What are the biggest challenges to entering new markets and how do you overcome them?

There is no single way to overcome the challenges to new market entry. Conversely, those challenges/obstacles should be determined before products or strategies are developed, to prevent substantial expenditures in the midst of entry. Once you understand which obstacles/challenges must be tackled, you determine how to overcome them. In a rush to move things along, many organizations fail to recognize the importance of carefully evaluating challenges before jumping all in.

 

Carlos Escobosa commercial and administrative director of The Residences at Solaz says that in Mexico, where an important percentage of sales are directed to foreign buyers north of the border “the biggest external challenge is the negative perception that North Americans have of Mexico.  The best way to overcome negative perceptions is through  PR campaigns focused on the value, security of investments, and levels of capital being invested. In addition, there is often an internal lack of knowledge of what a consumer wants or needs in our industry (Travel & Leisure and recreational Real Estate)”. Cindy Collins founder of Mining Technology Partners told us that  “the approach for us would be the same as it was in coming into a new territory in our market of mining & metals. Except now  we have greater access to online resources such as advertising, SEO marketing and so on.  We are working to take advantage of this … with a new website, podcast and other content.  This is in addition to face to face meetings…it is more than about effective marketing, it comes to relationships”.

Rahul Samant CEO of Rehabtronics stated that “…the biggest challenges include regulatory, sales, distribution, and marketing. Typically to overcome these we enter markets where we have first established a strong sales and distribution partner that understands the local issues in this context”. Alejandro Godoy founder of Seafood Business Solutions adds that “entering new markets is all about understanding the demand. But on the other hand, explaining and demonstrating your product and its benefits in comparison to others” is key.

The research and development phases of a project often seem protracted, but it is essential to prepare and take your time to do it right. As noted above, the key issues to keep in mind for overcoming barriers are marketing, a clear understanding of demand, and relationship building.

Each organization has its own way of navigating areas of opportunity. Some companies are well versed in entering new markets, have strong processes and count on the necessary resources to do so effectively. For many others, hiring a consultant the most effective way to define specific challenges and design a strategy for tackling them. The avenue offers a way to overcome a lack of initial internal capacity within an organization, and support capacity building in an effective way; while continuing to move forward with the due diligence required for new market entry.  In addition, consultants can assist in overcoming sensitive subjects, as they can bring an impartial opinion and an unbiased eye, as is mentioned in an article by Alex Nuth  titled “Why Companies Really Hire Consultants” .

In a nutshell, taking the necessary time and doing your homework will minimize risks and maximize results.

This article is part 3 of 3.

In case you missed Part 1: Top 4 Challenges to Business Development. 

In case you missed Part 2: How important is it to develop strategic relationships and contacts inside target markets?

Advertisement

Gaining an Edge through Partnership and Sponsorship Marketing

Marketing partnerships and event sponsorships are effective marketing tools.  The first refers to linking two or more different non-competing brands for marketing purposes. The second refers to brands that become supporters of charities, sporting events, trade shows, etc.  We highly recommend both options because they are cost-effective and – when implemented correctly- provide outstanding results. When S&R designs and implements such strategies for our clients, the efforts generate all or o most of the following (depending on the clients’ needs):

• Exposure to new consumers

• Partnerships  with brands that are prestigious and important to

the target market

• Positive brand association

• Data collection and lead generation

•   Increased brand awareness and enhanced image

•  Added value to customers

•  Exposure in the media

• Revenue

We rely on our networks and those of our clients to carefully seek-out and evaluate opportunities that will provide the best return on investment. When searching for the best opportunity for your brand it is important to know who the target market is and how you want to reach them. Some organizations are better set-up than others to provide the right value.  Annual events and sports organizations often have an established framework within which they work with partners and sponsors.  Others, who have access to your target market, may not have previously provided the service your company requires or are simply less efficient.  Therefore it is important for the marketer to be involved through every step of the campaign.

Partnership and Sponsorship Marketing initiatives Sinclair and Ruiz has coordinated on behalf of our clients include:

• In-kind sponsorships for charity tournaments, cultural and business events. Benefits include brand exposure in printed materials; value added advertising; spoken acknowledgements; speaking opportunities, and activation at the events.

 

• Coordination and implementation of advertising campaigns between different segments of the tourism industry (destination, country, airline, travel agents).

 

• Sponsorship and partnership of sporting events and organizations. Benefits include media exposure, brand exposure in printed materials, spoken acknowledgements, speaking opportunities, activation at the events.

 

These marketing efforts work well for small businesses as well as large organizations.  In order to make the most of partnerships and sponsorships, companies should gain exposure through an integrated mix of advertising and PR.  As always there should be a consistent message directed towards a clear objective.

Related articles that may be of interest:

http://www.businessknowhow.com/marketing/marketing-partnership.htm

http://marketing.about.com/od/eventandseminarmarketing/a/sponsorship.htm

info@sinclairandruiz.com

http://www.facebook.com/sinclairandruiz