It is crucial for startups to analyze the needs and limitations of their businesses before deciding their marketing strategy.
Thousands of startups are launched every year, each offering unique products and services. However, most are unable to sustain themselves in the long run. Even after coming up with fantastic ideas that can cater to market needs, many startups fail. One of the main reasons behind this is the lack of good marketing strategies.
Why do startups need marketing strategies?
There is a huge misconception that during the initial phases, businesses do not need marketing strategies and can sustain themselves if they have enough funds. On the contrary, marketing strategies are extremely important since day one of the business. This ensures that it is heading towards its goals and is thriving in the potential market.
Here are a few reasons why every startup requires marketing strategies:
- Informing customers to establish the brand in the market.
- Analyzing competition to understand the strategies used by the brand’s competitors.
- Sustaining your business in the long run by updating it according to the market trends.
- Engaging with customers to ensure their loyalty and long-term association with the business.
- Planning the g**rowth of business** to expand its reach to more potential customers.
Budget-friendly marketing strategies for startups
Now that we have understood why marketing strategies are important for a startup, let us look at different strategies that will be relevant, as per the current market trends.
One of the biggest challenges in sustaining startups is working with limited funds while prioritizing marketing and promotion. This has become relatively easier since the Internet has come into the picture. Many strategies are affordable as well as effective for startups:
Social media marketing is one of the most popular tools at present because of its access to a wide audience. Startups should start investing in their social media appearance to attract different customers and engage them with the business throughout the journey. This will also increase customers’ engagement as well as their loyalty towards the business.
Boohoo is one such brand that understands the power of social media. In April 2020, while the whole world was going through a rough spot amidst the pandemic, boohoo announced a gross profit that went up by 42%. One of the reasons behind this was its well-planned social media strategy. The brand enjoys supremacy on Instagram with a list of 8.2m followers owing to its quirky and relatable social media content.
Customers have a lot of buying options in the market today. Therefore, startups need to focus on a particular segment of audience to distinguish themselves from other players in the market. This strategy will not only allow the brand to gain a potential target audience but will also help in staying ahead of the competitors.
For instance, TomboyX is an apparel brand that serves the LGBTQ community and offers gender-neutral clothing. It is one of the few fashion brands offering apparels that are queer community-friendly that makes it stand out from the crowd.
This is a strategy where a brand builds a community of its customers by inviting them to various forums and groups. These brand communities are generally created to engage the customers through brand-centered events including giveaways and discounts. These are often fruitful when it comes to making consumers feel prioritized and getting their valuable feedback.
The cosmetic industry is one of the most benefited industries from community marketing because people are constantly looking for recommendations about beauty products. Glow Recipe is one such brand that thrives through its strategic use of brand community management. With its website offering several beauty solutions like makeup tutorials, skincare recommendations and product reviews, it engages its customers and ensures their brand loyalty.
Influencer marketing refers to a strategy in which brands promote their products by connecting with the audience through social media influencers. They inform the audience about brand’s presence and its products and services. Social media personalities have a great influence on their followers. With their help, brands can reach potential customers in a cost-effective manner. Therefore, this marketing strategy is worthy for any startup to gain popularity.
One such startup which built itself by depending upon influencer marketing is Banza. The food company started with a single food product — chickpea pasta. Its CEO reached out to journalists and influencers through emails, asking them to try free samples of Banza’s chickpea pasta and advertise it in return. Soon enough, the brand was highly endorsed by influencers like Kristen Bell, Feeding our Toddlers and Molly Chanzis, which led to Banza’s success.
There are many similar marketing strategies that are useful for every business despite its size. However, each business is unique and needs to analyze its operating model before deciding upon its marketing strategies.
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