Why Diversification is Imperative for Manufacturers and Service Providers Today
Industrial companies are natural candidates to diversify their business. Unlike consumer product companies, industrials typically have a niche offering with a narrow market. This specialization may lead some to think that diversification isn’t feasible for industrials – but this does not have to be the case! With the right industrial marketing tactics, new geographies and even new industries can be accessible to industrial companies looking to diversify through marketing for industrial companies.
The unfortunate truth is, many industrial products and services don’t end up making an impact outside of their local trading areas. The results of this are a loss not only to the company’s potential sales but also in their opportunity to become a leader in their field. Failing to consider diversification can be a strategic mistake and is often not done for the simple reason that management is unaware of some very easy tactics in marketing for industrial companies and service providers that could help them to diversify successfully.
Today, with markets evolving much faster than they did in the past, diversification is becoming imperative for industrial companies. It is truly a global village today, and markets can be created in very short time, but also can be taken away in the blink of an eye. Competitors all over the world can build or provide what you do – it’s just a matter of time before they do. By diversifying, you can protect your market and also grow it.
Diversification Usually Comes in Two Forms When Marketing for Industrial Companies:
The most common form of diversification. Geographical diversification can offset any disturbances in a local or regional economy. This type of diversification can also help you to reach markets where your product is lower cost due to exchange rates.
This can be more difficult, depending on your business. Suppose you started out providing environmental equipment for oil and gas well sites – you can likely expand and do the same for mining, construction and municipal applications.
Reach New Markets Easily with Today’s Advanced Technology
Because industrial companies have always had a distrust of marketing, little has been invested in this area in the past. Traditionally, it’s been difficult (and expensive) to market and/or advertise in geographies or verticals where you ‘hope’ you might be successful, and it’s understandable why many companies avoided this.
Fortunately, with technology today reaching out to new markets can be done easily and with very little cost. Download this case study as to how one manufacturing company accomplished this and ended up growing revenues, attracting investment and broadening their market.
In today’s global marketplace, your options come down to this: Diversify, or hope your competitors don’t. Diversification has become imperative for industrial companies looking to secure and grow their business, just as moving to better technology is in your operations. Marketing for industrial companies and service providers can help a company accomplish their diversification goals successfully by reaching and exploring new markets.
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About Fred Yee
Fred Yee is the founder and CEO of ActiveConversion, a company that makes online marketing work for industrial companies. Fred was voted as one of the 40 Most Inspiring Leaders in Sales Lead Management in 2017, and his work with ActiveConversion has helped hundreds of businesses succeed online. ActiveConversion is Fred’s third successful company, and he continues to explore the possibilities of technology in industrial sales and marketing.