7 Best Ways for Your Business to Tap to a New Market
Tuesday, 13 April 2021

There are many ways for businesses to reach a new point of growth. Whether it’s introducing a new product, revamping customer service, or using social media, the options are wide open.

However, one of the most significant ways many people are ignoring is tapping into a new market. The reason for this is because it’s pretty daunting and can be potentially risky.
 

But if done right, your business can grow threefold. All you need is to know how to do it. To help you get started, here are seven tips that much successful business use when entering new markets:

Assess Your Chosen Market

 
 
It’s not just about tapping into a new market. Instead, it’s about entering the right one. Just because you’ve chosen to venture into a new industry doesn’t mean it would automatically guarantee success. For one, you need to do some research first.
 
First, determine the market volume, which is the number of target audiences in your chosen market. As a rule of thumb, avoid low-volume markets as they will most likely not yield good revenue.
 
Look for potential entry barriers that can hinder your business from developing to its fullest capability. For example, business infrastructure, legal or language barriers are potential challenges you’ll need to overcome.
 
You should also evaluate your competition within your chosen location. Determine how many companies are offering the same service like yours and how your chosen market is developing.
 
It’s also important that you get a clear overview of the current general trends to heighten your market awareness. That’s why it’s important to perceive several macro-factors such as the following:
 
  • Historical income growth of the market
  • Population trends, especially in the younger demographics
  • Influence of the Internet
  • Changes in Google search behavior
 
Before venturing towards a new market, it’s also essential to know your business goals. Ask yourself the following questions:
 
1. What do you want to achieve from this new market?
2. Is this shift only to gain additional revenue, or do you have other objectives in mind?
 
For example, if your other goal is to gain relevant investments, make sure you analyze the market thoroughly. Look for similar companies that gained significant growth through investments within your chosen market.
 
Use these companies as a benchmark to prove the market’s overall validity and scalability. Validate your business and confirm if there are any demands for your product or service.
 

Understand Your Chosen Market

Assessing the market is one thing; understanding it is another. Analyze the market from varying perspectives to better understand what it has in store for your business.
 
To identify key customers, you should conduct customer development interviews. Do a survey and ask your potential customers what their problems are and what pain they’re experiencing right now. From there, formulate a solution involving your product or service.
 
Reach out to companies who have been to different niches and found success in this market.
 
The ideal benchmark would be a company with the same business and price model. For example, suppose your company sells robotic painting systems, and you plan to enter the market for industrial-level painting. In that case, you’ll need to reach out to companies that offer that type of service.
 

Conduct Tests

Once you have enough data to assess the market’s potential, you can start conducting tests.
 
Here are a few things you can do:
 
  • Talk to potential customers
  • Use prototypes
  • Offer a sample of your product
  • Use test ads
  • Get personal with potential customers
 
If you’re serving multiple countries, make sure you do tests on those specific locations as well. We don’t recommend changing numerous factors simultaneously since you can’t validate outcomes that way.
 
You can make use of analytics software. This system collects data and analyzes metrics to help you make the right changes and adjustments.
 

Localization

 
 
Localization refers to the adaptation of a product to meet the linguistic and cultural requirements of a specific target location. Keep in mind that you don’t have to localize everything right away.
 
You can start with the content and specific instruments you use. Find local copywriters and designers to help you transition and make everything 100% authentic for the audience.
 
You can also use the most common platforms that end-users use and track the differences in each of them.
 
You can also localize your values, offers, and overall message on your landing page. You can do so based on the comments you receive during the customer development interviews.
 

Paid Digital Marketing

 
 
Using paid marketing will require a collection of the following data points:
 
  • Your target audience;
  • Their preferences;
  • The communication channels they use;
  • The websites they commonly visit
 
Once you have all the data you need, set up and optimize your funnel from top to bottom. Once everything is ready, you can start running your campaign.
 
For starters, we recommend Facebook since it offers a superior algorithm. At the same time, it has a lower average CPA compared to other platforms like Google Ads.
 
Don’t have a background in paid digital marketing? You can always hire experts like a Facebook manager or a Google Ads specialist.
 

Brand Awareness

 
 
Whatever market you tap into, you should never underestimate the importance of brand awareness. Establishing trust points will play a pivotal factor in your business achieving success in the market you chose.
 
When you’re a new player in a market, chances are no one knows what you are and what you have to offer. Raising brand awareness and establishing trust points will help propel your business to relevance.
 
Here are the potential channels you can use to raise brand awareness:
 
  • Local partnerships
  • Press releases
  • Influencers
  • Local ambassadors
  • Website feedback
 

Potential Growth

 
 
Successfully landing into a new market and getting those initial sales is crucial for your business. However, be mindful of the speed at which you can grow within the market.
 
You have the chance to triple your budget. But at the same time, you can also stagnate at any given point if the market is shaky or not ready.
 
During the growth stage, prioritize the factors that will help you grow at a pace that fits your timeline. To see how the market goes, choose one country, one channel, and one funnel.
 
The adaptation period can take time to mature. So, don’t expect sales to skyrocket right away. If you hit your limit at an early stage, your business will not grow.
 

Conclusion

 
 
When you follow these seven tips, you can successfully expand your business to new markets without any significant problem. The winning formula to make it all possible is flexibility and openness.
 
You need to have an open mindset and the ability to adapt to new market trends. Lastly, data will serve as the backbone for any business that transitions to a new market. So make sure you have all the data you need when entering new markets.
 
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