You and your team may be considering a variety of new business ideas and marketing opportunities, but not all of them are worth the effort. Make sure you narrow down your options and focus on those with the most potential for success.
Pursuing multiple growth factors can be dangerous for your business. According to Harvard Business Review, “as the executive team’s priorities grow, the company’s revenue actually decreases compared to its peers.” But focusing on a small group of promising activities leads to higher than average income.
Follow these five steps to evaluate the attractiveness of the new market opportunity and prioritize business growth.
1. Examine your customers and competition.
Use market research to analyze your customers and competitors in multiple stages. This will help you assess whether a product / service demand is real and expanding into a new market is important for your organization.
Identify consumer segments that share common characteristics such as age, gender, education, income, occupation and place of residence or lifestyle and values. Also consider consumer motivation. What “work” is the client trying to do? What are the potential barriers to consumption?
Knowing who your key competitors are and assessing their strengths and weaknesses can shed light on unique development strategies and ways to identify your products and services.
2. Look at the top level of the market.
However, it is not enough to evaluate your customers and competitors. You also need to have a broad understanding of the market as a whole and the potential for success in the marketplace.
Otherwise, your organization may fall into the trap of thinking that adding a few percentage points is enough, which is a huge potential. Marketers are experts in providing real-time imagery and can help you avoid corporate thinking.
When analyzing the market, these top questions come into play.
- What is the market size?
- How fast is the market expanding or negotiating?
- How many rulers are there?
- What are the barriers to entry?
- What is the bargaining power of suppliers?
- What is an industrial value chain?
- How strong is the competition?
- Is there a risk of new revenue or replacement products or services?
3. Explore related opportunities.
Pursuing neighboring opportunities can also be a winning strategy.
In a five-year study, researchers analyzed the growth and performance of 1,850 corporations. Companies that have achieved the most sustainable growth have found that they use a strategic, systematic approach to expanding their operations to neighboring areas. Some companies are expanding from one geographic market to another, while others have applied the existing business model to nearby units.
Take, for example, the Proctor and Gamble Crist Toothpaste brand. A.D. Crest was crumbling in the late 1990s, but Proctor and Gamble revived the brand with the introduction of Crest Whitestripes and Spin Brushes into two other categories – tooth whitening and brushing.
The company used the same channels to reach customers with the same marketing framework and added more than $ 200 million in sales to each new brand in one year.
Keeping your finger on the pulse of the market will help you maintain an active approach and expand your competitors by looking for ways to expand beyond your core business.
4. Understand business environment conditions.
Another area to be explored is the general business environment, which has a significant impact on the company’s performance and the way industry operates.
The business environment includes:
- Technological advances
- Government regulations
- Geopolitical changes
- Economic Indicators
- Business Policies
- Social and cultural norms
For example, companies in the life sciences and healthcare sectors are currently experiencing a number of disruptions that contribute to further instability, according to market research firm Kalorama Information, attempts to repeal and replace the Affordable Care Act, health IT policies, and President Trump’s statements on drug prices.
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Other factors affecting the market include breakage, increased out-of-pocket costs for health care, and a shortage of doctors. Any new business opportunity in these sectors should be evaluated in light of these conditions and challenges.
5. Find the market research you are looking for quickly.
Collecting and compiling information about all of these categories can take a lot of time, effort and knowledge, but market research reports can be helpful.
The “off-the-shelf” reports on MarketResearch.com can provide you with more information about the customer, competition, industry and business environment.
In these reports you will find information on market size, market share, market forecasts, regulatory information, consumer demography and much more. In addition, many reports clearly share an analysis of key opportunities for future growth, product creation, and emerging marketing strategies.
If you are studying an undisclosed class market in a published report, you can also order a custom market research project that meets specific specifications. Our expert team of in-house analysts assist in decision-making and decision-making and initiatives such as new product development, geographical market expansion, integration and acquisition, competitive thinking, customer voice and strategic planning.