How Market Development Generates New Business
Generally speaking, market development is about expanding the market for specific goods or services.
There are only four ways to expand the market for professional services. This means providing:
- more existing services to existing clients
- existing services to new clients
- new services to existing clients
- new services to new clients
Further, there are only two ways to obtain new business from each of these two sources: provide more existing services or provide new services.
Market Expansion Through Existing Services
This is the easiest approach to market development. Drawing upon established relationships with existing clients and also knowing how to satisfy clients,
it’s simply a case of doing more of what you already do well. Some clients might benefit from buying familiar services more frequently. Other clients might benefit from services that you offer, but they don’t know about.
The challenge here is two-fold. First, it’s important to help existing clients understand how they will benefit from buying more of the services with which they are familiar. And second, it’s critical to increase their awareness of less familiar services.
This is the first step in helping them understand how they can benefit from buying services they may not have known about.
Although providing existing services to new clients can be more challenging, it is not impossible.
The best approach is to help potential clients understand that because you have helped people like them, you can also help them. Hopefully, this will help overcome whatever discomfort potential clients may experience in choosing to do business with you.
At the very least, your marketing message will encourage them to contact you for more information.
Market Development Through New Services
Providing new services is the most challenging approach to expanding a market.
The positive element is that established relationships with existing clients helps reduce the discomfort typically associated with new initiatives. Existing clients can be expected to be more patient and understanding about learning curve struggles.
The most challenging of all approaches is trying to provide new services to new clients. It is very difficult to learn how to deliver new services simultaneously with developing relationships with new clients.
The best approach to development starts with the easiest (#1 on the above list), and moving progressively towards the most difficult (#4 on the list). For practical purposes, don’t move to the next level until you have optimized the delivery of services at the lower level.
All things considered, of all marketing essentials, market development is the essential most directly rated to generating more new business.
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