Well established companies face a unique set of challenges when entering a new market. Although these companies have already proven their ability to launch and sell their products or services, this experience can actually be a hindrance. Overconfidence from success in other markets can breed oversight.
Here are four major mistakes we’ve seen established companies make when entering a new market. Some will simply slow your path to success, while others can lead to failure in the new market.
1. Assuming customer perceptions carry over from persona to persona
Understanding your customer personas is crucial. These personas impact the language, tone, and image of your marketing as well as channel selection. Each time you enter a new market, make sure you conduct enough research to understand your target customer groups in that market. Develop a persona for each major market segment, and create a marketing plan that accounts for each persona at each stage in the sales funnel.
Your sales staff may also need a process check as you enter this new market. Are the tools used to engage prospects at a trade show the same as in previous markets? Do you need to adjust the timing of sales calls based on your new target customers’ work schedules? Don’t overlook these important details because you assume that your new audience’s behavior and lifestyle are the same.
Download our Persona Worksheet to start developing personas for your new market.
2. Not placing enough emphasis on technical content
You may be viewed as a trusted expert within your current markets, but as you enter a new market, you must work harder to prove it. These efforts should be figured into your marketing budget early on. Not only will you need robust capabilities details on your website, but you will need technical content as well. Case studies, white papers, and e-books will help prospects become confident in your technical knowledge before your sales team makes the first call.
In addition, you’ll need to invest in staffing your trade show booth differently than you would in a well-established market. Having a technical staff member on hand, preferably an engineer, allows prospects to get the answers they need to consider you a viable supply chain partner.
Read more content development tips.
3. Using the same criteria for making decisions about your marketing budget
Your criteria for marketing budget decisions may shift significantly when entering a new market. Consider what you are trying to achieve and what will resonate with your audience. For example, your trade show decisions regarding booth size, sponsorships, etc. should be more focused on traffic and visibility than on meetings with qualified leads. For digital advertising placements, impressions may take priority over CTR. At the same time, this might be an excellent time to use PPC ads to promote technical content, an often overlooked practice in inbound marketing.
4. Misinterpreting price sensitivity
The pricing model within a new market can take time to understand, especially if you do not have an industry insider on your marketing team. While it may seem to make sense to use existing price assumptions from established markets to build a price model, these ideas should be tested prior to full product launch within the new market. Walking a trade show in your new market can be a good opportunity to meet future prospects and have some early conversations about price.
For more tips for establishing your company, product, or service in a new market, download our Positioning Guide today.