Penetrating a new market can be an effective way to increase your company’s revenue. On the surface, it seems relatively easy. Dig a little deeper, though, and you will find some pitfalls that can be roadblocks to your success. Let’s look at 5 Myths of Penetrating New Markets and examine some methods to help avoid them:
Myth #1: The early bird gets the worm. It’s true that the first to penetrate a market can get control of resources and make it difficult for the next group to compete. However, without advance planning, attempting to penetrate a new market can backfire. A lack of planning carries financial risks as well as opens the door for competitors to quickly step in. To capitalize on the advantage of being first, it’s important to plan thoroughly and get it right the first time.
Myth #2: Change isn’t necessary. You might be thinking you can cross over into a new market using the same products, people, channels, and programs. This is a very risky assumption! Market research is essential for determining what you need to do to adapt to the new market. Being willing and flexible in your plans is a critical component of tapping into a new market.
Myth #3: “I’m in – my work is done.” If you have crossed into a new market, make no mistake that there are others striving to do the same. Falling into a state of complacency can curtail your success. Having a strategic plan in place will keep your performance running at its optimum and will help you avoid this trap.
Myth #4: Reputation is more important than relationship. Company success in one market does not guarantee success in another. New relationships will need to be developed in order to build trust in your company and your product. Solid relationships will establish your reputation in the new market.
Myth #5: People will find me. Cross market recognition alone won’t generate revenue; increasing your customer base will. Your new market needs to know more than where you are; they need to know what you can do for them. A comprehensive marketing campaign will not only help you define your target audience, it will help you effectively reach them.
At Alliance Group International we have a variety of tools and methodologies to help you penetrate new markets and new customers and it’s all backed by decades of experience and proven results. Call us today at (925) 984-2441 or fill out the quick form on our Contact Us page. We look forward to the opportunity to find the solution that’s right for you.