Marketing Strategies: What Choices Do You Have?

Most business people want to see improvements in sales and profits. But how do you get there? What choices do you have?

To build your business there are four strategic options that must be considered:

1) Sell existing products to existing customers.

2) Develop new products to sell to existing customer groups.

3) Expand existing products into new market segments.

4) Develop new products for new market segments.

Each one of these choices carries with it inherent risks and certain marketing implications. Which one is right for you? This is one of the most important decisions to be made. In fact, the best strategy may combine more than one of these options to suit different products or different areas of the business.

The least risky option is number 1. Simply find more customers for your existing products. Sometimes this is easier said than done, especially if you already have a dominant market share or you occupy a relatively small market niche. Although for most businesses there is usually scope to attract more of the same type of customers.

The option with most risk is number 4, going into new markets with a new product. This classic 'diversification' move may appear to offer great potential, but can be a recipe for disaster if you do not have an adequate understanding of market conditions or the competitive landscape.

It is difficult for a business to move into a new market at the best of times. Establishing sales channels, generating demand, managing customer expectations, and pre-empting competitors actions can be a real challenge, requiring a substantial amount of resources.

In each of the other two strategic options the business holds either an understanding of the customers (option 2) or the products (option 3), so the overall risk is somewhat lessened.

No matter which way you decide to go there are marketing decisions to be made. Sales processes, products, competitive positioning, promotional material and company image are a few of the things that will need to be reviewed.

Consideration must be given to how you will manage the marketing-related impact of these changes to produce the best result?

* Adding value for customers (i.e. providing real benefits).

* Staff issues (training needs, operational style, presentation).

* Business processes (meeting distribution demands, customer support, production).

* Measuring results and reviewing progress (sales, profits, awareness, referrals, quotes written, number of customers).

* Knowing which marketing activities to implement, and the best time to do it.

Marketing is a fundamental component of every business. In times of change and business growth it is even more important to look closely at the 'how' and 'why' aspects of your marketing activities.

(c) 2005 Marketing Nous Pty Ltd

Stuart Ayling runs Marketing Nous, an Australasian marketing consultancy that specialises in marketing for service businesses. He helps clients to improve their marketing tactics, attract more clients, and increase revenue. Stuart also offers telephone consultations and runs regular marketing seminars. For additional marketing resources, including Stuart's popular monthly newsletter, visit his web site at http://www.marketingnous.com.au.

---

Effective Lead Generation

How to Gain your Prospective Clients' Attention and Generate the... Read More

What the Heck is a Campaign and Why Do I Need to Do One?

Many people ask me, "What is a postcard campaign, exactly?"... Read More

Good Vibes/ Bad Vibes

Have you ever walked into a store or business and... Read More

Marketing vs Selling - Why Theres A Difference

Marketing is something that we do to let people know... Read More

The 4 P s of Marketing: Effective Marketing Programs Depend On Them

There is no shortage of marketing programs, many with great... Read More

Thinking About More Business

What does an old Russian joke have... Read More

The Importance of a Marketing Plan

There aren't many things in life that you would get... Read More

How to Set (and Get) the Right Prices

Which product feature of yours is every buyer keen to... Read More

Create a Blueprint for Your Success

Having a strong foundation enables you to build a thriving,... Read More

Use The Neglected Weapons In Your Marketing Arsenal

Business marketers have a lot of weapons in their arsenals... Read More

2 Little Words That Work Marketing Magic

In his classic best-seller, "How To Win Friends And Influence... Read More

Design Does Matter

The idea that good design can improve how people perceive... Read More

Your Marketing Plan - Prerequisite to Success

Marketing is a vital aspect of a business' operations. It... Read More

Client or Customer? There Really Is A Difference

Some people use the words "client" and "customer" interchangeably or... Read More

Getting Your Services Used

Every day I talk with professional service providers who do... Read More

Writing Business Newsletters: Avoid the ?Me, Me, Me? Mistake

Effective customer newsletters find the right mix of promotional and... Read More

How to Conduct a Successful Fax Marketing Campaign

1. Focus your fax marketing on one objectiveFax is a... Read More

The Beginners Mail Order Opportunity Guide

The "Mail Order" business is not a business of itself,... Read More

Have You Captured Me Today?

There are many Web sites I visit every day and... Read More

New Years Revolution

No, that's not a typo in the title. Resolutions are... Read More

Web Site Marketing Strategy: 8 Ways To Increase The Perceived Value Of Your Freebies

It is a well known web site marketing strategy: To... Read More

How to Earn the Right

"How to Earn the Right..."Marketing your professional services is a... Read More

Market Yourself as the Expert

As a small business how do you compete with the... Read More

Top 10 Tips To Market & Build Your Professional Practice

In building and running a professional practice (or any small... Read More

Creating Your Future with a Marketing Plan

Almost everyone who dreams of starting their own business is... Read More