Is marketing more important than strategy? – or the other way around?
Great question… Let’s dive in! Every company regardless of its size or the industry it belongs to must create a strategic plan that acts as the core foundation, for all its operations. This comprehensive blueprint should steer all decision-making processes to ensure harmony between all facets of the business. This commonly called a business plan. A business plan by default must be strategic and marketing is just one aspect of the business plan.
Research highlights the role of strategy for all businesses including those based at home. Studies indicate that businesses with a business plan are twice as likely to survive compared to those without one. The plan functions as a guide assisting the company in navigating obstacles recognizing opportunities and ensuring all endeavours are in sync.
Strategy is not a singular concept; it encompasses components like customer acquisition and retention marketing strategies, growth plans, exit strategies and other operational areas. Each of these aspects should be meticulously planned to uphold the overarching vision and goals of the business. While marketing plays a role it must align with, and contribute to the broader business strategy. Marketing acts as a connection between the company and its clientele, by pinpointing the right target audience creating value propositions and selecting channels and tactics to engage with customers effectively.
Studies indicate that small enterprises that merge their marketing strategies with their business plan tend to achieve success. Businesses equipped with a marketing strategy are 60% more likely to experience revenue growth compared to those operating without one. In today’s changing landscape of home businesses shaped by advancements, in technology shifting consumer behaviours and economic influences having a strategic plan is vital. It is crucial for businesses to have a vision, set goals and a roadmap in place to leverage emerging trends and navigate through changes.
Research has shown that home-based businesses with plans are more inclined to introduce products or services explore new markets and foster higher levels of innovation. These strategic capabilities are key for home-based entrepreneurs to flourish amidst the evolving business landscape.
In summary while marketing plays a role having a comprehensive strategic plan should serve as the cornerstone for any home-based enterprise. By aligning marketing initiatives with a developed vision entrepreneurs can enhance their prospects, for long term success and sustainability.
Sources:
U.S. Bureau of Labor Statistics. (2016). Survival of Private Sector Establishments by Opening Year. Retrieved from https://www.bls.gov/bdm/us_age_naics_00_table7.txt
American Marketing Association. (2017). Definition of Marketing. Retrieved from https://www.ama.org/the-definition-of-marketing-what-is-marketing/
U.S. Bureau of Labor Statistics. (2018). Small Business Trends. Retrieved from https://www.bls.gov/bdm/entrepreneurship/bdm_chart3.htm
Global Entrepreneurship Monitor. (2020). 2019/2020 Global Report. Retrieved from https://www.gemconsortium.org/report/gem-2019-2020-global-report
