Marketing strategy can seem complicated, with frameworks, models, and terminology that vary from one source to the next. Yet at its foundation, developing a marketing strategy comes down to two essential steps. These two steps have been taught for decades because they capture the core logic of effective marketing: know who you serve, then design the right offer for them.
The two steps in developing a marketing strategy are, first, selecting a target market, and second, developing a marketing mix that satisfies that market. In this article, we explore each step in detail, explain why the sequence matters, and show how to apply both in a modern business context.
How AAMAX.CO Helps Businesses Execute Both Steps
Defining the right market and building the right marketing mix requires research, creativity, and technical skill. AAMAX.CO is a full-service digital marketing company that helps businesses worldwide develop and implement marketing strategies. Their digital marketing consultancy helps organizations identify and prioritize target markets, while their web development, digital marketing, and SEO teams bring the marketing mix to life online. They help ensure that strategy and execution remain tightly connected.
Step One: Selecting a Target Market
The first step is choosing which customers to serve. A target market is a group of people or organizations with similar needs that a business decides to focus on. Selecting a target market involves three activities.
Market segmentation: Divide the broader market into segments based on shared characteristics, such as demographics, geography, psychographics, or buying behavior. For B2B businesses, segmentation may focus on industry, company size, or decision-maker roles.
Segment evaluation: Assess each segment's attractiveness. Consider its size, growth potential, profitability, accessibility, and competitive intensity. Also evaluate how well your business's strengths align with each segment's needs.
Target selection: Choose one or more segments to pursue. Small businesses often start with a single niche, while larger organizations may target multiple segments with tailored offerings.
Why the Target Market Comes First
The target market comes first because every subsequent decision depends on it. The product features, pricing, distribution channels, and promotional messages that appeal to college students differ dramatically from those that appeal to corporate executives. Without a clearly defined target market, businesses risk creating generic offers that fail to resonate with anyone. Defining the audience first ensures the marketing mix is purposeful and relevant.
Step Two: Developing the Marketing Mix
The second step is creating a marketing mix tailored to the chosen target market. The marketing mix consists of the controllable elements a business uses to satisfy customer needs:
- Product: Design an offering with the features, quality, and branding the target market values.
- Price: Set a price that reflects the target market's willingness to pay and the value they perceive.
- Place: Make the product available through channels the target market prefers.
- Promotion: Communicate with messages and channels that reach and persuade the target market.
For service businesses, the mix also includes People, Process, and Physical Evidence.
Bringing the Two Steps Together: An Example
Imagine a company that sells meal kits. In step one, it segments the market and identifies busy young professionals in urban areas who value convenience and healthy eating. In step two, it designs a marketing mix for that segment: quick, nutritious recipes with pre-portioned ingredients (product), weekly subscription pricing with flexible plans (price), direct-to-door delivery ordered through a website and app (place), and social media content, influencer partnerships, and search ads highlighting time savings (promotion). Each element is shaped by the needs of the chosen market.
Applying the Two Steps in Digital Marketing
Digital tools make both steps more precise. Analytics, CRM data, and social insights help businesses identify and understand target segments with greater accuracy. Digital channels then allow businesses to deliver tailored marketing mixes to each segment. For example, SEO services help reach customers searching for specific solutions, while Google Ads enable precise targeting based on intent, location, and demographics.
Supporting Activities That Strengthen the Strategy
While the two steps form the core, several supporting activities enhance the strategy. Market research provides the data needed for segmentation and evaluation. Competitive analysis reveals how others serve the same market. Positioning defines how the brand will be perceived. Goal setting and measurement ensure the strategy delivers results. These activities do not replace the two steps but make them more effective.
Common Mistakes to Avoid
One common mistake is skipping step one and designing a marketing mix before defining the audience. Another is choosing a target market that is too broad, leading to diluted messaging. Some businesses also fail to revisit their target market as conditions change. Regularly reviewing both steps keeps the strategy aligned with market realities.
Conclusion
The two steps in developing a marketing strategy, selecting a target market and developing a marketing mix to serve it, provide a clear and powerful foundation for any business. By first identifying the customers you are best positioned to serve and then designing an offer tailored to their needs, you can create a strategy that is focused, efficient, and effective. Keep both steps at the center of your planning, and your marketing will consistently connect with the right people.
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