{"id":685,"date":"2023-05-01T14:25:20","date_gmt":"2023-05-01T14:25:20","guid":{"rendered":"http:\/\/frederickempaga.com\/shop\/how-to-build-a-market-development-strategy-free-planning-templates\/"},"modified":"2023-05-01T14:25:20","modified_gmt":"2023-05-01T14:25:20","slug":"how-to-build-a-market-development-strategy-free-planning-templates","status":"publish","type":"post","link":"https:\/\/frederickempaga.com\/shop\/how-to-build-a-market-development-strategy-free-planning-templates\/","title":{"rendered":"How to Build a Market Development Strategy [Free Planning Templates]"},"content":{"rendered":"
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Your business is getting by just fine \u2013 but still, the questions remain: Could you be selling more? Is there an opportunity to increase market share? Is there any way you could further your product diversification efforts?<\/em><\/p>\n

Your business is getting by just fine \u2013 but still, the questions remain: Could you be selling more? Is there an opportunity to increase market share? Is there any way you could further your product diversification efforts?<\/em><\/p>\n

Companies hoping to increase revenue can do so in many ways \u2014 such as increasing advertising budgets, expanding sales teams, and investing in product development. However, one often overlooked way to strengthen your gross sales is a purposeful and expertly executed market development strategy.<\/p>\n

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In this article, we’ll explain what market development is and how you can employ it to grow your business. Then, we\u2019ll take a look at some examples of market development strategies that work for top businesses today.<\/p>\n<\/p>\n

<\/a>Image Source<\/em><\/a><\/p>\n

Each category rests upon two axes \u2014 one for market and one for risk. A company can expand its efforts into new or existing markets. Each poses more or less risk to the business.<\/p>\n

Market Penetration<\/strong><\/h3>\n

When businesses want to expand within their existing markets with low risk, they might attempt a market penetration strategy.<\/p>\n

In this scenario, TAM increases because by offering a new product or service, a business can effectively increase the maximum amount of revenue it can attain from its existing customer base. A product launch is an effective way to execute this strategy.<\/p>\n

Product Launches<\/strong><\/h4>\n

A company may release new iterations of a product they already sell successfully within the market. These iterations could include an improvement to the product that makes it a better fit for customers’ needs, an improvement to the performance of the product, or any other changes you can reasonably market as added value.<\/p>\n

The purpose of launching a new product is to generate excitement and buzz around the brand to increase sales.<\/p>\n

Product Development<\/strong><\/h3>\n

A more high-risk way to expand within an existing market is through product development. Even with its risk, make no mistake \u2014 this market development strategy can be rewarding.<\/p>\n

Developing new products is a delicate process. Businesses should be keenly aware of their market, as market interest is a driving factor for product development.<\/p>\n

If the audience isn\u2019t receptive due to a lack of education about the product, a poor marketing campaign to promote the product, or even poor timing of launching the product, this strategy can be difficult to execute. However, companies that have failed at developing new products usually have in-depth learnings to apply to their next market development strategy.<\/p>\n

When it comes to creating new products, consider the category of your product. Entering a space with many competitors will be a different experience than building something in a disruptive category.<\/p>\n

\u201cIf you launch a product in an existing category with existing competitors, you\u2019re playing by their rules and competing on their terms,\u201d says Adrienne Joselow, director of product marketing at HubSpot. \u201cIf you instead launch a disruptive product that changes the category, you\u2019re competing on new benefits where you clearly win \u2014 you change the game.\u201d<\/p>\n

Beyond making new products, product development comes in many forms. Here are a few examples.<\/p>\n

Rebranding<\/strong><\/h4>\n

If a business has been around for a long time or has been in hot water, it\u2019s possible that the market has become disconnected from the brand. This can happen due to a lack of advertising around the brand itself, outdated positioning of a product, or distrust within the market.<\/p>\n

Companies can rebrand themselves to reconnect with their existing market while positioning themselves as a viable option among the competition.<\/p>\n

Adjusting the packaging of a product, offering a new size, flavor, or color, or even changing the name can help a company rebrand a product to have a better position within its existing market.<\/p>\n

Repricing<\/strong><\/h4>\n

Another way to gain traction within an existing market is for a business to make its products more accessible or desirable through its pricing.<\/p>\n

Repricing doesn\u2019t necessarily mean lowering prices, although that is one way to execute a product development strategy. It could mean shifting the brand within the market to showcase value or luxury, thus justifying a rise in prices to capture those consumers.<\/p>\n

Market Development<\/strong><\/h3>\n

It\u2019s possible to take a less risky approach when expanding into new markets. To develop a market, a business may offload some of the risks.<\/p>\n

In this example, TAM increases because a business is adding more people to its target market \u2014 thus being able to service new customers without investing in a new product line. Here are a few ways a business can develop a new market.<\/p>\n

Geographic Expansion<\/strong><\/h4>\n

Research can reveal markets that are suitable for a business to thrive within based on where the business currently operates. Geographical expansion can work for both brick-and-mortar as well as online businesses.<\/p>\n

Franchising<\/strong><\/h4>\n

Giving individual business owners the right to use the brand and trademarks associated with a company is another way to expand into a new market without high risk.<\/p>\n

In franchising agreements, the franchisee usually pays an upfront fee to the franchisor to obtain the rights to operate the business.<\/p>\n

Diversification<\/strong><\/h3>\n

Occasionally, a business may step out of its normal operations and market to create a product for a completely different industry and market. For this reason, diversification can present a major risk to the business, but it can be very rewarding if it\u2019s carried out effectively.<\/p>\n

Similar Product Diversification<\/strong><\/h4>\n

A company may realize that the raw materials or byproducts of the goods they sell can be repurposed into a completely new product that can be marketed to a different audience than the one currently purchasing its products.<\/p>\n

Unique Product Diversification<\/strong><\/h4>\n

Rather than using existing products, a company may take a completely unique approach to penetrate a new market by offering a product or service that is different from anything offered in its industry.<\/p>\n<\/p>\n

The decision of when and how to develop your existing market should be a methodical process. Just because your business has struck lightning once does not mean your new expansion plan is a guaranteed success.<\/p>\n

Because of that reality, follow these steps and use these resources to determine if you should develop your market, how it should be developed, and whether or not the initiative is successful.<\/p>\n

Step 1. Research your development opportunities.<\/strong><\/h3>\n

It’s always tempting to go after the hottest trends \u2014 whether that means adding more areas of focus to your consulting business or adding more items to your restaurant menu.<\/p>\n

However, before you spend time, money, or resources on developing your market based on trends, take these steps to determine if the expansion is worthwhile.<\/p>\n

Review Your Buyer Personas<\/strong><\/h4>\n

Featured Tool: <\/a>HubSpot Buyer Persona Templates<\/a><\/p>\n

<\/a>Image Source<\/em><\/a><\/p>\n

Download These Templates<\/a><\/p>\n

When expanding your market, you face the potential need for net new or revised buyer personas, which are semi-fictional representations of your ideal customer based on market research and real data about your existing customers.<\/p>\n

Consider the motivations, demographics, and backgrounds of your new target market to help you decide whether or not the development initiative makes sense.<\/p>\n

Research Your Market<\/strong><\/h4>\n

Featured Tool: <\/a>HubSpot Market Research Kit<\/a><\/p>\n

<\/a>Image Source<\/em><\/a><\/p>\n

Download This Kit<\/a><\/p>\n

Understanding your hypothetical positioning in a market is key before attempting to enter it. To that end, conduct market research exercises like <\/a>Porter’s Five Forces Analysis<\/a> or a SWOT Analysis to determine your strengths, weaknesses, opportunities, the threat of substitutes, or other attributes compared to competitors in this new market.<\/p>\n

Additionally, you’ll want to calculate market penetration<\/a> before moving forward with any plans to expand.<\/p>\n

Survey Your Customers<\/strong><\/h4>\n

Featured Tool: <\/a>Customer Satisfaction Survey Templates<\/a><\/a>Image Source<\/em><\/a><\/p>\n

Download These Templates<\/a><\/p>\n

If you’re hoping to expand your current product line to generate more revenue from existing customers, make sure your intended expansion will be warmly received. Asking yourself why<\/em> this development makes sense coming from your organization is a good first step.<\/p>\n

However, talking to and surveying your customers to see if your proposed expansion is beneficial to their lives is a necessary proof point before expanding your offerings as a business.<\/p>\n

Step 2. Set your growth goals.<\/strong><\/h3>\n

A successful market development will come with added sales, profit, employees, customers, products, users, locations, or some combination of these criteria.<\/p>\n

Because there’s so much on the line, develop goals for which facets of your business you intend to grow, in addition to what your growth goal for each criterion is.<\/p>\n

For example, by adding one more location, you may set the following growth goals:<\/p>\n