Posted in Marketing and Strategy Terms, Total Reads: 459
Definition: Secondary Market
Secondary market comprises of customers other than those for whom a product was initially offered. These customers are differen than those who blong to the primary target segment. Small businesses normally caqnnot afford to stick to a single market and many times diversify their efforts to a secondary market for added revenues. If the primary market is not performing as expected, the secondary market can help the business reach the goals and margins that you have set in the form of providing access to new customer base and increasing sales. A product which is not able to sell at its full price in the primary market can also be sold easily in the secondary market.
For example- If you have 10 cases of widgets for Rs.100 each which you could not sell, you could ship it to an overseas factory and sell it at Rs.80 per case which turns your loss to profit even though a small one.
Secondary market sales and marketing may turn out to be challenging for small businesses which operate with a small marketing budget. With a new secondary market, the small-business marketing would probably need to be changed to suit the needs of the new market while also addressing your primary segment.