Cost of marketing strategies

If you are preparing a marketing budget, you will need to be aware of the different marketing strategies that your business is planning on using. This is important because each marketing strategy that your business can use is going to have different costs associated with it. In order to fully prepare your marketing budget you will need to know what kind of costs are associated with each marketing strategy that you plan on using, which you can figure out the costs by understanding the strategy itself.

Here is a look at the different marketing strategies that your business can use. Also included is what each marketing strategy entails, which will give you an idea about the costs that are associated with each marketing strategy to help you prepare your marketing budget.

Number one: Market expansion

With market expansion, you can grow your sales with existing products or you can grow your sales by introducing new products. To grow your sales with your existing products you are going to need to dramatically increase your current sales. You can accomplish this by getting existing customers to buy more products, attract new customers to purchase your products, or you can try selling your current products in a new market. With growing your sales through introducing new products, you are still trying to increase your sales, but instead of using your current product, you are using a different product. You can do this by introducing updated versions of the product or making improvements on the product, creating extensions of the existing product, or you can introduce a new product that your company has never marketed.

Number two: Market growth share

This method can be used to increase your business's overall share of the market. The only thing that you can do to increase your share of the market is to take away sales from your competitors, which is harder than it sounds. What you need to do is to think of something that will convince their customers that your company is better, which can usually only be done through aggressive marketing tactics. Aggressive marketing tactics can be expensive because of how tricky they are to use, if you go the route you need to consider hiring a professional.

Number three: Niche market

Your niche market is a specialized group from your overall market share that you are targeting your product to, most of your competitors are going to have the same niche market as you. What you need to do is to think of something different that will allow your business to cater to a niche market. Most companies that use niche marketing are small business because they can cater to a select group, but companies that offer a specialized product also cater to a niche market because nobody else in their industry offers what they do. For example, a cleaning business can target a niche market by specializing in cleaning blinds.

Number four: Status quo

This marketing method is not going to increase or decrease your marketing budget because all you are doing is trying to keep your current place in the market. You are not trying to increase sales or take a piece of the market share because you are not interested in growing your business.

Number five: Market exit

This marketing strategy is where you are eliminating a product that you originally carried because you are getting ready to introduce a new product; it can also be when you are trying to shift your business from one industry to another. With this method, you can sell your product to another company or you can clearance the item out. This method increases your marketing budget because you have all of the new costs of marketing a new product or service.