Replacing an old phone, or car with a new one is always exciting. This is not the case in the life cycle of a business. Taking business to a new dimension is always difficult for SMEs in this competitive environment. It may sound uncertain, and risky however it is conceivable. An idea can help to commence a business but the formulation and implementation of strong strategies will determine the growth of the business. Every business has two characteristics: Product and Service centric. Both the sectors are inclusive for companies, as well as for the customers.
Sales and marketing are the priority to work upon because it specifies the footfall or revenue of the companies. Next preference is given to services, that recreates role in dealing with customer situations. Marketing strategies are designed to approach the audience and generate demands. Revolution in technology and rapid growth in digitization have changed the perspective of consumers. Moreover, the abrupt changes in the environment are destroying the company’s value and its goals. Hence, it is basic for companies to continuously focus on research and development, and transformation.
In this write-up, we will discuss marketing strategies that can be replaced with some new ones to support MSMEs sustain their business.
Why do you need strategic change?
Despite the fact that ‘competition’ is one major force in business and management today, ‘strategy’ is the other. Both these forces are correlated. An organization’s strategy is integral to its survival and growth.
You must have seen or read about the well-known Fortune 500 list, an annual list compiled and published by Fortune magazine that ranks the top 500 companies. Every year, some new names are added and some others are deleted from this prestigious list. One common reason, which explains both the inclusion and the deletions is the strategy of the respective companies.
Every organization, big or small, follows a certain strategy to achieve its goals, specific to its market. The purpose of strategic change is to move a company towards a desired future state so it can increase its competitive advantage. Change in environmental forces requires businesses to replace existing and bring new strategies. Though, there are several marketing components that can certainly be replaced by small and medium enterprises to expand and sustain themselves in this paced environment.
Traditional marketing vs Modern marketing strategies
It has been greatly observed how companies are still relying on the traditional methods of marketing tools for example Television, radio, newspapers, magazines, etc. These tools played significant roles for the companies to increase traffic and sales.
Now, things are more advanced and fast. Consumers are becoming smarter as per the market trends. They do not welcome products easily. Their choice, response, or reaction is very selective. Behavioral change in customers has put companies to offer products and services which are matching their expectations and budget. Big market players like Nike, Adidas in sportswear clothing and footwear, Volkswagen and Toyota in automobiles, Amazon and Alibaba in e-commerce are some ruling companies for a long. Because they consistently adopted and enforced changes in their marketing methods.
The basic principle of commencing a business is to grow. Some MSMEs are thriving in these tough surroundings and some get shut down within 5 years. There are many factors involved in developing a corporate strategy to reach a new market, develop new products, and change the way a business is conducted. At this age, digital marketing rolled out to be the most effective result-oriented strategy to gain customers’ attention.
|S.no||Traditional marketing||Social media marketing|
|1.||Also known as offline marketing: promoting goods and services through TV, radio, newspapers, and direct marketing.||Online marketing: social media have variouswebsites like Facebook, Twitter, Instagram, LinkedIn, Snapchat, Pinterest, etc|
|2.||Not every company can ask big superstars or sports players to advertise their products. The cost incurred in giving ads on TV, and radio is very high. Still, it’s been in use for a long.||You just need some social media managers to handle all these platforms to promote your products and services. It is cost-effective.|
|3.||Due to advanced technology, people are diverted to other sources of infotainment. People do not respond to commercial ads or broadcasts so easily.||Social media has over 4 billion users. People quickly react to the launch of any new product or service.|
|4.||Getting results from conventional marketing is time-consuming.||Convenient for MSMEs to create a good impression on a large audience in real-time.|
|5.||The future will bring issues for the companies from reaching the audience because of limited use of technology and the internet.||Looking at the present age, time is not far when artificial intelligence, automation, and social media platforms will take control over everything.|
Nobody ever claims that the life of the business is pre-decided. It is the struggle and fight that takes business to a mature stage. Creating new strategies allows the business multitude of opportunities and they create further engagement with the product. The future of business is based on strategic planning and maintaining the balance of products and services and how you market them to your ongoing clients and your audience. Therefore, MSMEs, entrepreneurs, and startups should broadly consider using digital marketing strategies effectively to gain prosperity and sustainability.