Developing New Markets
“It is important to exhaust the potential of existing markets. But it is equally important to open up new markets.” – Martin Winterkorn
It is common to see business leaders fighting hard in their own traditional market look longingly at the attractive markets in different sectors, different countries or with different products. They note how large those markets are and therefore how easy to take a share to add to their existing revenue streams.
There is one simple reason those new markets look attractive and easy, ‘you don’t know them very well’.
A consultant who deals with many different industries and marketplaces will tell you, “everything looks easy when you first start looking.” The challenge is to ask all the questions that will help you understand why it is not easy and then the key to success is finding the solutions.
Google is a great tool, but you can’t adequately research a market using it alone:
- Go speak to real people, real customers and people who have spent their life in the market place. If you’re looking at export markets then seek the help of the Department of International Trade who often have advisers who can help.
- Take advice both informal and formal from someone who has been there and done it. This might be business coaches or experts, but it equally might be agents or distributors you already work with?
- Think long and hard about why people will want to buy your product over and above their existing habitual buy. When you’re looking at developing new markets, you need to find ‘chinks’ in the existing market to exploit.
- Consider timescales, this new project may be top of your agenda but where will it fit in the priorities of the people you are looking to influence.
- Look for equivalent situations, have others tried to penetrate the same or similar markets before, did they succeed or fail, why you will do better.
Download our business and marketing plan templates for free:
Once you have researched your market and created your plan, nothing beats test marketing, and when you test; don’t ignore the results. Seek help and guidance from marketing and business experts who can share their experiences.