Business Development Strategies in Accessing New Markets.
Part of a company’s marketing plan may be to tap into new markets. A new market may involve selling a product or service in a new region or country, or it may involve targeting a new segment of customers. Either way, the implementation of business development strategies in accessing new markets involves a great deal of research and planning on the part of the business owner, company executives and employees.
Accessing new markets allows a company to broaden its reach and increases its potential to sell products and services to more customers. This increase in sales can also boost the bottom line of the business. In order to help to ensure a successful transition, company executives need to develop the strategies to use in order to penetrate the new market. Business development strategies can include marketing promotions, advertising, public relations and any other activities the company uses to promote its products or services and reach its new intended customer.
When developing business marketing strategies, it is imperative to consider the new segment the company is trying to reach. Most companies conduct their own marketing research or employ a market research company to conduct such research. Market research is made of two parts: target market research and competitive research. Target market research involves finding out everything there is to know about the new market. Information on potential customers includes who the customer is, how they think and feel, what their needs and desires are, and how the company’s product or service can fulfill their needs and wants.
When researching the competition, the company needs to uncover what type of customers the competition is attracting. The research aim also includes comparing the company’s product or service to the products or services being offered by the competition in order to determine how the products or services differ. By uncovering information about the new target market and the competitors already operating in this market, the company trying to enter the market can create marketing strategies that take advantage of opportunities in the new market and promote itself in a way that appeals to the new target while differentiating the company’s product or service from those of the competition.
When a company does its due diligence in research and customizes its strategies to develop a new market, it helps to ensure that the new market penetration is successful. The better a company knows the market it is targeting, the better position it has to create marketing strategies that reach the new target customers. Planning ahead of time helps the company approach the new market in a proactive manner through the creation of adaptive advertising and marketing based on different responses the company may receive from new customers.
If a company tries to develop business in a new market without first conducting research and creating a strategic plan, it almost ensures failure. Most companies enter a new market because an opportunity has been identified—meaning there is a need in the market that is not currently being fulfilled. If a company tries to push a product or service in a new market where there isn’t a need or want for the product or service, then sales are going to suffer. If a company tries to sell a product or service to a new market without understanding the needs and wants of the customers in that market, then the marketing strategies may not hit the important points of the market. When the marketing doesn’t appeal to the target market, then the marketing efforts fail and sales also suffer.
The development of strategies to enter a new market can take a significant amount of time. Some companies plan for years before trying to enter into a new market. Focus groups, surveys, panels, test groups and other types of market research can take months to implement. After the research is done, the company also has to take the time to evaluate and interpret the data. After this, companies often have to make modifications to the product or service, the marketing plan or the strategies it intends to use to better fit the market it is trying to enter.