Any company that seeks to increase its income can use various strategies, we recently talked about how they can improve the average value of orders to earn more, in case they have an online store, but another way to do it can be with developing a market development strategy. This time we will see the concept and what steps they must follow to complete it in order to boost the numbers of a brand or company.
According to HubSpot, this is the process to follow to create an effective market development strategy:
1. Research development opportunities
As a starting point, before spending time, money or resources in the creation of a market development strategy, there are 3 key points to be met to determine if it will be appropriate.
The first of them consists of reviewing the buyer personas. When expanding the market, brands will face the potential need to have new buyer personas or review the ones they already have, which are semi-fictitious representations of the ideal customers that arise from market research and real data that is had of the customers.
Brands need to know the motivations, demographics and background of the new target market to decide if the development of the initiative makes sense.
As a second point you have to research the market. Understanding hypothetical positioning in a market is key before attempting to enter it. To that end, market research exercises such as Porter’s Five Forces Analysis, a SWOT analysis, among other options, should be performed to determine strengths, weaknesses, purchasing power, substitute threat, or other attributes compared to competitors in this new market.
The last key point is customer surveys. If you intend to expand your current product line to generate more revenue from existing customers, you must ensure that the expansion will be well received. This is why customer surveys are of great help in this step of the market development strategy.
2. Set growth goals
According to the source, successful market development will come with added sales, revenue, employees, customers, products, users, locations, or a combination of these criteria.
Since there is so much on the line, it is important to develop goals for the facets of the business that you want to grow, and there should be a growth goal for each criterion.
For example, by adding one more business location, you can set the following growth goals:
Increase customers by 90 percent. Increase revenue by 100 percent. Double your annual profits after recovering your initial investment. Increase the staff of employees by 20 people.
During this stage, the necessary requirements that will help achieve the growth objectives, such as seed funding, tools and software to help launch the initiative successfully should also be considered.
Lastly, the most important metric to measure before attempting to expand or develop the market is return on investment. You have to compare the initial costs of market development as reviewed with projected revenue figures from a successful expansion. If the ROI is not very encouraging to move forward, you may need to go back and determine a new growth strategy and a new set of goals.
3. Create a marketing plan
As the source explains, a growth failure means there is a greater need for effective marketing.
To generate demand or capture the existing demand in the market, you have to make sure that the marketing plan is current and reflects the initiatives that will be taken to grow the market share to the level that is desired.
All of the following initiatives should be considered and how they will play a role in generating more revenue in the newly developed brand market:
Email marketing: Here you have to ask yourself if the brand will communicate with existing potential customers by mail to alert them to the initiative. You also have to see if there is a list of saved contacts who have expressed interest in what you see. Social networks: Consider if you have organic and paid initiatives to generate expectation and spread the word to increase awareness. Content: Is there content on the website and a blog planned to capture the interest of site visitors in hopes of learning more about what the brand sells? Local marketing: Finally, if the market development strategy is regional, consider whether you are working with local publications, PR agencies or advertising platforms to attract potential customers nearby.
The marketing plan must be documented to support market development. This may have the necessary adjustments to ensure that the time to market is accurate, attractive and consistent.
4. Go to the market
After the previous points, a key moment has now been reached: the research and planning are complete and the business is ready to formally implement the development strategy, either by opening the doors of its new location or by making the new product available for your purchase on the website.
But before you start raising revenue, there are some final steps that need to be taken, specifically, aligning the team on the best way to go about launching.
According to the source, the go-to-market is successfully completed by managing three imperative internal tasks:
The first is campaign planning. The campaign plan should be the single window for anyone with an interest in the success of the project. It should provide an overall purpose for the market development project, in addition to the tactical and strategic elements that team members must adhere to for the project to run smoothly.
The second is sales planning. The sales plan should provide more specific information for the team in charge, especially with regard to overall projections, individual or team goals, and strategies for how the organization plans to achieve those goals.
The third and final one is the team mail update. As the source puts it, for the business as a whole, especially people who need to be informed but may not have set tasks to complete, team mail updates are a communication staple during market development. The messages should integrate a status check for the launch schedule and pending tasks, and any notifications that the company needs to know during its daily work.
5. Analyze the results
Finally, once the necessary actions for market development have been taken, you should know that the work has only begun. After launch day you have to make sure that customers are satisfied, that products and services are of high quality, that employees are retained and, most importantly, that goals are met.
For this, it will be necessary to collect sales data as soon as possible in order to analyze the information and determine whether or not the projections will be met. Otherwise, a plan must be determined to adjust the objectives to make them more realistic and / or adjust the strategy so that the objectives are met.