Sina MchunuResearch & Tech Content Writer
- July 11, 2023
- 7 minute read
- Sina is a marketing expert who specializes in SEO, AI, and digital marketing content. With over five years of experience, she’s written hundreds of pieces, spanning a variety of topics and industry niches. She loves combining her strong eye for detail and passion for storytelling in her work. You’ll find her fruit picking or horse riding at the local farm when she’s not writing.
A market development strategy is a business plan to boost sales of an already-available service or product in a new market. This strategy entails finding untapped geographic or consumer categories and creating a marketing plan to target them.
When we first opened our doors as WebpageFX in 1997, we did nothing more than provide web development services. Over the years, we have expanded and broken into new markets and online marketing niches, from digital to social media to search engine marketing.
Along the way, we have tried and tested various market development strategies, enabling us to discover new consumer niches and broaden our reach. Today we will share tips for creating a market development strategy to benefit your company.
Here are eight steps to get you to start building your strategy:
- Set specific goals and objectives for the strategy
- Conduct market research
- Define the target market and understand their needs and preferences
- Develop a unique value proposition
- Identify potential distribution channels
- Develop a pricing strategy
- Create promotional materials and campaigns
- Monitor and measure the strategy’s effectiveness
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What is a market development strategy?
A market development strategy is a growth tactic that broadens a company’s customer base by breaking into new markets or selling everyday items in those regions. It boosts income and market share by finding and exploring new prospects outside the business’s present clientele.
How to Create a Market Development Strategy
Developing a market expansion strategy takes extensive research, planning, and execution. Let’s look more closely at the eight phases for creating an effective market development strategy.
Step 1: Set specific goals and objectives for your strategy
Building a market development strategy begins with defining specific, measurable, attainable, relevant, and timely (SMART) goals and objectives. Are you looking to:
- Increase market share?
- Launch a new product?
- Expand into a new geographic region?
You can ensure your strategy aligns with your overarching company objectives and monitor progress toward attaining them by creating precise, quantifiable targets.
For instance, you can target 500 new clients in the upcoming quarter or boost revenue by 20% over the following six months. These goals should reflect in your objectives and include additional information about how to accomplish them. These objectives involve raising brand exposure, increasing website traffic, or enhancing client retention rates.
You’ll have a guide to follow and an accurate way to gauge your progress if you establish specific goals and objectives. This approach will keep you motivated and engaged while ensuring you are moving forward meaningfully toward your goals. Defining targets and objectives can also aid in allocating limited resources and selecting productive activities.
Step 2: Conduct market research
Next, you must conduct market research to grasp your consumers, rivals, and industry trends. This approach will help you identify market gaps, growth opportunities, and associated risks to your company.
For instance, a small business owner running a clothing boutique can use market research to find out what designs and styles are popular with their target market, examine pricing plans used by rival businesses, and gather data on current fashion industry trends to make sound decisions about their product offerings and advertising strategies. With this data, this boutique can create unique selling propositions (USPs) that set them apart from rivals and discover new client niches to target.
You can better address the requirements and desires of your customers by collecting data on their demographics, habits, and preferences. You can also differentiate yourself from the competition by using their shortcomings to improve your marketing and sales efforts.
Step 3: Define your target market and address their pain points
Once you’ve collected data on your customers and competitors, use it to define your target market and understand their pain points and requirements. Who exactly are your ideal clients? What are their concerns and the driving forces behind their purchasing decisions?
By addressing these concerns, you can develop customized marketing campaigns that resonate with your audience and improve your chances of turning them into devoted clients. You’ll have to constantly reevaluate and modify your methods in light of the possibility that your target market may shift over time.
Step 4: Develop a unique value proposition
The next stage is to create a distinctive value proposition that distinguishes you from your rivals once you have a firm grasp of your target market. Your value proposition should effectively convey the significant advantages of your item or service. This tactic could comprise:
- Highlighting your product’s unique features
- Emphasizing your exceptional customer service
- Positioning your brand as the best solution to a specific problem
Creating a compelling value proposition lets you draw in and keep clients seeking your product or service’s advantages. Also, a well-crafted value proposition may set your company apart in a crowded industry.
Step 5: Identify potential distribution channels
After a firm grasp of your target market and their requirements, you must determine efficient distribution channels to reach them. This might include:
- Social media
- Email marketing
- Direct mail
- Partnerships with other businesses
You can optimize your reach and improve your chances of turning indifferent potential customers into devoted ones by using the appropriate channels and customizing your messaging to your audience. Also, it’s critical to continuously assess and modify your distribution strategy based on the performance of each channel.
For instance, it could be worth allocating more resources to social media if you discover it generates the most traffic and conversions. Conversely, if your email marketing initiatives need to develop the expected results, it could be time to reexamine your messaging or target market.
Keeping up with emerging distribution channels can also help you stay one step ahead of the competition and develop inventive ways to connect with your target market.
Step 6: Develop a pricing strategy
Price has the power to make or break a company, so finding the ideal balance between profit margins and consumer value perception is crucial. An overly aggressive pricing plan might turn away prospective clients, while a too-conservative strategy can result in narrow profit margins.
While creating your pricing plan, consider your costs, other businesses, and your target market. Continually evaluating and modifying your rates will guarantee they stay competitive and profitable. Try a few alternative options — value-based or subscription pricing — to determine which pricing strategy works best for your company.
Step 7: Create promotional materials and campaigns
After you’ve decided on your pricing strategy and plan, develop marketing materials that communicate your value proposition to your target market. This step entails designing marketing materials that are aesthetically appealing and engaging, as well as developing messaging that emphasizes the unique advantages and qualities of your goods or services.
You can use your chosen distribution channels to reach your audiences and consider partnering with influencers or other businesses to amplify your message. You can increase brand awareness and attract new customers by effectively communicating your value proposition.
Remember to track the effectiveness of your promotional efforts and adjust as needed to ensure that you effectively communicate your value proposition and reach your target market.
Step 8: Monitor and measure the strategy’s effectiveness
Finally, keep an eye on essential indicators like website traffic, social media engagement, and conversion rates to gather insightful knowledge about what is effective and what needs improvement. Also, asking clients for feedback can reveal important details about how they view your brand and how effectively your messaging connects with them.
You can then use these insights to make data-driven marketing decisions and modifications, ensuring that you are constantly improving and fulfilling the demands of your target market. Frequently analyzing and adjusting your strategy is critical to remain competitive in a continuously changing environment.
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Get a custom market development strategy from WebFX
WebFX is a digital marketing agency specializing in custom market development strategies for companies of all sizes. We have over 1.6 million hours of experience and are a trustworthy partner for businesses looking for development and success in the digital realm.
To create a unique strategy to meet your company objectives, our specialists conduct an industry analysis, assess your target market, and research your rivals. We’ll use cutting-edge technology to boost brand awareness, attract more visitors to your website, or produce more leads and sales.
Sina is a marketing expert who specializes in SEO, AI, and digital marketing content. With over five years of experience, she’s written hundreds of pieces, spanning a variety of topics and industry niches. She loves combining her strong eye for detail and passion for storytelling in her work. You’ll find her fruit picking or horse riding at the local farm when she’s not writing.
WebFX is a full-service marketing agency with 1000+ client reviews and a 4.9-star rating on Clutch! Find out how our expert team and revenue-accelerating tech can drive results for you! Learn more
- What is a Market Development Strategy?
- How to Create a Market Development Strategy
- Step 1: Set Specific Goals and Objectives for Your Strategy
- Step 2: Conduct Market Research
- Step 3: Define Your Target Market and Address Their Pain Points
- Step 4: Develop a Unique Value Proposition
- Step 5: Identify Potential Distribution Channels
- Step 6: Develop a Pricing Strategy
- Step 7: Create Promotional Materials and Campaigns
- Step 8: Monitor and Measure the Strategy’s Effectiveness
- Get a Custom Market Development Strategy from WebFX