The Importance of a Business or Marketing Strategy
A business strategy or marketing strategy is a critical element in the development process of any business. Without organized plans, a business wouldn’t be able to make much progress. A well-structured and executed strategy acts as the master plan of the business, typically spanning a year, and ensures that goals are achieved.
What is a Strategy and How is it Different from a Business Plan?
A business plan can cover various aspects of the business, such as establishing an advertising grid or improving sales. In contrast, a strategy is broader and encompasses goals, values, differentiation, execution stages, and measurement.
Strategy Building: A GPS for Your Business
Building a strategy is like using a GPS app:
- Current Location: Understand the current state of your business.
- Destination: Define where you want your business to be in a year.
- Route Calculation: Plan how to achieve your goals.
Steps to Building a Strategy
1. Assess the Current State of the Business
Understand where you are so you can estimate what it will take to reach your destination. This analysis should include:
- Market and customer analysis
- Competitor analysis
- Current technology level
- Relative advantages and differentiation
- Annual budget
2. Define Objectives
Specify where you want the business to be within a year. Reflect your vision and list all goals considering your current situation and business vision. Be focused and define what not to do this year. Ensure all goals are measurable and achievable within your given personnel and budget.
3. Develop a Work Plan
This is the most complex part. Calculate the route to achieve your goals using your advantages. For each goal, write a detailed plan and set KPIs to track progress. For example:
Goal: Improve income from existing customers by $120,000
Plan:
- Improve customer relationships with weekly emails
- Add automations for better engagement
- Launch a remarketing campaign on Google and social networks
KPIs:
- Email performance reports (clicks, opens, purchases)
- Automation progress reports
- Remarketing campaign results
- Monthly profit progression reports
Important Points in Building a Work Plan
- All goals should be measurable.
- Determine the reporting format for monthly progress monitoring.
- Each goal needs a clear measurement plan with KPIs.
- Assign an owner for each plan.
- Define intermediate goals and quarterly KPIs.
A Critical Lesson: The Power of Focus
A friend, formerly a VP of Marketing at a leading company, shared a valuable lesson. They used to aim for a 32% growth annually, working tirelessly to achieve it. However, their CEO asked them to target 20% growth instead. Surprisingly, by focusing their efforts, they achieved 46% growth. This underscores the importance of a focused plan over a busy one.
Summary
A focused strategy is crucial for achieving business goals. Hope you found this article helpful. Feel free to contact me with any questions or read more tips on our strategy-building service page. I’m here to help with any marketing queries or interests.
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