Goldsmith Technology Commercialization Model
Step 17: Market Diversification
The sale triggers an avalanche of activities that potentially involve hundreds of people from all corners of the globe, with different languages and nationalities, with different currencies, and even different forms of government. If sales are not growing and distribution channels extending and improving, the business could be nearing the end of a product’s dynamic life cycle or losing market share to competing or disruptive products.
In either case, it is time to consider whether it is reasonable to modify the product mix, find new markets, or look for new innovations. The market has the answers. The challenge is discovering the right questions to ask.
Definition: The market diversification step is that period when the product is modified to meet new market opportunities or when new products are developed to meet existing market demand.
Objective: The objective of the market diversification step is to address changing market conditions.
Product: The product of this step is a portfolio of competitive products and multiple markets for products that insulate the enterprise against economic downturns.
The marketing activities common to this step are those necessary to diversify the products and markets.
During the market diversification step, the following activities must be accomplished:
- Market environment scanning process
- Technology transfer and/or deployment processes
- Allocation of resources for continued improvement of existing products
- Allocation of resources for new product development
Milestones: New products
Funding Sources: Venture Capital (mid/late stage rounds)
Marketing Information: Implementation of the market diversification step will usually result in knowledge of:
- Emerging industries
- Emerging products
- Emerging technologies
- Sources of technology
- Identification of new enterprise opportunities and threats
- Resources for technical assistance in technology development and deployment
Have you diversified your product line?
Do you have a market environment scanning process?
Do you have a technology transfer and/or deployment process?
Do you make resource allocations for continual improvement?
Do you make resource allocations for new product development?