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.

---

Marketing vs Selling - Why Theres A Difference

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

Burnout

Today I want to share a question from a reader... Read More

How to Turn a Marketing Calendar into Marketing Success!

Do you have a list of marketing ideas that you'd... Read More

How to Expand Your Target Markets

Are your products or services geared towards only one target... Read More

How to Turn More Referrals Into Paying Clients

60% of all small business owners, sales and solo-professionals claim... Read More

Unique Gift Items ? 3 Creative Ideas

With promotional items there are standards: t-shirts, mugs, note cubes,... Read More

Get Results: Start with Your Marketing Message and Objective

Recently I was talking with a very bright traditional marketer... Read More

Five Tips for Trade Show Success on a Small Budget

No matter how small your marketing budget, your business can... Read More

Attracting New Business on a Shoestring Budget

In a recent marketing workshop I attended, I discovered that... Read More

Getting Personal ? Innovative Marketing for Small Business Owners

The small business marketing strategy you can't afford to miss... Read More

Marketing Hat for Graphic Designers or Wannabe?s

Many people think that the quality of any graphic design... Read More

Thinking About More Business

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

Stretching Your Marketing Dollars--7 Cheap and Easy Ways to Market on a Budget

Just because you have to stretch your marketing dollars doesn't... Read More

Write Articles WITHOUT Writing!

Face it, writing any article can be a tedious and... Read More

When The Stars Align - Choosing the Right Entertainment

Savvy event producers follow the Golden Rule: know thy audience.... Read More

Creative Marketing: Just Your Style

You've enlisted some of the traditional marketing methods to sell... Read More

How to Booste Your Profit Quickly

There are so many competitions by running business. So you... Read More

What Can Star Wars Teach You About Creating a Buzz for Your Business?

Many people think marketing is some type of mystery that... Read More

E-commerce : The Bottom of Pyramid Approach

For centuries and most of the decades in the 20th... Read More

Inform vs. Excite

excite v. 1 a: to call to activity b: to... Read More

Mortgage Marketing - What Your Client Wants

Your business depends on the success of your marketing efforts.... Read More

Marketing Ideas Without Action Will Get You Nowhere!

Marketing Ideas Without Action Get You NowhereYou want to grow... Read More

At the Speed of Light

How many times has someone you've called said, "Why don't... Read More

Helping Your Prospects Overcome ?Buying Fears? By Using Testimonials

You DO use direct marketing for your small business? right?... Read More

10 Proven Ways To Accelerate Your Profits

1. Make copies of your web site in many different... Read More

Make Your Mailing a Home Run, Not a Strike Out!

You can use great design and copy to get a... Read More

The Mighty Marketing Brochure

"Brochure" is French, and it comes from brocher, meaning to... Read More

A Forgotten Marketing Tool ? The Postcard

The postcard can be a very powerful marketing tool. Many... Read More

Hermey Wants To Be A Dentist

December marked the 40th anniversary of the original broadcast of... Read More

The Information Publishers Secret Resource Guide To Blow Customers Away!

Have you ever heard the saying, "Give and you shall... Read More

Do You Know Where Your Email Address is Today?

Having people go to your website is not always easy:... Read More

How to Turn Your Marketing Into a Money-Making Machine - Examples of solid Marketing

As Claude Hopkins presented in his Scientific Advertising many decades... Read More

Differentiate or Die

Sounds pretty harsh, doesn't it? Well, I can tell you... Read More