Three Classic Marketing Match-Ups
Every company or establishment would agree that an ingenious and carefully-designed marketing strategy is the foundation of any business since it covers everything that involves the connection between the services offered and the clients (whether potential, current, or former). Companies spend and dedicate a huge amount of money, time, and effort in formulating the perfect marketing scheme—from research, to conceptualization, to implementation, to analysis, up to revision and polishing. Although they already have a “blueprint” of fixed factors that they consider in their marketing plans, there are still some marketing elements that always stir divided discussions and heated debates. Here are three classic marketing match-ups that have developed and damaged numerous businesses from then up until now.
Lead Generation vs. Loyalty and Retention
There is no business if there is no customer. They are the lifeblood of any establishment as they are the primary source of profit and the main determinant of a company’s success. With this, though, people have varied opinions when it comes to customer management. Some believe that a continuous campaign to attract and acquire more customers is vital to the growth of a company. Reaching a wider market will yield more customers and, eventually, more profit. However, others think that focusing on existing customers is a better approach. Companies will benefit more by boosting customer loyalty and devising better retention offers. If a customer is happy with the service he is getting, he is more likely to spend and invest in the company.
Small but Specific vs. Broad but Vague
Choosing and establishing the right target market is a dilemma that marketing plan designers deal with all the time. An innovative product or service is useless if not marketed efficiently. One approach is to focus on a specific market that will most likely patronize the product. This is efficient and not much marketing effort is needed since the market already has the need for your product. Although this means that a company will reach fewer people, the rate of converting these potentials into full-fledged customers is better guaranteed.
The other side of the coin is to just go big and bold without targeting any specific market. There is a bigger chance of getting customers if more people hear and know about the product. Some of these people may even be indirect advocates of the product by telling other people whom they think might benefit from it.
“Moneymakers” vs. “Moneyhoarders”
The spending capacity of potential customers is also taken into consideration when designing a marketing plan. At first glance, it seems like it is just right that the company incline their marketing scheme to people who have the capacity to buy i.e. people who earn money. Most products and services aim to attract the young adults and the professionals since they have money to spend. However, these “moneymakers” are also, most of the time, the breadwinners of their families and are in charge of managing the daily living expenses. Despite the money that they have, their spending capacity depends on a lot of factors. On the other hand, the usually-untapped market of the baby boomers and the teenagers is showing great potential since the money that they have, whether it is from pension or from allowance, is all theirs and they have no responsibilities and priority expenses to worry about.
A foolproof marketing plan that will consistently deliver outstanding results for the lifetime of any company is next to impossible. With the ever-changing demands and trends of the market, creating an effective marketing strategy is a never-ending cycle that goes on and on as long as the business lives.