Expanding into a new market is an exciting step for any business. You might be seeing great success in your current market or looking to grow your brand’s presence. But is it as simple as copying what has already worked?
Unfortunately, marketing doesn’t work that way. Every market is different in size, competition, media options, and customer habits. Before you invest in a new campaign, you need to evaluate whether your strategy will work in the new market or if it needs adjustments. This will allow you to maximize your marketing impact.
DW Creative is a Kansas City-based marketing agency that drives growth for clients by creating meaningful connections between their clients’ brands and the homeowners they serve.
By reading this article, you will learn why businesses expand into new markets, why you can’t “rubber stamp” duplicate campaigns in different markets, and what you need to know to create an effective marketing campaign in a new market. You can also view a video summary of this article below.
Why Businesses Expand into New Markets
There are several reasons why a business may consider moving into a new market.
Some companies find that their current market has fewer opportunities for growth.
Others see untapped potential in a different city or region where their services are in high demand.
Additionally, some businesses expand because they recognize that their brand has grown strong enough to compete in new areas.
Whatever the reason, entering a new market is a big decision that requires careful research and strategic planning.
Why You Can’t Just Copy and Paste a Marketing Campaign
Many businesses assume that if a marketing campaign works well in one market, it will work well in another. While this can happen, markets vary widely. A campaign that delivers great results in one city might fall flat in another due to differences in local customers, competition, or available media.
Similarly, increasing your ad spend in an existing market doesn’t always double your results. While more money can help you reach more people, there is a point where extra spending no longer brings the same return.
Understanding market saturation is key.
Have You Fully Reached Your Current Market?
Before expanding, consider whether you have truly made the most of your current market. One way to check this is by calculating your market share.
For example, if the total business available in your area is $500 million and your company makes $5 million in revenue, you have just 1% of the market. There may still be room to grow before moving into a new area. However, if you’ve captured 15-20% of the market, you might be close to saturation and ready for expansion.
Businesses with strong brand recognition and loyal customers benefit from referrals and repeat business, making their marketing dollars go further. This efficiency can make staying in your current market more profitable than expanding.
Researching a New Market Before You Expand
Every market is a unique ecosystem. Even if your target audience remains the same, a strategy that works in one place may not succeed in another due to many factors.
Advertising options vary by region. A radio campaign that works well in one city may fail in another where more people use digital streaming. Understanding the local media landscape is key to creating a strong strategy.
Before launching your campaign, ask:
- How much business is available in the new market?
Is there a need for more home services in this area? Which services do they need? - Is the market growing or shrinking?
Are people on average spending more or less annually on your service?
- What are the top advertising channels?
Where are people consuming media in this area? Where are other businesses advertising? - What does the competition look like?
What established businesses are there already? How much of the market share do they possess? - How do local customers search for businesses like yours?
What kinds of search terms are unique to this area? How do customers find businesses?
Understanding Competition and Customer Behavior
Beyond media choices, knowing your competition is critical. Ask:
- Who are the established businesses?
- How do they position themselves?
- What makes your business different in this new market?
For example, if your competitors focus on being the fastest service provider, will you compete on speed, or will you highlight quality, customer service, or another strength? In your current locale, you might have been able to advertise as the speediest service, but will that resonate with a new market?
Knowing what makes you stand out helps you craft messages that connect with new customers.
It’s also important to understand how customers in this market make buying decisions. Do they rely on online reviews? Do they prioritize price, quality, or reputation? Learning these details helps tailor your marketing message for success.
Special Considerations for Home Services Marketing
Expanding a home services business—such as roofing, plumbing, or foundation repair—adds another layer of complexity. These services have longer sales cycles, higher customer spending, and require trust. Unlike everyday purchases, home improvement decisions involve careful research.
Your marketing must reflect how customers in this industry make choices.
For example, in some regions, word-of-mouth and referrals are the main ways people choose a home service provider. In others, online ads and search engine results play a bigger role.
Understanding these differences will help you adjust your marketing strategy.
How a Marketing Partner Can Help
A skilled marketing partner can provide valuable data and insights to help guide your expansion.
Marketing tools such as Marshall Marketing and Nielsen-Scarborough and your partner can help you understand:
- Market size and spending potential
- Consumer media habits
- Advertising trends in the area
- Competitor spending and estimated sales
For example, if a competitor is spending $150,000 a year on advertising and you plan to spend only $75,000, your marketing partner may recommend adjusting your budget or exploring a different market where your spend can be more competitive.
A marketing expert can also help you create localized campaigns that fit the new market, ensuring your message resonates with the right audience.
Next Steps for Researching a New Market
Expanding into a new market is different from growing within your existing one. It requires careful research, a deep understanding of local competition, and the right marketing adjustments.
Before you expand, take these steps:
- Determine if your current market still has room for growth.
- Research the new market’s size, trends, and competition.
- Learn about local media habits and customer preferences.
- Identify what makes your business unique in the new area.
- Work with a marketing expert to gather insights and create a tailored strategy.
If you plan carefully, expansion can be a great opportunity to grow your business. However, entering a new market without the right strategy can lead to wasted resources and missed opportunities.
DW Creative is an agency committed to empowering homeowner-focused businesses. If you want help creating a marketing strategy, schedule a fit call with our team to see how DW Creative can help.
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