Going to Market in Developing Economies
By catering to smaller market segments, companies can discover hidden pockets of opportunity in diverse emerging markets. Find out how to win big by targeting small.Read the article
Details matter. Those are words to remember for any company looking to transform its strategy for competing in emerging markets. Individual markets can be vastly diverse in terms of income, consumer preferences, and shopping preferences.
Instead of approaching each market as a one single mass, companies can segment the market into smaller customer or geographical segments (beyond the obvious levels of regions and provinces). Doing so can reveal truly local opportunities that might otherwise go unnoticed.
Capturing and leveraging such granular insights can help companies tailor their marketing and promotional programs, and fine-tune sales and marketing interventions. But it takes more than just cutting the market pie into smaller slices.
Companies need to arm their local sales managers and representatives with new geoanalytical tools and the authority to create compelling offerings for customers in these small segments. Sales managers effectively become CEOs of their territories, with the freedom and decision rights to execute strategies that will appeal to local customers. We call this approach street-smart sales.
The payoff is considerable. Even in markets where growth is tapering, companies have consistently demonstrated revenue gains of 5-8% over business as usual by following this approach.
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