When entering a new market or expanding internationally, it’s important to be aware of the potential challenges. Having these in mind enables the business to prepare alternative plans and look at other ways to enter the market. Sometimes there may not be the budget to invest in people with the right market experience, so planning will help budgets go further and achieve success in new markets. Here’s the most common challenges when trying to break into a new market and how to overcome them by Ryan Haynes, Lead Consultant and director at Haynes MarComs.
Key consideration during expansion
Market expansion is especially important for businesses that are looking to grow and expand their reach. By entering new markets and tapping into fresh pools of potential customers, companies can boost sales, increase revenue, and establish themselves as industry leaders.
There are several factors that businesses must consider when trying to expand internationally. One key consideration is the target audience; companies will need to understand their customers’ needs and preferences in order to tailor products and marketing messages accordingly.
Additionally, businesses need to have realistic goals and expectations about how long it may take them to succeed in introducing their products to a new market. It can often be a slow and gradual process that requires patience and persistence. But by putting in the time, effort, and resources required, businesses can excel in reaching new markets and experience tremendous growth as a result.
5 Tips to overcoming the key challenges
Competition
Competition within the market can be fierce, making it difficult for new companies to find their footing and establish a presence. It’s important to figure out how to differentiate the business and the product – or look at how to engage in the market differently. Think about how to use content or events to create a buzz and drive engagement, or perhaps champion an issue in the marketplace.
It’s important to benchmark competitors with a clear value framework to define what makes the business different, and to know who the key partners are in the market. Working with the right partners will help build traction and gain credibility.
Pricing
Another common challenge is finding the right balance between pricing products and services competitively while still ensuring sufficient financial return. It’s important to not be too aggressive with price but to focus on where there is added value and how to be a partner to customers. This is where the most value can lie.
Market engagement
It’s important to think culturally too. Every market has different expectations, approaches and languages – therefore it is essential to understand how to effectively communicate with buyers – this can be the most difficult part when entering new geographies. So too can business behaviour, maybe they don’t have the same issues as the primary market, or maybe they have a different perspective – customer education may be a huge challenge during market penetration.
Strong examples of customer success stories in each market will go far in helping to cut through with effective and impactful marketing. The more insight others can glean from other businesses and clients, the more valuable the content and quicker the decision making.
Market research
Businesses should always be sure to conduct extensive research about their target market prior to entering new markets. This will allow them to better understand their competitors as well as the needs and preferences of consumers in that specific region or niche. Write a value framework for marketing and sales teams to connect this with buyer pain points.
Marketing
Leverage both traditional and digital marketing channels to build brand awareness and connect with potential customers. By using tailored messages and strategic campaigns, companies can reach more people at a lower cost per impression than ever before. Know the buyer profiles to target them directly.
It is important to constantly measure performance in order to identify opportunities for improvement and make necessary adjustments along the way. Record results and determine the most valuable targets that lead to sales.
There are a few key indicators that will indicate whether or not the business has successfully penetrated a new market. The first is whether or not there’s an increase in sales in the new market, another key indicator is whether there’s an increase in brand awareness either in recognition, lead generation or partnerships.
