The principles of strategic marketing management are basic guidelines for your approach.
There are four principles of strategic marketing management:
Specialization
Differentiation
Segmentation
Conceptualization
Let’s understand these principles in detail.
Specialization
The first principle to keep in mind is to decide where you want to specialize.
What is the domain, product, service, client, or market on which you want to concentrate your efforts?
Let’s understand with an example from Subway.
A Subway consumer is someone who wants to eat healthily but quickly. He values hygiene, efficiency, and value for money.
As a result, Subway is continually looking for things that will appeal to these people and continue to provide for them. They would never do anything outside of their area of expertise.
You can always experiment with offering variety. But specialization gives an identity to your brand and makes for a natural value proposition.
Differentiation
Second, it is vital to be different.
What is your distinct competitive advantage? What makes you unique and superior to the competition?
Customers need an incentive to buy from you rather than your competitors.
Customers are constantly looking for the most fabulous offer; nothing personal about this. They simply want the most outstanding product at the best price.
What is the unique selling point of a company? “Quality, quality, and quality!” will be heard nine times out of ten.
But that’s only possible if your rival offers almost zero quality.
Whoever says “quality service” has no clue why anyone should buy from him and is possibly a liability to your organization if he is an employee.
Segmentation
Today’s strategic marketing management is all about marketing segmentation.
Segmentation entails determining which customers in the market value my distinctiveness and are willing to pay more for your area of specialization.
We need to segment and discover those clients who are most likely to buy from you.
Here are a few questions to consider: who are the clients who value your area? What is their demographic? What words would you use to define your ideal customer?
Concentration
A strategy is useless if you don’t focus on people. The final, most crucial principle of strategic marketing management is concentration.
Once you’ve identified your most significant market segments where you do exceptionally well, you devote all of your efforts, resources, budgets, and time to obtaining and retaining customers in these areas.
Product management tools come in handy for team alignment and generating customer feedback.
