One of the common factors behind all successful businesses, is that they use a strategic approach to their marketing rather than a tactical approach. So, what’s the difference?
Strategic marketing
In short, businesses that take a strategic approach to their marketing, think ahead and plan ahead. They ‘compound’ many marketing activities together to leverage the best possible sales results.
Tactical marketing
Businesses that take a tactical approach, tend not to plan their marketing in advance. As a result, each individual marketing activity is done in isolation and therefore, lacks momentum. Tactical marketing decisions are usually made either on a whim or (most commonly), in reaction to a sales problem.
For example, a business owner will wait until sales are down – and then decide to ‘do something’ about it. They then do one single thing in isolation, (often a mailing, advertisement or an email blast) and typically get a very poor response. Often, I see a business with a single marketing letter or advertisement, which they use whenever ‘business is bad’ – rather than using a series of letters or advertisements, which build upon each other strategically, to create a compound leverage effect!
What is compound leverage & why do you need it?
Compound leverage is when you do a series of marketing activities, which compound to create a result that’s greater than the sum of the individual parts.
For example:
If you have a marketing email and you send that same marketing email, to the same list of people 6 times – you will see your results drop after each mailing.
However, if you decide to do a series of 6 different marketing emails; with each email building upon the previous one, you will see the power of the 6th email massively leveraged, because of the foundation created by the initial email and all the curiosity / desire created by the 2nd-5th emails.
By switching from a tactical approach to a strategic approach, you can massively improve the success of your marketing without having to invest a penny extra. In fact, many people see far better results AND are able to cut their marketing budget at the same time!
The switch from a tactical approach to a strategic one, requires a shift from having a short-term focus (tactical) to having a medium or long term focus (strategic.) Every successful business I have worked with or studied, thinks and plans ahead with a long term focus.
If you want your business to not only survive but thrive during 2009, don’t wait until 1st January to do something – make a plan today! Put a strategy together, which consists of a series of marketing activities that compound to provide you with the kind of forward momentum you and your business will need in 2009!
Here’s a list of things to consider adding to your marketing strategy – from the most popular page on the blog!
Great article. We always could use these tips to better our marketing!
Thanks Jim!
Jim, great advice as usual. I think if more businesses thought strategically, they wouldn’t panic so much in an economic downturn like we’re seeing here in the States. Understanding that a down economy is the most important time to market seems like a natural fit in a long term marketing strategy, because you’re doing more of the same that you already planned, plus you’ve already built up the leverage to help you get through the lean times.
Hi Jim,
I agree that a long term vision is far better then a short one but still you need to keep an open mind to what happens around you. you have to able to make some minor changes to respond to a certain thing that might appear.
I also agree 100% on the fact that sending the same marketing letter over and over again will cause less responses every time you send it. I think it’s happening just because people don’t think. If every morning they would buy the newspaper with the same articles ? Or if they would publish the same article on a blog over and over again. Even the best cake in the world would become the worst if you’re eating it every day.
Was fun to read.
Toma,
An effective strategy is a flexible one – so tweaking it is vital.
One of the advantages a small business has over a large one, is the ability to make decisions and act on them quickly.
However, I believe these decisions should be taken with an eye on the bigger picture – the overall strategy.
I’ve never seen it put this way, but I like what I’m reading. I think we use a tactically strategic model, if you will. When other factors develop that may help the business we include that in our strategic marketing. Example could be the arrival of a new product and we didn’t anticipate how good it really is…but after seeing it in action…it’s better than advertised.
Thanks Jim for the response. Totally agree
Ryan,
You make a good point. The flexibility you mention is a key element in designing an effective strategy.
Strategic thinking is not easy for most people. Its hard work. Many people have great marketing ideas, but only when its implemented into an overall marketing “strategy”, do you see the greatest results.
Jim I was thinking the very same thing by creating a newsletter that builds upon each other. Your post helped me to refine and fine tune my strategy. Your a great leader thank you.
Michael Bristol
You are correct . but most small business do not realize this . until it is too late . great information thanks for sharing Rj
I can always take something away from your posts. Becoming a better strategic planner with the information I offer is something I intend to work on. Thank you.
developing long term vision is often difficult for the person who is working day to day. someone who can see the big picture will help in planning 2009. i just did mine. whole year over a sunday afternoon. hiring an outside professional who can help guide you through 2009 planning will make the day to day very enjoyable as you see success roll in.
Excellent tip Jim. Great that we can leave out twitter username here too.
Excellent points on compound leverage, Jim.
I am now using LinkedIn AND Twitter to reach a broader base for the iContact brand.
Thanks for the words of wisdom.
Good advice, indeed.
Some great comments here.
Thanks for the feedback!!
You always have great content. I love the way you added Twitter ID!
Interesting that we were talking about strategic vs tactical related to branding just last weekend at an event in Irvine.
I think my strategy needs to be hire someone else to do it for me!
Kidding.
Kind of.
-Shari
Twitter.com/sizzlemaker
http://www.sizzling.wordpress.com
I appreciate all of your great advice.
Thanks,
Love,
Linda
Jim, excellent article. I also love your writing style. I just signed up for your newsletter.
I agree Jim, if you don’t have a strategy your business has no direction. It is essential to know where you are going, and how you are going to get there.
Glad you found it useful!
Marketing is definitely a full time thing….not just something to be done when sales go down.
Your point about strategic vs tactical is spot on. A tactic would be to plan an email or snail mail communication. A strategy would be to do so around appropriate advertising, to work in press releases and publicity, to offer something of value in return for making the offer viral, as in I’ll send you the white paper free in return for sharing the offer with those you know who also would benefit from it. Throw in a live event, or online event to round it out. I like the viral pitch on Twitter in return for commenting here.
Barney,
You make an interesting point.
The ‘typical’ small business engages in an average of just TWO marketing activities in total; yet the most successful engage in an average of EIGHT complimentary marketing activities.
Great post! I am fond of strategic marketing. It is a good principle. Thanks for breaking down compounded leverage as well.
Great post! This hits home. I’m going to forward this to my marketing department.
Randy San Nicolas
Great article Jim!! Some powerful information here!! The section on compound leverage is great.
Seth Godin defines the right strategy makes any tactic work better. The right strategy puts less pressure on executing your tactics perfectly.
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