|Methods and techniques|
Market refers to a place, where forces of supply and demand meet and where buyers and sellers interact in order to exchange goods or services for monetary value or barter. Market also includes instruments that help determine the price of particular items or services, systems responsible for communicating offers and distribution tools.
Reach is defined as the number of potential customers that have been exposed to advertising or promotional message. Reach is often understood incorrectly, as the number of people that have actually seen the advertisement or promotional message. It shows the number of people that were exposed to the advertising channel, not the ones that have necessarily read or seen it. It describes the number of potential views. For example, if 1000 people drove by the billboard, 500 of them noticed it and just 200 read the promotional message, the reach number would be 1000, because it represents the maximum potential number of advertisement views. As a manager, it is greatly important to understand your company's market reach, because it gives an idea how much the enterprise can grow in the future and whom it can reach with its products or services.
Broadening market reach
Broadening market reach means taking actions, that will allow more customers to get access to company's products, or generally new products that were previously unavailable for certain market groups. It also means increasing company's or products' recognition on new markets or within new target groups. Companies decide to broaden their market reach in order to seek profit and business opportunities in new, not yet explored markets.
Ways of broadening market reach
There are number of ways of broadening market reach. For example:
- Entering foreign markets
- Investing in nationwide advertising campaign through social media channels
- Exploring new target groups
Mentioned above are examples of expanding company's market reach. Company only decides to take actions mentioned above, when expected outcomes are significantly bigger than incurred costs. Because expanding to new markets presents a set of threats to every company, the process has to be accompanied by deep analysis, e.g. SWOT analysis. Such analysis helps company to prevent failures, minimize risks and it also makes managers aware of different external and internal threats.
- Waltz E., 2018, p. 6-7.
- Alejo R., 2010, p.1137-1150
- Jong J. P. J., Freel M., 2010, p. 47-54.
- Arora A., Gambardella A., 2010, p. 641-678.
- Guler I., Guillen M. F., 2017, p. 319-410.
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- Arora A., Gambardella A., (2010). Chapter 15 - The Market for Technology. "Handbook of the Economics of Innovation", V. 1, 641-678.
- Guler I., Guillen M. F., (2017). Home Country Networks and Foreign Expansion: Evidence from the Venture Capital Industry. "Academy of Management Journal" V. 53, I. 2, 319-410.
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- Waltz E., (2018). With a free pass, CRISPR-edited plants reach market in record time. "Nature Biotechnology", V. 36, 6-7.
Author: Jan Kaptur