How to Expand Your Market

This guide discusses Expanding Market Size Business. When expanding your market share business, explore all the strategic alternatives available to you. Select the one that makes the most sense and then prepare a marketing plan on how to implement that strategy. There are at least a dozen common strategies and a variety of strategic combinations or special situations to choose from.

Expansion of market share at Present Location

Learn to spot telltale signs of saturation in your present facilities. Grocery stores, for example, keep track of abandoned carts. When a shopper fills a cart and then leaves because the checkout line is too long, the grocer should realize that there is a serious problem. If you are experiencing bottlenecks, think about adding to your facilities. Determine how many additional customers you could service by building up or out and compare the additional sales to the cost of construction and temporary inconvenience.

Expand Market Size By Relocation

If it appears unlikely that you can draw more customers to your present location (at a reasonable cost), consider moving closer to your customers. A location on Main Street, in a shopping mall or an industrial park may cost you more in rent, but if you gain exposure to new customers it may be a sound investment.

Expanding Your Market Size By Additional Outlets

Reaching the most customers may require opening several outlets at convenient locations throughout your market area. In addition to the added costs of real estate and multiple inventories, carefully analyze the cost and availability of labor and training, and the cost of hiring a manager for each location and installing an efficient monitoring system. Your advertising dollars may become more efficient since your radio, TV and newspaper ads cover your entire market. The multiple locations will make it more convenient for customers to find you.

Downward Vertical Integration Expansion

If your profits depend on the prices you pay for raw materials, your most profitable growth strategy may be to buy a farm, mine or processing plant to produce your own materials. This strategy also may make sense if your product quality is based on a consistent supply of goods at an acceptable quality level.

Upward Vertical Integration

Most small manufacturing businesses that start are forced to conform to the existing marketing channels and sell through established manufacturers' representatives, jobbers or dealers who have access to the market. As you grow, however, it makes sense to analyze your distribution system

to see when you can improve your situation by hiring your own sales team, contracting with distributors, buying a truck fleet, opening retail stores or factory outlet stores or doing anything else you need to do to get closer to your market. Remember, every time someone gets between you and your customer, it either reduces your revenue or increases your operating costs. Also, it impedes the provider-consumer communication that is essential to a good marketing program.

Expanding Market Size By Exporting Goods or Services

Literally, there is a world of markets available to you if you are willing to learn how to get started.

Tourists' Business

When you are looking to expand market share, don't ignore tourists who could be attracted to your area. Work with your local convention and visitors' bureau to determine the impact if you cooperate with local tourist attractions or hotels and restaurants to get more people to visit and spend money in your community.

Franchises

Franchising as a growth strategy offers advantages if you are short of expansion capital, yet have a concept that can be packaged and taught to people who wish to invest in a business. The legal problems can seem overwhelming, but with a good plan and competent advice, you can develop a franchise system that could prove extremely profitable.

License Agreements

If you have a technical process or service, you may be able to find people in other markets who would be willing to pay you a royalty for the rights to use your process. Perhaps you could sell raw materials, secret ingredients, special tooling or promotional materials to your license holders.

Direct Marketing

Selling directly to your customers is one of the oldest and most effective methods of market expansion. Today, there are few door-to-door salespeople; most direct marketing is seen in party plan selling and through mail, TV and magazines. Direct selling requires good selection and training techniques and a commission plan plus liberal incentives.

Telemarketing

If you have a good list of prospective customers, telemarketing may be an effective method of informing them about your business, qualifying them for sales follow-up or selling your product or service to them. Professional firms can be used, or you can set up your own telephone room. Here again, recruiting and training are critical because only a few people can do telemarketing well.

Private Label

One method of expanding your markets is to sell your product under the name of your distributor or retailer. However, you cannot build customer or brand loyalty because the consumer does not know you are the producer. Another potential problem is that, should the owner of the label find a cheaper producer, you may be out of the business.

This article Provides managing your Company tips and manage business advice. However, you are not prepared to start your own
business until you've given any thought to managing it. A business is an ongoing activity that does not run itself. As the manager
you will have to set goals, determine how to achieve those goals and also make all the necessary decisions. You'll need to
purchase or create your product, price it, advertise it and sell it.

You will need to keep records, and determine prices. You'll Have to Control inventory, make the ideal buying decisions and keep
prices down. You will have to employ, train and motivate employees today or as you develop.

Setting Business Management Goals. Good small business management Is the secret to success and good management starts with
establishing goals. Establish goals for yourself for the achievement of the many tasks required in establishing and managing your
company successfully. Be specific. Write down the goals in measurable terms and conditions of functionality. Break big targets
down to sub-goals, showing exactly what you expect to attain in the next two to three weeks, the subsequent six months, another
calendar year, and the next five decades. Beside each target and sub-goal place a specific date showing as it is to be achieved.

Plan the action that you need to take to attain the goals. While the effort Required to achieve each sub-goal ought to be good
enough to challenge one, it shouldn't be so great or unreasonable as to dissuade you. Do not plan to achieve too many targets all
too. Establish priorities.

Plan in advance how to quantify results so you can know exactly how Well you are doing. This is what's meant by"measurable" goals.
If you can not keep score as you go along you're likely to lose motivation. Re-work your plan of activity to permit for obstacles
that might stand on your way. Try to foresee obstacles and plan strategies to stop or minimize them.

Buying. Skillful purchasing is an important essential of profitably Managing a business enterprise. This is true if you're a
wholesaler or retailer of product, a manufacturer or a service company proprietor. Some retailers say it is the most significant
single factor. Merchandise that's carefully bought is easy to sell.

Deciding what to buy means finding out the type, kind, quality, Brand, size, color, fashion -whatever applies to a specific
inventory - which will sell the very best. This requires close attention to salespeople, trade journals, catalogs, and notably the
preferences of your regular clients. Assess your sales records. The producer should see the problem through the eyes of customers
before determining what materials, components, and materials to purchase.

Know your regular customers, and also make a good evaluation of the People you hope will become your clients. Just what
socioeconomic category are they? Are they homeowners or tenants? Are you currently looking for cost, style or quality? What's the
predominant age group?

The age of your customers can be a prime consideration in Establishing a buying pattern. Young men and women purchase more often
than many elderly people. They need more, have fewer responsibilities, and invest more on themselves. They're more aware of style
trends whether in wearing apparel, automobiles or electronic equipment. If you decide to appeal to the young trade only because
they appear dominate in your area, your purchasing pattern will be completely different than if the conservative middle-aged
customers seem to be in the majority.

Study trade journals, newspaper advertisements, catalogs, window Displays of companies like yours. Ask advice of salespeople
supplying you product, but purchase sparingly from several suppliers instead of one, analyzing the water, so to speak, until you
understand exactly what your best lines would be.

Locating suitable merchandise sources is not simple. You may buy Directly from producers or manufacturers, from wholesalers,
distributors or jobbers. Select the suppliers who sell what you want and can provide it when you need it. (Distributors and
jobbers are utilized by most business people for quick fill-ins involving factory shipments.)

You may distribute purchases one of many suppliers to gain more Favorable rates and promotional stuff. Or you might concentrate
your purchases among a small number of suppliers to simplify your credit issues. This may also help you become known as the seller
of a particular brand or line of merchandise, and to keep a fixed standard in your goods, if you are shopping for materials for
manufacturing functions.

When to buy is important if your business will have seasonal Variations in sales volume. More inventory will be needed prior to
the seasonal upturn in sales quantity. As sales decline, less merchandise is necessary. This means purchases of goods for resale
and materials for processing must change accordingly.

At the outset, how much to buy is speculative. The best coverage is To be frugal till you've had enough expertise to judge your
wants. On the flip side, you can't sell product in case you don't have it.

To help solve buying problems, you should Start to maintain stock Control records at once. This can help you maintain the stock in
equilibrium - neither too large nor too small - with a suitable proportion and adequate assortment of products, sizes, colours,
styles and attributes.

Basically there are two types of stock control - control in Bucks and command in physical units. Dollar controllers show the sum
of money spent in each product category. Unit controllers indicate the amount of individual items when and from whom purchased by
class. A good inventory control system is able to help you decide what, from whom, when, and how much to buy.

Pricing. Much of your success manage a business will depend on How you price your services. If your Rates are too low, then you
will not cover Expenses; too high and you will lose sales quantity. In both cases, you won't Earn a profit.

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