Your business is getting by just fine – but still, the particular questions remain: Could you be selling a lot more? Is there an opportunity to increase market penetration? Is there any way you could engage in further product diversification?
Companies hoping to raise revenue can do so in lots of ways — such as an increase in advertising budget, expanding their own sales team, and investing seriously in product development.
However , among the often overlooked ways to strengthen your gross sales is a purposeful, well-researched, and expertly carried out market development strategy.
In this post, we’ll explain what market development is and how you are able to employ it to increase sales and grow your business.
What is market development?
Market advancement is the expansion of your complete addressable market (TAM) and exactly how much market share you can expect to claim.
A market development strategy can focus on how a business may grow revenue by taking on one or both of the following initiatives:
- Developing a new product line to improve revenue by selling to new customers, or up-selling to current ones.
- Creating a plan to sell existing products/services to brand new demographics, through such initiatives as adding locations or even expanding delivery radius.
In the very first scenario, TAM increases mainly because by offering a new product or service, you’re effectively increasing the maximum amount of revenue you can achieve from your existing customer foundation.
Think of a jeans business that starts to design shirts and jackets – this company might have tapped out their market’s interest in jeans, yet those same customers could be willing to also buy clothes other than jeans from this firm.
In the second example, TAM increases because you’re merely adding more people to your target audience, and are able to service new clients without investing in a new product line. Think of corporate expansion by means of hiring salespeople to company a new region, or a cafe opening up a second location on the other hand of town.
Ways to Create a Market Development Technique
The decision of when and how to develop your existing marketplace should be a methodical process.
Just because your business has struck super once does not mean your new growth plan is a guaranteed success.
Because of that reality, follow these steps and use these resources to determine if you should develop your market, how it should be developed, and whether or not the effort is successful.
Step 1 : Research Your own Development Opportunities
It’s always tempting to go after the next huge thing – whether it’s increasing the areas of focus to your consulting business or adding more what to your restaurant menu.
However , before you spend time, money, or resources on developing your market, take these steps to find out if the expansion is advantageous.
Review Your Buyer Gentes
Featured Tool: HubSpot Buyer Persona Templates
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When expanding your market, you face the potential need for net new or revised buyer personas, that are semi-fictional representations of your perfect customer based on market research and real data about your existing customers.
Consider the motivations, demographics, and backgrounds of the new target market to help you choose whether or not the development initiative is practical.
Research Your Marketplace
Featured Tool: HubSpot Market Research Kit
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Understanding your hypothetical placement in a market is key just before attempting to enter it. To that finish, conduct market research exercises just like a Porter’s Five Forces Analysis or a SWOT Analysis to determine your strengths, weaknesses, customer power, threat of substitutes, or other attributes compared to competitors in this new marketplace.
Additionally , you’ll want to calculate market penetration before moving forward with any plans to increase.
Survey Your Customers
Featured Tool: Customer Satisfaction Survey Templates
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If you’re hoping to expand your current product line to generate more income from existing customers, make sure that your intended expansion will be warmly received. Asking yourself why this development makes sense coming from your business is a good first step.
However , talking to and surveying your customers to see if your proposed expansion is beneficial to their lives (and, more importantly, whether or not they would buy it from you) is really a necessary proof point before expanding your offerings as being a business.
Step 2: Set Your own Growth Goals
A successful market development will come with added product sales, profit, employees, customers, products, users, locations, or some combination of these criteria.
Mainly because there’s so much on the line, develop goals for which facets of your business you intend to grow, in addition to what your growth goal for every criteria is.
For example , with the addition of one more location, you may fixed the following growth goals:
- Increase clients by 90%.
- Increase income by 100%
- Double annual profits after recouping the initial investment.
- Increase employee headcount by 20 people.
During this stage, you should also consider the requirements needed to help you hit your growth objectives, such as initial funding, equipment, and software to help you get the initiative successfully up and running.
Finally, the most important metric to determine before attempting to expand or even develop your market is certainly ROI. In this step of the process, compare the upfront costs of developing your market as intended using the projected revenue numbers of an effective expansion.
If the ROI is not really encouraging enough to move forwards with, you may need to go back to the drawing board and figure out a new growth strategy make of goals.
Featured Device: Growth Strategy and Planning Template
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Using the template above, outline your growth goals and technique to lay the foundation for your market development initiative. This design template will help you plan out the methods necessary to achieve your objectives and help you determine whether or not they are realistic for this task.
Step 3: Create Your Advertising Plan
An increased market means an increased need for effective marketing.
To generate demand – or to capture existing demand in your market – make sure your advertising plan is up-to-date and reflective of the initiatives it will take to grow your market share in order to its desired level.
Think about all of the following initiatives and exactly how they’ll play a role in generating more revenue in your newly developed market:
- Email Marketing : Will you communicate with existing prospective customers via email to alert them of your initiative? Are you experiencing a list of saved contacts exactly who expressed interest in what you market, were unable to make the purchase, and might now be able to invest in you?
- Social Media: Do you have organic and paid initiatives to generate hype and spread the word to grow awareness on social media?
- Content & SEO: Do you have website plus blog content planned to capture the interest of website visitors hoping to learn more about what that you simply selling?
- Local Marketing and advertising : If you’re developing your own market on a regional level, are you working with local magazines, PR agencies, or advertising platforms to appeal to close by potential customers?
Featured Tool: HubSpot’s Marketing Plan Template
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Document your marketing and advertising plan supporting your market development with the template above, and make adjustments into it as needed to ensure occur to be reaching your market in an accurate, appealing, and constant fashion.
Step 4: Go-To Marketplace
The time has come – your research and planning are complete, and you’re ready to formally enact your development strategy, whether it’s opening the doors of the new location or producing your new product available for purchase on your website.
But before you start collecting revenue, there are a few final procedure for take – specifically, aiming your team on the easiest way to conduct this go-to-market launch.
Going to market can be successfully completed by managing three imperative internal jobs – all of which can be done with this Product Go-to-Market Kit:
The particular campaign plan should be the one-stop shop for anyone who has a risk in the success of this project. It should provide a general purpose for your market development project, besides the tactical and strategic elements team members need to adhere to in order to see the project go off with no hitch.
The sales program should provide more specific insights for the sales team – specifically regarding overall projections, team or individual goals, plus strategies for how the organization intends to meet these goals
Team Email Updates
For the company at large – particularly for individuals who need to be informed but may not have fixed tasks to complete – group email updates are a basic piece of communication during marketplace development. This messaging need to contain a status check for the particular launch timeline, and excellent tasks, and any notices the company should be aware of during their day-to-day work.
Featured Tool: HubSpot Go-to-Market Kit
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In order to centralize your internal planning and communication efforts during your market development process, make use of the HubSpot Go-to-Market Planning Kit.
Step 5: Analyze Your Results
Once you’ve taken the required actions to develop your marketplace, the work has only started. After launch day, you’ll need to be sure customers are pleased, products and services are high-quality, employees are retained, and – most importantly – goals are usually met.
Start collecting sales data as soon as possible so that you can start analyzing whether or not you’ll satisfy your projections. If not, you may have to determine a plan to either adjust your goals to become more realistic, and/or alter your strategy to ensure your own goals are met.
As soon as data are available, make sure occur to be presenting your findings precisely and clearly so that stakeholders can fully understand what the answers are, how you achieved them, and exactly what the next steps of your marketplace development strategy are.
Featured Tool: Marketing Reporting Themes
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Available in PowerPoint, Excel, and Google Drive, these templates will help the particular project driver communicate the results of your market development strategy to your team.
Developing Your own Market
Get ready to grow your business – by following these discussed steps and using these free of charge planning resources, you’ll be prepared to turn your market advancement idea into a reality. As a next step, learn by example and read up on how five prominent companies developed plus acted on their growth techniques.