Understanding the value of Startup Marketing

23 Jan 2013

The method of communicating the value of a product or service to its customers can be termed as marketing.  All the activities that take place during the transfer of the goods from the manufacturers or producers to the consumers can be termed as activities of marketing.

The reach of marketing process is far beyond an ordinary physical procedure of distributing the goods and services. It is the process of identifying the wants of consumers and rendering them into products or services that cater to the needs of those consumers. It begins with the customer (by finding their needs) and ends with the customer (by satisfying their needs). The process of marketing starts with the market research where the marketers gather all the relevant information about the needs and wants of the customers and the process ends when the right product reaches the right customer. However, in today’s competitive business market the services provided to customers after the purchase of the product is highly valued by most of the companies as it adds value to the customer.

Marketing can play a major role in attracting the consumers, increasing the demand of the products or services and finally turning the prospective consumer as a valued customer. All the co-related activities like advertising, pricing strategies, promotions and sales are affected by the process of marketing. Understanding and implementing the process of marketing in an effective way could help the small businesses to keep the right foot into the global business market place.

Importance of Market Research

Market research helps you determine the demand of your product or service in the market and thereby assists you to segment the market. It helps you identify the prospective customers who will have an interest in your product or services and ultimately end up purchasing from you.  Specific information like age group, gender, location and income level can also be determined with the help of a market research. Market research empowers you to construct a marketing plan for your business that is not only effective, but also cost efficient.

Market research helps in the process of improving management decision making by providing relevant and updated data about the market. Every management decision is crucial for the business and subsequently, requires the relevant strategies which can be based on the information or data gathered from the market. Effective and updated data collected from the market research when used creatively can help the firm to gain competitive advantage and sustain the same. The data can be collected using primary and secondary resources.  Creative and effective use of market research data can help the company to be successful in the long run.

The Need for Market Segmentation

The practise of market segmentation is imperative to classify the market according to the tastes of the consumers, their buying capacity, their needs etc. This process of classification helps the businesses to target their specific customers based on their needs. However, they may have uniformity in employment patterns, economic status, preferences, educational qualifications etc. A market can be segmented based on the following variables;

  • Geographic Segmentation: The preferences and the characterises of the customers often vary according to the geographic areas. It differs across nations, states and localities. Thus a business can target a market or various markets based on the geographic location.
  • Demographic Segmentation: Classifying the market based on age, sex, income, occupation, family size, race, and nationality can be termed as demographic Segmentation.
  • Behavioural Segmentation: Buyers are divided into groups on the basis of their knowledge, attitude, use or response to a product.
  • Physiological Segmentation: Classification of a market based on social class, personality and life style are examples of Physiological segmentation.

Marketing Plan

Marketing initiatives of a business are closely related to the marketing plan. It specifics the appropriate course of action that you must follow to get your products or services noticed by prospective consumers. A detailed marketing plan will show you what to do and help you understand why you are doing it. It will also help you steer away from the marketing and business blunders that will cost you money, time and future growth potential. Marketing plan helps you to be more confident, equipped and organized for the competitive market. It also helps you to have clear vision in terms of your marketing goals and objectives. An effective and efficient market plan increases the changes for your success in this competitive business world.  

The 4 main components of a Marketing plan are as follows;

  • Target you market: As the time, money and resources are limited it is vital to target a specific market for effective results of a marketing strategy. There should be a primary market of customers identified who would buy your products and services consequently, focusing your resources on the same will give you optimum results.
  • Market Positioning: The process of creating a unique image of the product or service in the minds of the consumers can be termed as market positioning. However, the image should be clearly differentiated from the direct and indirect competitors and should also provide value to the consumers.
  • Pricing Strategy: Pricing is an essential element for profitability for the business and to gain and sustain the competitive advantage. Subsequently pricing strategy should be carefully designed and implemented to avoid losses to the company.
  • Promotional Strategy: Promotion is an activity of providing knowledge to the customers, persuading and influencing the customers to purchase your product or service. Promotional strategy is directly related to the goals and objectives of the marketing plan. 
Last modified on Wednesday, 23 January 2013 22:36
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