Starting and running a business can be interesting and challenging especially at times like these when businesses are struggling to survive and grow. Succeeding in any business depends on attracting and retaining customers regularly. Every business owner must develop marketing strategies to attract customers to continue buying their products in the midst of competition. Most small businesses fail due to a lack of developing a clear cut marketing strategy. Most don’t know the difference between selling and marketing. Selling is the final exchange between the customer and the business owner for a product. Marketing on the other hand is a whole process that begins by asking the question what do my customers need or want to buy? In this week’s article I am showing 7 amazing ways to expand your business by adopting marketing strategies.
1.Focus on a single product or service, and then market it, sell it, promote it-do everything you can to increase sales of that one product or service. While it’s tempting to swing for the fences and try to be all things to all people, it’s often less risky and more profitable to pick a product or two that you can execute really well and just try to get on base. For example Tony Eze runs a second hand clothes shop in Lagos, Nigeria. When he started the business he had financial constraints in raising the required capital so he focused only on children’s wears. Even though customers repeatedly asked for adult wears he resisted the temptation to expand into that line of business until he had opened 3 shops in Lagos selling only children’s wear. By doing this he was able to gradually plough back money into his business and grow from one to three shops in just two years.
2. Expand your product line to offer complimentary products or services. Once you’ve hit on a product or service that customers really like, don’t miss the opportunity to bring out related items to diversify your product line. Not only does that give your customers a wider selection, but it also makes your products more appealing to retailers who typically like to stock a line of products as opposed to a single item. For example Tony Eze began selling children’s wear and gradually expanded into adult wears due to demand from his customers.
3. Find ways to increase sales to your existing customers. It’s a lot cheaper than finding new ones. Even if you can’t expand your product line, you can boost revenues by selling more of your existing product or service to the clients you already have. One way to do this is through volume discounts. If your products cost little to produce, offering your customers the chance to buy, say, two T-shirts for the price of one lets you ring up additional sales without sacrificing much profit. Another common practice is to reward loyal customers by giving them a punch card that entitles them to a free product or service for every 10 items they buy. This technique is common at hair salons, car washes and discount stores.
4.Create a web site to advertise your business or sell products online. The world is now a global village and you can easily grow your business. Thanks to the Internet, it’s no longer necessary to open a store to reach retail customers. A website lets you reach millions of shoppers around the world without paying for rent in a brick and mortar store. There are now do-it-yourself web sites that are now available for less than $10 a month with no technical knowledge required. Typically, the companies that help you register your domain name (Web address) will provide online templates you can use to build your site, host your Web pages on their server and provide you with multiple e-mail addresses as well. E-commerce capabilities can often be had for an additional charge. You can also set up low-cost Web sites through Web hosting companies and search engines.
5.Target other markets. If you sell to teens, start marketing to college students. If you sell to working moms, maybe your product will work for stay-at-home moms with a few modifications. Another strategy is to take a retail-oriented product or service and sell it wholesale. For example, a homebased catering business that specializes in cakes, pies and other tasty desserts can contact local bakeries to sell its goods on a wholesale basis. While the price you get from the bakeries will be lower (because the bakeries need to mark it up to their customers to make a profit), you’ll sell more products and generate consistent cash flow that you can bank on.
6. Expand to another location. Open another branch-This is often the first way to expand your business if you want to sell more of your products or service to a wider market. Care must be taken in choosing a location that will attract and draw customers to your new location. Since your aim is to sell more you should carry out preliminary research in the new location to ascertain the presence of competitors and volume of customers.
7. Exploit Emerging Trends. Pay attention to changes you notice in your business and your markets. Try to spot trends you can turn into new sales opportunities — before your competitors. The first company to identify an emerging trend and take action often becomes the market leader in their industry. For example, many small businesses took advantage of the Internet early in its development. They used it to attract new customers they weren’t reaching off-line and to capture customers from competitors who didn’t yet recognize the business potential of a web site.
Every business that wants to grow must develop marketing strategies to attract customers repeatedly. This will ensure increased sales and profit, which they can use to grow their businesses. Businesses that don’t grow will soon die. The secret to success of most big corporations like Apple, Ford motors, Toyota etc, is continuous growth.
John F Fowler is a business consultant, entrepreneur and youth entrepreneurship development trainer. He has produced books on various SME business start-ups. For business advice contact him on [email protected] , www.startabusiness.com.ng, whatsapp +234 802 325 4577.
Monday April 24, 2017.
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