The advice that businesses get when they are first starting out is to create a detailed buyer persona.
This advice, that you should narrow in on an ideal customer and try to be a “big fish in a small pond rather than a small fish in a big pond” is sound.
So imagine you’ve crafted your target buyer and are now doing very well selling to them. You’ve been scaling your business, and are now hitting the ceiling with your current target market. There are SO many other people you can help with your business.
If that’s the case, it may be time to consider expanding your market.
Marketplace expansion is an excellent way to boost sales and sell to more customers, but it must be done carefully to be successful.
Here’s what you need to know about marketplace expansion.
What is Marketplace Expansion?
Fortunately, the term “marketplace expansion” is pretty straightforward, as it is when you sell your current products to a new market. Before you should even consider this, you must be successfully fulfilling your current markets. Only then should you identify other reachable markets.
Your company should know its assets and capabilities before entering any new markets. You must also consider financing. Sales expansion does not guarantee success, so you should assess the risks of doing so. However, when market expansion succeeds, it leads to greater profitability.
Steps for Successful Market Expansion
Here’s what you must do to effectively expand your market:
Summarize the Strategy
Know why you want to expand. Write down your primary reasons, and identify the new market you plan to pursue. Explain why you think that channel will help.
Head back to the buyer persona drawing board, creating new ones for the market you want to expand to. How do you plan to reach this new audience? Outline some marketing channels and targeting methods you can use.
Consider how you will finance the market expansion strategy. Identify the expenses you’ll face and the resources you’ll need. Assess how long it will take until the initiative is profitable. The expansion should be treated as a new business, it should be able to financially support itself and regain the initial investment.
Once you’re clear on your new plan and finances, it’s time to expand to new channels. The channels are pathways for bringing your current products to the new audience you will target. For example, consider digital advertising to sell online. Using the right channels is essential for expanding your audience.
Engage Your New Market
Engage your new audience by showcasing your value proposition. Through various marketing efforts, position your company as an authentic leader that produces high-quality products.
Grow Your Brand
Learn from your new audience. Find out about their habit, motivations, challenges, and more. Identify the most effective marketing strategies and forms of copy. The more you understand your new market, the better you can saturate it.
Focus on your brand messaging. It should be compelling and be able to attract new customers. Work to create messages that are targeted, yet offer broad appeal. Overall, you should still maintain consistent messaging.
Selling Existing Products
Initially, it’s best to test an existing product. Evaluate how it performs in the new market, and use the feedback you get to improve the messaging on those products. Implement marketing strategies to increase sales on existing products like:
- Referral programs
- Special events
- Short sales with generous discounts
Introducing a New Line of Products
Eventually, it may also make sense to consider new product development as part of your market expansion strategy. If this is the case, you should begin by identifying a need within the market that you can help solve. Involve your customers during the design phase, so you can create an optimal solution that best meets their needs.
Tips for Market Expansion
- Market Research. Spend time researching your new market and potential new products. Doing the research upfront can help you avoid major losses and make the smartest business decisions.
- Analyze competitors. Monitor your competitors’ activity to learn more about your new target audience.
- Digital opportunities. Focus on online sales and advertising. There are many different platforms including social media. You should optimize your website’s ranking as well with proper SEO techniques.
- Get the best multichannel listing software. Listing Mirror’s software solution makes it easier to upload product descriptions, photos, and listings to all of your marketplaces. This will make it easier to manage your listings and track your inventory across multiple platforms as you expand your channels and markets.
Before starting on market expansion, you must make sure you have the tools you need by your side. Listing Mirror’s #1 multichannel listing software will make it easier than ever to handle listing management, order fulfillment, inventory syncing, and warehouse management on all your channels as you expand your market. Try it for yourself with a 14-day risk-free trial!