5 Strides you can Start Today to Build Your Strategies, Identify your Target Markets and Increase Sales
1. Stop looking at the Big Picture!
Market sizes can be deceiving so make sure you’re really looking at the actual market segment you’ll be selling into. For example, the oncology market was worth $136.7 billion in 2019, with a CAGR of 11.9% forecasted for 2020-2025. That’s a big market! But, what part of that market are you playing in?
2. Start looking at specific market indications and segments that you’re selling into.
For example: Oncological medical devices, diagnostics, hematological cancers, lung cancers, cell therapies, cell-gene therapies, immunotherapies…You will need to target your specific market segment to determine actual market size, model your financial projections, calculate return on investments and identify your SALES TARGETS.
3. Identify the “BUYER”
It’s important to understand who pays for the product or service you’re offering. In the Life Sciences, that can vary from an academician, physician, institution, hospital, patient, pharmaceutical company…to local, national, or international governments. It’s also important to understand the volume and sales cycle for each of the entities you’re selling to. Who are the buyers AND who are the decision makers, they are often different.
4. Pricing – How much are they willing to pay?
Pricing your product correctly is one of the most important aspects of your business and sales strategies. If priced too low, you will leave money on the table. If priced too high, you will reduce sales volume. Pricing can also differ between sales channels such as Academic, verses Pharmaceutical new Drug Development, verses Clinical. Therefore, you may have several pricing structures and sales strategies and it’s important to know who’s buying and what they’re willing to pay.
5. Identify your Competition
It’s important to identify who is also selling into your space. This is always a moving target, especially if you’re on the leading edge of your technology. For example, there may be very few players in Life Science Blockchain now, but numerous players are interested in expanding into this space. They may have new product launch dates in early 2021. In addition, it’s important to keep in mind who your competitors will be selling to. Are they the same customers you’re selling to, or are your competitors focused on large companies with deep pockets, while you’re selling to the mid-sized start-up? By identifying your competitors, you’ll be able to more accurately identify a target market, market capture rates and subsequently predict your revenue streams and return on investment, while building your sales strategies.