Here is a simple framework I use for creating effective marketing strategies. It’s inspired from the book Good Strategy, Bad Strategy by Richard Rumelt (which I highly recommend).
The Framework
Goal. What are you trying to achieve?
Diagnosis. What is stopping you from reaching that goal? In other words, what’s the problem?
Guiding principle. What is the approach you’re going to adopt to solve the problem?
Tactics. What are the specific actions that you’re going to take to solve the problem?
Note that the highest leverage point in this framework is arguably the Diagnosis. Fail to identify the right problem and your strategy will fall apart. Make sure to allocate the appropriate resources to this step.
This framework is simple and practical. Simple because it's succint and easy to communicate, practical because it defines clear actions to take.
If you have a project management system in place, you can set Tactics as tasks, assign KPIs to them and easily track their progress. Now you've turned strategy into a plan.
Let’s see a few examples:
Example 1: AgTech Startup Struggling to Increase Sales
Goal: Increase quarterly sales by 20% to reach 500 units sold.
Diagnosis: Low market awareness and difficulty in differentiating the product from traditional farming solutions.
Guiding Principle: Educate the market on the environmental benefits and cost-effectiveness of using our AgTech solutions
Tactics:
- Partnering with influencers in the niche. This could mean appearing as a guest on a podcast, sponsoring a podcast / newsletter, sponsoring a video, etc.
- Launch a PR campaign targeting niche media outlets. I wrote a guide on this.
- Develop case studies showing the ROI and sustainability improvements from existing customers. You can use these as material for ads if you have the budget for it.
Example 2: Solar Power Startup with Low Market Penetration
Goal: Expand market penetration to achieve sales of 200 residential solar panel installations within the next quarter.
Diagnosis: The potential market has reservations about the initial cost of installation and ROI.
Guiding Principle: Emphasize long-term cost savings and environmental impact to create a compelling value proposition.
Tactics:
- Run a targeted ad campaign demonstrating the ROI and environmental benefits of solar energy. You can leverage case studies as the creative for your ads.
- Develop partnerships with home builders to incorporate solar panels in new constructions.
- Release a series of customer testimonials showcasing the ease of installation and long-term benefits.
- Partner with a financial institution to offer payment in installments.
Example 3: AgTech Startup Struggling with Customer Retention
Goal: Reduce customer churn rate from 10% to 5% within the next year.
Diagnosis: Lack of ongoing support and engagement post-sale.
Guiding Principle: Improve customer lifetime value through superior after-sales service and continuous engagement.
Tactics:
- Implement a customer onboarding program that provides training and resources.
- Set up a customer success team to provide continuous support and check-ins.
- Develop a loyalty program offering discounts on future purchases and upgrades.
- Regularly survey customers to collect feedback and adapt the product/service accordingly.
Example 4: Ocean Cleanup Tech Startup Struggling with Funding
Goal: Secure $2 million in funding over the next 12 months to expand operations.
Diagnosis: Investors are skeptical about the scalability and ROI of ocean cleanup technology.
Guiding Principle: Demonstrate the economic viability and environmental impact through small-scale, successful projects.
Tactics:
- Identify and clean a localized polluted area, documenting the process and results.
- Collaborate with marine researchers to publish findings on the environmental impact.
- Create a compelling investment deck featuring the project, its outcomes, and future scalability.
- Launch a PR campaign to document the successful pilot.
- Network with impact investors and venture capitalists specializing in climate tech.
Example 5: Smart Home Energy Startup Facing Product Complexity Issues
Goal: Increase user adoption by 30% in six months.
Diagnosis: Consumers find the smart home energy products too complicated to set up and use.
Guiding Principle: Simplify user experience without sacrificing core functionalities.
Tactics:
- Conduct user experience research to identify pain points in product setup and operation.
- Simplify the app interface and develop step-by-step setup guides.
- Launch a customer education campaign through webinars and how-to videos.
- Monitor customer reviews and feedback for signs of improvement or areas needing further simplification.
Example 6: Sustainable Packaging Startup Struggling with Market Fit
Goal: Identify a market niche and sign 50 new business accounts in one year.
Diagnosis: Current offering is too general, making it difficult to stand out among competitors.
Guiding Principle: Specialize in a particular industry (e.g., food and beverage) to build expertise and credibility.
Tactics:
- Conduct market research to identify which industry has the highest demand for sustainable packaging.
- Tailor products to meet the specific needs of that industry.
- Leverage industry events and trade shows to introduce the specialized product line.
- Develop targeted marketing campaigns aimed at decision-makers in the selected industry.
Conclusion
A good strategy is simple. Don’t over complexify.
