When you advertise a product or service, you attempt to persuade an audience to take action. Marketing, on the other hand, is a strategy that organizes sales techniques and business communications in an effort to build a relationship with customers and create value, according the American Marketing Association. Proper marketing is identifying and satisfying the wants and needs of customers while making a profit at the same time.
Including Market Research
No matter the size of an enterprise, a company should always back an advertising campaign with market research. Market research is an objective analysis of a company's competition and target customer using current and comprehensive information. A company can conduct market research by reading books and trade journals relevant to the industry regarding trends. On the other hand, a company can obtain its own data with surveys, focus groups and by performing experiments and recording observations.
Creating a Mission Statement
While a company may already have a mission statement for its business plan, it is also a good idea to create a marketing mission statement before developing advertising plans. The mission statement is like a blueprint that explains the company's goals and the strategies it will use to achieve objectives. In a mission statement, a company should indicate its marketing and advertising goals, along with a list all of the products and services offered, including details about each item's defining characteristics and the anticipated demand of each. Additionally, a company should include the information gathered while conducting market research such as characteristics about the target customer. Characteristics can include information regarding trends, the size of the market, demographic data, geographic location and the target customer's lifestyle. It is also beneficial to indicate factors that could affect a target customer's choice to purchase a service or product. A company should make sure its marketing mission statement is consistent with the mission statement composed in its business plan.
Knowing the Competition
Before doing any advertising, a company can benefit from learning more about its competitors and their products and markets. A company should compare its strengths and weaknesses against its competitors, and compare marketing and advertising tactics. If available, knowing the competition's trends and history of sales could provide valuable insight.
Promotional Costs
After listing all of the possible advertising methods the company could use, it is a good idea to compare those methods with the marketing strategies. A company should determine if it is going to hire an advertising agency for assistance, or if it will utilize an in-house marketing and advertising department. After prioritizing its marketing strategies, it is then wise to compare the associated costs of each strategy.
