Writing a business strategy and marketing plan is not required in order to start a new business, however it will challenge you to answer important questions regarding every aspect of your business. The business strategy should provide, at minimum, both short-term and long term goals and can be used as a blueprint when making decision during the course of business. One of the most challenging, yet very important, areas of the plan to investigate is potential competition. Such investigations of competitors may include lessons learned from failed competitors from the past, current competition, as well potential competition in the future should a non-competitor decide to expand their business into your market.
Many consumers will compare competitive products on price alone, therefore your marketing strategy should also determine it’s pricing position. The three common pricing methods are undercutting, matching, and premium. Undercutting the competition by pricing your products at a lower price has the potential of increasing market share, but could also suggest to potential customers that your products are cheap and low quality. Matching prices set by the competition requires including a similar feature set as other’s products, however it can be very difficult to stand out and gain market share if you are both selling the same similarly-priced quality items. Premium pricing allows you to stand out from the competition by highlighting exclusive features and an impression of high quality, however due to the higher price the competition might gain a higher market share in the short term.
Every business is unique in how they include social marketing in their long term e-business strategy, however the general goal is to increase interactions with both customers and prospects. Potential prospects will want to submit inquiries about available products including how they compare to the competition. Existing customers will have support inquiries on how to best utilize their recent purchase to benefit them and/or will request new features to be added based on advertisements received from your competition. It is important to reply to these inquiries and monitor review boards and discussion forums for communications between customers and prospects. Fortunately, many product review places allow a follow-up reply to be posted for all to see as a demonstration that the business owner cares about their customers.