Question

Topic: Strategy

Entering New Markets

Posted by hans on 10/20/2015 at 2:16 PM ET 500 Points
Hi,
I wonder if someone could give a tip on where to find useful information on following
If I have a product that I have launched on different markets and now have to propose for the board just one of two markets they have given me as first step. I know questions as market size and so forth but which other questions should one bear in mind when analyzing? Regards Hans
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RESPONSES

  • Posted by mgoodman on 10/20/2015 at 2:50 PM Moderator
    I'm not sure I understand what the criteria are for picking a market, and those could change the whole approach. Is the objective profit, volume, greater likelihood of success, higher market share, distance from home, other?

    I'm sure Randall would cover this issue with you if you speak with him. Why not take him up on his offer?
  • Posted by Blaine Wilkerson on 10/20/2015 at 3:02 PM Accepted
    It depends a lot on your product and it's purpose. Of course, to start, you need the best product/market fit. At least the best you can achieve with the product.

    The second biggest concern or "valuation" is related to how well this product brings in new customers.

    'Coz no matter what, you need to know where the product sits in the customer acquisition/valuation process.

    Is it a freebie to get people in the door? (e.g. a free ebook to attract subscribers, first 100 fans get a free hot dog, chips and salsa)

    Is it a small inexpensive item to "warm up" buyers - often at a loss? (e.g. every Groupon offer, 50 cent ice cream, $1 keychain with a flashlight, 12-pack of soda for only $2)

    Is it a core product for your business with little to no profit? (e.g. gas at a convenience store, fast food cheezeburgers, cars on a major car dealers' lot, 42" HDTV for only $199 at a major electronics outlet)

    Or is it the key source of profit? (e.g. Fries and a Coke at fast food places, Extended warranties and service for cars & HDTVs, soft drinks at convenience stores, monthly fees on a membership site)

    So figure out what role your product plays in either your business, or your customer's business. Is it a:

    - A Happy Meal toy?
    - A dirt cheap ice cream cone? (warm-up at break even or loss)
    - a cheeseburger (barely make profit or break even)
    - or fries and a coke (the real money maker)

    Pick the best fit that can bring the most customers into your funnel.

    Hope this help!
  • Posted by cookmarketing@gmail. on 10/20/2015 at 9:23 PM Accepted
    Everyone on this Marketing Profs have launched products...they all give good advice.

    My thoughts, no matter the market silo B2B,B2C,B2G,B2B2C etc...all should begin with who you wish to buy...one must look from their eyes.

    Your board has given you their preselected markets. The next step may sound silly, but practiced can give much insight.

    You and your company must see from the buyers eyes...so you must know your buyer...close your eyes and visualize that person...not sell to everyone; sell to that single person.

    Exampled - mid30's female, 2 kids, upper middle class income, college educated, aging parents, has two cars, likes 'green'...an on.

    Once you know who your purchaser is the problematic analyze becomes easier, quicker and more accurate - as you will learn how to satisfy the buyer - once you known them
  • Posted by Jay Hamilton-Roth on 10/20/2015 at 11:23 PM Accepted
    Some metrics:
    https://www.dobney.com/Research/market_metrics.htm
    https://www.somametrics.com/best-practices-2/entering-new-markets/
    https://blog.hubspot.com/blog/tabid/6307/bid/34054/The-6-Marketing-Metrics-...
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