Vlad Sapozhnykov - January 19, 2019
Before you start. If a company decides to enter a new market - it should have a marketing plan. This plan is required if you are looking to expand into new markets, sell new products/services, or existing ones.
To gain a competitive advantage, business owners must learn about what, where, and how of the new market environment they plan to enter. They need relevant insights to enter new markets as more successful as possible.
To help you overcome the biggest challenges of entering new markets, we're breaking down everything you'll want to look for below.
Download the full 30-step market entry checklist from Adloonix.com here.
There are two different types of business owners who want to enter new markets. The first type is called the aggressive one:
A business owner has the idea and wants to sell NEW services or products into NEW markets.
To be successful with this tactic, have to comprehend the new market and how the new offer delivers product value to this market. The second type is about expanding. Expanding into another market can be a powerful method to develop your current business. An orderly process will help you precisely evaluate the potential of every development opportunity.
A business owner wants to sell the EXISTING service or product to a NEW market.
You need to get insights about the market, customer's behavior, and competitor's advantages. For both variants, the market research, market entry strategy, and CX strategy are required. When a business is set up, and flourishing in its home market, it is frequently observed as the perfect time to stretch out into another market. There is each probability that the organization comprehends its current market, its client base, and their necessities and realizes how to address these issues adequately. On the off chance that the organization appreciates solid deals, has incredible brand mindfulness and the business is steady by and large, it might be the opportune time to dive into the new market.
Be that as it may, likewise with every single new business solution, there are risks joined to this move and it's anything but a step to be messed with. Another market won't be so agreeable and there will be new contenders and obscure dangers. The way to progress is a restrained methodology with the suitable dimension of risks via a careful market investigation.
In this article, we consider 30 steps about how to grow your existing business by expanding into new markets and how to enter new markets with the new products or services.
So, let’s start.
Be definite about what you desire to accomplish in a different market, including the level of transactions you suppose to get. Try not to dismiss your objectives as you flesh out your plan to help you stay on track and validate that your overall business goals are followed.
Investigate principles that could influence your services or products and how you create and deliver them. You'll additionally need to comprehend the market peculiarities and requirements to ensure your core value proposition complies with local demand. Find out about various marketing channels, as well.
Certainly, defining your market for penetration may look like a pure move, but before you know who you desire to sell your services or products to, it is challenging to recognize their wants and demands. You'll require to analyze the demographics and the original wants or interests of your target audience.
Not every country is suitable for your business. Analyzing the country’s GDP presents a hypothesis of the economic situation. The focus of the market research should be to obtain insights on which country or city have the highest demand for your service or product and the least supply for the same.
At this stage getting the right partner relationship plays a very important role. For every business market entry is a quite responsible move. Looking for help or a bigger, long-term partnership in market entry adventure, marketing agency or market research company have the resources and expertise you need.
One strong lead agency might be enough. Or you might need a group of top agencies that specialize in different areas.
In question how to enter a new market, this step is crucial. Invest in conducting market research. Market Research is the systematic gathering and analysis of data insights relating:
- Target market analysis (demographics, growth, sizing);
- Competitor’s strengths and weaknesses (tools, traffic, channels, product basket);
- Online demand (trends, statistics);
- Customer buying behavior;
The goal of market research process is to determine the potential assets you can achieve.
Market research assists entrepreneurs make better decisions, take the guesswork out of data resources into ideas and strategy that are the most effective. Brand and startups at different stages of growth do market research for various reasons. There is a listing of ideas about how brands and startups can use market research:
To define the practicability of a new business: if market research shows there’s insufficient or no demand for the service or product, the business is unpromising.
To update and expand their business – recognizing issues with specific marketing phases such as client service first, helps brands and startups overwhelm expensive disorders.
To increase the benefit of their promotional campaigns. By measuring buyer attitude and learning how their business is recognized, brands can better develop their digital and marketing strategies.
To test demand for different services, products or innovations.
To ascertain optimal service or product placement – when, where and how should a brand enter the market.
To maintain tight loops on marketing trends and develop strategies on how to stay leading or accommodate to changing market conditions.
Learn more about the market research service by Adloonix.
Prioritize and pick the target market(s). Once you've performed the market analysis and domestic facilities evaluation, it is time to prioritize likely markets for expansion. Markets should be prioritized based on the imperative rush. Answer questions like: Are there a deficit in this marketplace that we can complete (and do so better than our opponents)? What value do product or service deliver to this market and how much are potentials prompt to pay for it?
Learn your target audience. This is very important because the channels, language and knowledge you use to interact with an appeal to one demographic may not be as powerful with another. Certainly, determining your target audience provides you place in your marketing, promotes more flexibility in your messaging and enables you to authentically relate with your customers.
In various cases, the best way to market efficiently is to think less about marketing and more about relationships. Willingly focusing on how you can sell to your target audience, build a customer experience strategy that produces their trust in your brand and confirms that you understand them.
As your business goes to a new market or grows, the advantages of investing in expansion also change or begin to grow.
Be aware that in some countries your business can get high competition
Your brand may have a regional or local reach and deal with competition well, but working at a national marketplace starts up a property of new competition. Recognizable companies will already have a powerful influence, whether nationally or locally, and breaking through to place your ‘brand’ is an especially relevant part in making your expansion successful, both short and long-term.
You can face challenges with logistics (ie. customs, transportation or shipping).
Do not be upset, rather, put on your creative hat and shift gears into solution mode instead of blame mode. A lot of processes and people are involved, so you just need to be prepared and be positive. Once you have gone through the process many times, you will learn and become productive in forecasting issue and planning for it. Any obstacles can be expensive.
You also need to prepare for HR Issues & employee management
When staring at meaningful expansion it can often be the case that these processes and structures become accidentally ‘bloated’ – and that’s where you may need to be looking at aspects like re-defining roles and restructuring your departments.
Understand the cultural and social factors. You need to accurately plan to meet the needs of the local market.
Countries are very diverse from each other in terms of the language spoken, social conduct, religion practiced, food and in many other forms. Moreover, consider if the manners of that country adjust with your services or products?
Making a market analysis will help you analyze the socio-cultural, political, technological, and economic shifts in your business ecosystem.
Get your first transaction and earn your first dollar as validation to build the service or product – even before it's built. If potentials won't buy the product or service based on a presentation, they probably won't buy the service or product when it exists. A simple way to make this is to develop a testing landing page. Run first ads. Look at if somebody clicks the "Buy Now" or "Get a consultation" buttons. If it is so, you have got product validation.
Why would someone buy from your brand vs. a competitor's one?
It’s a simple point. What drives consumers to choose your brand, to prefer your services or products over the numbers of options? What makes your brand, and your services or products, better than the rest?
The key: your core value proposition.
A core value proposition is a value you ensure to give to your consumers’ post-purchase. It’s sequentially what makes your service or product engaging to purchasers.
Your core value proposition is the essence of your competitive advantage. If you can develop your value proposition, you can boost your conversion rate and develop your digital tactics across many marketing channels. Determining to perform the core value your brand and products perform in a compelling tone is one of the most wide-reaching, high-value marketing points.
Comprehend your business differentiators and in some cases, recalibrate to fill the gap, not follow the trend. With each big business idea, there was a first to market. Strive to be the market leader.
Determining how much to price for your service or product require more reasoned than just estimating your costs and adding a margin.
How much the consumer is ready to pay for the service or product has very scarce to do with cost and has very much to cause how much they appreciate the service or product they’re purchasing.
Do not ignore the final purpose of the brand is to maximize profit standing in competition and maintaining the competitive market. Nevertheless, to maximize profits along with engaging your customer you have to make sure you determine the appropriate pricing strategy. The right strategy will help you accomplish your goals as a business.
The directors of the brand analyze everything before they price a service or product, this everything covers the product demand, the willing of a consumer to pay for the services or products, the current market conditions, the competitor's performance, the product value, the production and the raw material expense or you can say the cost of manufacturing, and of course the margin or the profit margins.
Each brand has its own tone. And your brand story is more than just an engaging tale. The brand story covers what’s reproduced on a website or application, the text in a brand book or the presentation created to pitch to consumers or investors. Your brand story is not just how your brand is recognized by people but it is including what they think about your brand or company based on the signs your brand gives them.
Every detail you make of your brand, from your design packaging, business cards and the web colors to the team you hire is a component of your brand story and each detail should display the openness and honesty about your brand back to your target audience.
The brand provides information that helps prospects and consumers recognize a brand's value (why it’s beneficial) and values (what it believes in). It combines the brand’s engagement and excites a wish for a brand's services. Brand messages give a story that makes consumers attracted about your products or services and encourages them following your brand.
The product development process is the most important process in every business. Nowadays product lifecycle is very short. Thus, you require to finance in innovations. With innovation, you will develop better services and products for being the market leader.
Product improvement can include renovation of a current product or its offering or formulation of a completely new product that meets a lately determined customer need or target market.
The main purpose of product development is to control and increase market share by satisfying clients’ needs and wants. Not each service or product will attract every consumer, that is why determining the target audience for a service or product is a significant part that should take place firstly in the product development process. The market research may be done at all stages of the development process of a brand or startup, including before/while/after the product is created.
Market entry strategy is the basis of how your business intends to involve consumers, deliver product value, build effective relations and achieve business goals.
How do you need to be recognized by the consumer? With this plan, the market entry strategy comes into action, where the buyer personas, as well as the techniques to be adopted to reach them, are recognized and connected. All segments of the consumers require to be analyzed accurately, including decision-makers and influencers.
This step-by-step guide of essential ways how to enter a new market in developing your market entry strategy is a high quality, but it gives that to do the best decision for your brand, you should do your homework and analyze all of your choices around risk, cost and predictability. The main benefit of any market entry plan is inspired somewhat by determinants outside of your control but investment in these upfront levels should assist you to decrease the risk.
Most thriving businesses recognize that they are the customer experience oriented businesses.
But what is customer experience in fact?
Customer experience (CX) is described as synergies between a consumer and a brand throughout their communication and relationships. Synergy covers some stages as awareness, discovery, investigation, choice, purchase, service, use, advocacy, and re-purchasing.
Customer experience is a crucial element of the marketing activities and the reason why it’s essential is that a consumer who has a positive experience with a brand is more likely to convert, re-purchase and be the loyal consumer.
Actuality, research by Oracle company uncovered that 74% of senior executives consider that customer experience influences the willingness of a consumer to be a brand advocate. If you desire to stay loyal to your consumers, you have to invest more to perform better experience!
Customer experience is the most impressive opportunity for brands next year and the reason is pure; the businesses that concentrate on customer experience reduce churn and boost revenues – reaching higher profits!
And each business should interest in a reasoned and accurate strategic planning process before launching any service or product.
What is a customer experience strategy?
If customer experience (CX) belongs to the amount of each communication a consumer has with a brand, both pre-, post-purchase stages, the CX strategy represents the reasonable plans to deliver a positive, remarkable experience across those communications. It manages all communications in the buyer and customer journeys and engages cross-functional departments — service, management, marketing and sales — and many touchpoints.
Customer experience mapping is the method of designing services or products with the consumer at the lead of decision-making. Customer experience design is centered on developing services or products that meet customers' wants, needs and are simple and habitual for them to solve their challenges.
Before developing the customer experience strategy, you need to gather significant data for better decision-making.
Market research. Which includes the competitive insights and marketplace data: share & sizing; Buyer persona research. To learn more about customer purchase behavior;
A strong customer experience strategy should cover plenty of relevant parts, including, but not limited to:
- Creation of brand messages (mission, vision, big idea);
- Key message transformation;
- Customer journey mapping;
- Content strategy;
- Measurement planning;
- Marketing & sales funnel;
- Omni-channel tactic;
- Step-by-step plan;
Do you know how you can sell better apart from your competitors? A solution can be more simply — more features or lower pricing, maybe — but you will just scrape the cover here. Think wider and you’ll understand why consumers favour and continue coming back to a remarkable brand: they have a positive experience with it. Just think about it.
What is better - the full website or landing page? We feel hopeful that you are inspired at the possibility of having or revising your website. So, let’s view at what are the steps you require to know to do it right. The fundamental actions to launch a website:
- Gather competitors' and customers' insights;
- Understand what type of website your customers need for;
- Ask for SEO requirements and recommendations;
- Choose how to develop the website via web platforms or scripting languages;
- Develop web design and make it look great;
- Choose a domain name and hosting provider;
- Draft, find and prepare your content;
- Test your website before and after launch;
Similar to the majority of brands, you can decide to employ the assistance of qualified web developers and marketing agency to develop your site. Be ready to answer related questions as these statements are important to build a “productive digest.” The productive digest will assist as an example or implication to designing the website. Despite whether you hire a marketing agency or not, you should understand the responses to the next subjects:
Purpose What is the purpose of my website? Am I providing a product, a service, data, or information?
Goals What actions do I want my web visitors to take upon visiting the website?
Target audience Who am I trying to reach? What are the demographics of my target audience?
Content What kind of information will my target audience be looking for? Are they looking for a particular product, specific information, online ordering?
The marketing agency can advise you what is better to choose like landing pages for products/services or full website. But developing your website didn’t stop on the launch day. Like any developing, you’ll require to get stages to assure your website is working in the best way and it is safe. You should generate traffic, bring repeat visitors to your site and optimize a website to rank higher with the help of SEO.
40.4% of all users purchase more of a businesses' products after downloading applications. 45.9% also end up visiting such brands' physical stores more frequently.
Mobile is going more popular over desktop devices: time spent and quantity of mobile users on smartphones are continuing to grow.
A strong mobile application can help your brand to:
- Grow your income by developing sales or adding a new revenue source;
- Raise the brand's community by giving a new marketing channel for your audience;
- Improve employee communication by developing an internal app for your company;
- Get better customer experience for your potentials and customers;
- Heightening your mobile marketing strategy;
- Boost your brand awareness;
Implementing seamless, yet winning experience on mobile is more critical than ever, and it delivers a reliable competitive advantage to brands that make it in an appropriate way.
If you’re Amazon and your target audience is wide and diverse, it is challenging to generate content to engage every kind of consumer. That is why to be a great business, such brands begin from the small part and personalize content for the most loyal consumer segment first.
For others, if you are not Amazon, you should have a much bigger segmentation of consumer's you are attempting to influence.
Content personalization is the effect of meeting user behavior with an appropriate message or form to stimulate engagement and raise consumer satisfaction. Personalizing your marketing enables you to deliver brand messages to your target audience for determining consumer wants, needs and buyer personas.
A podcast listener, whitepaper reader or a video watcher is more expected to interact with content that satisfies them and their special wants and needs, particularly when they are provided so various alternatives to determine from. Your brand's content has to provide them with the right message at the right time or it is simply another one link in their newsfeed.
Be an expert on the target market's laws legislating business. Look through the regulations, local laws, and bureaucracy. Learn more about the legal and political determinants.
Without accurate knowledge about the target market’s laws, you can hurt your brand's name. For evading judicial accidents and bureaucratic refinements, engage a local lawyer who can instruct you in local regulations and retain you out of stress.
For instance, brands entering the European market require to familiarize themselves with the current GDPR (General Data Protection Regulation). The GDPR was created to preserve the personal data of EU citizens and intensify the liability on companies who handle or treat personal data. Businesses who do not accurately comply risk fines up to 4% of their total revenue.
You should also learn more about local peculiarities:
Local economies; (buyer personas and consumers cannot always be succeeded at the same level, and will have various commercial situations and buying demand.)
Local banking; (financial sources can usually be held by banks for local companies as a preference.) Profits from foreign sales; (exchange rates could negatively affect earnings so it is necessary to identify the risks and set objectives to assure commerce progress in a marketplace.)
It is better to launch a business with local specialists in learning the laws that would guide your company in the new market. There are many determinants to investigate, for instance, taxes and customs/import tariffs, that require to be read accurately.
The difficulties met by complexity occurring local markets to financing challenges as a global rather than local business usually can be supported by industry third parties. In case, if you are an architectural company looking to open your office in Europe, an association such as the Architects’ Council of Europe can be an immense help in terms of getting the right support.
Calculate the risk streamline for predictability debit load.
Entering into a new market means that is of attractive to companies due to its various advantages, and potential for additional income. Nevertheless, it can be risky. As a business owner, you should get an extensive inspection of your companies’ purposes, to identify whether you should grow in your current market or enter a new one.
You also require to admit talking with experts such as a corporate lawyer to find out if the risk is worth getting.
Determining how much to invest in your digital marketing, advertising, website and application can be challenging. And your digital marketing budget requires to be defined for entering a new market or launching a new product for your company to get results. You can make settlements based on your emotions or gut, but how do you acknowledge if they are right?
Based on your business peculiarities, a digital marketing agency will suggest the budget you should spend each month on SMM, PPC, SEO, email marketing, link building, etc. according to your business goals. It will be secure for you to begin designing your digital marketing strategy. Also, that method can assist you to identify the scope you want to target especially before jumping ahead.
Once you have composed the aspects of your marketing strategy, you will be able to analyze it. Once designed, this paper will be your draft to help you moving forward, describing your purposes, analysis decisions, budgets, important performance timelines and details, and how you will control and indicate your progress on an open-ended base.
It is significant to adhere your strategy so that you are not confused in a new market. Have your bookkeeper, marketing specialist and a lawyer critique your strategy. You need to assure you have not overlooked something that will preclude you from successful expanding into the new market or require you to retreat after you make it.
Boosting traffic to your company's website or application can be one of the most difficult tasks to accomplish as a business owner. Not just do you require to boost traffic to your website or mobile application, but it additionally requires to be targeted traffic, if you are willing to receive many purchases from it.
Today you can get a thousand web visitors and tomorrow, zero. There are available paid and free ways that operate in integration which can help to earn you a wave of guests to your website or mobile application.
The challenge is to analyze key indicators and then decide, which marketing channels are better than the others and which are not deserving the financing or the time? During of execution on your marketing strategy, resolve what marketing channels are hurting your website or application and how you can fix your business results.
Lead Generation is the ability to get an individual to deliver you his opening loud ‘Yes’: Confiding you to give you their personal contact information in exchange for your worthy offer.
The purchasing journey has modificated. For now, marketing specialists require to discover innovative approaches to communicate with consumers. Rather of getting consumers with advertising and email marketing, marketing experts should concentrate on being seen and found. They find new ways to develop long-term relationships with prospects and customers.
Majority of marketing specialists spend a lot of time, figuratively, putting things into a broken box. Preferably than repairing the box (the digital marketing funnel), they put more things (traffic) into the box to have it full.
This is a method for increased acquisition costs and low-level business outcomes. That is why, in the very beginning, you should fix your marketing funnel and then go to find new marketing channels and opportunities.
As this image according to the research shows, the general return on investment from the well-known marketing channels.
It does not matter, how professional digital marketers you have, it is never simple to improve marketing results. Why? Because all marketing channels are applied, and finally exhausted, by digital brands.
Thus, what are you assumed to do?
The answer on that challenge is a report of market research, competitors' activities or customers' behaviour. As you are a digital business owner, you are constantly trying to find ideas to be more productive and suitable for your target audience, executing innovative digital marketing strategies is forever a vital decision.
All you can do for sure is constantly trying to find and testing new marketing channels for your business. Certainly, several marketing channels will bring better results than others, but while you constantly grow, you will see a great progress.
It does not matter what is kind of business you have, you are not simply selling out the service or product you produce; you are selling consumer service. Excellent customer experience may help interest and engage consumers, improve brand loyalty and boost sales.
Why? Think about these facts:
- 51% refuse on working with a company after attempting to contact the brand just 1 time;
- 78% advise a brand to family and friends after feeling excellent customer service;
- In average purchaser tell 9 people about a great experience, but 16 about a bad one;
By giving high-level consumer service, your buyers will be more likely to remain working with you and mention you to their family and friends.
“Well done is better than well said” - Benjamin Franklin. Your consumers react better to what you perform for them preferably than what you tell you are going to perform, and this is precisely why excellent consumer service requires to be part of your digital marketing.
Remember that High-Level Service = Happy Consumer = Flourishing Business.
Brand awareness is about how well your target audience associates your company with its needs and how intimates with it. Businesses with powerful brand awareness are usually related as “trending” or easily “popular.” Building brand awareness is critical when marketing your brand and products, mainly in the first steps of a business.
Brand awareness is the space of which customers are with the unique features or concept of a brand. It is more about building an association than it is about remembering.
Suppose, you are a travel agent. When your target audience considers about a travel consultant, you need them to think about you. You want your company or brand to appear to mind first. You need to build your brand associated with all travel things.
On average, it takes about 5-7 brand impressions before people admit, retain and start to associate a brand. So, don't forget to boost your brand awareness.
Do you know what causes success for your brand's marketing and business? Any idea of why your brand is doing great — or not so great?
Knowing what’s your brand doing great and what is not doing great in marketing— can be calculated thanks to marketing’s Key Performance Indicators. That is why KPI's should be a crucial element of your business’ strategy.
Any business should be measurable.
When you perform KPIs for your advertising campaigns, you can simply see what goes well and what doesn't go well. You can then focus your marketing budget approaching the most effective advertising campaigns to deliver great business results.
But which KPIs absolutely matter most for your business, not just for marketing? Here you can see the most useful metrics for business:
It is well-known fact businesses that are capable to leverage what they gathered about their consumers exceed their competitors by 25% in gross margin and 85% in sales growth?
Gathering consumer data is the most essential core in your digital marketing strategy. Without customer data, your marketing rashly, expecting to communicate with your buyer personas. Numerous companies that assemble data don’t understand what to do with it and end up simply extracting it from a particular one source. Email sign-ups, socials, website and feedback forms every give relevant insight toward who you are selling to. If data gathering is not a preference, it is time to change your decision. Why base your digital marketing on what you consider consumers need when you may deliver them precisely what they really need?
What information do you gather from your consumers? For sure, names and emails are will be included in your list. But how about education, birthday, profession, gender, marital status? Do you try to find more data about customer purchasing behavior? Keep eye on who exactly is using your special products or services? There is extremely a lot of data you may collect. But the following challenge to understand is why is that information important and helpful to your business or how are you expecting to use it?
Making the analysis of the information you have gathered will help you to determine methods to give what your consumers need. Winning proposals improve your businesses' results and give all that your consumers need or/and want. You should be certain that you uncover all important facts due to asking for some details of customer data.
According to the research, 65% of consumers were pleased to give their data in exchange for better-targeted digital marketing. Around 67% were ready to give their personal information if they get some benefits, like discounts. When consumers are able to share private data for marketing goals, why not gather it and use it for better-targeted digital marketing.
65% of startups fail because of premature scaling.
You are now ready for a full-scale rollout. Provided with a solid strategy, a comprehensive plan of development and the analyzed report of the research is an opportunity to grow now and attempt to gain a better piece of market share. The purpose should be to target expanded market share and not only progressed incomes. Whereas to increase the market share you should be intended for developing both marketing and sales purposes together. As you sell more, the simpler it will sell because there will be more visibility of your company in the market and common noise about the new player.
Ready to succeed in entering a new market?
Download this free 30-step checklist "how to enter new market" by Adloonix to help lead you along this great experience.
PS. Rely on data, not emotions and guesswork.
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