Mapping Geographic Penetration

Many companies view the marketing and sales process as intuitive, something that doesn't lend itself to a rational, analytical management process. But quantitative analysis—and information technology—can lead to significant, but achievable, growth in sales and market share.

Mapping current geographic penetration is a highly effective way for companies to plan for growth beyond their regional strongholds, as well as expand their product offerings and marketing channels. Using detailed geographic market penetration data turns marketing and sales planning into a logical, information-based process, instead of an "intuitive" activity shrouded in mystery and characterized by constant second-guessing.

Working with a team of company sales and marketing professionals, GMT undertook a comprehensive study of a Fortune 100 client's market penetration in each of the 3000 counties in the US, for six product segments sold through six marketing channels.

The GMT/client team created a demand profile for each county, based on current industry sales and market conditions in each area. This data was used to develop comparative performance ratings for all 3000 counties, measuring the company's penetration in every county against the market potential for each product category and marketing channel.

The result of the team's research was a powerful tool that was used to target the best opportunities for market growth in every county in the nation.

Working with a detailed information base, the organization achieved broad agreement on which product segments and marketing channels should be stressed in each of its US sales territories. Sales execution greatly improved, as this tool identified which products and channels should be focused on in each territory, and which marketing channels represented the best targets for specific product lines.

But this team's demand and opportunity profile did much more than improve sales in each territory. This technology-based approach to marketing and sales produced a far more comprehensive strategic plan for the entire business, based on the realities of each market's potential.

This information guided new product development and resource allocation, as well as cost reduction efforts and manufacturing improvements—in short, it impacted every part of the organization. With this information capability, the company was able to plan the impact of each new activity on its market position and financial performance—and achieve broad consensus across the business on a highly focused marketing direction. When any unanticipated events occurred, red flags immediately were raised, and action was taken.

The organization also had a new language through which Marketing and Manufacturing could communicate, using a shared knowledge base to interrelate their individual concerns and priorities. In fact, all functions could better communicate with one another, using a common framework that every department understood.

Instead of concentrating primarily on functional performance, departmental managers could assess the impact of their activities on total marketplace performance—a measurement that was much more meaningful, and led to improved performance across the entire enterprise.

Mapping geographic penetration helps companies to overcome the obstacle most commonly encountered when planning for growth: generating a credible framework and language for the entire business, a set of fact-based market assumptions, and a definitive strategy with which to begin.

And, as an organization implements its improved sales and marketing strategies, the geographic penetration model can be easily updated to reflect changing market conditions and increased penetration within individual territories. This helps to assure that the entire enterprise remains "on the same page" and continues to work with focused strategies for future growth.