Increase your market share through new sales channels
You may be able to increase your sales and market share significantly by using different and/or additional sales methods. You can also use other business’ customer bases in some circumstances, eg wholesalers and distributors.
Choose the right sales channels
Your choice of additional channels to market will depend on your product or service type and how your customers choose to buy. The key areas to consider are:
Selling direct – You may be able to set up a direct sales operation so customers don’t need to go through a third party, such as a retailer or wholesaler. This can be good for your margins as you don’t have to pay commission. But you should consider the impact this would have on any third parties that already sell your product or service – they may react badly to you ‘going into competition’ with them.
Using wholesalers or distributors – If you are selling direct, you can consider broadening your base by using wholesalers or distributors. This will mean you are effectively ‘piggybacking’ on their customer bases. However, you may need to consider pricing carefully as intermediaries will need to make a profit.
Agents – If you wish to expand into other geographical areas at minimal risk, consider appointing an agent. This can provide representation in areas that would otherwise be difficult to reach. However, you will have to spend time managing the relationship.
Online and e-commerce – Setting up an e-commerce operation can break down geographical barriers. You will need to make some form of investment in getting it up and running and pay careful attention to servicing remote customers.
Build new relationships
You can also consider taking larger steps to establish your business in new markets and territories, such as entering export markets or establishing joint ventures and partnerships. See sell into new markets.
Whichever options you choose, you will need to make them integral to your marketing plan.