In this post, we are going to launch your marketing mind to the next level with three critical MBA marketing concepts that apply to growth hacking.
1. The two levels of marketing strategy
A campaign is a coordinated series of tactics that are associated with some specific initiative. Specifically, at the campaign level of strategic thinking, you’re thinking about the objective of the marketing campaign and also the messages that you want to take out to the audience.
The second, lower-level marking strategy is about tactics. A tactic is a single mechanism that is designed to achieve the goals of the campaign and usually, at the tactical level, you should be looking at things like resource allocation, which should include grabbing the content, the budget, or whatever you need to achieve the tactic in the campaign.
For example, a graphic design company in Illinois wants bring in more clients for their logo services. They’ve noticed that a lot of companies in their target market -medical service providers- do not have attractive or appealing branding.
The design company decides to run targeted ads on Facebook that will reach medical professionals who show interest in other pages that would imply that they they are building their own practice. They also decide that AdWords campaigns and some direct marketing through LinkedIn networking is an effective way to develop leads.
The company’s objective is to serve more new clients for logo services and their messaging is that the medical service industry is not up-to-date with good design, which could set them ahead of the competition.
Their tactics are the ad campaigns and networking, plus all of the copy, images, and the budget that would be necessary to make the tactics effective.
2. The buying center
Then there is the delivery mechanism. Through which channels will this tactic help the campaign achieve what it’s trying to achieve?
Most growth hacking is about tactics, experimentation, and optimization. When you are designing campaigns –we are going to onto the second concept here–you want to be thinking about this concept called the buying center.The easiest way to understand the buying center is through an illustration:
Let’s say that there’s a marketer trying to take to market a natural health care product and their target market is chiropractic centers. They might be thinking, “Well, I need to talk to the doctors and show them that this product really works.” In reality, it might be that the chiropractic centre purchases products by the doctors introducing sample products into a group meeting and the group meeting might be led by a mission-oriented business manager.
What you’re seeing here, is that the doctor might be focusing on the specific healthcare applications of the product, whereas the business manager, who might have more decision-making power,is focused on the mission of the product to see if it aligns with the values of the company. The buying center, in this case, is not just the doctor. It’s the doctor as well as the business manager. So, as you start to design your campaign, you want to investigate and find the buying center that is responsible for making decisions of buying products or services.
3. Customer Creation vs. Discovery
If you’re trying to take a new problem or solution to market, then you are trying to create new customers because they don’t know that they have the problem that your product solves yet. This is mostly about education.
On the other hand, if you’re taking a product to market that is solving a problem that customers already have, then you’re campaign is probably more about discovery so that customers can find you when they need you.
Here’s a quick example:
In the 1990s, organic food started to get really popular in the US. Those organic food companies had to educate customers about why buying organic food made sense. They had to work to educate the consumer on why organic food is better for you.
On the other hand, you also have restaurants, but people already know that they’re hungry. So, with restaurants, it’s about being found through services like Yelp and other review sites. That way, when somebody searches for a restaurant or needs a recommendation, they find the restaurant.
Use these 3 MBA Marketing Concepts in your growth hacking planning and don’t forget to calculate Lifetime Customer Value and Paid Acquisition before you launch your ad campaigns.
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