Determining a marketing strategy for a client’s campaign can be the biggest challenge faced by the Marketing Services Provider. Many times, campaigns are launched with little or no strategy, with disastrous results. (See my other post on Three Common Mistakes in Cross-Media Marketing on this topic.) The good news is, determining a strategy is easier than you think. In this article, I will review the three basic marketing strategies. One of these three strategies can be applied to almost any cross-media marketing campaign to promote the client’s product or service.
Low Cost Leader – The low cost leader in any market has a competitive advantage that is easy to convey to the consumer. Examples of the low cost leader strategy might apply to an auto dealer who uses a cross-media campaign to guarantee they will beat any other dealer’s lowest price. Another example of the low cost leader strategy does not reflect the cheapest price at all. High margin services such as invisible braces can afford a larger marketing expense due to the low cost per sale of the item.
The Innovator – Companies that provide unique or differentiated goods or services satisfy customers with this sustainable competitive advantage. Because their offerings are unique, the audience is less sensitive to price. One obvious example of this type of company is Apple, and although you may find it difficult to find other companies of this size, companies with a unique product or service offering can easily be found. Perhaps it is the only Thai restaurant or weight lost clinic in town, or maybe it’s the jewelry store that carries a particular line of jewelry. In any event, ROI is always important to the client when using this strategy. The cost of this campaign must be offset with sales.
The Niche – The Niche or Focus strategy is used when the client does not fit either the low cost leader or innovator strategies, or does not have the budget to afford either of these strategies. This type of marketing strategy is often applied with smaller businesses to focus their marketing efforts on a narrow, well-defined segment of their market. Within this narrowly defined segment or niche, you might still use the low cost leader or the innovator strategy for your cross-media marketing campaign.
These strategies and the examples provided were loosely drawn from Porter’s Generic Strategies. You can read further to learn more about basic marketing strategy.
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