Marketing Opportunities: Definition and Tips on How To Use Them
Businesses use marketing techniques to generate leads and increase sales of their goods or services. Those techniques are more successful when companies first identify marketing opportunities. Examining different aspects of the market allows businesses to fill the wants and needs of customers. In this article, we learn to understand marketing opportunities, including some opportunities to consider when marketing goods and services and tips to use them to your advantage.
What are marketing opportunities?
Marketing opportunities are openings for a company to sell something to a certain type of customer. These customers, or potential leads, have a need for a product or service that the company can provide. Sales and marketing teams research market trends to determine what types of customers could benefit from existing products or services, and then they sell to that demographic. They also use this information to create new items, experiences and deals to bring more attention to their business and generate sales.
5 marketing opportunities to consider
While there are various products on the market to purchase, most marketing teams use a few basic techniques to find alternative ways to market their products and services. Here are five avenues used to search for marketing opportunities:
The first aspect many companies consider in order to determine how to market their products and services is by examining their audience. Here, the audience refers to potential leads who may choose to make a purchase after seeing an advertisement or display. Marketers first get to know their audience by analyzing the characteristics of their current customers or the customers of similar companies. If there are many people sharing a characteristic, like age, gender or location, then the marketers know these people are more likely to buy the company's products and services. Marketers target these people for advertisements.
For example, an all-natural diaper brand might find that most of their customers are young parents, so they would market to that age group more than older parents. Targeting the people who want or need products and services makes use of a marketing opportunity.
2. Marketing channels
Another way to find opportunities to increase sales is by understanding which marketing channels an audience responds best to. Marketing channels are the different methods companies use to increase the visibility of their offerings. These typically include a variety of paid online traffic avenues, like ads on social media sides, search engines and physical displays like billboards, but can also refer to organic traffic from SEO or customer referral. For online stores, companies can easily track where a customer found the link to their site, and marketers can use that information to identify which ads and marketing channels perform well.
Once they know which marketing channels bring the most customers, marketers use those channels more frequently. For instance, if a company gets most of its shoppers from a search engine ad, then the marketing team will continue to pay for and create engaging search engine ads. Often, the audience will also influence marketing channel usage.
Companies can look to their competitors for opportunities to market in similar or completely different ways. For new businesses, it may be a good idea to follow the marketing techniques of other companies with related products, but the true marketing opportunity is to see what competitors are not offering and offer it yourself.
This method is useful in crowded markets where there is a high supply of a good or service available. A company can examine what its competitors are offering customers and use that information to offer something extra. This could be a totally new product, a complementary product or a lower price. An example would be a market where many stores are selling cookies. One of the cookie stores may offer a glass of milk with every purchase, which brings more customers than the stores that only sell cookies.
Product demand controls many marketing decisions. Rising demand means that customers want the product, so honing in on particular groups of people that identify with a company is a good way to get more sales. For instance, if sandals are in high demand for spring, a shoe company might have a sale on water-proof sandals if it's near the beach, or hiking sandals if it's in a mountainous area. This helps the store bring in shoppers who want a specific product, and it targets a local market to do so.
When demand is low for a good or service, companies can use the opportunity to give discounts on a broader range of items, like a sale on summer shoes in the winter, which may lead to sales and brand loyalty from people who didn't want to pay full price. In addition, businesses can market other items in their inventory that don't have a falling demand, or they can change existing items and market them as upgraded versions.
5. Market growth, stability and decline
Markets go through periods of growth, decline and stability that affect the ways companies choose to market their goods and services. Each of these periods has the potential to generate market opportunities using many of the marketing methods discussed here. During market growth, many companies are selling the same or related products. Companies can use growth as an opportunity to create brand preference. This is an opportunity for companies to establish their brand as the one that shoppers choose to purchase even after the growth phase is over.
When the market is stable, there are many brands from which customers can pick a product. Marketing teams can use this stability to enhance targeted marketing, like audience-based ads, and attempt to sell to people who typically buy from other brands. A marketing team may examine their competitors to determine how to make themselves unique in the market.
Finally, when a market is in decline, companies can use this as an opportunity to enhance their offerings or pivot to a new product. Using their sales and marketing data, they can anticipate what customers might want from a new product and get an early start on the next trends.
Related: 22 Examples of Growth Strategies
Tips for using marketing opportunities
It takes practice to recognize and use marketing opportunities effectively, but here are some tips to help you get started:
Hold giveaways and contests to generate leads
Examine online analytics regularly
Test many types of advertisements and marketing channels
Get to know your target audience
Repurpose old marketing content that brought results
Collaborate with your marketing team
Observe the market
Explore more articles
- Business Analytics vs. Data Science: What’s the Difference?
- A Definitive Guide to the Toolbar in Excel (With Benefits)
- 29 SEO Reporting Tools (With Descriptions)
- How To Plan a Virtual Event in 5 Steps (With Examples)
- What Are E-Learning Tools? 13 Helpful Tools To Explore
- Financial Reporting vs. Management Reporting: What's the Difference?
- What Is Work-Life Integration? (Plus How To Manage It)
- OneDrive vs. SharePoint: What's the Difference?
- Pitching Business Ideas: A How-To Guide
- 8 Communication Skills For Project Managers (Plus Tips)
- FAQ: What Is IT Service Brokering?
- What Is Continuous Performance Management? (With Tips)