Most companies feel they know their target market because whom-ever buys
from me is my target market. That may be true but it is not the whole
picture. Determining who your target market is can double and in some
instances grow your business exponentially. Understanding what your
product or service delivers is one of the key components in determining
your target audience.
Additionally it is important to understand what your current customers think of your product or service. Why do they buy it? Are they loyal customers or do they buy only when you run a sale or discount? The more you know about your existing customers the easier it is to identify new markets you can sell to. Sometimes your product and or service can be modified (when needed), Sometimes what is important is the packaging. There are many different ways to reach new markets but the key to a building the business is to always reach new and growing markets.
Here is a step by step way to determine if a new market may be relevant and profitable for your business:
1. Have you done the market research on your existing customers to see commonalities with other markets?
2. Have you done the market research on the potential new markets to get their reactions and input?
3. What do you know about your new market?
a. Who are the decision makers in the buying decision?
b. Where are these businesses located (are they easy to reach?)?
c. Where do they get their information (in purchasing your product/service)?
d. How long is the buying cycle?
e. What is their price point (is your product/service competitive)?
f. Can you differentiate your business from the existing competition?
g. Do you have a budget to reach this audience and see the marketing plan through?
h. Does this market fall in line with your business plan and marketing plan? Why?
4. Why go after this market over other markets?b. Where are these businesses located (are they easy to reach?)?
c. Where do they get their information (in purchasing your product/service)?
d. How long is the buying cycle?
e. What is their price point (is your product/service competitive)?
f. Can you differentiate your business from the existing competition?
g. Do you have a budget to reach this audience and see the marketing plan through?
h. Does this market fall in line with your business plan and marketing plan? Why?
Of course there are many other factors when considering entering new markets but the above will at least open the conversation with marketing executives in your business. As in other marketing disciplines it is critical to ask the right questions and perform the right marketing activities in the right order to get maximum benefit.
