Two Strategies For Enterprises To Expand The Target Market

After deciding the target market, the next task is how to use the correct marketing strategy to occupy it, and choose a correct target market development strategy.

However, the choice of target market development strategy depends on the characteristics of the market itself, the links among the various markets, the market competition and the strength of the enterprises.

Therefore, enterprises should make a thorough and comprehensive analysis when choosing the target market development strategy.

Generally speaking, enterprises have the following five typical strategies to choose from: first, snowball strategy and target market "snowball" expansion strategy is the most commonly used strategy of small and medium-sized enterprises, that is, in the same geographical area of the existing market, enterprises adopt the strategy of expanding within the region, and then expand to another new area after the exhaustion of one area.

Specifically, the expansion of this strategy takes the target market of a certain region as the "base area" and "base camp" for the expansion of the enterprise market, and makes intensive cultivation, making the "base area" and "stronghold" market bigger, stronger, deeper and more thorough, and has become the basis and backing for the further development of enterprises in the future.

After having absolute superiority and absolute stability in the "base area" market, we will gradually push forward and infiltrate the surrounding areas to the surrounding areas, and finally achieve the goal of "a single spark can start a prairie fire", that is, to occupy the whole market.

The market development strategy of "snowball" has the following advantages: 1., it helps enterprises to reduce marketing risk. The marketing strategy of "base area" can provide rich experience and good demonstration for marketing practice in surrounding areas.

In the process of building the "base area" market, enterprises have studied more about the marketing rules of products, including successful experiences and failed lessons.

The accumulation of "base area" marketing experience naturally becomes the most valuable asset and capital for enterprises to expand to the surrounding area, and the marketing mistakes will be further reduced.

With the continuous rolling expansion of the market, the expansion of the market base of the "base" market, these experiences and lessons are more and more abundant, and the risk of marketing will be lower and lower.

2., it helps to ensure timely resource supply and the beginning of market rolling is based on the "strong military strength" in the "base market" market.

The profitable harvest of the "base area" market which has been bigger and stronger has provided sufficient fund accumulation for the new market development. The "base area" marketing practice has become the "Whampoa military academy" for the marketing personnel training of enterprises. Therefore, in the market expansion, the energy source continuously supplies talents to the front market.

3., it is conducive to the steady consolidation of the market. The development strategy of snowball is to expand into the new peripheral market after the existing car market has been occupied, and to adhere to the steadfast and steadfast idea to achieve the goal of keeping pace with each other.

Many private enterprises in Wenzhou have adopted the gradual strategy of "snowball".

Such as Wenzhou "Dalong" shoe machine, its whole domestic shoe machine market is mainly "three states", that is, Wenzhou, mainly with men's shoes, Fujian Quanzhou with women's shoes, and Guangzhou based on tourist shoes.

"Dalong" is, of course, the first place to get water in the near future, and the shoe machine market in Wenzhou is the "base area" for further development in the future.

After occupying the 70% of the shoe machine market in Wenzhou and gaining an absolutely stable monopoly position, the development in Wenzhou has little potential.

The second step of "Dalong" rolled into the neighboring Quanzhou market, and "cloned" Wenzhou's service experience to the new market, and achieved good results.

Now, "Dalong" has marched towards Fujian's neighboring Guangzhou.

Two, the difference between "mushroom picking" strategy and "snowball" is that the mushroom development strategy is a jumping development strategy.

The order of enterprises in developing the target area usually follows the order principle of "first best and inferior" in the target market, regardless of whether the selected market is adjacent.

That is to say, first choose and occupy the most attractive target market of the enterprise, pick the biggest "mushroom", then choose and occupy the more attractive regional market of the enterprise, that is, pick second big mushrooms, regardless of whether the market is close to the original market.

The mushroom market expansion has its unique advantages: 1. the best economic benefits can be achieved by enterprises, because every step of the business chooses the best in the unoccupied market.

Therefore, the resources of enterprises are always optimally allocated and utilized.

2. the strategy of enterprise market expansion is flexible and timeliness, especially in the case of more competitors, and if it is still in accordance with the principle of near and step by step, the competitors may soon take those tempting markets away.

Although this strategy lacks the continuity of geographical area, it is a strategy that enterprises generally adapt to.

Not only can the strong enterprises be adopted, but also the weak enterprises can achieve good results.