Chapter 12 Discussion: Expanding Your Market

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The Situation:

This has to be one of the most depressing annual review meetings you’ve ever sat through. Sure, times have been tough before, but never like this. In the past year, your power-tools company has lost 37 percent market share. Sales have decreased by 64 percent. Profit is down almost 70 percent. You had to lay off one-third of your workforce. And worst of all, it doesn’t look to be getting better anytime soon. Housing sales and construction are at an all-time low, meaning your best customers, contractors, have little work to do and even less money to spend on new tools.

“We have to increase sales!” you tell the rest of your management staff. They stare back at you, of course, because everyone knows what needs to be done. They just don’t know how to do it. How do you sell a product when demand is so low?

As everyone in the room ponders over this, an intern sitting in the back corner raises her hand and says, “Why don’t we sell more to women?” She mentions that she’s read of a number of companies that have found new success by reaching out to a more diverse customer base. Harley Davidson, for example, which has long been known primarily for motorcycles that appeal to older white men, was able to increase market share by appealing to women. It produced a new motorcycle, the SuperLow, which has a lower seat, making it easier to get on, and weighs 150 pounds less than other Harleys. It hired supermodel Marisa Miller for an ad campaign specifically targeted to female riders. And it holds women-only events at dealerships where women can see up-close, personal demonstrations about a Harley’s safety and features.

“And it doesn’t have to be just women,” she continues, “We can target a whole bunch of groups that we’ve never given much thought to before.” An enthusiastic energy courses through the room as people start discussing the potentials—new customers, more sales, higher revenues, and good times again! But the mood quickly dampens when you ask some questions: “How do we sell a reciprocating saw to women? Do we just slap some pink paint on it and expect customers to come flocking? How do we appeal to different kinds of customers without insulting them?”

Discuss the situation above or consider another product or service and share your thoughts on how it could be marketed to non-traditional customer groups.

With all discussions, you are expected to make an initial posting (250-word minimum)

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