If your business is new, or just starting, there are many ways to select a market that you want to get into. Or even if your business is established, there are still niche markets out there for potential expansion. The biggest drawback is that many of us want the easiest route to massive response and of course, sales.
As many of us already know, competition is high, and both consumers and businesses expectations are even higher. This makes it even more challenging when expanding into a new market.
Think Small, Then Big.
Sounds odd, but let me explain. The first thing you need to do when expanding into a new market, or when starting up a business, is to determine what products and services that you would provide to that market. You don't want to go after the big ticket items, especially in an economy where competition is high, and prices are dropping. When getting started, Its usually best to focus on building rather than selling.
Focus On Branding
Your primary focus on new market expansion shouldn't be focused just on sales, but more on building a client base. Its easier to sell to your 'fans' than it is to those that don't know you from Adam. New market expansion should be a flash in the pan to get a quick buck, but a rather long-term investment to generate a loyal customer base.
What Do I Provide In The Beginning?
Regardless or your industry, profession, market or location, there are several principle applications you can use to build your customer base. Heres a great rule of thumb: If you go to a bookstore and find a magazine on your topic, theres probably a big enough market to go after.
First, offer something free. In fact, most people expect it and chances are you do to. Most of us use the internet to obtain information. Those that are seeking particular information around your new product and/or service are prime candidates. This information can be delivered through a
Offer something tangible for free. For instance, if you are a mortgage company you can place a free mortgage calculator on your site for clients to use. Most importantly you need to be persistent and consistent. Branding takes time, and if done properly, will pay off in the end.
Create a newsletter or membership. This is a great way to generate leads and to build your new client base. The key to successful memberships and newsletters is providing REAL and VALUABLE content. How do you determine whats worth publishing and providing? Generally I like to think of it this way: If you would normally charge for the information, or what you provide is unique to your expertise and experience, its worth publishing.
There's No Such Thing as a Free Lunch.
As with anything, there is of course a cost associated with obtaining customers. This is often refereed to as CPL (Cost Per Lead), and should be the focus of any marketing campaign. To determine the CPL = the cost of running a campaign (lets say a postcard) and divide the number of respondents (not sales).
Even SEO (Search Engine Optimization) and SEM (Search Engine Marketing) campaigns have a cost associated to them. These can be more challenging to calculate, but in the long run, can be cheaper than running direct mail, PPC and other online marketing campaigns.
