Main Revenue Growth Strategies on a Given Market

If a company is planning to grow its turnover on a given market, it should craft a detailed marketing strategy. Below I will describe three main strategic directions for revenue growth.  Please note that this excludes the cases when a company is moving to a new market or expanding its product offer to achieve sales growth.

First, let us define what a market is: a sum total of all buyers and sellers for a commodity or a service in a certain area or region. So, the important criteria include: the presence of buyers (potential buyers), the presence of sellers and the ability and desire of both parties to exchange goods, services and monetary equivalents.

By definition, markets are often limited by geographic borders (however, this is becoming obsolete in times of digitalization and globalization).  Furthermore, there is time aspect as markets tend to go through significant changes over time and even disappear.

When talking about markets we start at the level of available market (that is the total number of available buyers on the market, e.g. people living in a certain area).

The market potential is the sales that could be generated from the customers  who are not currently purchasing the product but would buy it if the company applied the sufficient marketing effort.  With this in mind, there is always a share of customers who would not be profitable to acquire or who would not buy the product at any rate.

Customers who are already purchasing the product comprise the current market volume, which, in turn, consists of the company own market share and that of competitors.

revenue-growth-market-diagram

As you can see on the diagram, there are three main strategies to achieve revenue growth:

  • Market exploration: attracting the customers from the “potential market” segment. This is a good strategy if the market is relatively new or less attractive to the competitors so that there are a lot of opportunities to expand.
  • Market invasion: in this strategy, the company tries to capture the market shares of the competitors. This is a viable strategy for declining or aging markets with a lot of market players and high competition.
  • Market deepening: turning towards the existing customers in order to grow the revenue (increased product usage or cross-selling and upselling).  This strategy is often used as a complementary way of achieving revenue growth in addition to the two strategies mentioned above.

Let us look at the example of a chewing gum market. The exploration strategy would involve targeting the customers who are currently not buying chewing gum (explaining the product benefits, etc.). The invasion strategy would be competing with other producers of chewing gum for the same customers. The deepening strategy will try to market a larger amount of product to the same customer (e.g. suggesting using two strips of chewing gum instead of one or using the chewing gum after each meal).

Using one of these strategic directions (or their combination), a company can create a more detailed marketing strategy to achieve a growth in revenue over time.

Share this post

The Why and How of Effective Personal Branding

If you think that personal branding is only important for Hollywood stars and CEOs of Fortune 100 companies, think twice. Because the chances are that YOU can greatly improve the effectiveness of whatever you are doing through a smart personal branding strategy.

Why personal branding?

A strong personal brand will:

  • Help you find a perfect job if you are unemployed
  • Win more projects and customers if you are a freelancer
  • Promote your company if you are an employee or a company owner
  • Attract more attention to a good cause if you a volunteer

Building a personal brand

Building a personal brand is similar to building a product or a company brand. It begins from investigating the needs of your target audience and ends with concrete activities to promote your brand.

personal branding strategy

Environment & target audience

The main goal here is to match your core values to the needs of the target audience. In personal branding, authenticity (being who you are) naturally plays a more important role than in product branding.

Ask yourself the following questions:

  • What am I good at?
  • What are my advantages as a professional?
  • Who are my competitors?
  • Who are the leaders in my field? How did they achieve success?

Then turn yourself to your niche:

  • Who are they?
  • What are their interests and needs?
  • What channels of communication do they use?
  • Who can become my partner or maybe an advocate?

Here you can find a more detailed explanation about investigating your target audience.

Branding strategy and USP

After you defined the direction you will be moving in, you need to get to grips with the branding strategy.

Margaret Mark  and Carol S. Pearson came up with the theory of brand archetypes, which is briefly shown in this table. This is something you should probably keep in mind when crafting your brand.

brand archetypes mark pearson

For example, if you are a trainer, you can select the archetype based on the type of sports you teach: a hero (high-impact training); a caregiver (restorative yoga classes); a creator (contemporary dance classes); an explorer (outdoor activities) or even an outlaw (extreme sports).

However, you can select the archetype based on other criteria (the point is being true to yourself). You can also combine several archetypes to create a unique brand personality.

Another way to convey the uniqueness of your brand is to use the following:

  • Rituals (things you habitually do).  Example: Winston Churchill smoking pipes.
  • Attributes (things you own, wear or carry around). Example: Black sweater and jeans of Steve Jobs.
  • Mystery (biography gaps, rumors, dissonances).
  • Background story (events or circumstances that led to personal enlightenment, “turning point” events).

Brand positioning

Brand positioning means working on concrete visual, intellectual and emotional qualities of your personal brand.

During personal contact, you have several ways to influence how you are perceived by your target audience.

Visual cues

Those include facial expressions, body language, clothing style, hair and makeup, body shape, etc.

Verbal effect

Rhetoric, intonation, choice of words, correctness of speech, negotiation and presentation skills.

Communicative effect

Empathy, tactfulness, “tuning in” with your audience, making a positive impression, conveying the expertise, answering the needs of the audience.

In addition, you should create a consistent “personal identity” (“corporate identity” in company branding). In other words, select personal colors, fonts, create a logo, a signature, a motto, etc. Those are used to “anchor” the brand in the minds of your target audience. Use them consistently in:

  • Social media profiles, personal blogs;
  • Business cards, printed materials;
  • E-mails, letters, etc.

Brand promotion

The final step in personal branding is to start promoting your brand.

Below you will find an overview of promotion channels.

pronoting personal brand

 

Social Media

What is important: Relevant channels, consistent presentation, authenticity, truthfulness.

What it can bring: Networking, strengthening brand image, opportunity discovery.

Events

What is important: Selecting events according to your niche, connecting with target audience, considering active and passive participation as well as organizing and hosting events.

What it can bring: Publicity, networking, expertise demonstration, opportunity discovery.

Partnerships

What is important: Partnering with influencers and thought leaders from your niche, selecting advocates for your personal brand, meaningful partnerships, authenticity.

What it can bring: Publicity, reach, strengthening brand image, expertise demonstration.

Advertising

What is important: Selecting relevant channels, consistency, authenticity, communicating value to the target audience.

What it can bring: Publicity, reach, strengthening brand image, opportunity discovery.

PR

What is important: Working with relevant mass media, focus, regular updates, observing code of conduct.

What it can bring: Publicity, reach, strengthening brand image, expertise demonstration.

This is by no means an exhaustive list and this topic certainly deserves a deeper dive in one of the follow-up posts.

As you can see, personal branding is a highly important matter, especially in times when a lot of us need to re-orientate and apply creativity in achieving our goals more effectively.

Share this post

4 Most Important Strategic Marketing Steps

In this post, I will outline the most important steps in creating your marketing strategy. This checklist enables you to create a successful marketing plan.

In this post, I will outline the most important steps in creating your marketing strategy. If you start with this checklist, the rest of your marketing strategy will fall into place more easily.

Marketing Step 1: Who am I?

The first and foremost thing to do is to define your company. This includes the type of the company (a start up, a small local business, a medium-sized company, etc.) and the line of business you are in (banking, catering, consulting services, retail, etc.). Also, think about your branding strategy, i.e. how you want your customers to perceive you. You can use different brand-building models. One very well known model is brand identity prism. At this point, you do not have to worry about brand appearance (logos, colors, etc.). Instead, you can ask yourself the following questions:

  • What does my company (brand) do?
  • What impression do I want to make as a company (brand)?
  • What is the personality of my company (brand)?
  • What relationship does my company (brand) have to the customer?
  • What kind of people are my customers?
  • What are my company (brand) values and principles?

For example: Tuscolo is a small local chain of Italian restaurants that serves real Italian food in a friendly and familiar atmosphere. It incorporates tradition and creates authentic Italian experience through its interior, service and food presentation. It caters for families, couples and groups of friends and colleagues who want to enjoy good food in a relaxed setting.

Marketing Step 2: What is my offering?

Decide, what products and/or services you are going to offer. Do not think in terms of what you can possibly offer. This will produce difficulty in creating a well-defined product portfolio and diminish any marketing efforts.

So, how do you define your offering? On the one hand, there should be a market for it (do some market research or ask your current customers and business partners). On the other hand, this should be something you can do or produce really well (see Step 4). Additionally, think about what is feasible to offer at the current company state. Then, you will also need to define the key features and properties of your products or services.

Marketing Step 3: Who are my customers?

The next important element of your marketing strategy is customers. To make things easier for you, you can use the following plan. Firstly, think in terms of generic target group definition – such B2B or B2C customers and the geographical area you want to serve.

Add parameters such as the size of company and the line of business (for B2B) or age and gender (for B2C). Secondly, specify this by segmenting within your target group. E.g. large vs medium-sized companies, retail vs wholesale, etc. Third, dive deeper into the definition of each segment and develop customer personas. In case of B2B, that would be profiles of individual decision makers. Try to understand their motivation, their needs and wants, how they communicate and what they expect from a product or a service.

Marketing Step 4: What is my USP?

USP or Unique Selling Proposition is the cornerstone of every marketing strategy. It is what sets you apart from competition. Basically, it is the reason Why for your customers. You can develop a generic USP for the company or think in terms of USP’s for separate products or USP’s for different customer segments.

For example, you own a bookstore specializing in nonfiction literature located close to a university. The first customer segment is students. The USP for them is low prices/discount schemes and fast in-store delivery for the books they require for their courses. Another customer segment are university researchers and professors. The USP for them is different: a large range of specialized books in several languages available upon request and courier delivery services. You may have more segments and USP’s:  people living in the vicinity of your shop (you have a good coffee bar), hobby researchers (your employees take time to provide advice on a variety of subjects and make literature recommendations), etc.

Generally, you should not jump into doing anything or start spending marketing budget before you have made these four steps and created a solid foundation for your marketing strategy.

strategic marketing steps

Share this post