Market development as a response to sell more products can be the perfect step towards more sales results. But that step needs to be taken correctly. This choice goes beyond mere product modification. A solid Sales Strategy is crucial.
Does a company enter the market itself or does it opt for a business acquisition? This depends on the tension between money and time. If you see potential in the very short term, you will be willing to make higher investments. If results take longer, an acquisition isn't necessary. Take the time to train or hire your own people and also build the crucial network yourself.
The underlying reasons for entering a new market are:
If a company wants to spread its chances across various markets, it enters a market opposite to where it is currently active. If you mainly have non-cyclical government-related customers with prospects of cyclical growth, then it's better to also aim at commercial companies. Another successfully applied example of a contrast: companies invest in customers who are less affected by changing legislation, so they are less dependent on customers where sales results largely depend on this factor.
With a low growth expectation in the current market, tapping into an adjacent market is logical. It’s less complex as it’s close to the company’s own experience, knowledge, and current frame of reference. Think of an IT company becoming active in Telecom. Or a company that has focused on wholesale for years and sees opportunities to also commercially serve manufacturers of their goods or services.
Once all this is clearly worked out, the right target group is determined, the size established, and the right Unique Buying Reasons specified. The analysis also looks at the speed of implementation: either through a business acquisition or with your own people, expanding the sales team with salespeople who know the new target group inside out.
The blueprint for market operations for the coming years can be made, reflected against environmental factors, such as economy and legislation. Timelines and budgets form the basis of the further Strategic Plan; containing the necessary time and investments. The Time to Market is then known!
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