There comes a moment in every business venture when you know the time is right to grow your business. Whatever has driven your decision to pursue a growth strategy, success hinges on choosing the right strategy for your business.
You can use many B2B marketing strategies to drive sales and grow your business. One common starting point in developing a growth strategy is the Ansoff Matrix. The Ansoff Matrix, created by Igor Ansoff in 1957, helps you evaluate your risk within growth options and choose the right one.
Building revenue and growing your business can break down into four buckets outlined in the Ansoff Matrix.
The first bucket in the Ansoff Matrix involves getting more of your market. This strategy uses your existing products in your current market. It is the lowest-risk growth strategy in the Ansoff Matrix.
This bucket requires getting into new markets with the same product. Examples of this strategy include selling your existing sports clothing line to non-athletes as athleisure wear or your office water coolers to homeowners concerned about water quality. While a higher risk than market penetration, market development is still considered a lower-risk strategy.
Bringing new products to your existing market is the third growth strategy outlined in the Ansoff Matrix. Due to the loss of time and revenue that can result from a failed product launch, this is considered a high-risk strategy.
Diversification is the riskiest strategy in the Ansoff Matrix and involves bringing new products to a new market. The most well-known and successful example of a diversification strategy is Apple's release of the iPod and other consumer-oriented products. They were the most known computers of choice for professional graphic and web designers.
Under each of these growth strategies, there are many marketing strategies to help you achieve the goal.
The main idea behind market penetration is that there is more business in the market you are currently in than you have. You must attract and convert more people in your current market or audience. There are a few ways you can accomplish this.
The most obvious market penetration strategy is to get more customers from your existing market. However, that's easier said than done. A few B2B marketing strategies can help you find more customers in your market.
Another market penetration strategy is to get your current customers to purchase more of your existing products. You can incorporate messaging into your marketing strategies that tell your customer base about a product that is related to the one they already have or are interested in. Let them know you're more than just one product or service, and get them back for more.
Buying one of your competitors is essentially buying more customer base because you will add their customer base to your existing customer base. There are a few things to consider before pursuing this strategy:
If you've determined that a market development has too small of an ROI or needs to be more aggressive for your goals, expanding into new markets is a great, more aggressive alternative. You can use a few different strategies to enter a new market.
We're willing to bet that there are locations or territories that you have neglected to sell into as you were establishing your business. One way to build into new markets is to take your existing marketing, adapt it, and use it to break into untapped or unexplored territories. It's essential to complete some foundational activities before entering the new market:
Are you currently selling directly? Could you utilize a distributor? Finding and using a distribution partner is a great way to access a new audience. Once you've chosen a distribution partner, you need to consider the following:
Are there new customer groups you could target outside of your current market? Now is a great time to review your current market and brainstorm opportunities for untapped segments ripe for your product or service.
If you're ready for a more aggressive growth strategy, it's a great time to consider expanding your product offering. Let's review some ways to implement a product development strategy.
Do you have an excellent idea for another product? Are your customers asking for something specific from you? These are great signs that it's time to develop a new product. Consider what else your current audience might need related to your existing product or service. If you are unsure, ask your customers what else they wish you offered, they often have great insight into other things they need or would be interested in buying from you.
Maybe someone has produced and launched a product that would be a great companion to your product. An easy way to pursue a product development strategy is to investigate licensing a product that would enhance your catalog and provide something new to your customers.
We're willing to bet you've gotten feedback from customers and users about features they would like or bugs they've experienced. This feedback would be great to incorporate into your product in the form of new product updates. Small or big changes to the product give you an opportunity to reconnect with customers and attract new ones.
Finally, let's talk about diversification. The riskiest of all business growth strategies, diversification could have significant returns if successful. Diversification involves introducing a new product to a new market.
There are two kinds of diversification you could pursue.
When getting started with any of these strategies to try and meet your business goals, keep it simple so you don't get overwhelmed. Each has unique aspects that need to be executed, but here are three basic steps.
With so many options, it can be hard to determine the next best steps to keep your company growing. TANK's Growth Programs can help with this process. We help determine where there is a growth opportunity, walk you through all the steps to get the marketing up and running, and consistently deliver work and report on the results.