New market penetration is all about risk-reward balance. You need to fully understand the challenges as well as the opportunities pertinent to your prospective new market so you are properly prepared for success.
Do your research, and evaluate your options thoroughly and honestly. The point is sales growth and sustainability, so you have to make sure you’re on top of your game regarding products, pricing and customer service.
Clearly define your goals
Why do you want to penetrate this new market? For example, it could be to:
- Extend current product sales to new geographical areas
- Extend current product sales to a broader audience
- Introduce new products or services
What benchmarks will you use to measure success?
Research is critical
Don’t assume you can just plug your current sales plan into a new environment. You may need to:
- Treat new market penetration like a start-up
- Identify or try to predict potential barriers, including timing issues
- Evaluate likely financial and intangible benefits as well as specific product or service opportunities
- Assess the prospective target market, including size, competition, market dynamics, buying profile and overall economic climate
- Determine existing market awareness of your company, products or services
- Review your marketing implementation methods in light of new market audience characteristics
What is needed to assure success, soonest?
Create a strategic plan
Implementation tactics must be specific to new market penetration. This includes:
- Priority lead generation and follow-up
- Appropriate media, messages and product presentation, including online approaches and content
- Product testing in the new marketplace
- Pricing strategy
- Forming the most competent and effective sales team
- Projecting initial expense and revenue
A sales advisory firm can facilitate new market penetration
Talented, experienced sales professionals can help you every step of the way—analyzing prospective markets, creating a well-honed implementation plan and providing high-performance execution.
Contact us to see how Mansfield Sales Partners can help your company with new market penetration.
Editor's Note: This post was originally published in November 2012 and has been updated for accuracy and relevancy.