How to Identify a New Market in 5 Easy Steps

Is your small or midsize business looking out for a new market to sell your products/services? If yes, what you need is market research from an expert who can evaluate your sales and customer data. Once that is done, all you need to do is follow these easy steps to identify a new market and start selling your services/products to a new audience. Let’s have a look at the steps:

  1. Meticulous evaluation of sales and customer data

    Use your customer relationship management system (CRM) and enterprise resource planning (ERP) to run reports on who are currently buying your products, along with their location. If need be, this information can be calculated manually with the help of a spreadsheet to extract and sort out the data. This will give you a clear picture as to why these specific customers are particularly attracted to your products/services. If you are able to find a pattern, you will be able to find new target audiences to which you can apply a similar pattern.

  2. Go to a place where there is a need

    For better results in selling your products, look out for an industry or region that have needs similar to those that you are already servicing. When there is a need and a solution, a sales deal can be so much easier to close. By trying to understand who already uses your product/service and why, you can get meaningful insights about other customer groups that would require the same.

  3. Look out for buying power

    With extensive market research conducted on sites like Ibis world or Hoover’s, you can get a good understanding of whether a particular market can afford your service/product. You will be able to receive an industry snapshot of the buying power of a particular market. Such information is crucial, as by observing the revenue/income in an area of need, you can get a picture if they can support buying your product/service or whether there is justification in marketing to them.

  4. Get ideas from your in-house team

    Your in-house team of resources can be the best source for information and ideas. Employees from different departments like fulfillment, sales, product development, marketing and customer service are in close contact with your consumers. Your team can brainstorm prospective new markets for you. You can then carry out an online research to take their ideas further.

  5. Test out potential markets

    Once you have identified prospective markets, you should test them out. You can start by introducing a product/service at a discount, holding a free demonstration or event, sending out emails/direct mailers or by running ads in a trade or local newspaper. Remember to conduct tests for a minimum of six months or for two business quarters, just to check if seasonality is affecting the audience in any way. A very short testing period can give you misleading results.

  6. Outsourcing Market Research Services can put you touch with a team of experts who can conduct the research for you. Did you like reading this post? Would you like to see more interesting posts on market research? If yes, leave a comment below. We, at Outsource2india love to hear from you!

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