Why Marketing Tips Before Starting a Business is Important?
Before starting a business, it is crucial to understand the importance of marketing tips. Marketing plays a significant role in the success of any business, The return on investment (ROI) of a business is often mistakenly thought to be solely dependent on production and investment, when in reality, the success of a business hinges largely on the sale of its products. While production and investment are crucial components of a business operation, without the ability to effectively sell the products, the ROI would remain stagnant.
What Are the Marketing Tips to Be Known Before Starting a Business?
Before diving into the world of entrepreneurship, it is crucial to have a solid understanding of key marketing tips that can help you establish your business and attract customers effectively. First and foremost, conducting thorough market research is essential to understand your target audience, their needs, preferences, and behavior.
After conducting market research and then apply Ansoff’s Matrix, businesses can strategically define their marketing approach by analyzing their current market and product offerings. Ansoff’s Matrix consists of four growth strategies: market penetration, market development, product development, and diversification.
Market Penetration
Is a strategic approach that involves increasing sales of existing products to existing markets. When using this strategy only price of the product plays major role in penetration.
Example: In an existing product in an established market, competition can have a significant impact on pricing strategies. When multiple companies offer similar products, they often engage in price wars to attract customers. As each company strives to gain a larger market share, they may lower their prices to make their product more appealing to consumers. This can result in a downward pressure on prices across the market as a whole.
Market Development
Involves the strategic expansion of existing products into new markets to drive growth and increase revenue.
Example: Introducing an existing product into a new market can be a strategic move that not only increases profit potential but also helps the product stand out from competitors. By entering a new market, a company can tap into a fresh consumer base and expand its reach. This expansion allows the product to differentiate itself from competitors and potentially gain a competitive advantage.
Product Development
Involves introducing new products to an existing market, a process that requires careful planning and strategic thinking.
Example: Introducing a new product into an existing market can be a strategic move to differentiate your brand and attract customers away from competitors. By offering something innovative and unique, you can create excitement and interest among consumers who are looking for something fresh and different.
Diversification
Is after establishing above three plans and execution in your start-up.
