Business Strategy vs Marketing Strategy
- Articles, Blog

Business Strategy vs Marketing Strategy

Business strategy versus marketing
strategy is the question we constantly get asked. Which is more important?
Turns out both, but let me tell you why stick around. Alright so first, what
exactly is a business strategy? And what is a marketing strategy? A lot of these
concepts often get confused so if you have any questions comment down below as
you get them maybe I’ll do a live something or other, a live demonstration
of a business strategy or a marketing
strategy. First so what is a business strategy? Business strategy is the
long-term plan of where you want your company to go, it’s the big picture the
top-level view of your company. Imagine it like maybe, like a blueprint you know? Imagine it like a blueprint for a home that you’re
building or for a building that you’re actually going to construct. It really
outlines what the purpose is, what it’s going to do. Is it going to be
a single-family home? Going to be a multi-family like a condo? Is
it going to be an apartment so there’s a whole bunch of things that you’ll want
to have in your plan and that’s actually why it’s called a business plan where
your business strategy should sit. There are five things that I typically
advise people to have within a business strategy. The first one is for alignment.
You want to make sure that you have your vision, your mission, and your core values
all very clearly outlined. This will help align your staff and make sure that
gives you some some really clear purpose of how you’re going to be communicating
in the future with your clients and potential clients. The next one is
company structure. How is this going to be laid out? Is there going to be
multiple staff? is it going to be multiple departments? What is the
reporting structure between them? Those are important things you may not think
about them early on, but if you pick one of the generic generic approaches
it’ll make your life a lot easier in the future believe me we’ve seen a ton of
people do this less-than-optimal. Third one is action plan. Planned and
measurable outcomes when you start your business. What’s three
months going to look like? What’s six months going to look like? What’s one
year? What’s two years? What’s five years? You want to make sure that you set goals
that are called SMART. If you have any questions about SMART goals
we’ll publish another or I’ll put out another episode if anybody wants to know what a SMART goal is and maybe tear apart an example of one that I saw
around the office the other day. Number four is accountability. Who is
doing what and why? I want to make sure that specific roles or specific people
are assigned specific roles. You want to make sure that there’s actually no
overlap. Who is doing the accounting? Who is doing the collections? Who is doing
the sales? Who was doing the execution? The reason why you actually want to have
specific roles outlined and then accountability for those roles because
you want to if you want to figure out what does accountability and
what is the incentive structure would look like if they’re not doing the
job, if they’re not reaching their goals, what are the punishments? Number five key performance indicators so KPIs you may have heard that acronym before all it is
is there are specific numbers that you want to look at what are, for example,
some of them may be revenue per month, revenue per year, it could be cost per
conversion on a website, it could be number of widgets sold per salesperson.
So you want to have that foundation. Those five things as part of your
business strategy, your marketing strategy should actually it should build
upon your business strategy and it should align with it. But a marketing
strategy is a business’s overall outline for reaching people and turning them
into customers of your product or service. So there are four categories
that we always break business or marketing strategy into for a business. One of them is target market. You’d be amazed how many people give us this, “everyone is our potential audience everyone is our potential client”. No they’re not. There’s
actually an ideal client. If you’re for example, a service provider, discount
clients are not your clients and you don’t want them to be your clients. If you’re a designer, discount clients are gonna be the hardest clients
to work with, they’ll be the most demanding and then they will whittle
down and negotiate on every single piece. If you target the wrong audience you may have a really hard time convincing them that they need your service. If you’re for example, a
luxury product and you’re targeting people who don’t have disposable income
there’s a target mismatch and you’ll have a really hard time actually
creating a successful business around it. Number two is positioning. Are you a
low-cost provider? A premium provider? A mass-market provider? Are you a a niche
player? So your low-cost like Walmart for example you’re gonna
have to have really good systems and economies of scale it’s also really
difficult to win in that market unless you have like Walmart for example a
really good distribution system and really good inventory system. Number
three is messaging. How do you communicate? What’s your competitive
advantages? How you communicate what your value proposition is. So your language,
a lot of that messaging the sooner you figure it out and the sooner
you figure out what resonates across whichever medium you choose with a
social media website, yellow pages, or signage or a car wrap, that messaging
will be extremely important. It can be part of your bread but it should
definitely be thought of in your marketing strategy . Then the
fourth one is what does the future look like? How long is this marketing strategy? Is there an expansion plan? is there additional products or
additional services? So these are some of the things that you want to think about
when looking at a marketing strategy. So when someone says okay business strategy or strategy versus marketing strategy,
it’s actually business strategy plus marketing strategy. Both are important to
make your business succeed. If you have any questions reach out to me via
comment or on Instagram at william.walczak. Let’s get down to business. Let
me know if there’s anything I can do to help. Thanks.

About Ralph Robinson

Read All Posts By Ralph Robinson

1 thought on “Business Strategy vs Marketing Strategy

  1. The difference is still not clear, and it is even more confusing now.

    Strategy has 3 levels: Corporate, Business Unit, Functional Unit.

    Yet, most of the people as also your video, do not differentiate them clearly, which confuses people even more.
    A business unit, does not necessary need a Vision or Mission if they already have it on a Corporate level.

    So, imagine a person who learned that Vision and Mission is a part of Corporate level, and now he watches your video (reads modern strategic management book), and asks himself "Wait a second, are those parts not supposed to be in a Corporate level? What is correct/wrong now?".

    Even if you are assuming, that it is not a corporation but a small company you are speaking about, you STILL need to differentiate those Levels/Task, otherwise people with no experience will totally confuse "What belongs to where".

    Then, these 3 Levels can be further separated in 3 broad Questions :
    Corporate(What Business we do?), Business Unit (How are we going to compete in THIS Business Unit?), Functional (Which Tools should we use to meet annual objectives etc.?)

    And here comes one of the major sources of confusion for majority of the people.
    People often confuse Corporate Level Strategies with Business Unit Strategies, or do not differentiate it clearly.
    For example, where should the Portfolio Analysis be done? Corporate?Business Unit?Functional?

    The fact is, that it can be done on any of those levels, depending on the goal. But that is exactly the confusing part for a newbie. They need an example for each of those levels and the Framework how they INTERCONNECT. Because I as a newbie, need to see whether I need to do this Analysis 3 times for separate levels, or I just do it 1 time and all of the 3 levels can use this Information.

    It seems like an ambiguous task, but a lot of newbies have problem even with this type of stuff.
    The next level of the problem, misuse of jargon and words which leads to a further confusion.

    Competitive Advantage, Positioning, Competitive Strategy, Marketing Strategy, Strategic Marketing etc.

    On a Business Level strategy, you are dealing with "How are we going to compete HERE on this spot".

    So, the Business Level Strategy = Competitive Strategy.
    Now, here comes the Problem, what is a Marketing Strategy?
    Well, it is ALSO a Competitive Strategy.

    The Newbie has now a question, is Marketing Strategy = Business Level Strategy? Since they are both the same.
    If yes, why is then everyone speaks about Marketing Strategy as of an Functional Level?

    This is the Reason, why most of the people still got confused between Strategy and Tactics, it is not because they are too stupid to differentiate these 2 terms, it is because there is a confusion due to the understanding to which level of strategy they belong.

    Another favorite of my, Positioning.

    Positioning can mean ether archiving competitive Advantage trough positioning yourself in Industry (Business Level) or in the Mind of the Customers (Functional Level =Branding).

    Again, it can be seen here that there is a potential confusion source.

    In both cases you are archiving competitive advantage, but on different levels.
    So a newbie, obviously will be confused, since he learned that competitive advantage is part of Business Level strategies, and now he encounters it on the Functional Level.

    In summary, I can say that modern Strategic Management is a complete mess, I do not know a single Framework/Blueprint which would clearly separate the tasks of Corporate/Business/Functional levels of strategy from each other in a such way, that a person would not constantly be confused with their interplay and interrelations.

Leave a Reply

Your email address will not be published. Required fields are marked *