Entering a new market can be a daunting task. Whether battling a sales slump, identifying a group of customers who could benefit from a specific product or moving into a new region – segmentation has many benefits to boost business and gain new visibility. Its important to be aware that there is no business out there that is taking advantage of it’s entire (possible) customer base.
An exploration into market segmentation is, simply put, finding new ways to grow as a company. As long as the organization can manage and deliver the growth, then the strategy should be sound. Expanding into a new market is essential the relaunch of a business into that market and a company should treat it as such. From new packaging, a refreshed website to a specific brand strategy for the market – the brand must resonate with the audience it’s positioning to in order to be successful.
A business should begin by identifying a market with substantial growth happening concurrently as the time of launch. For any business considering this type of expansion, if implemented well and with the right tools, market segmentation can change the course of their business growth for the better.
Don’t Get Too Comfortable
Every business has their niche, and it’s easy to get comfortable with that customer base. Chances are, if a company has been working with a specialized market base for some time, they know it like the back of their hand. This knowledge base can be both a benefit and a hindrance. Getting too comfortable within a specific segment can put blinders on in looking out for new business. Often it is a market reaching in and asking if the company will diversify or seeing a competitor expand to create the catalyst for chance.
Who is a Viable (New) Customer?
There are multiple ways to determine which customer to go after. It could be an ‘aha’ moment where a product just fits into a new market or a ‘start from the ground up’ identification of a new market to penetrate. The main key is to focus on the business’s existing customer base and find opportunities. For example, a floral company notices that most of their business is wedding planners so they begin to reach out directly to brides and grooms to spur engagement in that market and create a higher volume business.
Speaking The Right Language
To capture the segmented business, a business must strategically tailor new offerings via targeted marketing efforts to that audience. Many markets have their own set of ‘rules’ or language that help to drive business. A marketing initiative for a new segment could include a market specific catalog featuring custom or curated photography, additions to the company’s website or a microsite and an updated content strategy. Depending on the growth potential, engaging in a comprehensive marketing initiative should be gauged to the level of return expected.
Initially, determining how much growth the company can handle will aid in steering which market to go after. Testing a single, smaller market first, before going after a larger piece of the pie will create a case study to follow and repeat once additional segments are identified and demands can be met.