the peak and the highest point of the cycle. It’s when the product reaches its
maximum potential and sales and begins to stabilize. That doesn’t mean your sales won’t grow,
you just won’t experience the same rapid levels of growth as before.

That may sound disappointing, but this stage comes with plenty of benefits. You will have
undoubtedly become much more efficient, which will lead to reduced production costs. You can
also spend less on marketing since you have an established market.

The challenge at this stage is to maintain good results and continue to beat your competitors.

There isn’t a simple way to make this happen, but it’s crucial you take action. All the famous
brands you can think of are where they are today because they invested in this stage.

For example, Coca-Cola doesn’t stop advertising even though it “doesn’t depend on marketing.”
The company understands that brands are not forever, being subject to market instabilities and
behavioral changes in the audience.

5. Decline Phase of the Product Life Cycle

Eventually, even the most established products see their revenue dry up and popularity wane.
It’s interesting to imagine the end of a company like Coca-Cola, a company with over 100 years
of existence and so much financial success.
But even Coca-Cola will end one day. Maybe not the company, perhaps, but its main product.
This might take 100, 200, or even 1000 years. It’s impossible to predict. But every product
reaches the end and concludes its life cycle.

When that happens, the company must recognize the painful truth shown in its performance
indicators and take one of several options. You can choose to discontinue the product, find a
new use for it, sell the product or company, or tap into a new market by creating a new product.

Carefully weigh the costs and benefits associated with each option. There is no shame in retiring
a product, especially if your company is already investing in new, innovative products to
launch.

Why It’s Important to Understand the Product Life Cycle

If you’ve made it this far, you hopefully understand the concept of the Product Development
Life Cycle and the characteristics of each of its stages. You should also understand why it’s
important to apply this model to your business.

To eliminate any questions, here are the main advantages and benefits of what adherence to the
model can do:

 allow decision-making with better support

 optimize marketing investments
 qualify sales efforts
 offer more control over results
 give better long-term strategic planning
 offer better organization and process management
 provide more longevity for products
 give more appropriate preparation to face competition
 leading the market becomes a feasible goal

What Factors Affect the Product Life Cycle?

There are a lot of things in your power you can do to influence how your product moves
through the product life cycle. Unfortunately, there are also a lot of things you can’t control that
will impact how your product performs.

Market Competitiveness

Competitive markets can be very hard to enter and may mean your product struggles to get out
of the introduction phase. Barriers to entry play a role. While it may be harder to enter a market
with high barriers to entry, your product will probably have a long life cycle if it becomes
established. The same may not be true for markets with low barriers to entry that make it easier
for competitors to copy your product.

Economic Forces
Sometimes the world will transpire to work against your product. A recession or global
pandemic can cut a cycle short. It can also introduce rapid changes in consumer behavior that
can impact your product’s life.

Changes in Technology

Rapid changes in technology can drastically shorten the product life cycle — especially if
you’re unable to adapt. Just look at how the internet and video streaming destroyed Blockbuster.

There’s not much you can do if a person or company invents a new technology or a
dramatically better way of doing something. All you can do is react as best you can.

How to Use the Product Life Cycle to Improve Your Marketing Strategies and Extend
Your Product’s Life

The first step to using the Product Life Cycle to improve your marketing strategy is to
understand what stage you are in. By understanding each stage of the cycle and comparing them
with your product’s performance, you can accurately identify where your product lies.

Establish Authority Early

Establishing authority is key during the introduction phase. Whether you are positioning your
product as a cheaper, more effective, or more environmentally-friendly alternative, it’s key to
get this across in your messaging. The better you can do this, the quicker you can reach the
growth phase and the longer you should stay there.

Tailor Your Pricing Strategy

Your pricing strategy should be fluid and tailored to the specific part of the life cycle your
product sits in. For example, you may want to offer lower prices in the early stages, raise prices
during the growth and maturity stages, and then lower prices again during the decline.

Tailoring your pricing may help your product continue to grow. For example, discounts are a
great way to extend the longevity of a product and encourage even more people to buy it.

Introduce New Features

Products that don’t innovate by introducing new features won’t keep growing for long. Soon the
market will saturate and they will decline. Knowing this, you should invest heavily in new
features during the growth and maturity phases of the product lifecycle. In doing so, you can
experience rapid growth all over again.

The iPhone is a great example of this. Continual investment in camera quality, screen size, and
even the App Store has allowed the product to keep growing. Even the way Apple has
developed the positioning of the iPhone has led to sustained growth. By focusing on privacy,
something that hasn’t changed the physical features of the product at all, Apple has been able to
carve out a new market.

What Are the Limitations of the Product Life Cycle?

The biggest criticism of the product life cycle is that it doesn’t predict how long each stage
lasts. As a result, you can’t use the different stages to forecast sales with any great accuracy.

What’s more, some products take significantly longer to decline than others.

Finally, product life cycle stages risk becoming something of a self-fulfilling prophecy.
Anticipating that their products may soon decline, product managers may stop giving them their
full attention, thereby bringing about their decline.

Does the Product Life Cycle Only Apply to Products?

This is an interesting question about the model.

On one hand, the idea that the cycle works better for physical products is correct considering its
characteristics. On the other hand, it’s possible to be creative and think about adaptations of the
model.

Let’s take a large company with subsidiaries in different towns as an example.

Each one of these units may be considered a product when applying the Product Development
Life Cycle model; all you have to do is analyze each one’s performance individually.

Another example is a company with many brands, each with its own products.

To understand this better, take a look at the Procter & Gamble website, where you will see that
the company has several active brands in the USA market.
In which stage of the cycle is each of these brands? Are they planning new brands that are
currently in the development stage?

To conclude, let’s look at another example.

Could services replace products in the model proposed by Theodore Levitt?

Depending on the activity the company performs, this is perfectly possible. Let’s think about a
home renovation company, for example.

It may offer a great variety of construction services, such as installing floors and tiles, painting,
plastering, providing electric and hydraulic works, masonry, and more.

When using the Product Life Cycle method, you can observe the life cycle of each of these
services to assess the type of investment each of them requires and the possibilities for returns
in each case.

So no, the Product Life Cycle doesn’t just apply to physical products.

Practical Examples

How does the Product Life Cycle work in practice?

We are going to take a look at two cool examples to find out: Havaianas and Coca-Cola.

The Product Life Cycle of Havaianas

 Development: the traditional flip-flops were inspired by Japanese sandals made of wood
or straw; in Brazil, rubber was selected as the material because it was believed to have
the most acceptance with the audience.
 Introduction: deliberately or not, its introduction in the market was a great success with
classes C, D, and E.
 Growth: Havaianas flip-flops were in the growth stage for most of their existence,
eventually dominating over 90% of the market for flip-flops.
  Maturity: maturity only came in the 1990s, with new product design aimed at a different
audience, and great marketing investment, especially with the now-classic TV ads that
were fun and always starred famous actors.
 Decline: up to this moment, there are no signs that Havaianas flip-flops may go through
this stage in the short term.

The Product Life Cycle of Coca Cola

 Development: very little is known about the development of Coca-Cola and how they
created the mysterious formula.
 Introduction: by 1886, the year of its foundation, the brand already seemed to have the
right project.
 Growth: less than ten years after its launch, Coca-Cola was already consumed in all U.S.
states.
 Maturity: it’s impossible to say exactly when the brand reached maturity, but it’s safe to
say that it has spent most of its history until now in this stage.
 Decline: since 2012, the net operating revenue of Coca-Cola has fluctuated towards
decreasing; while a small decrease is within what’s expected for the maturity stage,
investments in marketing and new products must continue.

Product Life Cycle Vs. BCG Matrix

A product is born, grows, declines, and dies. Isn’t this model the same as that of the BCG
Matrix? If you thought of that, you were very astute.

The BCG Matrix is another amazing management tool, created by the Boston Consulting Group
(the model is named after their initials).

The BCG Matrix is very similar to the Product Life Cycle, though there are some differences.

First, there are four instead of five stages: Question Mark, Star, Cash Cow, and Dog.

Second: these curious names relate to specific characteristics of the stage in which the product
is, not necessarily analyzing the entire life cycle.

Are you confused? I’ll explain.

Take a look at the table below:

Question marks are new products that don’t have a market yet but have great potential for
growth.

Stars, as the name indicates, are at the top: they generate good revenue.

Cash cows are the future of stars: their performance has peaked, but their decline is expected.

And dogs are a problem: products at the end of the line, that no longer sell well and are unlikely
to recover their space.

In general, question marks and stars demand marketing investment, cash cows no longer need
investment and dogs will not recover even with investment.

FAQs

What is the Product Life Cycle?

The Product Life Cycle process a product goes through from ideation through to being removed
from the shelves.

What are the Stages of the Product Life Cycle?

There are five core stages in the Product Life Cycle: development, introduction, growth,
maturity, decline. It’s important to note that some explanations will emit the development phase
to leave four stages. Others will include a saturation phase for a total of six. Theodore Levitt’s
initial diagram showed four stages, but we think it’s important to include a development phase
given this stage’s unique challenges and the fact that some products never get released to
market.

Why is Understanding the Product Life Cycle Important?

Each stage of the process requires different strategies and expectations. Knowing where your
product is in the life cycle can help you successfully market it.

Conclusion

By now, you should understand the Product Life Cycle and the characteristics of each of its five
stages. You also learned tips for creating an appropriate strategy for each of them and how to
use the product life cycle to influence your decisions — even if you’re a digital marketer and
you aren’t selling physical goods.

If you need digital marketing help throughout any of the stages of the Product Life Cycle
model, our agency can help.

Now it’s time to dedicate yourself to reaching maturity and extending it for as long as possible.

What is the product life cycle?

The product life cycle is the succession of stages that a product goes through during its
existence, starting from development and ultimately ending in decline. Business owners and
marketers use the product life cycle to make important decisions and strategies on advertising
budgets, product prices, and packaging.

In the marketing industry, the typical depiction of the product life cycle only has four main
stages — Introduction, Growth, Maturity, and Decline. At HubSpot, we agree that these are
vital for a product, but the two stages “Development” and “Decline” aren’t nearly covered
enough.
As marketers, it's important to understand how your tactics and strategies change depending on
the stage your product is in. Let’s break down each of the six stages of the product life cycle.

What are the stages of the product life cycle?

1. Development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline

1. Development

The development stage of the product life cycle is the research phase before a product is
introduced to the marketplace. This is when companies bring in investors, develop prototypes,
test product effectiveness, and strategize their launch.

In this stage, companies typically spend a lot of money without bringing in any revenue because
the product isn't being sold yet.
This phase can last for a long time, depending on the complexity of the product, how new it is,
and the competition. For a completely new product, the development stage is particularly
difficult because the first pioneer of a product isn’t always as successful as later iterations.

Development Stage Marketing Strategy

While marketing typically begins in the introduction stage, you can begin to build “buzz”
around your product by securing the endorsement of established voices in the industry.

You can also publish early (and favorable) consumer research or testimonials. Your marketing
goal during this stage is to build upon your brand awareness and establish yourself as an
innovative company.

2. Introduction

The introduction stage happens when a product is launched in the marketplace. This is when
marketing teams begin building product awareness and targeting potential customers. Typically,
when a product is introduced, sales are low and demand builds slowly.

In this phase, marketers focus on advertising and marketing campaigns. They also work on
testing distribution channels and building product and brand awareness.

Introduction Stage Marketing Strategy

This is where the fun begins. Now that the product is launched, you can actually promote it
using inbound marketing and content marketing.

Education is vital in this stage. If your marketing strategies are successful, the product goes into
the next stage — growth.

3. Growth

During the growth stage, consumers have accepted the product in the market and customers are
beginning to truly buy in. That means demand and profits are growing, hopefully at a steadily
rapid pace.

The growth stage is when the market for the product is expanding and competition begins
developing. Potential competitors will see your success and will want in.

Growth Stage Marketing Strategy

During this phase, marketing campaigns often shift from getting customers’ buy-in to
establishing a brand presence so consumers choose them over developing competitors.
Additionally, as companies grow, they'll begin to open new distribution channels and add more
features and support services. In your strategy, you’ll advertise these as well.
4. Maturity

The maturity stage is when the sales begin to level off from the rapid growth period. At this
point, companies begin to reduce their prices so they can stay competitive amongst the growing
competition.

This is the phase where a company begins to become more efficient and learns from the
mistakes made in the introduction and growth stages. Marketing campaigns are typically
focused on differentiation rather than awareness. This means that product features might be
enhanced, prices might be lowered, and distribution becomes more intensive.

During the maturity stage, products begin to enter the most profitable stage. The cost of
production declines while the sales are increasing.

Maturity Stage Marketing Strategy

When your product has become a mature offering, you may feel like you’re “sailing by”
because sales are steady and the product has been established. But this is where it’s critical to
establish yourself as a leader and differentiate your brand.

Continuously improve upon the product as adoption grows, and let consumers know in your
marketing strategy that the product they love is better than it was before. This will protect you
during the next stage — saturation.

5. Saturation

During the product saturation stage, competitors have begun to take a portion of the market and
products will experience neither growth nor decline in sales.

Typically, this is the point when most consumers are using a product, but there are many
competing companies. At this point, you want your product to become the brand preference so
you don't enter the decline stage.

Saturation Stage Marketing Strategy

When the market has become saturated, you’ll need to focus on differentiation in features, brand
awareness, price, and customer service. Competition is highest at this stage, so it’s critical to
leave no doubt regarding the superiority of your product.

If innovation at the product level isn’t possible (because the product only needs minor tweaks at
this point), then invest in your customer service and use customer testimonials in your
marketing.

6. Decline
Unfortunately, if your product doesn't become the preferred brand in a marketplace, you'll
typically experience a decline. Sales will decrease during the heightened competition, which is
hard to overcome.

Additionally, new trends emerge as time goes on, just like the CD example I mentioned earlier.
If a company is at this stage, it'll either discontinue its product, sell the company, or innovate
and iterate on its product in some way.

Decline Stage Marketing Strategy

While companies would want to avoid the decline stage, sometimes there’s no helping it —
especially if the entire market reached a decline. In your marketing strategy, you can emphasize
the superiority of your solution to successfully get out of this stage.

To extend the product life cycle, successful companies can also implement new advertising
strategies, reduce prices, add new features to increase their value proposition, explore new
markets, or adjust brand packaging.

The best companies will usually have products at several points in the product life cycle at any
given time. Some companies look to other countries to begin the cycle anew.

Importance of the Product Life Cycle

The product life cycle is important because it informs an organization’s management and
decision-makers how well a product is performing and what strategic actions it will take to
succeed. This helps companies allocate resources like staff, budgets, shows which products
should be prioritized, and where the company should innovate next. 

Other benefits of using the product life cycle include:

 Make better marketing investments and decisions

 Easier to make long-term plans
 Allows for better decision making with accurate information on performance
 Easier to streamline current processes within your company

Product Life Cycle Limitations

While using the PLC method certainly helps stakeholders plan, it does have limitations. The
cycle breaks down performance over several stages, but unfortunately there is no way to tell
how long each stage will last. 

Complicating things further, not all products will move through these stages at the same pace.
For example, a product may take longer to decline than others. Plus product managers run the
risk of not dedicating enough effort and resources into a particular product if they think the
product will decline, creating planned obsolescence – even if customers still use it.
Breaking Down the Product Life Cycle Theory

In the late ‘60s, Harvard Business School professor Raymond Vernon developed this marketing
theory in response to an economic model that failed to account for trends present in
international trade – that’s why it was originally called the international product life cycle
theory.

It stated that products developed in an international market had three phases:

 New product
 Maturing product
 Standardized product

Here’s a quick breakdown of his theory.

Vernon theorized a new product would perform best in its country of origin to keep
manufacturing and production costs low. Once the product gained demand, companies could
begin exporting to other countries and continue building local production plants in each new
location.

Having these local plants would offer the flexibility to make changes to the product without
incurring huge costs.

The standardized phase would involve an influx of competitors, which would lead the company
to focus on driving down production and manufacturing costs to remain competitive. As the
market becomes saturated and a new product gets introduced, the company loses its relevance in
its home country and shifts gears to create something new, with the cycle beginning again.

Since then, the product life cycle theory has evolved to focus less on geography and more on
marketing. Let’s dive into it next.

You can use this template to map out your own product's life cycle phases.

Download the Free Product Life Cycle Template

Now that we’ve gone through stages and history, let’s review some real-life examples of them
in action.

Product Life Cycle Examples

1. The Typewriter
2. Vine
3. Cable TV
4. Floppy Disk

Let’s follow the product life cycle of popular products that have since reached the decline stage.

1. The Typewriter

The typewriter was the first mechanical writing tool — a worthy successor to pen and paper.
Ultimately, however, other technologies gained traction and replaced it.

 Development: Before the first commercial typewriter was introduced to the market, the

overall idea had been developed for centuries, beginning in 1575.
 Introduction: In the late 1800s, the first commercial typewriters were introduced.
 Growth: The typewriter quickly became an indispensable tool for all forms of writing,
becoming widely used in offices, businesses, and private homes.
 Maturity: Typewriters were in the maturity phase for nearly 80 years, because this was
the preferred product for typing communications up until the 1980s.
 Saturation: During the saturation stage, typewriters began to face fierce competition
with computers in the 1990s.
 Decline: Overall, the typewriter couldn't withstand the competition of new emerging
technologies, and eventually the product was discontinued.

2. Vine

Skipping forward to the 21st century, we see the rise and fall of Vine, a short-form video-
sharing app that was the source for many memes at its peak but eventually declined due to other
platforms.

 Development: Vine was founded in June 2012 and mainly competed with Instagram.
 Introduction: The app was introduced to the public in 2013. Its differentiating factor
was its short-form video format — users had only seven seconds to film something that
was hilarious, absurd, or a mixture of both.
 Growth: Only two years after its release, Vine had over 200 million active users. Its
popularity led to the advent of the phrase “Do it for the Vine.”
 Maturity: Because it was only in the market for a few years, Vine never reached the
maturity stage. While adoption was high, it was still a fairly new app.
 Saturation: Vine competed in an already saturated market. Instagram, Snapchat, and
YouTube were the pre-eminent names in their category, and Vine soon started to decline
in use.
  Decline: When Musical.ly was introduced, Vine lost a large amount of its user base and
shut down. It was succeeded by Byte, a similar short-form video-sharing platform, but
none of these have been able to surpass Tik Tok, which launched months after Vine’s
end in 2016.

3. Cable TV

Remember the days of switching TV channels to find what to watch? I do — and they feel
distinctly like something of the past. While cable TV is still around, it’s safe to say that it’s
nearing the decline stage.

 Development: Cable TV was developed in the first half of the twentieth century. John
Walson has been credited with its invention.
 Introduction: The first commercial television system was introduced in 1950, and by
1962, the technology saw the first hints of growth.
 Growth: After a decades-long freeze on cable TV’s development (due to regulatory
restrictions), the technology began gaining traction, and by 1980, more than 15 million
households had cable.
 Maturity: Cable TV matured around the 1990s. Around seven in ten households had
cable.
 Saturation: The start of the 21st century saw an oversaturation of this technology, and it
also started to compete with other modern developments such as on-demand services
and high-definition TV (HDTV). While the internet was still in its nascent stages, it
would soon gain on cable TV as well.
 Decline: From 2015 onwards, cable TV experienced a marked decline. Online video
streaming services such as Netflix and Hulu have taken precedence — and this trend is
set to continue.

4. Floppy Disk

This relic was once a popular and convenient way to store and share data between computers. I
barely understood what they were growing up, and it astounds me to think of the very existence
of cloud data sharing and other mass memory storage means.

 Development: The first floppy disk was developed in 1970 by IBM engineers. It was an
8-inch flexible magnetic disk in a square case with 2MB storage capacity.
 Introduction: It was introduced in 1971 and largely became known as the only way to
transfer or store data.
 Growth: The floppy disk was majorly used in the 1980s-1990s.
 Maturity: Sold well in the market during the 1990s. Improving with time, it could hold
200MB of storage.
 Saturation: Major competitors emerged at the beginning of the 21st century. The
invention of USB cables, external hard disks, and CDs gave people options to store their
data.
  Decline: The floppy disk faced a major decline up to Hewlett-Packard stopping
production for the disk in 2009. The storage capacity for other products in the market
grew to be more efficient.

Not all products need to face the decline stage. Companies can extend the product life cycle
with new iterations and stay afloat as long as they have several products at various points of the
product life cycle.

International Product Life Cycle

The international product life cycle (IPL) is the cycle a product goes through in international
markets. As products begin to mature and companies want to avoid the decline stage, they'll
typically begin to explore new markets globally.

When products reach mass production, manufacturing and production shift to other countries as
well.

The international product life cycle stages are identical to that of a normal product life cycle.
The development stage looks different, however, because local customs and regulations can
affect how long it takes to bring the product to a new marketplace.

However, once you lay the groundwork in a new marketplace, your competitors will be sure to
follow, and the life cycle stages will continue up until saturation and eventually decline. Your
option is to either expand into another market or learn from prior mistakes and innovate before
the decline stage rolls around.

Next, we’ll look at when you should use the product life cycle.

When to Use the Product Life Cycle

Businesses use the product life cycle to achieve the following:

 Establish competitive authority. If your product is new and recently introduced to the
market, you can advertise it as a new and improved alternative to an existing product. If
the product is established, you can vouch for its long history of use in your branding.
 Decide on a pricing strategy. Depending on the life cycle stage your product is in,
you’ll choose how to price the product. A new product may be priced lower to entice
more buyers, while a product in the growth stage can be priced higher.

 Create a marketing strategy. Your product life cycle stage will determine which
strategy to pursue. Maturity and audience knowledgeability play a big role in the type of
content you publish on your site and social media profiles.
 Respond before the product begins its decline. There’s no worse feeling than
watching your product slowly become obsolete or be displaced by a competing product.
By keeping the life cycle stages in mind, you can create a strategy that keeps you ahead
of the curve as you reach the saturation and decline stages.
The product life cycle benefits businesses because they can shift their wording and positioning
to best market the product at the stage it is in. If your product has recently been introduced and
you try to market it as a long-established solution, consumers will see right through it and trust
you less as a result.

8. The most common marketing problems

10 common marketing challenges

Here are some challenges that marketing teams may face, along with potential solutions:

1. Recruiting talent

A marketing team's combined levels of experience and expertise are often important factors in creating
effective strategies. Because talented marketers are often in high demand, recruiting and maintaining an
accomplished staff can sometimes be a challenge. If you're experiencing staffing issues, consider
applying marketing techniques to the recruitment process to make your company more attractive to
potential employees.

One approach is improving current employees' satisfaction through actions like incorporating feedback
channels in the workplace, quickly addressing management issues and hosting team-building activities. If
your employees enjoy working for the company, they may encourage others to apply for open positions.
You may also consider offering higher salaries, more flexibility and full benefits. To help improve your
image as an employer, try introducing your marketing team on social media channels or creating outlets
to let them display their work.

2. Maintaining a sufficient budget

One common challenge marketers may face is a lack of funding or resources. This can occur if a
company is experiencing losses or if marketing campaigns aren't providing a return on investment.
Insufficient funds may prevent marketers from reaching their potential or slow a company's growth.

To overcome funding issues, it's often important for marketing teams to establish their value to
company leadership. One effective strategy is tracking and reporting on valuable performance metrics.
Here are some metrics your team could share:

 Customer acquisition cost (CAC): This metric tells marketers how much they spend to gain a
new customer. It can show leadership that marketers are bringing in new customers at high
rates while maintaining low costs.

 Customer lifetime value (CLV): This is the average revenue that customers generate for a
company over the life of their relationship. High CLVs may help prove that the team's campaigns
are effective.
  Conversion rate: Conversion rates tell companies how effective their marketing is by measuring
how many customers make purchases after viewing advertisements. The higher a campaign's
conversion rates, the more successful it is.

 Return on investment (ROI): The ROI ratio measures how much revenue a company receives for
every dollar it spends on advertising. Marketing teams can use this metric to show the
effectiveness of their campaigns.

Related: Marketing Growth: Components and Growth Marketing Campaigns

3. Generating leads

Leads are individuals or companies who show an interest in your products or services. A primary goal of
marketers is to find leads and convert them into paying customers. Lead generation can be challenging,
especially in industries with heavy competition. These are some methods for mitigating this issue:

 Monitor new developments in marketing.

 Incorporate new tactics into your marketing strategy.

 Compare your products to those of your competitors.

 Take steps to find out what content appeals to your potential customers.

 Track your conversion rate to discover what earns responses from your customers.

4. Finding the right tools

Marketing tools and tactics often change rapidly, along with customer expectations. It's important for
marketing professionals to use the most effective and current tools for attracting and retaining
customers. Using inadequate tools can prevent companies from staying competitive and making the
best use of their leads.

One marketing tool is customer relationship management software. These programs can help your team
track its contacts, learn more about them and develop effective strategies for getting their business.
Your company can also consider using analytics software or marketing automation tools. Analytics
software can automatically track important metrics related to your online campaigns, while marketing
automation tools can implement automatic checkout and follow-up to help your customers complete
purchases.

5. Being risk-averse

Like many other aspects of business, marketing can involve occasional risks. However, some marketing
teams may be excessively reluctant to change strategies they've used for years. This impulse may
prevent teams from discovering effective marketing techniques, causing them to fall behind current
trends and potentially slow the company's growth.
There are several strategies you can use to ensure your team is comfortable with risk and change.
Monitor developments in your industry to find out what works and which new trends to pursue. You can
then consider implementing them alongside your current strategy and monitoring their success. Also
consider testing new tactics on a single campaign to ensure that your team is comfortable with them
before applying the tactics to large sections of your operations.

Related: Marketing Plan vs. Marketing Strategy: What's the Difference?

6. Moving into new markets

Growth is often a primary goal of many businesses, but it may bring new challenges. For example, a
company's expansion into new markets may lead to marketing teams' existing strategies, goals and
structure becoming ineffective. When moving into new markets, especially international ones, conduct
extensive research and consider hiring local marketing professionals who can provide insights, offer
recommendations or share important linguistic abilities for expanding into their market. You may also
consider optimizing your online presence, including your website and social media accounts, for
international audiences.

7. Retaining customers

Customer retention can be an important goal for marketing teams. This is because it's often more cost-
effective than acquiring new customers or converting leads. Low customer retention can increase a
company's advertising costs compared to its profits.

It's often helpful to invest in retention strategies to ensure your company reaches a sustainable profit
margin. Consider making small investments to avoid significant costs associated with turnover. Try
offering your current customers discounts or implementing a system of automated email or text
messages so you can remain in contact with them. These steps can help your customers feel valued and
may increase your average customer lifetime.

Related: What Is Customer Marketing? (With Benefits and Types of Customer Marketing)

8. Retaining and training staff

The expertise of your marketing team is an important asset that can help you stay productive. Hiring
new staff can pose challenges to productivity and may divert valuable resources away from your team's
goals. To avoid this, it's often helpful to increase employee retention and streamline your recruiting and
training procedures.

Employee retention can allow your team to continue benefiting from its most valuable employees'
expertise. To increase retention, invest in your employees with competitive salaries and benefits or
increase the flexibility of your workplace. To streamline your onboarding procedures, it may be helpful
to recruit experienced marketers and automate your training and onboarding. These steps can ensure
that your other team members can stay focused on their marketing goals.
9. Choosing effective tactics

There are many ways to reach your customers. So it's important to identify which campaigns and
strategies are most effective and which ones consume more resources than they produce. Focusing on
effective campaigns can help you lower your costs and increase your profitability.

One way to identify your most profitable tactics is to track metrics on all of your campaigns and
advertising platforms. You can use automated tracking to make this process easier and more thorough.
Once you understand how your campaigns are performing, you can eliminate inefficient platforms and
investing more in your best strategies.

10. Facing increased competition

In industries that experience growth, marketing teams may encounter more competition from similar
companies. With this challenge, some teams try producing content at a higher rate to increase their
market share. While this may be effective, it's often more helpful to make your content more
competitive by improving its quality.

Analyze your different campaigns and focus on the most effective ones. You can then put more
resources into further developing those strategies. Consider increasing the quality of your output and
focusing your advertising on the unique aspects of your product or service. These tactics may help you
outperform your competition even when you produce a smaller quantity of content.

10 common marketing challenges or problems that most businesses will face

Several experts define marketing as a “set of techniques, strategies, and studies that aim to improve a
product or service by finding the best way to present and sell it.

But basically, marketing is all that helps you to sell more products. Well, it’s more than that; It is about
how your potential customers will see your brand and the products or services that you are  offering.
We can see that marketing is about the way your employees approach your customers or the email
you send them for Christmas.

Large corporations know that, as they apply these techniques very well in their marketing and sales
departments.

But what happens with most small businesses, entrepreneurs and autonomous?

The vast majority of companies don’t have a marketing department because in many cases they were
created by freelancers who have decided to create their own business and never studied marketing, nor
do they know how to apply it correctly in their sales strategy.

This is why I want to analyze the 10 challenges or problems that many companies will face when
working with marketing.
· 10 Common Marketing Challenges or Problems That Many Businesses Will face

These are some of them and if you work or manage your own business, you will surely feel identified
with most of these issues:

1.- Not knowing how to explain the product or service you want to sell

Often, being an expert on a product doesn’t make you the best person to sell it.

You know the features of your product, the manufacturing steps, the materials used, the best
applications, but you don’t know how to explain your product to the possible buyer, for whom all these
hundreds of product features matter little because he is just looking for one of them.

Any item or service should be explained from the customer’s perspective. What is the customer
looking for when evaluating this service or product?

Price, quality, reliability, for something that will solve a problem, that will make his life more
comfortable, or elevate his social status.

The business owner, a freelancer, a merchant, a liberal professional, someone in charge of selling your
products or services; or vendors and clerks, waiters at bars and restaurants, all of them should receive
training to learn how to sell your products, with instructions on how the product can help potential
customers.

“Your product or service is not good because it’s yours, it’s good because your customers want to buy it.

This brings us to the next problem, especially at the beginning of any business:

2.- Not finding your market segment

Opening a business and think that all the inhabitants of the planet will love it is a very common mistake
many entrepreneurs make.

But if this entrepreneur has a little idea about social networks or simply has many friends on his
personal Facebook.

Let’s see some examples:

1. A single person will not be interested in becoming a customer of a lawyer dedicated to Family
Law (divorces).

2. If a seller goes to a nursing home to sell articles for mountaineering, he will not be able to find
potential customers.

3. Distributing pamphlets in a high school with the Rolls Royce’s latest model is not a good strategy
as it will not generate any sale.

Do you understand what I mean?

We all sell something to someone. The problem of small businesses and, above all, of the entrepreneurs
who are starting, is that they don’t have much data to determine who is the ideal buyer for their
product?

It is vital to pre-define your ideal buyer and your market segment.

By doing this, you will have a much clearer idea of the potential of your new business. If you find that
there are only a few customers interested in your articles or services, you will know that you will have to
create a targeted sales strategy to attract more customers. Perhaps you could think and act as a local
business, or if your product has a larger audience, you could create an international sales strategy.

Also, you’ll know why your potential customers are looking for your product or service.

They may be attracted to the novelty (especially in technological products), they may be interested in
price, quality, social status, in a temporary solution, etc.

Once you know what your ideal clients are looking for, you can explain better your product, and you will
have more sales and more advantages.

3.- Lack of commercial department

The commercial department is one of the most relevant parts of any successful business. In times of
financial crisis, a good commercial department can save your company.

So imagine what you can do during the good times. The problem is that we believe that only the
commercial department can sell and that other departments don’t have to worry about it.
If you have a restaurant, all waiters should be good salespeople; your store employees should be good
salespeople, if you are a lawyer, you must learn to become a successful seller.

Organize your small or medium business so that everyone can learn how to sell your products or
services.

Unfortunately, many companies don’t work hard enough to train all the collaborators to become
vendors, people able to offer their products or services for potential customers.

If you have a sales section and you have created a sales department, let them do their work.

If someone stands out for his accomplishments, reward him, encourage other collaborators to learn
from him. You should be the first to learn from him and try to improve.

A good salesperson can quickly identify what he will need to do to sell (he will work with his boss asked
him to sell). A good seller knows how to approach potential customers, building customer loyalty, how
to generate cross-selling (increasing revenue per customer and the company’s profits)

4.- Invisibility of your business

Promoting your business should be one of your main tasks if you want to become a businessperson. The
problem arises when choosing the medium and the resources that will be used.

Advertising a company is very simple and can be very cheap.

But if you use a medium that is not appropriate and you address people who are not interested in your
product or service, you will only have lost time and money.

Some of the platforms you can use to advertise your business are:

– Press releases, radio, and television (locally, regionally, nationally, internationally) or ads on different
platforms on the Internet.

 Leaflets on car windshields, in mailboxes, in the hands of people passing by your store. Does it
sound like “vintage”? But why not?

 Create a corporate blog, position it for your professional sector and start showing the
advantages of your company and all the solutions you offer to improve the lives of your
potential customers.

 Profiles and pages on social networks. Also, you can create paid ads on these social networks, as
the latest changes on many algorithms don’t allow you to reach many people.

 Organize an event that also helps the community, so that the media will spread the word about
the event and therefore help spread the word about your business.
  Even messages in WhatsApp can be a great way to publicize your business and more since the
arrival of the new “WhatsApp Business. “

But each of these forms of advertising is more efficient for a type of business than to another.

Paying for an advertisement on a regional television channel if you run a small local business will not
help you much.

If you have a blog, but don’t update it, to talk directly to your readers about the advantages of your
business by posting articles, talking about your services, you are missing an incredible opportunity to
create engagement with your visitors.

Instagram is a platform used mostly by women, most of them use this social network regularly. A priori,
announce articles for men’s hygiene wouldn’t be a good option.

But as you know that this ad will be seen mostly by women, you can modify your campaign to convince
them to buy your products for their husbands, boyfriends, companions, brothers. ”

When it comes to advertising, the first thing to keep in mind is what you want to achieve. Once you
determine your goal, you should investigate the market to find out which media or platforms are the
best channels for your campaign.

●For example, posting an ad for men’s products in a magazine for girls and teenagers. MISTAKE

● Publishing the same ad in a magazine dedicated to football, cars, etc. GOOD STRATEGY

Local social networks and the online world are becoming vital for any marketing strategy. We all carry a
smartphone in our pocket and when we need to get something, we can find it online:

“Where is the nearest open pharmacy to me, where to find a locksmith, Best places to have lunch.”
5.- Problems with the price of your product

You may think that the price of what you are selling is not essential for your marketing strategy. If that’s
what you think, you are mistaken.

The price of the product is essential to the success of the company and should be perceived as “fair” by
your customers.

Would you be willing to pay $ 1,000 for a can of Coke? Never.

You will have to determine the price of your product taking into account, first, your professional
circumstances, and then try to find out how much your competitors are charging for the same products.

Perhaps your competitors may not have the mortgages you have to pay; they may not need to pay the
staff you have to pay, or they are on business for a long time, which means they can have some
advantages or agreements with manufacturers or distributors and can offer more competitive prices
that would make your business impractical.

This is why you must first determine how much you will need to charge for the product.

You will need to find out what the minimum amount you can charge is, so you don’t win or lose, the
limit by which, if you charge less, you would lose money no matter the number of items you sell.

Once you know the price, the next step will be to “decorate” the product so your potential customers
will buy from you and not from your competitors.
A coffee usually costs about the same in any bar, the quality of the service, the decoration, the
environment, the professionalism of the waiters are what will make the difference.

Competing for prices is a dangerous strategy that, in the long term, usually will not work well. A few
years ago, a baker dropped the price of bread.

For a while, he was very successful. He made very little money, but he was selling a lot of bread.

A few months ago, he announced he would have to close his bakeries, as he didn’t have money to pay
his large debt. Along the way, dozens of bakeries that sold their products at higher prices also closed, as
they couldn’t afford to offer the same prices.

Now a whole region of Spain doesn’t have any bakery; people have to buy bread at supermarkets and
gas stations. They can’t buy bread near their home.

6.- Lack of coordination between marketing and sales departments

Not all companies have seasonal sales, but all of them have peak sales and months with fewer sales.

Marketing actions should be coordinated with what should be sold in every period, but this doesn’t
always happen.

You shouldn’t pay for an ad when your company doesn’t have the best products to offer. You may think
this should be obvious, but many managers spend a lot of money on campaigns that will never bring
good  results for their marketing strategy.

If you access the social networks of several restaurants, you’ll see a clear example of what I’m saying. If
you look for restaurants on Facebook, you will probably find many of them posting at 7 pm pictures of
the food that was served for lunch.

What they should do at 7 o’clock in the afternoon is to talk about what their customers will find when
they leave work, or the menu they will have for dinner.

What you need is for the marketing department to know what to sell and when to sell each product.

Following with the example of the restaurant. What is the benefit of posting photos of soup that is very
popular during the winter, but we are not offering today because it is very hot? Who, in his right mind,
will want to get soup in the middle of summer?

A store should not create a promotion for selling fans during the winter. A fashion store should not
invest in ads to sell coats during the summer. We could give you many more examples, but I think you
already understood what we are trying to say.

And that brings us to the next common marketing problem:

7.- Not having a marketing plan

Every company, large, small or medium has an established schedule, they know when they will allow
their staff to go on vacation, they know when to pay their taxes, when to buy new products.

But very few companies, small and medium, have a marketing plan. It is vital to know which products or
services should be advertised to encourage the sales, or when they should do it.

To create an effective marketing plan, you’ll need to know when it’s best to sell something or another.

For example, the number of divorces increases considerably in late summer, when couples return to
their daily routine after the vacation. Lawyers will get more clients advertising their services in the late
summer than during the holidays.

In early summer, many people start looking for gyms because they want to lose a few pounds. If you are
preparing a marketing plan for a gym, this is the best time to start spreading your activities and attract
some of these customers who are looking for a gym.

Planning means doing things at the right time, not just because you think you should try something
different.

8.- Lack of Brand Image, Professional Reputation, Personal Branding

Every business has a certain reputation, whether negative, neutral or positive. Without this reputation,
you can’t exist as a company.
The reputation will change and possibly improve over time. You should have a recognizable,
differentiable brand image of your competitors.

The style you impose on your business, your decor, your professionalism, your products, your after-sales
service. Many factors will help create a good brand image. A good professional reputation will be key
to getting new customers and doing new business.

This reputation can make all the difference to customers who will have to decide, often unconsciously, if
they will trust one brand or another. The example we can use here are the lawyers. A lawyer with a
good reputation can get more money. If many people say this lawyer can win all the legal petitions, he
will be the first choice of people who want to win their legal actions. The same thing happens with
doctors, mechanics, dentists, etc.

If you can’t be recognized for your professionalism, you can try to create a positive reputation based on
the decoration of your store, or how you help your customers, in a warm environment, or on other
factors that are relevant to you and your customers.

Every company has to be clearly recognized and have a unique brand identity. Ideally, professionalism
should be the main differential, but this is not absolutely necessary.

I’m thinking about the bad reputation of a well-known multinational store dedicated to fashion that
always offer low prices.

Customers who enter their stores don’t receive help or good treatment from sellers (who usually just
fold shirts), but many people continue to buy from them, due to a fundamental factor: quality and low
price.
9.- Not having a good online presence

As we pointed out above, today everyone has a smartphone in their pocket connected to the internet.
At any time, anyone can be looking for our items or products and if we are not online, we will lose those
sales.

Having a good online presence is not having an outdated website,a  blog in which you don’t publish
anything, a page in a social network where you just advertise your articles, just a few photos.

A good online presence means that your website must be active and be functional. You need to offer
several contact options, with an active support staff to help your customers to solve their problems and
doubts so that they can trust you.

The same goes for emails.

Ricardo Llop, a reference in electronic commerce in Spain stated that the first thing he does when he
enters his office is to respond to his emails.

And the last task he does before going home to rest is to answer the emails in his inbox. The difference
between responding to an email now or leaving a customer waiting for 8 hours is that you will sell more
if you provide fast support.

With social networks, you need to be just as careful. They should not be your primary sales channel.
Think about your social networks as a thematic television channel about your business. You should
create a channel where visitors can find information about decoration, travel (on the theme of your
sector and the products you are selling). You can use this channel to talk about your products, but not
just about them.

It is obvious that if you own a restaurant, you should advertise your menu on your social networks.

But if you really want to attract followers, you need to talk about more than that, for example on the
products used in the meals, with general tips about how to improve eating habits, etc.

Also, all social networks have options for sending and receiving private messages. It is a perfect sales
and after-sales channel. You should also always respond to all comments from your customers and
followers.

Responding to these comments is fundamental to show to your customers that you are listening to
them.

10.- To think that marketing is not necessary.

Believing that we are the best, that we know everything we have to do to sell our product is a very
common mistake that many entrepreneurs make, especially in the beginning, when they are still full of
ideas for their new business.
Believing that people will run to your store just because you say you have the best product at the best
price is a mistake that will end up costing you a lot of money.

Marketing, as we have seen throughout this article (and in the definition you read in the beginning) is a
set of actions created for selling your products.

No business survives without marketing; it doesn’t matter what you do, you will have to work with some
of the marketing actions we described in this post.

The problem is something that we have already explained. A good strategy means applying the
appropriate actions at the right time, using the best channel for each campaign, so that we can have the
expected results: We all want to sell more products and attract new customers.

How Many Entrepreneurs Create Untimely Marketing Strategies That Don’t bring the desired
results? When they spend money and don’t get new customers, they end up believing that marketing
will not work for them.

Conclusion: Marketing Challenges for Businesses

Throughout this article, we talked about the main problems small companies face when working with
marketing.

As you have read, many of these problems are not due to the lack of financial resources, but for lack of
planning, knowledge, in many cases of interest in learning new things.

Today, with the online world at your fingertips, you have no excuse for ignoring marketing as a key
strategy for selling more.

It is true that a good professional will get better results than an amateur, but there are thousands of
articles on the Internet that explain how to do things correctly, how to manage your social networks, 
how to manage your company, how to set the right price, how to work with discounts, and much more
than that.

Nowadays, things are often not done correctly due to negligence. Unfortunately, we tend to think we
already know enough, and this is the worst mistake you can make.

I hope now that you have finished reading this article, you will be ready to start working to improve the
marketing strategy for your project.

1. No Clear Strategy

Smart Insights tells us about 50 percent of companies using digital marketing have no plan or strategy in
place.

That means that half of all businesses and organizations using digital marketing literally have no
cohesive plan for achieving their goals. They are simply groping in the dark, hoping to grasp results.
If this sounds familiar, chances are you don’t have a digital marketing strategy in place. 

How to Fix It

First, choose clear, focused marketing objectives. Build a clear, cohesive strategy that centers around
these goals.

This might sound intimidating, but it doesn’t have to be difficult. Start by asking yourself basic questions:

1. What is our primary objective as a company or organization? (I.e. sell widgets, get more
subscribers, raise awareness for a cause, etc.)

2. Who is our target audience? What is our customer’s buyer persona?

3. How do we reach our audience? Where are they? How do they consume digital media?

You get the idea!

As you start to get a strategy in mind, write it down. Share it with your marketing and sales
departments. (If you’re a smaller business without entire departments, designate members of your staff
who are best equipped to help you reach sales and marketing goals.)

Having a clear strategy to work with opens up dialogue and invites ideas to improve the overall strategy
which will lead to accomplishing goals in a more powerful manner. It also provides guidance for team
members, and allows them to know how their responsibilities contribute to the overall plan. This
ultimately strengthens accountability, as well as the relationships between sales and marketing.

2. Lack of Time and Resources

Marketers must move at breakneck speed. In fact, the most recent Adobe Workfront State of Marketing
Work Report found marketers spend less than 20 percent of their time on high-value work. They used
the other 80 percent on other tasks, like meetings, administration, and responding to emails. (Yet
another example of the 80/20 Rule in action!)

This leaves less time to focus on more meaningful activities, which can have a negative impact on your
overall marketing.

How to Fix It

Every business owner and manager probably feels they don’t have enough time and resources to
achieve their goals. This is not easy to correct, but you can address it.

Prioritize Efficiently

Using a project management system allows you to reduce the time and energy devoted to different
activities. It will also help prioritize tasks more efficiently.

Prioritization means identifying certain tasks for elimination. This applies whether you delegate to
someone else, or simply remove them from your schedule.

Create Better Processes

A clear, efficient process allows you to accomplish marketing activities more quickly, or delegate to
another team member. If a certain activity is draining too much time, reconsider that task. What would
make it more efficient? Is this really the best way to spend your time and energy? Answering these
questions can streamline your work day for maximum efficiency and productivity.

Focus On Your Strategy

An effective strategy, will simplify prioritizing your activities. You will know exactly which things will have
the most impact on your goals. This means you can start cutting out tasks which are not contributing
effectively to prioritized objectives.
3. No Alignment with Buyer Personas

Determining buyer personas, and actually implementing that knowledge into your marketing strategy, is
a big challenge.

It takes a blend of analytical thinking, heavy research, creativity, and psychology to craft a strategy that
will speak to your customers in a relevant and powerful way.

Some businesses believe they have their audience figured out, but not everything in their marketing
strategy actually aligns with that individual. 

How to Fix It

This goes back to having a clear strategy. Consider each component of your marketing plan carefully. Ask
yourself: is my customer really interested in this? Will they actually open this email, or care about this
topic? 

Make a habit of thinking in this way. Create a “model” customer who exactly matches your buyer
persona. Give him or her a name and detailed description and think about him or her every time you are
working on a component of your marketing. To get started, try this template.

Using a buyer persona to relate to your activity lets you cut down on generalizations and abstract ideas,
which can ultimately be ineffective. Instead, you’ll be more focused on the needs and desires of a real
person.

4. Inability to Adapt to New Trends

It’s easy to get caught in a routine. When this happens, you may find it difficult to keep up with the ever-
changing business landscape.
Failure to adapt in the digital marketing world is death. The Google search algorithm updates several
times per week. What’s hot on social media right now will be old news tomorrow. Today’s hot new app
will be forgotten by next month. If you don’t keep up, you’ll be left farther and farther behind. 

How to Fix It

Understand that Digital Marketing = Constant Change. Subscribe to emails from industry thought

leaders, and frequent major websites in the digital realm. Keep an eye out for any breaking news or
recent trends.

Here are a few great resources we use and recommend:

 DigitalMarketer

 HubSpot

 Search Engine Journal

 Search Engine Land

 Think With Google

Having a thirst for new knowledge is essential in marketing, because you need to be ready to explore
and analyze new ideas and methods. Then, start integrating the most relevant trends into your own
marketing.

If marketing automation will boost your sales, consider integrating it into your strategy.

Keep in mind, not every trend will fit your needs. There may be other ways to make the best use of your
time and budget, if you keep an open mind and do your homework.

5. Proving ROI
HubSpot’s State of Marketing Report has found demonstrating the return on investment (ROI) of
marketing activities to be the #1 roadblock for marketers.

If you’ve ever tried to do this yourself – come up with a dollar figure for how much business your
marketing efforts have generated – you can understand the challenge therein.

Evaluating ROI his is also important when attempting to prove value to upper management. If done
successfully, this leads to more marketing dollars and a greater pool of resources.

How to Fix It 

Closing the loop in your digital marketing reporting is a necessity.

Marketing relies heavily on sales to close deals. Without the power of marketing and sales reporting
working together, it is extremely difficult to calculate ROI. 

It is important to not only close the loop, but calculate the right metrics. Know what matters for your
strategy and your audience. This will come in handy when you’re attempting to get the buy-in you need
to implement new strategies or secure more funds.

Addressing these common marketing problems can have a positive impact on your overall business.
With a focus on strategy and results, your team will become more efficient and effective.

The top 15 marketing problems and their solutions

Whether you’re a small business, a startup, an entrepreneur, or an established brand, you will face
marketing problems. It’s inevitable. So, here’s the breakdown of the top marketing problems and
solutions. 

1. Lack of a marketing strategy

A lack of marketing strategy can lead to a marketing problem. When you’re running your business daily,
it’s easy to forget about planning how to sell your product or service—but that’s important to keep in
mind! How will anyone else know if you can’t describe what your product or service does? If you’re
having this marketing problem, it’s time to sit down and put some ideas on paper. A marketing plan is
the foundation of any successful business; this document should include your target audience, how
you’ll reach them, and what they will be encouraged to do when they visit your site or social media
accounts.

2. Failing to know how to allocate your budget

Failing to give your marketing budget is a standard marketing problem for companies. Assigning a
budget means deciding how much you want to spend on each marketing activity, like advertising or
public relations. An easy decision if you have unlimited funds available for your project. But if you are
working with a limited budget, it becomes much more challenging to decide what’s most important—
and where to spend money. The best way to avoid this marketing problem is by setting goals and
figuring out how much money you have available for your marketing efforts.

3. An inability to calculate the return on investment (ROI)

The biggest marketing mistake is failing to calculate return on investment, or ROI, when companies
don’t have the data they need and make mistakes about how you should make such calculations. The
ability to calculate your return on investment (ROI) is one of the most important parts of marketing.
Without it, you won’t know whether or not your marketing efforts are working. Calculating the return on
investment for all your projects is essential to planning for future success. However, calculating ROI is
tricky, and you must learn how to do bookkeeping. Once you know what goes into your business’s
bottom line, you’ll be able to measure and make adjustments as needed. Track advertising expenses and
profits on a spreadsheet to ensure your marketing efforts are profitable. This will allow you to calculate
the return on investment (ROI)—the amount of money gained relative to a cost.

4. Lack of a social media presence

The marketing problem with needing a social media presence may make people question your brand’s
legitimacy. What does it say about your seriousness if you aren’t on social media while everyone else is?
This could cause customers to think you’re not serious about your business or the care you provide—
which is crucial in today’s social-media-driven marketing environment. To market and sell your products
successfully, you need to be visible on the websites frequented by your ideal customers. You can tailor
content and offerings to match consumers’ wants, boosting sales.

5. Failing to understand your target audience

Marketing problems arise when businesses need help understanding their customers. To succeed,
companies need to know whom they are selling to and what product or service those people want most
from them. Without this information, no matter how good your plan is, it will fail to connect with
consumers. To avoid this marketing problem, you must understand what your audience wants from
their purchases. It would be best to find out what makes them tick so that you can make the right
approach. Let your customers know you care about their opinions by asking them regularly what they
think of your products and then incorporating that feedback into future development efforts.

7. Using a generic “one size fits all” approach

Most companies today use a “one size fits all” marketing approach, applying the same strategies to their
entire customer base. Using the same process no matter what product or service you’re selling, can be
effective sometimes, but it’s risky. It can cause marketing problems because it ignores differences
among customer segments and campaign goals.

When you’re trying to reach out to customers, you must be able to tailor your message and approach.
Just as you wouldn’t ask a child to do a job requiring an adult’s skills, you also need to ensure that your
marketing campaigns are for the right audience. If you’re trying to market your product or service, it’s
easy for a one-size-fits-all approach to work against you and cause marketing problems. If you have
multiple customer segments with different needs and goals, you must ensure that your campaign is
tailored specifically for each.

8. Keeping up with all the different marketing channels

Keeping up with all the different channels and formats available today is essential, so you don’t waste
money on things that won’t help you achieve your goals. Regardless, this can cause a marketing problem
because it means there’s always something new to learn and master, which can be stressful, especially
when trying to keep up with the latest trends. As a result, companies tend to stick with what they know
instead of trying something new. However, this kind of thinking can lead to missed opportunities and
wasted money—significantly if someone else figures out how to use something before you do. 

To avoid being overwhelmed by all the marketing channels, you must stay up-to-date on the latest
technologies and content creation tools. Nevertheless, keeping abreast of all the different marketing
channels may distract you from more important things, like your vision for your business or industry.

9. Trying to be everywhere at once. 

Being everywhere at once can be a great way to get your message out there and reach your audience,
but it also means you will be spread thin. This is a marketing problem because if you try to do too much,
you’ll end up doing nothing well. When it comes to marketing, you must prioritize what’s most
important, so you don’t end up with mediocre content. Be sure you’re focusing on quality over quantity
in your content creation efforts—that means creating fewer pieces but ensuring each piece is as good as
possible! If you feel overwhelmed or like there’s too much content for people to consume, try setting
aside some time each week for content creation and putting that priority ahead of everything else on
your plate.

10. Assuming that a particular approach will work for you

Thinking that just because something worked for someone else, it will work for you too without
considering whether or not their business is similar in nature or size. This is a typical marketing mistake
that newbie marketers make. They think that just because something worked for someone else, it will
work for them too. The problem with this is that different businesses have different needs. So even if
something worked for someone else, you might need something else. You have to consider whether or
not their business is similar in nature or size before deciding if what they’re doing will work for you as
well.

11. Pursuing an outdated marketing strategy

The marketing world is an ever-changing beast. Just because something worked for your marketing
strategy before doesn’t mean it will work again—especially if there were no significant changes in
industry norms between then and now. What worked well for you last year might not be as effective this
year; what seems to function well today may not continue to do so tomorrow. Don’t rely on old
marketing strategies. If you find a plan isn’t working, it’s probably because the industry has changed,
and you need to change. If you don’t maintain the latest trends, you could fall behind in the marketplace
and lose out on revenue opportunities.

12. Not using the right social media channels for your business

Social media marketing is a potent tool for reaching your customers, and it’s easy to see why. With so
many different platforms available, you can get creative with how you use them to reach potential
customers. But you need to use your business’s proper social media channels to take advantage of
valuable opportunities. Many social media apps for small businesses are available, so you must
determine which is best for your business. The problem with deciding on a marketing strategy is not
knowing which platforms will work best and where to focus your efforts.

You can avoid this marketing problem by checking out your competitors’ social media profiles and
seeing which sites they use most frequently. Once you have identified the platforms that seem to be a
good fit for your brand, research those platforms and see what kinds of content work best on each.
Please keep track of how frequently people post and how much engagement their posts typically receive
to model your strategies after theirs. Learn which channels are sufficient for your business model and
goals, then focus on those! 

13. Confused about appropriate content for different channels

You’re not alone if you need clarification about creating the right content for each social media channel.
Should you post long-form blog posts or short, snappy tweets? And then there’s Instagram and LinkedIn.
So many choices! The best way to solve this marketing problem is to figure out what kind of content you
want to create and how you want it delivered. For example, if you post long-form blog posts, use
LinkedIn as a publishing platform. If you wish to write short, snappy tweets, use Twitter. And if you want
Instagram-worthy photos and videos, use that channel instead.

14. Sales are down

No one wants to hear that sales are down, but it’s a fact of life for most businesses. Sales are the
lifeblood of any industry; if your sales are down, you need to do something about it. If sales will
decrease the typical marketing problem that companies face and is the number one reason businesses
fail.

When sales are down, the first thing to do is to figure out why. Is it because you need to target the right
people? Or is your product not quite ready yet? Or is your pricing too high? Once you’ve identified what
the underlying issue is, fix it! But wait to implement changes. Give yourself time to test each change
before moving on to the next step. A slow-and-steady approach will help you avoid marketing problems
that could set back your progress further than necessary.

15. The company has been around for a long time and has lost its edge

The best companies are constantly evolving. If you’re not moving fast enough, you’ll get left behind. This
marketing problem’s harder to attract new customers, and it can be hard to make sales or generate
leads when you’ve been around for so long. That is why your company must constantly keep up with the
latest trends to maintain its competitive advantage. As companies grow, they often become less
innovative and more entrenched in the status quo. This can hurt their ability to attract new customers
looking for something novel and exciting.

However, there are ways to stay fresh without completely overhauling your brand and deal with this
marketing issue. You can start by establishing a brand aesthetic for your business that stands out from
the competition. This could mean changing your logo or using brighter colours on your website—
whatever works best for you and helps make your company more appealing to potential customers.

Takeaways

The key to competing in today’s business world is not just about surviving but thriving in an era of
uncertainty where everything changes on a dime. Marketing problems are everywhere and can arise
anytime—the more prepared you are to address them, the better. By keeping on top of what’s
happening in the industry and across your own business, you’ll be able to see changes coming before
they hit and adjust accordingly.

4 Common Digital Marketing Problems and their Best Solutions

There are some problems that it seems everyone experiences at least once in the course of their digital
marketing. There’s no point in wasting more time on mediocre digital marketing. From struggling with a
small budget to floundering on social media, these are the four most common digital marketing
problems — and the best solutions for each.

Making the Most of a Small(er) Budget

One of the biggest digital marketing concerns for businesses is how to stand out against bigger
competitors without a commensurate digital marketing budget. This concern is commonly paired with
the feeling that Google’s search algorithm is slightly biased towards brands — though Google says this
isn’t the case. While we can’t speak to the veracity of that common perception, we do know that larger
competitors can feel like they have an unfair advantage. The solutions that follow are some of the best
ways to level the playing field.

Segment Your Audience

With any small budget, a major part of success is stretching every dollar. When it comes to digital
marketing, you can get the maximum marketing ROI by segmenting your audience. Breaking up your
audience into segments can help you market more effectively to everyone you reach. The segment
categories will depend almost entirely on what type of business you run, but common ways to segment
your audience include by demographics, lifestyle, and behavior.

Invest in Local

Again, whether a local marketing strategy will work for you depends on your business. Enhance your
Google My Business page with advanced attributes and useful features like Q&A, chat, or posts. Make
sure that you are listed or have claimed your business on other business directories as well — including
local city-specific websites. Play up your local social presence — use location tagging in your social media
posts and post about your local community. These efforts can help you rank in mobile search and
improve your local digital marketing metrics.

Get Social-Specific

If you’re struggling with a smaller marketing budget, you might need to pick your battles. Depending on
the budget differential between your business and that of your competitor, you might not be able to
compete on all social media channels. This isn’t a cause for consternation. Pick your best-performing
channels and dominating them is an excellent way avoid the stress of managing and half a dozen or
more social media profiles all at once.

Use Paid Advertising on Social Media

Social media has been a consistently helpful way to engage with audiences and build a solid online
presence without costing a cent. But if you want to make the most of your digital marketing budget,
spend a portion on social media advertising. By choosing your most profitable social media channels and
using strategic native advertising, you can transform just another social media page into a top lead
generator.  

Connect with Influencers

Develop relationships with local and industry influencers. Advocacy/evangelism and referrals are one of
the best ways to spread positive word of mouth

Clicks But No Conversions

Healthy numbers of clicks combined with an anemic conversion rate is one of the most common digital
marketing problems that businesses face. It can be extremely frustrating to see (and spend the money
for) many clicks, but no commensurate lift in sales. Here are some of the best solutions for this classic
and unfortunately timeless digital marketing problem.

Audience Issues
If you are observing significant numbers of clicks but poor conversion rate, one of the likely causes is the
audience itself. You may be spending the majority of your digital marketing in the poorly performing
channels targeting the wrong audience.

It is possible that users want to visit your website, but have no intention of making a purchase. Your
website design and copy may not be right for the audience that is being driven to your site, or they
might be an audience not in the position to make a purchase.  Often, for B2B businesses, the decision
makers will have their secretaries, coordinators, and managers browsing the site to report back to them.
Due to their lack of authority, they would not convert to a sale despite their website behaviors.  The
issue can also be that you are using the wrong channel to drive traffic. If, for example, your audience is
mostly stay-at-home parents, Nextdoor and Pinterest might be better social media channels, while
LinkedIn would not.

Ineffective Landing Pages

Another culprit for your low conversion headache could be your landing pages. An ineffective landing
page can turn away even highly-interested potential customers. Imagine clicking an ad for half price ski
lift tickets, only to be taken to a page that lists deals for all types of adventure sports, meaning you have
to do your own searching again for inexpensive lift tickets inside the website. Many shoppers don’t
bother with that second step — they’ll bounce and end up one of the wasted clicks.  

Landing page design is a huge topic on its own, but very briefly, landing pages should be simple, and
helpful, with a sophisticated design that keeps the user on the page. Landing pages should also be
extremely fast. Customers have very little patience when it comes to website loading, and a landing
page that doesn’t load a few short seconds after the ad was clicked will be abandoned.

Mixed Messaging

The most effective digital marketing campaigns match landing pages to the messaging, offers, and style
of the original point of content, wherever that might be. Like we mentioned with our lift ticket example,
if the landing page does not match the content a shopper expected to see, chances are that they won’t
convert. Sending shoppers to a page that doesn’t address their needs immediately encourages a
bounce.

Tough Ranking Competition

The SEO competition can be daunting. Depending on your location and industry, you could have
thousands of competitors all vying for the same few spots on Google’s front page. To make it worse,
there are dozens, if not hundreds, of moving parts to SEO and trying to figure out how to stand out
against tough competition can be overwhelming. Thankfully, there are few proven ways to compete
when it comes to page ranking.

Add Your Heading Text Don’t SEO the Same Way

Sometimes the best way to compete is to try something a little different. In SEO, this can mean not
competing on popular but short phrases. Short-tail keywords/phrases are often sources of high clicks
but low conversion rates. For example, our “Inexpensive Adventure Sports” company might not want to
try competing for a keyword like “adventure sports,” or “adventure activities,” but more budget-related
keywords for specific activities like “cheap summer kayaking trips” or “whitewater rafting deals.” These
longtail keywords offer higher conversion rates and less competition for first-page spots. Longtail
keywords are better for accessing shoppers lower down the sales funnel who are seriously considering a
purchase.

Don’t Rank in the Same Place

If resource or budget limitations are making ranking well impossible, it isn’t necessarily the end of the
SEO line. Instead of trying to rank on the first page of Google, try the first page of Google-owned
YouTube. YouTube is still bigger than all of Google’s US competitor search engines combined, with
over 1 billion visitors and 6 billion hours of content watched per month. If video marketing could
showcase your business services or product particularly well, consider an emphasis on YouTube. You’ll
also rank in the “videos” part of Google search results as well.

Focus on Customer Experience

It is difficult to overstate the importance of excellent website customer experience. Customer

experience includes user experience (all the technical functions that allow a smooth online experience)
as well as all the copy, content, style, and business practices that feed into your total website
experience. Google’s search result algorithm is built to return the most relevant sources for any query. If
your website prioritizes customer experience, Google’s algorithm will take note that users enjoy your
site, and will reward you in turn with higher ranking..

Social Media Isn’t Flourishing

Social media has a reputation for being quick, easy, and free engagement with your audience, but in
practice, it can be a difficult medium to get right. Many businesses don’t approach social media with the
sophistication needed to see success.

Focus on Customer Experience

The frequency of your posts depends on your business type and the social media channel. Posting once
a month means you’ll probably be forgotten quickly. Generally, one post per day on Facebook and
LinkedIn is the best bet for high engagement. This does not mean that more posts are better. Consumers
do not appreciate being spammed by posts — particularly on platforms that aren’t built for ephemeral
content. Returns on investment on platforms like Facebook and LinkedIn decline after about 5 posts a
week. For platforms like Twitter or Snapchat, your posting frequency can be much higher, but it should
still be useful and valuable content.

Offer Something
All social media posts should offer something of real value to the viewer. Even if the offer is something
as simple as a quick statistic or a funny GIF, it should be something that is interesting to the audience.
Every post should have a reason for engaging the shopper — a good reason.

Actually Be Social

Social media is just that — social. The best performing social media campaigns involve communicating
with customers on that platform. Whether the social action is responding to customer reviews, engaging
in LinkedIn discussions, replying to comments on Facebook, or re-tweeting customer-generated content,
actually connecting with shoppers can increase social media success metrics across the board. This does
come with the professionalism caveat: only interact with your audience in a manner that is appropriate
for the social media platform, company style, and audience.

Connect With Happy Customers

Building word of mouth with digital marketing can be challenging, but social media can help businesses
do this. Capitalize on your refreshed social media by recruiting satisfied customers to follow or subscribe
to your business on social media.

9. The 5 most important aspects of successful

marketing.
Read on for five marketing elements you must have for a successful marketing campaign.

1. Have a Specific Goal

What do you hope to achieve with your product or service? Most marketers are often so caught up in
creating just a campaign that they forget the importance of clarifying each of these strategies. For
instance, before setting up a campaign drive, you must first come up with a clear objective that you
hope to achieve. Are you after creating brand awareness, boosting sales or introducing a new product to
the market? Note that the more defined your goal is, the easier it becomes to marshal up appropriate
resources to see it through.

2. Understand Your Audience

This forms one of the neglected aspects of a marketing campaign. Understand that no single product can
appeal universally to all people, especially considering the huge differences in their age, tastes and social
status. You, therefore, need to identify the appropriate audience that resonates well with your product
or service and channel most of your campaign efforts toward them. 
This may mean just millennials, pregnant women, seniors or even veterans. Understanding your
audience and channeling your marketing efforts to reach them not only helps promote the effectiveness
of the campaign, but it also allows you to save on resources that would otherwise have been wasted
marketing a product to the wrong people.

3. Work on a Delivery Method

You know what you seek to accomplish with your campaign and have already identified a target
audience for your product or service. Now come up with the most appropriate method of getting your
promotional messages and product out to this group. Remember that your choice of the delivery
method can make or break a campaign. If you get it right, you drive the market in droves toward your
brand. Therefore, only go for techniques that appeal most to your target market.

For instance, for the millennials, capitalize on delivering exciting and engaging topics centered on your
brand regularly through social and email marketing. To achieve this constant engagement,
employ automated engagement tools like the drip email. This allows you to send out a single message to
all your mailing list subscribers at once at a preset time.

4. Create a Call to Action

The rule of the thumb in marketing is never to leave dead ends in all your marketing engagements.
Whether you engage your target market through social media, emails or even hand delivered flyers,
always include a call that prompts the market into action. Instead of having a goodbye till-next-time line
on your mail, include a sneaky call to action that encourages them to visit your website and take
advantage of the different offers and discounts available. The same applies to the website content and
pages. Create multiple action calls to your various products and services on your website.

5. Don’t Lose Leads. Follow Up

Make an effort to retain a subscriber and stop them opting out of a subscription. They may not have
bought into your product or service already, but the fact that they are still receiving and reading your
emails informs you that they might still be contemplating about taking you up on offer. They just need a
little push and a bit more convincing. Instead of cutting them off the list, try to understand why they
haven’t taken action on your product. Come up with creative follow-up procedures to try and
understand them.

Bottom Line

A marketing campaign can only succeed when backed by a solid and well-implemented strategy.
Understand that like any other aspect of business, the more thought and clarity you put into each of
these steps, the more impactful results you get.

5 Most Important Aspects of Successful Marketing

Posted on July 24, 2015 by Printing Solutions
Before your business begins its marketing strategy, it’s important to do a little research first. You want to
make sure that anything you invest in has a specific outline, goal, and anticipated ROI. That being said,
these are the 5 most important aspects of successful marketing for any business.

Define your target audience

Whether you launch a new campaign or simply want to set up your newsletter, you need to specify who
your target audience. You don’t want to waste money, time, or effort reaching out to people who are
unlikely to become a customer. If you’re in the health field, paint a clear picture of who your ideal
patient is. Then use this as your base for all your marketing. Specify their sex, age, interests, location,
education, behavior, and so on. Identifying your target audience leads to a higher success rate, more
conversions, and a bigger ROI.

Care about what your customers care about

Why should your customers care about your services or product? What problem do they want to solve
by working with your business? Take a moment to think about what your customers care about when
they come to you. Then cater to this. Don’t just sell to people; take the time to understand their needs
and provide a solution that your competitors don’t offer. This will set your marketing apart.

Become a resource

Nobody wants to be fed a sales pitch. This is unappealing and doesn’t help to create a relationship
between the customer and business. Rather, you want to become a resource for your clientele. Provide
them with the top information in your industry. A great way to do this is with a blog, newsletter,
workshops, events, and so on. You want your customers to come to you for anything regarding your
industry. Again, don’t just sell – be their resource.

Get your reviews up

Once people see your marketing practices in action, they’ll want to check out your reputation before
they invest. If you really want to impress potential customers, you need strong reviews. People trust
online reviews as much as personal recommendations. So if you don’t have a high rating or you have
very few reviews, now is the time to increase both. Take the time to invest in client testimonials and get
listed in places like Google My Business, Yelp, Citysearch and other sites that are relevant to your
industry. At Printing Solutions, we dedicated an entire page that tells people how they can leave us a
review.

Be accessible online

To follow up online reviews, you need to be accessible when people search for your services or industry
online. If people can’t find you through Google, you lose a ton of business. They’ll go to a competitor. So
you need to do keyword research to determine which terms you want to rank for in search engines.
Based on that information, you need to decide which internet marketing strategy is best to get your
business seen online. This might include SEO, PPC, social media marketing, etc. The bottom line is that if
customers can’t find you online, how are they expected to call, email, or get in touch?

If you have any questions on these 5 marketing aspects, don’t hesitate to contact our team at Printing
Solutions! We’re here to help your business succeed.

So how do you ensure your marketing messages and campaigns will generate real results before you
outlay money? Here are the five elements of successful marketing.

1. It’s targeted 

Defining your target market helps you to focus your marketing efforts on the most profitable segment(s)
of your market, the people who are most likely to buy from you.

This strategic approach not only saves you time, money and effort, it also helps you to understand your
potential customers better, personalise your marketing approach and identify where to find them.

2. It’s customer-focused

One of the most common marketing mistakes business owners make is to make their promotional
material all about them.

Your customer doesn’t care about you, well, not yet anyway. Instead they want to know what is in it for
them. What can you give them that no-one else can and how you can solve their challenges and meet
their needs?

3. It appeals to emotions

Emotion sells. Every purchase decision we make is based on what a product or service will give us, save
us, do for us, make us feel or help us become. We buy on emotion and then justify our purchase
logically.

Every day we are bombarded with advertising images that play on emotions of love, fear, greed, guilt,
anger, frustration and curiosity. From banks to car tyres, washing powders to mattresses, companies
everywhere are capitalising on the power of emotional selling.

Why? Because it works! If you want serious results from your marketing and advertising then you need
more than clever tag lines, innovative promotions and attractive designs. You need to create an
emotional response with your target market.

4. It proves your value and claims

People need to see the proof in your claims before they believe them. The best way to do this is with
testimonials and case studies. Better yet, make sure the testimonials and case studies address common
objectives customers have.
Use stories of past customers who had similar challenges to the ones your potential clients face now, so
you can show you have proven experience in solving their problems.

Testimonials add credibility. They’re from real clients talking about real experiences with your business.
So let your customers tell your potential customers what they value about your service or product. After
all if it appealed to them it will appeal to others, too.

5. It calls them to act

You can have the cleverest tag lines and the most visually appealing marketing material, though if it
doesn’t compel your potential customers to act, your results will be limited.

To develop a strong call to action it pays to establish your sales process – what do you want your
potential customer to do once they have finished reading or hearing your message?

10. What is marketing plan ? The key component of an

effective Marketing plan.

What Is a Marketing Plan?

A marketing plan is an operational document that outlines an advertising strategy that an organization
will implement to generate leads and reach its target market. A marketing plan details the outreach and
PR campaigns to be undertaken over a period, including how the company will measure the effect of
these initiatives. The functions and components of a marketing plan include the following:

 Market research to support pricing decisions and new market entries

  Tailored messaging that targets certain demographics and geographic areas

 Platform selection for product and service promotion: digital, radio, Internet, trade
magazines, and the mix of those platforms for each campaign

 Metrics that measure the results of marketing efforts and their reporting timelines

A marketing plan is based on a company’s overall marketing strategy.

KEY TAKEAWAYS

 The marketing plan details the strategy that a company will use to market its products to customers.
 The plan identifies the target market, the value proposition of the brand or the product, the
campaigns to be initiated, and the metrics to be used to assess the effectiveness of marketing
initiatives.
 The marketing plan should be adjusted on an ongoing basis based on the findings from the metrics
that show which efforts are having an impact and which are not.
 Digital marketing shows results in near real-time, whereas TV ads require rotation to realize any
level of market penetration.
 A marketing plan is part of a business plan, which describes all of the important aspects of a
business, such as its goals, values, mission statement, budget, and strategies.

Understanding Marketing Plans

The terms marketing plan and marketing strategy are often used interchangeably because a marketing
plan is developed based on an overarching strategic framework. In some cases, the strategy and the
plan may be incorporated into one document, particularly for smaller companies that may only run one
or two major campaigns in a year. The plan outlines marketing activities on a monthly, quarterly, or
annual basis while the marketing strategy outlines the overall value proposition.

Types of Marketing Plans

There are a variety of different marketing plans that suit different businesses and different business
needs.

New Product Launch: This is a marketing plan that outlines how a new product will enter the market,
who it will target, and in what way advertising will be done.

Social Media: A social media marketing plan focuses on the advertising strategies on different social
media platforms and how to engage with the users on these platforms.

Time-Based: Time-based marketing plans, such as those that are executed quarterly or annually, focus
on the time of the year, the current condition of the business, and the best strategies in that period.

How to Write a Marketing Plan

Mission and Value Proposition

A marketing plan considers the value proposition of a business. The value proposition is the overall
promise of value to be delivered to the customer and is a statement that appears front and center of the
company website or any branding materials.

The value proposition should state how a product or brand solves the customer's problem, the benefits
of the product or brand, and why the customer should buy from this company and not another. The
marketing plan is based on this value proposition to the customer.

Set KPIs

Establishing your key performance indicators (KPIs) will allow you to measure the success of your
marketing plan in relation to your company's value proposition. For example, if your goal is to engage
with a certain demographic in a certain region, you can track social media and website visits.

Fast Fact

The most effective digital marketing techniques in 2020 according to marketers are content marketing
and marketing automation.1

Identify Your Target Market

The marketing plan identifies the target market for a product or brand. Market research is often the
basis for a target market and marketing channel decisions. For example, whether the company will
advertise on the radio, on social media, through online ads, or on regional TV. 

Knowing who you want to sell to and why is an extremely critical component of any business plan. It
allows you to focus your business and measure its success. Different demographics have different tastes
and needs, knowing what your target market is will help you market to them.

Strategy and Execution

The marketing plan includes the rationale for these decisions. The plan should focus on the creation,
timing, and placement of specific campaigns and include the metrics that will measure the outcomes of
marketing efforts. For example, will you advertise on the radio or on social media? What time will you
air advertisements if they are on the radio or TV?

Set Your Budget

A marketing plan costs money. Knowing your budget for a marketing plan will allow you to create a
suitable plan within that context, stick to it, and prevent runaway costs. It will also help you allocate to
different areas of your marketing plan.

Adjust Your Plan

A marketing plan can be adjusted at any point based on the results from the metrics. If digital ads are
performing better than expected, for example, the budget for a campaign can be adjusted to fund a
higher-performing platform or the company can initiate a new budget. The challenge for marketing
leaders is to ensure that every platform has sufficient time to show results.

Without the correct metrics to assess the impact of outreach and marketing efforts, an organization will
not know which campaigns to repeat and which ones to drop; maintaining ineffective initiatives will
unnecessarily increase marketing costs.

Digital marketing shows results in near real-time, whereas TV ads require rotation to realize any level of
market penetration. In the traditional marketing mix model, a marketing plan would fall under the
category of "promotion," which is one of the four Ps, a term coined by Neil Borden to describe the
marketing mix of product, price, promotion, and place.

Marketing Plan vs. Business Plan

A business plan details how a business will operate and function in its entirety. A business plan is a
roadmap for a business. It will cover the goals, missions, values, financials, and strategies that the
business will use in day-to-day operations and in the achievement of its objectives.

A business plan will include an executive summary, the products and services sold, a marketing analysis,
a marketing strategy, financial planning, and a budget, to name but a few items.

As mentioned, a business plan will include a marketing plan, which focuses on creating a marketing
strategy on how to bring awareness to the public of the company's product or service, how to reach the
target market, and generate sales.

Example of a Marketing Plan

John came up with a new business idea that he believes is a niche offering in the market. He decides to
start a business and his first step is creating a business plan that outlines all of the objectives, goals,
values, pitfalls, and finances of his company.

John is able to raise enough capital from friends and family to get started, hires a few employees, and
eventually creates his product. He now has to start selling his product and generate sales to keep his
business operating.

To achieve this, John, with the help of a marketing company, creates a marketing plan. The marketing
plan consists of market research that details the target market for John's product, which is recently
retired men.

The marketing plan then comes up with the best methods of reaching this target market. The marketing
plan stresses radio and television as opposed to social media as older, retired men use social media less
than traditional forms of media, according to the market research that was conducted.
The ads are tailored to the target market, showing how John's product will benefit their lives,
particularly when compared to market alternatives. Once the marketing plan has been executed, the
marketing team analyzes how the efforts translate into sales.

What Is a Marketing Plan Template?

A marketing plan template is a document that an individual can use to create a marketing plan. The
marketing plan template will contain all the important elements and the various needed language with
blank sections. A user can insert their own information related to their business in the blank sections to
ultimately create their own marketing plan.

What Is an Executive Summary in a Marketing Plan?

The executive summary of a marketing plan provides a brief overview of the entire marketing plan. The
executive summary will contain the key findings of the market research, the company's objectives,
marketing goals, an overview of the marketing trends, the description of the product or service being
marketed, information on the target market, and how to financially plan for the marketing plan.

What Is a Top-Down Marketing Strategy?

A top-down marketing strategy is a traditional marketing strategy. This is where a business determines
who it should sell to and how, and the customer base is largely passive and spurred to take action once
they hear the advertisement. For example, a top-down marketing strategy would include ads on radio or
television. Top-down marketing strategies are usually determined by the executives of a firm. It usually
consists of what a firm desires to do and then determining a way to do it.

What Is a Bottom-Up Marketing Strategy?

A bottom-up marketing strategy focuses on discovering a workable strategy and then building on that
strategy to create an impactful advertising campaign. Today's consumer wants to relate to a product or
service in a meaningful way and a bottom-up marketing strategy is better suited to this. A bottom-up
marketing strategy should focus on the target market and how better to create value for them.

How Much Does a Marketing Plan Cost?

The cost of a marketing plan will vary based on the company, the complexity, and the length of the
overall strategy. The cost can range anywhere from $10,000 to $40,000.2

The Bottom Line

A marketing plan is the advertising strategy that a business will implement to sell its product or service.
The marketing plan will help determine who the target market is, how best to reach them, at what price
point the product or service should be sold, and how the company will measure its efforts.
Constantly monitoring and adjusting a market plan is an important part of running a business as it shows
what are the best and worst ways to generate sales. Without a successful marketing plan, a business
may not be able to continue operating for very long.

Key elements of a successful marketing strategy

Guide

There are several elements to consider when you are developing your marketing strategy.

Segmentation

Your existing and potential customers fall into particular groups or segments, characterised by their
'needs'. Identifying these groups and their needs through market research and market reports, and
then addressing those needs more successfully than your competitors, should be one of the key
elements of your marketing strategy.

Targeting and positioning

You should aim to sell to the market segments that will be most profitable for your business. It is
important that your product offering meets the needs of your chosen target market. See target your
most profitable customers and define your target market. 

You should create a marketing strategy that makes the most of your strengths and matches them to the
needs of the customers you want to target. For example, if a particular group of customers is looking for
quality first and foremost, then any marketing activity aimed at them should draw attention to the high
quality of your products or service.

Promotional tactics

Once you have created your marketing strategy, you must then decide which marketing activity or
activities will ensure your target market know about the products or services you offer, and why they
meet their needs.

There are many ways to achieve this - such as various forms of advertising, exhibitions, public relations,
digital marketing and an effective 'point of sale' strategy. Try to limit your activities to those methods
you think will work best with your target market, to avoid spreading your budget too thinly.

Monitoring and evaluation

Monitoring and evaluating how effective your strategy has been is a key element, yet often overlooked.
This control element not only helps you see how your strategy is performing in practice, it can also help
inform your future marketing strategy.

A simple approach is to ask each new customer how they heard about your business. Deeper analysis
can come from questionnaires, focus groups and examining customers' online behaviour.
Marketing plan

Once you have decided on your marketing strategy, draw up a marketing plan that sets out how you
intend to execute that strategy and evaluate its success. The plan should be constantly reviewed and, if
necessary, updated so you can respond quickly to changes in customer needs and attitudes in your
industry and in the broader economic climate. Read more about how to write a marketing plan.

Marketing is a key component in the success of every small business. Use these six tips to create a
plan that works for you.

 A marketing plan identifies your target audience, the most effective channels on which to
engage with them, and analytical insights to guide future strategy.

 Businesses need a comprehensive marketing plan to coordinate their campaigns and properly
measure their impact.

 Marketing is a cumulative effort, and a unified plan maximizes the value of every campaign
toward a cohesive strategy.

 This article is for small business owners looking to build an effective marketing plan that
achieves higher engagement and fuels business growth.

Every successful company needs a well-thought-out business plan to outline its course of action. A
marketing strategy is one key part of that plan: It spells out critical information, including how a business
will distinguish itself from competitors and what the team will aim to achieve.

While marketing plans don’t always produce immediate results, they are still a crucial aspect of a
business plan and should be given a considerate amount of attention. A complete and effective
marketing strategy can reveal opportunities through new audience segments, changes in pricing
strategy or by differentiating the brand from the competition.

Here’s how to create an effective marketing plan for your business. 

How to develop a business marketing plan

A focused marketing plan sets two goals. The first is to maintain engagement and customer loyalty, and
the second is to capture market share within a specific audience segment of your target audience.

Your marketing plan outlines the strategies you’ll use to achieve both goals and the specific actions your
marketing team will employ, such as the specific outreach campaigns, over which channels they will
occur, the required marketing budget and data-driven projections of their success.

Marketing is a science-driven commitment that typically requires months of data to refine campaigns,
and an interconnected marketing plan keeps your business committed to its long-term goals. 
All marketing guidelines will circle back to the four P’s: product, price, place and promotion. The
following tips are starting points that will ingrain the habit of continually returning to these four P’s.

1. Create an executive summary.

Marketing campaigns should not be considered individual functions. Marketing is the story of your
brand as told to customers; like any narrative, its tone and characters should remain consistent. An
executive summary details your marketing goals for the next year and helps tie each campaign
together. 

When establishing your marketing goals, they should be specific, measurable, attainable, relevant and
time-bound – or SMART. These goals should work together to achieve both internal and external
harmony, telling a consistent story that informs customers of your exact message while building on its
previous chapters. 

For example, you may set a SMART goal to increase your company’s social media traffic by 15% in a 90-
day time frame, and plan to achieve this by creating four relevant, informative and high-quality posts
per week on each platform, using your company’s brand kit. 

2. Identify your target market.

Before you write a marketing plan, you need to find and understand your niche. Ask yourself who the
specific demographic is that you’re targeting. For example, if your business sells 30-minute meals, then
those who work traditional 9-to-5 jobs are likely in your market. Study that group of individuals to
understand their struggles and learn how your business can solve the problem.

FYI: Targeting your audience can drastically improve the effectiveness of your marketing

efforts and help you avoid wasting resources on fruitless campaigns.

3. Differentiate your brand with inbound marketing.

Inbound marketing utilizes internal tools – such as content marketing, social media activity and search
engine optimization (SEO) – to attract a customer’s attention primarily through online communication.
Content marketing can include informative blog posts, interviews, podcasts with relevant industry
figures or supplementary guides on how to best use your product. For example, if you sell cooking
supplies, consider posting several fun recipes around the holidays that your tools can help prepare.

Each of these strategies empowers the others in a loop to achieve greater customer attention. A strong
content offering can improve your search engine ranking, which brings more people to your website and
social pages. You can then share those developed content pieces to that wider audience, who will again
improve your search engine rankings. All of this can be done without the expense of a famous endorser
or commercial advertising campaign. 

4. Identify competitors that also target your customers.

No matter how original your product or service may be, there is always competition for your target
customer’s dollar. Small business personnel seldom take the time to study their competitors in depth or
pinpoint companies outside their industry that are just as capable of luring customers away. Knowing
who your competitors are, their core competitive advantages, and how they might respond to your
offerings – like price cuts or increased communication – helps you devise strategies to combat such
losses. 

By seeking out these competitors, you can develop ways to differentiate your business by providing
consumers with the things they may be lacking from your competition. Observe how your competitors
operate to find ways in which you can stand out and steer your target audience toward your business. 

Did you know? According to SmallBizGenius, 19% of small businesses fail because of their
competitors.

5. State your brand position for your target customers.

Ultimately, your brand – and what it symbolizes for customers – is your strongest advantage. You should
be able to write a simple declarative sentence of how you will meet customer needs and beat the
competition. The best positioning statements focus on solving a problem for the customer in a way that
promotes the best value.

6. Budget the plan. 

When implementing a strategy, consider the marketing budget you will allot. Marketing requires money
for various reasons, including paid promotions, marketing software, events and outsourced costs.
Consider your budget when creating the plan so that there is money available to spend on marketing
tactics to achieve your goals. 

While drafting the plan and evaluating your course of action, note the estimated cost, assets, and time
required to achieve the stated goals; this will help when it comes time to set the actual calculated
budget. Any goals that you create should be realistically achievable within the budget you have set. 

Key takeaway: When developing your marketing plan, you should know why a customer
would use your product, differentiate your brand from competitors, and audit your product
offering and message to ensure consistency.

Channels to include in your marketing plan

Once you know the elements of your plan, the next step is to develop the blueprint of how you will
reach your target customers. Aside from traditional print and broadcast media, here are three digital
marketing channels that many business owners utilize.

Social media
Social media is an essential part of businesses’ marketing plans, because every type of customer is on
some type of platform – such as Facebook, Twitter or LinkedIn. You may feel overwhelmed at the
possibilities, but focus on the sites that can benefit your business the most.

Brett Farmiloe, founder of internet marketing company Markitors, advised companies starting out in
social media to get to know their customers and the platforms they use.

“Figure out where your customers are spending their time, and set up shop on those platforms,” he told
Business News Daily. “Develop a content strategy that can be executed internally, [and then] execute
your strategy by posting branded content on your selected platforms.”

Email

Though email marketing is not as new as social media marketing, it is an effective and popular choice for
small business owners. Companies can implement email marketing techniques in many ways, including
newsletters, promotional campaigns and transactional emails. For instance, Mailchimp and Constant
Contact help companies manage their email drip campaigns.

Farmiloe added to set your email marketing efforts apart from the others by segmenting your markets.

“Not all subscribers want to receive the same blast,” he said. “Smart email marketers take the time
to segment subscribers at the outset, and then continue to segment based on subscriber activity.
Through segmentation, companies reduce the amount of unsubscribes, increase open rates and, most
importantly, increase the amount of actions taken from an email send.”

Mobile

The popularity of smartphones and tablets has changed how companies target consumers. Since people
have these devices with them nearly all the time, companies are looking to implement strategies that
reach customers on their gadgets.   

“Mobile marketing is interruptive,” Farmiloe said. “It’s because of this power that a marketer has to let
the consumer determine how and when to receive marketing material. That’s why almost every app
comes with the option to turn notifications on or off. The consumer has to hold the power with mobile
marketing.”

Key takeaway: Use digital marketing channels – such as social media, email and mobile – to
reach customers, but only after researching each channel in depth and developing a
strategy to capture consumers’ interest.

Monitoring results

Well-defined budgets, goals and action items – with appropriate personnel assigned to each – can make
your marketing plan a reality. Think about how much you’re willing to spend, the outcomes you expect
and the necessary tasks to achieve those outcomes.
Analytical tools that track customer behavior and engagement rates can serve as a helpful guide for
your marketing strategy. Unlike billboards or commercials, digital channels allow you to assess each step
of the customer journey and gain insights on the individual patterns and intent of prospects. Intention
can soon develop into prediction, empowering your marketing team to develop campaigns that
consistently reach target audiences at the right time. 

The effectiveness of your marketing plan depends on your organization and how well your business
performs as a team. A marketing plan template can help you outline the path to success. Your marketing
plan should reach every facet of your company, from the mailroom to the boardroom, as every
employee is a major touchpoint in delivering your plan.

While a marketing plan’s effectiveness depends on execution, a well-organized marketing strategy is

crucial. The way your business performs as a whole can affect your brand positioning, your cross-
channel integration, and your delivery methods. The best way to develop an effective marketing plan is
by: 1) strengthening every touchpoint from within your company, and 2) outlining your strategy from
start to finish.

Measuring the effectiveness of your business’ marketing plan is easy when you are organized and your
company outlines a clear, consistent message across every department. Your CMO is the new CEO as a
team leader for developing the winning strategy needed to expand your business to great new heights.
A clear marketing plan will help customers connect with your brand in new and exciting ways with the
help of technology.

Four Marketing Plan Questions

For any marketing plan to be effective, it must answer these four key questions:

 What is your marketing objective?

 What is your detailed marketing strategy?

 What are the costs of these activities when compared to the price of your products and
services?

 Who are your teams and team leaders in accomplishing your marketing plan?

Marketing Plan Outline | 6 Effective Steps

Here are the six major components needed to make any marketing plan effective:

1. Set your company apart from your competitors.

Define your strengths and opportunities against your competitors. How do your products and services
stand out? Are your competitors’ brand images stronger than yours? In what ways can you increase your
brand value? Are there multiple channels leading to your products and services?

2. Set clear goals and objectives.

Do you have the resources for success? An effective plan means knowing how to measure success and
target growth. Are you prepared to hire new employees, ramp up production, fine-tune customer
service, or provide better distribution methods?

3. Use market segmentation to find your target audience.

Your target customers are those who will invest their time and money into your products and services.
Your marketing plan will be much more efficient when you trim the fat. Determine who your products
and services will serve based on lifestyle, social class, activities, geographic region, hobbies, values,
attitudes, and personality traits.

4. Develop an appropriate, multi-channel marketing strategy.

Connecting with your customers has never been more complicated. Today’s customers value
convenience, reliability, and choice—and they want to be able to connect to your brand from anywhere.
Digital marketing strategies include emails, websites, social media, SMS messaging, apps, SEO content,
and more to engage your customers across multiple touchpoints.

5. Plan your budget.

A well-organized plan will draw investors. A wise strategy includes planning for success as well as
setbacks.

6. Measure and collect data.

From social media followers to open rates on emails, the details can help guide you to a more effective
campaign. Setting up weekly, monthly, and quarterly goals can help you keep track of important
landmarks along the way. Consider using an agile mindset and methodology that helps you measure
your marketing effectiveness through team-oriented initiatives and innovative approaches. Use data to
your advantage and change your company culture at the same time.

Your Marketing Plan Strategists

At CMG, our strategic marketing partners are determined to help you develop an effective marketing
plan that will help you sprint past your competitors. Our consultants are curious thinkers, adaptive
doers, and curious analysts. Let’s talk today and start developing your next great marketing plan,
together.
Here are the essential components of a marketing plan that keeps the sales pipeline full.

1. Market research. Research is the backbone of the marketing plan. Your local library is a great place to
start, offering reports like Standard & Poors or IBISWorld. Some library cards even allow access to online
services from home. Identify consumer buying habits in the industry, market size, market growth or
decline, and any current trends.

2. Target market. A well-designed target market description identifies your most likely buyers. In
addition, you should discuss at least two or three levels of segmentation. A language tutoring business
might target both students and foreign-born employees who want to improve their English.

3. Positioning. What is the perception of your brand in the marketplace? For example, if your restaurant
sells burgers, do customers see you as the place to go for gluten-free or healthy options or the place to
go if you’ve got an appetite for a double cheeseburger? The difference in how the target market sees
you is your positioning. Develop compelling branding and marketing messages that clearly communicate
how you want to be perceived.

4. Competitive analysis. You need to know who your competitors are and how your products and
services are different. What is the price point at which your competitors are selling, and what segment
of the market are they aiming to reach? Knowing the ins and outs of your competitors will help you
better position your business and stand out from the competition.

5. Market strategy. Your marketing strategy is your path to sales goals. Ask yourself “How will I find and
attract my most likely buyers?” This is the core of what the strategy should explain. It should look at the
entire marketplace and then break down specific tactics including such as events, direct mail, email,
social media, content strategy, street teams, couponing, webinars, seminars, partnerships, and other
activities that will help you gain access to customers.

6. Budget. Develop a month-by-month schedule of what you plan to spend on marketing. Also include a
“red light” decision point. For each activity, establish a metric that tells you to stop if it’s not generating
sufficient return on investment (ROI).

7. Metrics. Track your marketing success with Google Analytics for website conversions and a simple
Excel sheet to compare your budget against the actual ROI. Test programs over the course of a 30- to
60-day period, and evaluate the results. Repeat any programs that are delivering sales or sign-ups to
your email list, and get rid of anything that’s not.

A marketing plan is the first step in creating a successful marketing program for your new business.
Fortunately, it doesn’t have to be complicated in order to work. Here are the ten basic components of a
marketing plan.

You started a company and now you’re thinking about developing a marketing program. You need to
begin with a marketing plan. Having been in marketing for more than a decade, I’ve seen my share of
marketing plans. Some are short and to the point, while others are hundreds of pages thick and cost
thousands of dollars to produce.
The irony is that many of the expensive marketing plans end up on a shelf and rarely get implemented.
The simple plans, if researched and implemented effectively, have the greatest impact.

Regardless of the scope of your marketing plan, you must keep in mind that it’s a fluid document. Every
business needs to begin with a well-structured plan that’s based in thorough research, competitive
positioning, and attainable outcomes. Your plan should be the basis for your activities over the coming
months. However, you should always be willing to enhance or redirect your plan based on what proves
successful.

Marketing Plan Basics

1. Market Research

Collect, organize, and write down data about the market that is currently buying the product(s) or
service(s) you will sell. Some areas to consider:

 Market dynamics and patterns, including seasonality

 Customers: demographics, market segment, target markets, needs, and buying decisions
 Product: what’s out there now and what the competition’s offering
 Current sales in the industry
 Benchmarks in the industry
 Suppliers: vendors that you’ll need to rely on

2. Target Market

Find niche or target markets for your product and describe them.

3. Product

Describe your product. How does your product relate to the market? What does your market need,
what do they currently use, and what do they need above and beyond current use?

4. Competition

Describe your competition. Develop your “unique selling proposition.” What makes you stand apart
from your competition? What is your competition doing about branding?

5. Mission Statement

Write a few sentences that state:

 “Key market” – who you’re selling to

 “Contribution” – what you’re selling
 “Distinction” – your unique selling proposition

RELATED: Review Your Business Progress

6. Market Strategies

Write down the marketing and promotion strategies that you want to use or at least consider using.
Strategies to consider:

 Networking – Go where your market is.

 Direct marketing – sales letters, brochures, and flyers
 Advertising – print media and directories
 Training programs – to increase awareness
 Write articles, give advice, become known as an expert.
 Direct/personal selling
 Publicity/press releases
 Trade shows
 Business website

7. Pricing, Positioning, and Branding

From the information you’ve collected, establish strategies for determining the price of your product,
where your product will be positioned in the market, and how you will achieve brand awareness.

8. Budget

Budget your dollars. What strategies can you afford? What can you do in-house, what do you need to
outsource?

9. Marketing Goals

Establish quantifiable marketing goals. This means goals that you can turn into numbers. For instance,
your goals might be to gain at least 30 new clients or to sell 10 products per week, or to increase your
income by 30% this year. Your goals might include sales, profits, or customer satisfaction.

10. Monitor Your Results

Test and analyze. Identify the strategies that are working.

 Survey customers
 Track sales, leads, visitors to your web site, and percentage of sales to impressions

By researching your markets and your competition and determining your unique positioning, you’re in a
much better position to promote and sell your product or service. By establishing goals for your
marketing campaign, you can better understand whether or not your efforts are generating results
through ongoing review and evaluation of results.

As mentioned earlier in this article, be sure to use your plan as a living document. Successful marketers
continually review the status of their campaigns against their set objectives. This helps ensure ongoing
improvements to your marketing initiatives and helps with future planning.