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Market Diversification – Targeting

Market Diversification Does Your Business Need To Change

So what happens when you have sold all of your existing products or services to all of the potential available customers i.e. you have completely saturated the market.

Well if you have delivered a great product / service to these people then there is always the opportunity for some product diversification.

So you could develop / introduce some products that allow up sell or cross sell. Just think about the last time you purchased an electrical item. Hopefully at the point of purchase the assistant asked you the questions

  • Do you want the batteries
  • Have you seen the cover / bag / bracket / lead etc to go with the product
  • Are you interested in purchasing a guarantee / extended warranty
Market Diversification – Targetting New Customers

Increasing The Value

So all of the above elements help to increase the value of the sale (and hopefully allow a significant increase in the profitability of the transaction) as well as making the customer feel more valued within the transaction.

What if you need to find a new customer segment to sell to? Well that’s where Market / Customer diversification comes into play. Perhaps your product has been developed for a customer segment of Large businesses / organisations? Could the product be made suitable for Medium size enterprises.

If your service is geared at the 18 to 30 Female segment, could this be adapted to make the service suitable for either an older or younger female segment or even a male market.In some cases the product / service might need to be slightly modified / adapted to make it fit for purpose (so in some ways this could be considered product diversification – but I don’t want to split hairs)

Is there a market available to you that you have previously not targeted. For example as a manufacturing company have you sold to aerospace and marine, is there now an opportunity to sell the service to off shore / energy or pharmaceutical.

Market Diversification For Blue Dolphin

So what if Blue Dolphin could encourage a new segment of customers to benefit from its strategic and marketing services? Alternatively there’s some product diversification we can introduce (see image)
For more information on market diversification strategies click here or for more information on market diversification contact Andrew Goode an experienced marketing professional

The Importance Of Clarity In Strategy

Have you you got a Sales and Marketing strategy?

If yes, that’s great that already puts you ahead of many of your competitors. But does your strategy have the clarity that enables everyone within the company to know exactly where the company is heading and what it is looking to achieve? If you don’t have a strategy does your company feature some of the traits as shown below?

The difference between Clarity and Foggy

The following characteristics are exhibited. Which of these characteristics does your business exhibit

The following characteristics are exhibited. Which of these characteristics does your business exhibit

Clarity

Foggy

PlanningConfused
Clear communicationSpeculation
MotivationStressed
Engaged peopleDemotivated people
ProfitInefficiency

Five great clarity questions

  1. What are we trying to achieve
  2. What does success look like
  3. How will we measure success
  4. Why is this important to us
  5. What are the consequences (of failure)

Research has indicated that typically only 48% of managers and employees know a businesses most important goals.

Faced With A Business Challenge

Seven Steps To Consider In helping You Find A Solution

1. Where is this issue on a scale of 1 – 10?

  • Where 10 is devastating and somebody might die
  • Where 1 is its a minor inconvenience
  • Being able to identify the size of the issue will allow you to identify the priority it requires

2. How important will this be in 6 months time?

  • If it will be of no importance in 6 months then perhaps it isn’t really a business challenge
  • If not sorting this out now will mean that in 6 months its a major issue, then perhaps you need to be allocating resource to solve the problem

3. Is your response appropriate and effective?

  • Just because your best customer is one day overdue on payment should you really send them a letter telling them that you will never supply them again
  • A supplier has inadvertently sent you the wrong item. Do you really need to de list them
  • A customer complains about a customer experience – do you really want to publish on social media that this specific customer is a pain

4. How can you improve or influence the situation?

  • Is there anything that you can do that will facilitate solving the problem
  • Will anybody else have faced this problem before
  • Will some new technology, equipment or expertise help you in the resolution

5. What can you learn from resolving the challenge

  • In resolving the challenge what helped
  • Were any particular people of help

6. What will you differently next time

  • As part of the experience in resolving the challenge do you now know what systems and processes you can improve / change
  • How will you make sure you don’t make these mistakes again

7. What can you find that’s positive from resolving the challenge

  • Often being faced with an important challenge to resolve provides us with lots of learning points
  • Why not takes some time out to consider what positives have come out from resolving the challenge
  • Can these positive points be communicated to the rest of the company

7 Elements Of The Lifecyle Marketing Process

There are various stages in the lifecycle marketing process. We have found that companies have different levels of capability for each of the stages. Simply look at the following stages and evaluate what you are currently doing and how effective it is.

Attracting Customer Interest

  • What are you currently doing to attract customers?
  • What are you doing to get visitors to your website?
  • What are you looking to do to attract footfall or get the phone to ring with enquiries?

Capturing customer / visitor leads

  • What are you currently doing to capture customers or prospects details who enquire personally?
  • What are you currently doing to get capture details of visitors to your website?

Nurturing Prospects

  • What are you doing to stay in contact with your visitors?
  • Do you have a pre planned system in place to allow quality communication with prospects?
  • What quality content do you have in place to offer prospects?

Converting Prospects To Customers (Converting Lapsed Customers To Live Customers)

  • How do you know when your web visitors are ready to buy?
  • Do you know how close prospects are to purchasing
  • Are you able to categorise and profile the quality / future buying potential of your prospects
  • What mechanisms do you have in place to stimulate a customer to buy from you
  • The following stages Enquiry, Qualification, Quotation, Negotiation, Outcome (win or lose) may help systemise the process

Deliver And Survey

  • What do you do to ensure that your customers are happy?
  • How do you find out about how well you have performed and if you could improve?
  • How do you identify what your customers need that you don’t supply?

Up Selling And Cross Selling

  • What are you currently doing to sell more products and services to your existing customers?
  • Are there opportunities to improve the way you up sell / cross sell

Gaining Referrals

  • Are you asking satisfied customers for referrals
  • How do you manage the process

Lifecycle Marketing Planning

Consider each of the above. You might want to score each element out of 10 (with 1 being very poor to 10 where you perform that activity brilliantly) and then identify which of the stages is most challenging to your business.

Approaches To Ensure You Achieve Your Goals

Goal Achievement Rationale

  1. Consider what have you achieved over the last 12 months?
  2. What did you want to achieve over the last 12 months?

3 key elements to consider if you are struggling to achieve goals

1. Elephant – has the following characteristics, walks slowly, is difficult to change direction and represents things that are difficult to change
How can you motivate the elephant

  • Find the feeling
    • ACTION = the motion of a decision long after the mood you made it in has left you
    • Shrink the change i.e. try and break the problem down into smaller more manageable elements. The example of this is a hospital had over 450 different types of disposable gloves which was very inefficient from a stock / cost perspective. For years they tried unsuccessfully to rationalise the range. Eventually a manger took a single type of glove for which there were over 30 varieties and physically took the gloves and in a management meeting placed them on the table and asked the question “shall we change one set”
    • Grow your people

2. Rider – has a good view from the top, is agile and mobile and represents the ability to change direction easily

How can you direct the rider

  1. Find the bright spot
  2. If you want to change then what is new
  3. Point to the destination i.e. What are your goals. BP provide a great example of this where once the goal was identified “No more dry wells” the percentage of dry wells drilled was reduced significantly

3. The path that you are asking to go down. This is an element where you are able to shape the path you want to take.

  • You can tweak the environment
  • Build habits
  • Rally the herd

So why don’t people set goals

  1. Overwhelmed if you don’t set a goal you cant fail
  2. Believe others are better
  3. Lack practice in goal setting
  4. Have previously failed when a goal has been set

Some of the typical excuses made by people as to why they have failed in achieving goals set. They blame

  • the past
  • their friends & family
  • genes
  • weather
  • dead people (who can’t answer back)

Compare this to successful people who

  • Take responsibility and don’t make blame
  • Create results not reasons
  • “Do ” instead of “Try”

“Making a decision is more comfortable than sitting on the fence “

Consider these questions

    1. Ask others what do you recommend?
    2. What do I want instead?
    3. What things are consciously in your comfort zone?
    4. What things are in your crisis zone?
    5. If you were a car what make of car would you be?
    6. If you were a holiday destination what would be the destination?
    7. If you were a shop what shop would you be?
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