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Most companies want to increase their profitability. One of the main tools used to accomplish this goal is expanding their share of the consumer market that is interested in the goods and services they produce. Increasing market share is a process that takes careful planning and implementation in order to be successful. There are four basic steps that can keep the plan focused and highly likely to yield positive results.
The first step toward increasing market share is to understand the market itself. This means getting to know everything about the consumers who make up that market. Factors such as age, gender, income levels, and geographical locations are very important to this process. It is also a good idea to understand how these consumers use the goods and services they currently purchase, and why they find them to be of value.
Once this data is gathered, it can be evaluated and utilized to refine existing products so they are of more value to the targeted demographic. Along with refining existing products, the company may also choose to create new products that are relevant to any previously unknown wants and needs found in the targeted market. At the same time, the company should prepare strategies that will allow those products to be easily accessed by consumers.
With an understanding of the market in place, and a product line aimed at satisfying customer demands, the next phase of growing market share involves creating the right in-house structure to support the production and sales of the goods and services offered. This includes setting up the production line so it can meet the anticipated demand, as well as hiring and training qualified salespersons to generate sales growth over time. Structuring the delivery process is also an important part of this phase. Without having this type of strategic management and infrastructure in place, the chance of growing and keeping market share is extremely slim.
The final phase associated with increasing market share is the development of an effective advertising strategy. With the goods and services in place, the manufacturing process refined, and infrastructure ready to move, the company must engage in a strategic marketing approach that lets customers know what they have to offer. Marketing plans include developing the most efficient and effective use of different forms of media in order to reach the target market. The nature of the goods and the demographics of the targeted market will greatly influence the creation and implementation of this strategy.
It is important to understand that growing market share can include other elements as well as these four basic steps. However, no successful company, large or small, can experience sales growth without addressing these core issues. Taking the time and effort to address each one fully not only increases the chances for success, but also makes each succeeding step that much easier to manage.
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