When you hear about new market, let your mind be centered on "developing, distributing, and marketing a business, a product or
a brand that was never in existence".
Customers didn't know about the product. There was no
market about it. It’s completely new.
Instances where you meet an old/existing
market, and a new market
If you graduate from school, then open your own firm
and start producing biscuits baked with wheat and flour, are you targeting a
new market? No!
Reason? McVitie’s
biscuits made of wheat are already there in the market
If your firm creates an app for currency exchange, are
you targeting a new market? No!
Reason? X.E and the rest of the currency exchange apps
are already there in the market.
But if your firm creates an app-like robot that can be
installed in the human brain to help the human read and pass their exams, are
you targeting a new market? Yes! Reason?
Such app doesn’t exist in the market for now
So this is more or less the differences between a new
market and old/existing market
Examples of some global companies
that met a new market
Google - new market of
online search and search engine marketing
Twitter - a new market of
micro publishing
Most apps on smart phones are new markets in
technology industry
Some pharmaceutical and health
firms enter new markets through research on different bio
chemicals that produce unique type of drugs
Most food companies also produce unique
and entirely different brands that never existed in the market
Advantages of venturing into a
new market
When you are entering, or when you successfully enter
a new market, below are a few advantages:
1. There are no
competitors
2. There is market
leadership
3. Growth is quick
4. You will win big
5. It enhances
creativity because you have to create and event something that can best soothe
the consumers. It makes you think fast. Good thinking, good product. Good
enhancement.
Creativity is new market. Creativity is unique to you.
It didn't exist. So once you dish it out, customers will buy all
Disadvantages of venturing into a
new market
1. It's risky the market
might not be there
2. It's risky it might
not soothe the consumers
3. There might not be a
know how to continue with creativity, enhancement and innovation
4. Government consumer
regulations might affect the products
5. There might be lack
of knowledge for effective distribution and marketing
How to handle things properly while
entering into the new market
1. Make sure the market
will be there
2. Create a good
product
3. Provide templates for
creativity and innovation continuations
4. Get proper
information on government regulations about such products
5. Good management
6. Good distribution and
marketing strategy
Here is one key intelligent way
of entering a new market
·
Dominate an existing market and simultaneously open
new markets.
Uber did this! It dominated the existing markets of
taxi services, but then it opened new markets by adding digital location
designation-based services with the help of smart phones.
The Key Entrants into the New Market
In other explanations and more insights on old/existing markets and new
markets, there two classes of business owners that enter a new market. They are
simply described as new market entrants.
They are classified as the pioneers
and the followers. They are
known as the key entrants.
These two classes of new market key entrants have
different unique strategies with which they enter into the new market. The
different strategies they employ is in a bid to bring about success to their
businesses and brands
So below are the successful new
market entry strategies for the two key entrants
The two key entrants are the PIONEERS AND THE
FOLLOWERS
The PIONEERS identify a new market and they enter
first. And if things work out for them, they are rewarded handsomely. They are
more like the PROSPECTORS.
The FOLLOWERS identify a new market but stay back to
analyze it, or watch the pioneers enter first so that they can take note of
pitfalls and tackle them before they enter. They are more like the
ANALYZERS
Such cases can be explained by an example where Lotus
123 and word perfect entered the computer spreadsheet new market first.
Then Microsoft followed later. But now, Microsoft is
leading.
For a successful new market entry
for pioneers, they should have,
1. Large entry
scale
2. Broad product
line
3. High product
quality
4. Heavy promotional
expenditures
For a successful new market entry
for followers, they should have,
1. Larger entry scale
than the pioneer
2. Leap-frogging the
pioneer with superior product technology, product quality and customer service
Written by @winston_oge
Professional Business Strategist
and Administrator
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