Why enter a new market

Globalization is everywhere around us. A more inter-connected world means more accessibility to products and services around the globe. Everyday more and more businesses are entering new markets, but why? It can not only be a profitable in terms of revenue but can also improve the way businesses work as well as benefit the market you move in to. Arguably the biggest advantage of entering a new market is simply having a whole set of new consumers at your fingertips who are edging to buy the product and service.

Not only are there more people who could potentially buy the offering but it is also possible diversify your market; this may be focusing in on a more exclusive target market. A larger consumer market ultimately means a larger profit margin available which is great news to any business owner.

Answer questions like: Are there gaps in this marketplace that we can fill and do so better than our competitors? What value do we deliver to this market and how much are they willing to pay for it?

Once you've selected an attractive market, you'll want to determine the appropriate level of organic investment vs. If you have complementary infrastructure or sales channels in place, you might want to consider an organic approach to growth. The key steps here are to develop the business plan, case for investment, and implementation work plan, including owners, timelines, tasks, and key milestones to enter. These options require target identification, prioritization, due diligence, deal negotiation and close.

Prior findings can be leveraged to identify the appropriate mix of market entry options that is linked to the business's core competencies, assets, and overall strategy. This list of key steps in creating your market entry strategy is high level, but it shows that to make the best decision for your business, you need to do your homework and consider all of your options around cost, risk and predictability.

Success of any market entry strategy is driven partially by factors outside of your control--but investment in these upfront steps should help you to mitigate the risk. We talked about why you should enter a new market. We established three important and strong reasons for doing this, so now we should talk about how to enter a new market. We will talk about methods and rules that can help you enter a new market and have a successful business in a new field.

There are eight steps you should follow. The most important thing when you want to enter a new market is to know your customers. You have to know who you will be selling to.

Targeting is the first step when you start a business. You have to keep in mind that a smaller market will make it easier to assess customer requirements and ensure that a larger chunk of a smaller market is obtained rather than a insignificant part of a large share. You have to be organized when you start working on this commit step because you have to set yourself a timeframe in which you have to reach your target market. Therefore, you have to know your customers better, hence you have to create a strategy to set a target.

The first thing to do first is to determine the demographics and geographic location of the new target. Determine which of the following categories characterizes your expansion efforts to enter a new market:. The best way to create a target customer profile is to take into consideration the fact that there are two types of customers:.

Once you make yourself clear about your target market, you should identify potential points of entry. To minimize initial investment and maximize future revenues, it becomes vital to study key possible entrance points. You have also to take into consideration the BANT approach before entering a new market.

Before entering a new market you must know your target, as I said. You must find out if there is available money for you and you.

You have to make yourself sure that the person you will sell to have the authority to approve the purchase. Most of the time, that person you will sell have to get permission to approve the purchase or he or she will have to submit the purchase to the one with authority to approve it.

You must dig and find out if there exists need on the market. Your product or service have to be useful. Look closer and understand why your customers have that need and how deep the need goes. This is a vital information because the market you want to enter may not be available for a long period of time and the one who want to buy may just gathering information.

You must note when they will be ready to talk to move to the next step. To define a market entry strategy you have to complete three important steps:. After you set your target customer profile, identified the entry points and defined the market entry strategy you can take all of these and assemble them into a plan for your future business, a plan that will help you entering the new market.

Research means identifying a well-balanced cross section of the target audience and approaching them either in person or via an online survey — these can help provide some basics results than can do it data to make any changes before a full market entry is committed to. You just have to find a new area to introduce your future and new business.

You should focus on market share because this means increasing both marketing and sales efforts simultaneously. It is obviously that as you sell more, the easier will be for your business. You will have visibility of your brand and customers will be centered on your product offered by your business entered on that new market you want. This not mean that after you entered the market and your product is demanded and desired by the customers you need to stop with your marketing strategy. Exit strategy means that you have to be prepared for both success and failure.

If failure seems to come up, you have to know when and where to stop. You have to exit the market and create a sort of diversion just to keep your brand image high, even if you and your company know what is really going with the business.