People often think the best use of their marketing dollar is to go after new markets.
Most of the time you are better off trying for a bigger share or better ROI (Return on Investment) from your top, most productive, best market segment (type of customer), or best-selling product or products.
There’s actually a simple mathematical formula involved. A larger share of a bigger pie gives more of an increase than an equally larger share of a smaller pie.
And if you are talking a new market, you often have no idea how big that pie is – or how to get your hands on it. Why experiment when greener pastures are right around the corner? The grass is often greenest on your side of the fence (I can mix metaphors with the best of them).
