Proven Market Development Strategies to Grow Your Tech Business
There's a common misconception that you don't need to market your products because they're already great and readily on-demand - they sell themselves. Nothing could be further from the truth! Tech is one of the most volatile industries, with new inventions emerging every often.
It's not uncommon for another company to have a product idea similar to yours and launch it within a year or two. That means you'll need to constantly keep up with your competition by staying ahead of them on all fronts.
If you want to build a successful tech company, your marketing strategy must be based on proven methods and tactics designed to attract customers. We'll show you how to grow your tech company with an effective market development strategy. Let's get started!
How can you grow your tech business with a market development strategy?
Below, we discuss eight well-researched strategies to grow your tech business. They include:
1. Aim to join new geographic areas
Market development is about identifying and nurturing new market segments and customers for your products. For example, if you sell software, you might look at the different types of businesses in which people use your software. You might also consider joining new geographic markets where there aren't many competitors yet. But first, conduct a thorough market analysis to only targeted areas that are receptive to your technology or services.
2. Look for lower supplier costs
New locations are only as good or enticing as the cost of doing business there. In other words, if the price of labor, materials, and overhead is higher than in your home base, you may struggle to grow. To avoid such setbacks, you should locate your business where supplier costs are relatively low. That way, you won't have to spend too much time negotiating deals or worrying about how to lower material costs. Instead, you can focus on growing your business.
3. Get close to top talent
The significance of hiring top-class talents in your company can't be overstated. The best employees are those who are already well-known in their field. They've built a reputation for themselves and play a huge role in customer acquisition and retention. Thus, if you want to make your tech strategy successful in your new geographic areas, you'll need to hire talented individuals who can bring in revenue.
4. Find new distribution channels
When expanding into new markets, you should think about reaching potential customers through new distribution channels. This is especially crucial in the tech arena, as more traditional products and services are becoming digitized. For instance, if you sell software, you might start selling it online instead of in physical stores. You can also leverage video marketing to acquire more customers by creating a deeper understanding of your tech products.
5. Ensure new markets are profitable before making a big investment
Don't get overly excited about your new markets before you know whether they're viable. You should focus on finding markets that offer good profit margins and can support your growth. Otherwise, you'll end up spending money without any guarantee of success. So, before making a big-money move, you want to practice caution through strategies like opening pop-up shops or temporary stores and bringing over a limited quantity of products.
6. Develop a marketing plan
Remember, you're entering a new market with potentially different interests and cultures. Therefore, you'll need to develop a marketing plan tailored to each new location. It could include content marketing, developing an email newsletter, publishing blogs, leveraging social media, and more. These activities will help you build brand awareness and attract new customers.
7. Launch your product
After doing all the groundwork and ticking every box in your market development roadmap, it's time to launch your product. You should choose a specific date when you intend to release your product, so you can create buzz around it and gain attention from potential customers. Then, you should begin promoting it by contacting local news outlets, bloggers, influencers, etc.
8. Analyze your results
You may not get it right or hit your projections after launching your products to your new targets. But guess what? That's okay! By analyzing the results, you can effortlessly learn from your mistakes, identify gaps/areas to improve or optimize, and adjust your plans accordingly. Ultimately, nothing will stand against your way to success, and your tech business will grow in the new markets in no time!
Growing your tech business through a market development strategy isn't rocket science after all. As long as you do the necessary research and follow the steps outlined above, you'll be able to achieve your goals. Here's a quick highlight of the things to remember:
- Market research is essential for growing your tech business
- New markets require a lot of work and planning
- Hire talented people to increase your chances of success
- Conduct thorough research and tests on the new market's viability before making a colossal investment
- Focus on building a strong brand image
- Create a marketing plan for your new markets
- Launch your product and see how it does in the new market
- Don't forget to analyze your results
If you'd like to discover more marketing strategies to help grow your business, schedule a call with one of our experts today!