Marketing Strategy: A Vital Ingredient for Long-Term Business Success
Entrepreneurship is the lifeblood of the U.S. economy. Being an entrepreneur can be extremely rewarding, but the road is not always easy.
Did you know that in the U.S., 70% of new businesses fail within ten years, and 50% fail after five years in business? Only 25% of new businesses make it to 15 years or more. This data is tracked by the U.S. Bureau of Labor Statistics and also reported in key news outlets such as The Wall Street Journal.
While these failure rates vary by industry, the rate of business failure in the U.S. has been consistent for nearly 30 years, despite economic fluctuations.
The top five reasons for business failure, as summarized by Investopedia, are:
• Lack of expertise in the industry
• Lack of financing – running out of money
• Wrong target market due to limited or no market research
• Limited marketing investment and know-how
• Flawed partnership or unclear business plan, including inability to flex/adapt to changing external market
Blueshores Management Consulting was created to help entrepreneurs grow their businesses by identifying opportunities and overcoming challenges.
One of our co-founders, Maria Lovera, has over 20 years of marketing experience successfully growing and managing businesses and brands across different industries. In this blog, she summarizes the reasons why marketing is a vital ingredient for business success.
"Marketing helps attract and retain customers and facilitates brand building, adaptability, and long-term growth. With the right marketing strategies and tactics, small and medium businesses (SMBs) can compete effectively in any type of business environment. Marketing is often viewed as a tactical endeavor, but it is and should be, a much more strategic one. A strong marketing strategy can drive successful business outcomes. These are summarized below."
• Revenue Generation: Marketing investments directly contribute to sales and revenue growth. Well-executed marketing campaigns can lead to increased sales and profitability for SMBs.
• Competitive Edge: Effective marketing strategies allow SMBs to stand out from their competition and highlight their unique value proposition. Consistent marketing efforts contribute to long-term business growth by creating a steady pipeline of leads and customers, ensuring sustained success.
• Market Research: Through marketing, SMBs can gather valuable insights about their target audience, including preferences, behavior, and trends. This information can inform product development and business decisions. SMBs need to stay agile and adapt to market changes. Marketing helps them stay in tune with evolving customer needs and adjust their strategies
• Customer Acquisition and Retention: Marketing is essential for attracting new customers. Marketing helps SMBs get noticed by their target audience. It creates brand awareness, making potential customers aware of the products or services offered. SMBs can use various marketing channels and tactics to reach potential buyers and convert them into paying customers. As important is to have a good retention plan in place. Over time, it's often more cost-effective to retain existing customers than to acquire new ones. Marketing strategies, such as email marketing and loyalty programs, can help nurture and retain customer relationships.
• Brand Building: Marketing plays a crucial role in building and strengthening a brand's reputation. A strong brand can command higher prices, foster customer loyalty, and open up new opportunities.