How to create a marketing strategy for sustainable competitive advantage
Creating a marketing strategy for sustainable competitive advantage involves careful consideration of several key factors. At SKCI we use our 5KQ (5 Key Questions) methodology to approach all strategy-based questions, and this can be applied to marketing strategy in just the same way it can business strategy.
First ask yourself these 5 questions:
The answers to these questions will help to clarify what the gap is between where you are now and where you want to go, which is crucial in order to know what activities to prioritise. As you move onto question 3, 4 and 5 of the 5KQ you are moving into the ‘how’ part. To help you come up with an effective plan we have listed a number of steps that may help you flesh out the ‘how’ in order that you can create, or update, your marketing strategy to be sustainable and maintain competitive advantage.
Here are the steps we recommend you follow. If you have completed some of the steps, we recommend you cherry pick the ones you think could add the most value:
Understanding the Market and Consumer Needs:
The first step is conducting a detailed market analysis to understand the consumer needs, trends, and competitive landscape. This should involve detailed demographic, psychographic, and behavioural analysis to better understand your customers and their pain points. This process may involve conducting surveys, focus groups, or utilizing existing market research.
Define Your Unique Value Proposition (UVP):
The UVP is what distinguishes your product or service from the competition. This could be price, quality, customer service, innovation, or any other factor that your customers find valuable. Make sure your UVP is difficult for competitors to imitate, thus creating a sustainable competitive advantage.
Establish Your Brand:
Your brand is the image and perception that customers have about your business. It’s based on factors like the quality of your products, your customer service, your reputation, and your overall presence in the market. Strong branding can create a sustainable competitive advantage as it builds trust and loyalty among customers, making them more likely to choose your product over competitors.
Optimize Your Marketing Mix (4Ps):
The marketing mix includes product, price, place, and promotion. These should be optimized based on your target audience’s preferences and behaviour. For instance, if your target audience values quality and is willing to pay a premium, your marketing mix should reflect this in the product quality and pricing strategy.
Leverage Data and Technology:
Data-driven marketing and advanced technologies like AI can provide deep insights into consumer behaviour and preferences, thus allowing you to tailor your marketing strategy for maximum effectiveness. Using AI for customer segmentation, personalized marketing, and predictive analytics can provide a significant competitive advantage.
Innovation and Continuous Improvement:
The market is dynamic, and consumer needs and preferences change over time. As such, it’s important to continually innovate and improve your products, services, and marketing strategies to stay ahead of the competition.
Measure and Adjust:
No marketing strategy should be set in stone. You need to monitor your campaign’s performance and be ready to make adjustments as necessary. Use KPIs to track your progress and identify areas for improvement.
Build Long-Term Relationships:
Building relationships with customers can create a sustainable competitive advantage. This can involve maintaining high customer satisfaction levels, having an effective customer loyalty program, or engaging with customers on social media.
Remember, the key to maintaining a sustainable competitive advantage is to constantly adapt and evolve in line with market changes and customer preferences. Always stay customer-focused and strive to exceed their expectations. And by using the 5KQ as your guide you will ensure that your marketing strategy is aligned with your company’s wider goals and targets.
SKCI offers sustainable marketing strategy and implementation as a service, contact us to find out more.