Smooth and effective communication flow among all the stakeholders is essential for getting desired results. Communication gap leads to undesired failure. Marking is also a kind of communication between consumer and company. For startups marketing is essential tool to communicate and convince consumer about its product.
“Business has only two functions – marketing and innovation.” – Milan Kundera
For startups effective marking is essential from initial stage. Once loyal consumer base is developed, its “word of mouth marketing” that gives the organic growth. FS brings an analysis to help entrepreneur to develop their marketing strategies in right direction.
Assumptions for Case Study – To understand the outlook of marketing strategies, let’s assume two startup concepts –
- One startup is hyper local delivery model of medicines in demand in all cities tier I, II and III cities.
- Other startup is affordable, hygienic food provider in a city with great potential for such business (metro city where people have hectic life).
- The budget is sufficient enough to handle the marketing strategies.
Startup Marketing – Groundwork
Following ground work is essential prior to deciding the effective and affordable marking strategies –
[A] Problem being Addressed–To understand the startup concept in terms of problem that is being addressed by it is necessary to determine the marketing strategies for it. For example – services based models like hyper local delivery provide convenience to its consumers while product based models like apparel, electronics products, home appliances provide availability to the consumers. Product based models focus more on additional information like comparison, reviews and rating etc.
[B] Market Volume for the concept – Once the problem that is being solved is identified, defined and evaluated; it’s easy to estimate the market volume for your startup. For example – the market volume of hyper local grocery delivery service in a potential city is all those persons that need grocery , are tech savvy enough to buy online and have lesser time to visit a local store either for the sake of luxury or time constraint – working couple, bachelors , singlet families etc.
[C] Targeted Market – Once the market volume is clear, the next work that is required is to categorize your targeted market base into relevant segments like – age groups, gender, purchasing power, location etc. For e.g. – Targeted market for matrimonial startup could be categorized in groups like parents, guys and girls or 25-30 and above 50 age groups etc.
[D] Market Competition – Analysis of the marketing strategies of the players that are of same domain is essential for your startup. For e.g. – one competitor of e-commerce startup is highly active on social media while other is working on press media and door to door marketing.
[E]Resources and Budget for Marketing – Clarity on the budget for your marketing campaigns and the available resources is necessary to choose the right marketing resources. For example – if the marketing budget is very high, press, media and door to door marketing tactics are useful; otherwise either one of these or social media is the best platform with limited resources.
Case Study – Ground work of our case study could be analyzed as following –
- Medicines delivery startup is addressing the convenience problem for the mass who wish to have some service providers to deliver their medicines at home while the Food delivery startups are solving the problem of affordable and hygienic food in the city.
- Any person who is tech savvy enough to rely on on-demand delivery startup and have the capacity to buy the medicines and food is the target customer for both the startups. So for medicines delivery startup the market volume is large in Tier 1 cities while limited in Tier II and III cities. For food delivery startup, market volume is huge in Tier I as well as tier II cities.
- For medicines delivery startup we can categorize the targeted market based on type of city, age group and affordability limits. For food delivery startup the market volume could be classified in groups like – age, gender, profession etc .
- Market competition for both the startup concept is decided by checking the players who are working in the target city.
Startup Marketing – Essential Qualities in the Campaigns
- Convincing – Marketing tactics must be strong enough to convince consumers to get the attracted towards new startup concept/product.
- Comparing – Most of the people have habit of comparing the available solutions. So the marketing campaigns must include the benefits of new concept/product over the existing ones.
- Converting – Finally the marketing campaign should be strong enough to convert unaware users or users of other players into your consumers.
Startup Marketing – Techniques
[A] Social Media – Social media is considered as one of the most powerful marketing platform as millions of active users could be reached with little efforts and cost. Facebook, Twitter, LinkedIn, Tumblr, Reddit, Pinterest, Instagram, Slideshare etc are some of the most popular social networks with millions of active users on it. Though approach required for every platform is different based on the working mechanism of the same, ultimately it helps in marking your presence visible in a short span.
Based on the targeted consumers of your concept, it could be easily decided how to move ahead. For e.g. if your idea is location oriented there is no point of promoting it to other locations, so it’s better to stick to your limits initially.
[B] Press Media – Press media is one of the oldest and reliable resources for marketing of your startup. Most of the people have habit to read newspaper every day, so based on the need to capture the consumers right press media could be used to promote your startup – like local newspaper to reach out local consumers, national newspapers to reach out the maximum number of people.
[C] Media and Television Ads – Promoting your concept to television, YouTube, startup news portals, promotion platforms etc are good techniques to allow people to know your existence. Television ads are good resources to align the consumers of your product. For e.g.– promoting kids oriented portal on kids cartoon networks, housewives oriented portals/services during TV serials etc.
Promoting on startup news portals, promotion portals might be of limited use as it might not direct to the right consumers as most of the active users on such portals are those people who are startup enthusiastic.
[D] Targeted Marketing – Targeted marketing is one of the most effective technique for your startup. Door to door marketing, targeted canopy marketing, email and SMS marketing etc are some of good examples of targeted marketing.
For e.g.– Targeted marketing in societies for hyper local delivery startups, targeted marking in industrial / office area for transportation startup.
Case Study – Following marketing strategies are effective for our assumed startup –
- Social Media – For medicines delivery startup the targeted market is large, so social networks connecting the people of desired locations could be used. Since, the food delivery startup is working in one particular city, so the targeted marketing is required through social networks.
- Press Media – For medicines delivery startup press media is very helpful in Tier II and III cities. For limited presence startup of food delivery that too in a tech savvy populated city, the use of press media is limited.
- Media and Television Ads – For medicines delivery startup, media and televisions ads could be good in Tier II and III cities while targeting age group consumers, while for food delivery startup it would be good for targeting house wives, old age persons.
- Targeted Marketing – Targeted marketing tactics like canopy, door to door marketing are good for both the concepts.
Though startup marketing is complex but also a leading factor of startup success. Great idea might fail due to lack of recognition in the public while other might become billion dollar unicorn because of public attention and acceptance.
Wish you luck for your startup. Stay tuned with FS Labs to know more.