Uncertainty is one of the things that make business both interesting and scary. For entrepreneurs who love to take risks and try new things, uncertainty is interesting. But for those who are atychiphobia, entering a new market is a different ball game. So, in this article, you will learn some strategies for entering a new market.
Whether you are afraid of failure or not, you need to be strategic when entering a new market. With this approach, you can easily compete and capture a fair share of the new market.
So, here are 7 strategies for entering a new market and growing your business;
#1. Choose the Market
One of the strategies for entering a new market is to choose the market. As a rule, choose a niche that you are fairly experienced in.
It’s easier to penetrate a market you are relatively familiar with than an entirely new market.
When choosing the market, determine your target audience in that market, and check for any barriers that could hamper the growth of your business.
Sometimes, the barriers could be language, legal, infrastructural, and government policies. Don’t just dabble into a new market.
Do your homework and evaluate the competition within the market you are trying to enter. Once you have an idea of the number of businesses offering the same services and the development pace of the market, you can easily do things differently to capture your audience’s attention.
If you want to understand the general trends of the market, information like historical income growth within your demography, internet penetration, changes in Google search requests over time, etc, will give you an idea.
Before you financially decide on the market to enter, it’s important to ask yourself the following questions;
- What are your goals?
- Why are you interested in the market?
- Can I attract investors in this niche?
#2. Understanding the Market
Choosing a new market to penetrate is one thing, but understanding the market is a different ball game. So, one of the strategies for entering a new market is to understand the market itself.
If you don’t understand the interplay of demand and supply in that market, you may not be able to develop a winning strategy to penetrate the market.
Start by analyzing the market from a different point of view. Sometimes, the market analysis takes time but is a necessary step to take for your business.
During the market analysis stage, you will interview customer development, their pains, problems, and the solution they want you to provide.
The interview will help you understand your customers’ needs and help you finetune your value based on their needs.
If possible, research some of the most successful companies in the niche to understand their strategies. And If you understand their strategies, you can develop a better strategy to penetrate the market.
#3. Testing the Market
Testing is one of the most important strategies for entering a new market. And if you test the market, it will give you an idea of how your target audience will receive your product or service.
Furthermore, testing the market helps you to know if your marketing strategy is effective. Interestingly, this strategy provides you information about your target audience’s response, the best marketing channels to use, and possible distribution issues.
The result from test marketing will either give you the confidence to enter the new market or point out some flaws in your marketing strategy. If the latter is the case, then, you would have to refine your marketing strategy.
#4. Adaptation and Localization
Take note of this; it’s arguably one of the most crucial strategies for entering a new market. Now you have tested the market, you know how your customers will receive your offering and the effectiveness of your marketing strategy.
The next stage is adaptation and localization. Every niche has a market channel that works perfectly for them. So, it’s important to localize your content, designs, and advertising strategy.
If possible, hire niche expert copywriters, graphic designers, advertising professionals, etc to help you develop niche-related content.
Adapting and localizing your content makes whatever you are offering, resonate well with your target audience.
#5. Data-Driven Paid Digital Marketing
Every new market already has established companies offering the same services you want to offer. And it’s not easy to outsmart them without spending extra cash on data-driven digital marketing. That’s why it’s one of the most important strategies for entering a new market.
Don’t just spend money on digital marketing. Ensure that your digital marketing strategy is data-driven. With this data, you can target your ads to the right demography.
So, before you launch any digital marketing campaign, research the following information about your target audience;
- Who is your target audience?
- Their preferences.
- The communication channels they are using.
- What websites do they visit frequently?
- Their favorite social media platform.
- What keeps them awake at night?
- Their age bracket.
With this information, you can target your digital marketing campaign to the right audience.
#6. Create Awareness for Your Brand
Honestly, entering a new market isn’t as easy as it sounds. Nobody knows about your brand and they don’t even care.
Without a massive publicity and awareness program, it would be difficult to capture a fair share of a new market.
So, you need to work with local media, social media influencers, local ambassadors, etc to help your target audience see your brand in different ways.
#7. Potential Growth
As an entrepreneur, it’s important to always look at the bigger picture. Of course, the initial sales may be great. But does the market have growth potential?
No matter how lucrative a market seems, if there’s no growth potential, it’s not advisable to enter.
These are some of the strategies for entering a new market. If you follow these guidelines proactively, you can easily capture a fair share of a new market.