New markets can mean markets in a new location or country. However, on a more practical level, a new market is simply a set of customers who have not purchased from you before. This means that a new market could be customers in a different part of town, socio-economic group, country or industry.
To be successful, all businesses must constantly work to get new markets to:
- ensure increasing sales,
- reduce dependency on existing customers,
- replace customers who have left because of lack of need or who have switched to a competitor
- build a customer base for a new product or service or when entering a new sales territory
If you are thinking of entering a foreign market, Market Reports, and Trade Offices can be an excellent sources of information about countries, their markets and business practices.
Market Entry Strategies
There are a variety of ways to enter a new market including:
- Indirect entry - working through an agent or distributor in the foreign market
- Direct entry - exporting your products/services
- Cooperative strategies - utilizing licensing agreements, joint ventures, strategic alliances to gain a market presence or enter a market directly
- Direct investment - establishing a retail location, manufacturing facility or sales office in the new location.
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