The ultimate aim of most business strategies is to instigate and maintain growth and profitability. There are many methods of developing your business but finding the perfect strategy is notoriously difficult. These four steps will provide you with a structured framework which, if followed, will make the process easier and more likely to succeed.
How to leverage market research for business strategy to penetrate your target market
The first step on the path to business growth is to penetrate the relevant marketplace. You can do this without changing your product or service if you have a firm understanding of the demographics that comprise the market. You can analyze your target market to get basic data to help you focus your attention on key features of the marketplace.
Research is the key to market penetration. A solid understanding of your market will facilitate an efficient and effective marketing campaign. Find out what your market wants from a product and ascertain how your service could fulfill that role. Launching your product to the correct demographic, and with suitably targeted marketing, you should be able to penetrate the market well enough to get your brand established.
Pick a niche within your wider market and focus all your efforts on targeting it directly. If your customers are primarily other businesses then you should consider investing in B2B research efforts.
How market research in business strategy can expand market share by expanding services
Once you have a foothold, you can leverage your position to develop your market share further. Analyze the wider market to identify specific areas in which you think your existing products or services would perform well. Leveraging a brand tracking campaign is an effective way to monitor your position in the marketplace and identify both new opportunities and areas of your business where you can improve or evolve.
Once you know which areas of the market you want to develop, you can use your established position to exploit them by combining and consolidating all of your product management and marketing efforts
For instance, a tried and tested technique is to encourage members of your existing market share to try your other products via new promotions or offers. If you can successfully leverage your established position, it should give you a significant advantage when entering other facets of the market.
What can you innovate in your business strategy playbook using market research?
After establishing a foothold in one or more developed markets, it is important to constantly tweak your products and services. All markets are mercurial, constantly evolving to reflect the changing tides of societal forces. Your products need to change as rapidly as the markets. Pay close attention to how the relevant demographics evolve with a particular emphasis on their reactions to your brand.
If you identify an area that could be exploited through a change in your products or practices, act swiftly. Being proactive always carries a risk but the reward for early capitalization on market changes is often a great business strategy. The most successful businesses don’t standstill. They are constantly innovating and adapting their products and their services to more efficiently exploit new opportunities.
When is the right time to start to diversify your business?
When you’ve penetrated multiple markets and your business is flourishing, it’s time to take advantage of your momentum by diversifying your offerings. This can include bringing new products or services to existing or fresh markets. The more diversified your revenue streams, the better protected your profit margins will be. Even the most seemingly reliable sources of income are subject to outside influences beyond the control of any business developer so it’s always prudent to diversify.
Invest time and money in finding new markets and developing new products that are still related closely enough to your existing repertoire to interest a portion of your existing customers. Consider investing in B2B research to understand not only what customers are doing in your space if you are a B2C company. Look at how your competition is organized throughout their supply chain.
If you can build a network of complementary revenue streams, your business will be stronger and more resilient. Consistently collect feedback from customers to understand how you are doing in the market place.
The most reliable business strategy or method of securing growth and maintaining profitability is to follow a tried and tested method while adapting it to your own specific set of circumstances. Every enterprise is different and every market is nuanced and sometimes perplexing. Subtly adjust these four steps to fit your own entrepreneurial situation to give your business a great chance of creating and maintaining success.
Jim Whaley is CEO of OvationMR and posts frequently on The Standard Ovation and other Industry Blogs.
OvationMR is a global provider of first-party data for those seeking solutions that require data for informed business strategy. OvationMR is a leader in delivering insights and reliable data across a variety of industry sectors around the globe consistently for market research professionals and management consultants. Visit: https://www.ovationmr.com
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