Essays academic service


The need for an international manager to measure a potential business venture

As your business matures and your market share steadily increases, you will probably begin to encounter the growth limits of your original target market. Planning and implementing a growth strategy to develop new markets and expand your business before your current market flattens will not only help your business survive through tough times, it could also give you considerable edge on the competition. This Business Builder will take you through the process of new market development.

It will provide you with some easy-to-follow steps on planning and implementing a market expansion strategy before your current market flattens or declines. Because every business differs in regard to products or services it offers, the information in this Business Builder is designed to be as broad-reaching as possible so that it may be adapted to a variety of situations.

Applying the information in this Business Builder to your business will help you become more adept at expanding your business into new markets.

  • Taking well informed risks is an essential part of being a successful business owner;
  • Is the market already saturated with competitors or is there room for one more?
  • With appropriate subscription services like InfoTrac, even access to print sources is easier to achieve than actually searching newspapers or trade magazines;
  • Government Printing Office as "the largest publisher in the free world; its products can be purchased by mail, telephone or through GPO bookstores in major cities;
  • Statistics on regional consumer interests.

This Business Builder was developed to help you expand the market for your established products or services. Another method of market expansion involves developing new products that you will introduce to the same or new markets.

Following are a few things to keep in mind before you get started: Target Market is the customer group that you feel will most likely want to buy your products or services.

  • The number and strength of competitors in the target area;
  • Provides information on population, education, employment, income, housing and retail sales;
  • This plan should focus on three key areas:

This group is defined by your customer profile. Customer Profile is a detailed profile of your typical customer. For individual consumers, it includes information such as age, income, gender, marital status, profession and buying habits. For businesses, it includes the types of business, number of years in business, number of employees, annual revenues and products or services sold.

Demographics are the characteristics of a population such as size, growth, age, income, gender, marital status and buying habits.

How to Expand Your Business Through New Market Development

This information helps you decide whether this target market is large enough for your products or services in the target area. Market Analysis is an analysis of research data that results in determinations about the marketability of a product or service in the given market.

  1. Demographics are the characteristics of a population such as size, growth, age, income, gender, marital status and buying habits. Willing to spend a little more for quality.
  2. Here are some helpful resources that you may want to consult.
  3. You may want to conduct some limited-scale test marketing in the area you are targeting.

A systematic approach is the best way to find a new market. Without it, you can waste a lot of precious resources — something a small business does not have an excess of. The following steps will effectively and efficiently guide you through the new market development process: Business growth always depends on the strategies and the actions that you take to make it happen.

The degree to which you implement a market growth strategy depends on your own business goals and objectives. You may plan to grow your business slowly so that you can maintain a the need for an international manager to measure a potential business venture but manageable market share.

Or, you may develop an aggressive growth strategy that causes you to establish a more flexible organizational structure that can adapt to new markets and rapid growth.

Regardless of the degree of market growth required to meet your particular business goals and objectives, the need for growth and a plan to accomplish it is fundamental to a successful business venture. Without it, you will leave your business vulnerable to market pressures such as increased competition or regional economic downswings. Planning and achieving market growth, whether aggressive or conservative, requires the application of some fundamental marketing activities and techniques.

These activities and techniques are incorporated in the following four steps needed to expand your business through new market development: Define your new target market s Step 2: Do your market research Step 3: Define Your New Target Market s The first thing you will need to do as you begin your market expansion effort is to determine the demographics and the geographic location of the new target market.

Determine which of the following categories characterizes your expansion efforts: If you are targeting a new group, you will need to develop a basic profile of the new customers.

The more you know about your target customers, the easier it is to develop a marketing strategy that will reach them. Business CustomersType of Business: Of Years in Business: Reasons the new customer will buy your product: After you have defined your target customers and described how you can meet their needs, then you need to define the approximate geographic boundaries of your new target market.

Select an area where you feel the target customer population is large enough to support your market expansion efforts. The owner of the Pedal Power bicycle shop decided to expand its market by developing a mail order catalog for his products. The following is a portion of his customer profile AGE: Single or Divorced Parental Status: Not important Buying Habits: Prefer to analyze before purchasing bicycle equipment through catalogs.

Willing to spend a little more for quality. Bicycling, running, hiking and other outdoor activities.

Business venture

What is Important to Him: Personal health, enjoying the outdoors, professional success and personal relationships. Work 40 to 50 hours per week. Exercise primarily bicycling four to five times per week. The target customer would purchase bicycle supplies through our catalog because it is convenient, and we offer a good selection of quality products at the lowest possible prices.

Our products are not much different, but many of our policies are.

EXTERNAL BUSINESS INFORMATION

We have an earned credit program that allows customers to accrue 5 percent of each purchase in a credit account that they can use at any time. After you perform the market research activities described in the next step, you may find that you will need to modify your target area boundaries, or find a new target area.

Identifying the boundaries at this stage will give you some ideas of where to focus your research activities. Now take some time and complete the worksheet for your new target market. Do Your Market Research Once you have developed a customer profile and identified the extent of your new target market, then you can do some basic market research to determine the following information: What would customers be willing to pay? Current population trends of your targeted customers Expanding, shrinking or stable?

What are your competitors doing? What is the most economical? Can you establish a competitive advantage? The number and strength of competitors in the target area. What products or services do they offer? What is their image? What is their pricing structure? What is their performance history? What is their current share of the market? What are their strengths and weaknesses?

Your market research is a very important piece of the market expansion process. The more you know about your potential customer base and your competition, the easier it will be for you to identify your niche in this new market. Your data may even help you to decide whether or not you should focus on this potential market.

Where to get the Information Your local college and public libraries are excellent resources for national and regional demographic and business-directory information. Here are some helpful resources that you may want to consult: County and City Data Book U. Provides information on population, education, employment, income, housing and retail sales.

Demographics and Spending Patterns. Listings of characteristics of U. These volumes identify dozens of local potential-customer characteristics. Statistics on regional consumer interests.

Industry and Trade OutlookU.

  1. After you perform the market research activities described in the next step, you may find that you will need to modify your target area boundaries, or find a new target area.
  2. It's a practical way to move towards open government, and does make information, which is paid for by the taxpayers, far more accessible to those taxpayers and any others with Internet access.
  3. But it can be less costly to provide general access than to screen access. What is their image?
  4. Planning and achieving market growth, whether aggressive or conservative, requires the application of some fundamental marketing activities and techniques.
  5. The growing speed of the Internet when accessed by cable or DSL lines is making large down-loads from the Web less of a frustration; at the same time very rapid updates to the databases consulted are available to the user.

Department of Commerce, annual forecasts growth rates and reports on production in the past year for 200 industries. Current Industrial Reports U. CIRs provide information on production, shipping, inventories, consumption, and the number of manufacturing firms for over 5000 products. Census Bureau, every fifth year. TheEconomic Censuses report sales figures and trends.

County Business Patterns U. Encyclopedia of Associations Gale Research, annual. The staff should be able to provide you with information on regional growth trends and competitors. Now list the sources you are going to use to get the market research information that you need.

Refer to your customer profile as you do your analysis to help you stay focused on your customers and their needs. Generally, the results of your analysis should help you to answer these basic questions: What are the market trends?

Try to determine if your new target market is growing, stable or declining. You may be able to compete successfully for a good market share now, but if the market trend shows declining demand for your products or services, then the future may not be promising.

The owner of the Pedal Power bicycle shop believed that he could compete successfully in the targeted area since none of the bicycle shops in the areas offered mail order service. He estimated that with his purchasing incentives, such as the earned credit plan, and his low prices, his mail order catalog could capture at least 10 percent of the market share in this area. Capturing this market share would increase his annual sales by 40 percent. What are the trends for your market?