How do you evaluate entering new markets?

I agree with this to an extent. But, practically speaking, in my experience you need to get talking to experienced movers and shakers in your target market. Most markets want to be able to trust new entrants and that means earning your stripes, establishing yourself little by little, day by day and being seen to have new ideas and solutions that exist and work. Earn trust being showing engagement, empathy and that you are in it for the longhaul.

💡 In my experience, pinpointing objectives is pivotal to success when exploring new markets. 🚀 Clear Objectives: Start with a precise understanding of your goals. Ambiguity can waste resources and derail efforts. 🔍 Data-Driven Decisions: Utilize analytics and market data for objective calibration, relying on real-world information rather than intuition. 🎯 Alignment with Core Business: Ensure new market objectives align with your core business values and strategies to prevent internal conflicts. 📈 KPI Development: Create specific KPIs to track new market objectives' progress, providing quantifiable benchmarks. 📌 Regularly revisit and reassess objectives to keep them SMART and aligned with the evolving market landscape.

In terms of an initial / simple test I think about new market entry along the following lines…; 1) What material problem does the product solve and is there sufficient market left 2) is there evidence of market funding to address the problem (tangible procurements) 3) Is there evidence the product sufficiently differentiates from competitors (is it a good one) 4) would one of your best customers support / invest time / budget for / procure the solution

Market research is critical. Hopefully you're considering the new market aligns and/or supplemental to your existing products and services. Is there demand for it? How saturated is the market? If the market is considered saturated what does the competition look like and is their room for you as a new entrant to grow market share? When you can do a SWOT, cost-benefit analysis, develop a measured implementation plan, and run scenario planning/modeling/forecasting and do a small test budget campaign over a period six months to a year to garner market penetration you can get a pretty good indication of whether a new market is right for you. You will also need to consider economic conditions as an additional indicator of market stability.

Trying To Go International Start with that one thing you want to accomplish, whether it's an international or local market. One word or phrase, such as "more profits" or "expansion." Once the team understands, then add to the phrase. Divide into two groups: - Physicals, involves moving people around, buying office space, constructing something new, and the list goes on. - None Physicals, including meetings, phone calls, contracts, negotiations, and other things not requiring extensive physical work. It's OK if something crosses over onto the list as long as it gets on. Dividing into physical and non-physical preps the team mentally for what needs to be accomplished and what is going to take. Works well if trying to go international.

Market research is a crucial step in any business strategy. It helps in understanding the market dynamics, identifying opportunities, and creating a competitive strategy. Here are the steps to conduct thorough market research: - Define the market - Identify target customers - Segment the market - Analyze competitors - Analyze industry trends - Evaluate industry characteristics - Conduct customer research - Develop a value proposition - Analyze external factors - Analyze data and draw conclusions By conducting thorough market research, you can gain a deep understanding of the new market, identify customer needs, evaluate competition, and position your product or service effectively.

For existing markets, often there will be very valuable sources of data describing that market, its key players, dynamics etc. These appear to be expensive at first sight, but having access to datasets that you can "slice and dice" to look for niches in the existing market could be the key to success. Often these niches are underserved by incumbents, and hence provide a viable entry for a new player. The biggest thing I try to understand are the mega-trends that are shaping that market eg. penetration of smartphones or proportion of single person households. How are these mega-trends going to shape this market in the short, medium and longer term ? Even large incumbent players are not insulated from these trends, creating options to enter.

Researching the market, a company should not take into consideration only typical points, but also it is important to pay attention to cultural, compliance, and language considerations. Be mindful of cultural and legal differences, language barriers and adapt your business practices and communication accordingly.

Analyze customers by understanding the specific needs, preferences, and buying behaviors of the target audience in the new market. Divide the market and evaluate the potential of each segment. Determine who your primary competitors will be in the new market and analyze their strengths, weaknesses, and market share. Consider how you can differentiate your products or services to gain a competitive advantage in the new market. Understand the legal and regulatory requirements in the target market, including import/export laws, industry-specific regulations, and intellectual property protection. Evaluate any trade barriers, tariffs, or other obstacles that may affect your ability to enter and operate in the new market.

Entering a new business market is a significant undertaking that requires careful consideration. One of the primary factors I weigh before making such a move is whether my knowledge and expertise genuinely contribute significant value to the venture. I assess whether my skills, experience, and understanding of the industry align with the demands of the new market. It's crucial to have a deep understanding of the industry's dynamics, trends, and challenges to navigate it effectively. If my background doesn't align, I consider whether I'm willing to invest the time and effort required to acquire the necessary knowledge.

Analysis of the Sociopolitical Landscape: It's Needed Now More Than Ever - Gaining insight into local laws, ordinances, political stability, customs, and possible governance shifts can significantly impact entering new markets and maintaining existing ones. - Thoroughly examine how these variables can impact risk management and strategic choices, providing you with information beyond financial advice. - You need to look at fostering long-term success but be flexible. Do it in a specific targeted industry and market Please don't overlook this sociopolitical situation I am talking about, especially with most countries in Africa, India, and any South American countries coming into existing and new markets.

Develop a detailed financial plan. Create a financial forecast that includes estimates for revenue, expenses, and investment requirements for entering the new market. Calculate ROI and payback period. Determine the expected return on investment (ROI) and the time it will take to recoup your initial investment. Create a comprehensive marketing strategy tailored to the new market, including advertising, sales channels, and customer acquisition tactics.. and check the costs! Evaluate potential risks and challenges, such as political instability, economic fluctuations, or cultural differences. Create plans to address and mitigate these risks, including insurance, contingency plans, and market diversification.

Not A New Strategy But Often Overlooked - Make a new market of sub-market within an established market. It can take a while to develop, but it is undoubtedly a way to create and give multiple connections. You have a company mailing address, phone, email, and website; now, do you have an app, etc? - Start with your employees across all levels, from executives to support staff, about their perspectives on potential new markets. It's an inclusive approach that encourages participation and a tighter level of culture. - You can strike a balance between respect for personal boundaries and professional conduct, even while talking to relatives and friends of employees about possible new markets.

Decide on the most suitable entry mode, which could include options like exporting, licensing, franchising, joint ventures, or establishing a wholly-owned subsidiary. Evaluate the possibility of partnering with local businesses or distributors to navigate cultural and market nuances. Set clear, quantifiable goals and metrics to track the success of your market entry strategy, such as sales targets, market share, and customer acquisition rates. If feasible, start with a smaller-scale entry or a pilot project to test the market's response before committing to a full-scale expansion.

Continuous Improvement through Informed Adaptation No matter what I or anyone else say, start with a team or a few people who can decipher the data. All the best information can't help you if you don't understand the direction it's pointing you. Secondly, be proactive and reactive in making adjustments and adaptations to make informed decision-making. Thirdly, make sure the product or services are at their best. Often, we, as consumers, receive great marketing campaigns with a not-so-great product or service. Lastly, treat the local markets and the return customers with as much respect as you try to get more business. Keep in mind who got you there will likely keep you there.

When exploring a new market it's important to evaluate adjacency how far right or left the new market is. An adjacent market will allow resources to be utilized and that can be great power. Also allows to pitch new product to same customer with adjacency playing a role. Figure out the marketing channels how are they different from current Marketing setup. What are the distribution channels and what are highs, lows and matrix. Consider the cost of developing product, factor in marketing and distribution, to eventual cost of product and compare that to existing competitors. Factor ways in which processes and development can be improved to create and advantage in terms of saving resources both for your company and your customers.

Also consider the present market situation and assess the competition and the overall market size before entering any mew market

One thing that will help you have less pain and more gain in a market entry could be defining a proxy market among your existing markets in terms of customer types, culture, language, competition, pricing etc. This way you can re-apply the same Go-to-market recipe (hopefully which worked before) to this new market with less risk. The same applies for entering a new category or product offering in the same market. So you better document your working recipes (best practices) for reapplication.