“If you fail to plan, you are planning to fail!”: Marketing strategies and entering new markets

Doesn't everyone want to be successful and increase profits? Of course, but how does one maintain the steady climb to the top? 

Some companies diversify their existing products and reinvigorate their brand with their existing customer and market base. Whilst others look at new or emerging markets to penetrate especially when the demand and profits are not there in their existing market, it can be time for a shift in direction. 

To achieve this growth and stability one must look carefully and invest a great deal before entering new markets. This means that they need to understand the market, the customers, and their own company abilities to be successful in this new area. 

This is when market research and developing new market strategies come into play. It is not wise to think that existing strategies will work with a new market either. Failing to plan, plan to fail…

After watching a video on entering new markets, i found that when competing for growth and entering a new market, you must really understand the market you are about to jump into. Being agile, adaptable and cost competitive helps to engage stakeholders.  But also, there needs to be an understanding of how the company can drive that new market, how they can resource it and what they can bring to that market. To really get to know what and how, a plan needs to be developed, a strategy on how to enter the new market. By doing this you can capture more value which means more margin and of course mitigate risks. 

I think that by entering a new market you have to be extremely organised in your approach and know all of the risks. It can't be cobbled together and is just something that happens. I agree that by doing your home work and understanding each element of the new market will set you up for the best opportunities and hopefully success. 

I would think that there have been some shocking exits for a number of companies because they were not adequately prepared or didn't have an understanding of what they were getting into. They failed to plan...We all weigh up the risks and opportunities in our day to day lives (sometimes it works out and other times it doesn't but you analyse all the information to make a call) so why would it be different when trying a new market?

And what if this new market isn't local? That's a whole different kettle of fish. Here you're looking at cultural challenges when exploring new and unfamiliar locations. Not only are there differences in costs of changing or investing in a new location but there are so many cultural elements that need to be taken into consideration. Again, the entering new markets video showed how some companies invest in neighbouring countries but tended to not venture further. Although there are risks, the chances of there being huge differences and misconnects was lower than moving off-shore or greater distances. For example asia pacific based companies tended to focus on neighbouring asia pacific locales that were in their proximity, Western Europe chose to focus on entering areas in Eastern Europe. They didn't over extend themselves by venturing too far away.

I think by starting out small and keeping things closer to the home base makes it easier to manage, maintain and eventually grow. Just like little stepping stones… one step at a time. Be successful close to 'home' and continue the push to new areas. 

So having a well thought out and detailed plan that understands what your competitors are doing, where they are going, your new customers and the market itself will help with entering a new market... it will either make you or break you.

RM

OFF TOPIC… Social Media: How much [information] is too much?

I suppose there are times where you find people know just a little more about you than you would like thanks to the jewels of social media and your online footprint nowadays. You know, when you're talking to one of your friends and they ask "so, what have you been up to?" and when you give them your answer they already know every detail because they have seen it on your social media profile. Whether it is Facebook, Twitter, Youtube or similar, it's easy to play your life out online and sometimes give away all the fun and not to mention details. This information can then be used against you to either steal your identity (and money..), defame you or impact on others.

Which leads me to some very interesting and awesome advertising to remind people just how easy it is to get caught up in the "over-share" community which of course can have some detrimental repercussions… WATCH:

The mind reader

Spooky hey?… but it reminds you to be vigilant with your personal data. I'm also cautious about what i put online but there are often ways that the 'baddies' find ways around it if you're not careful.

Another good example of being careful online is the suite of adverts that the Ministry of Defence has promoted.

These are excellent examples of knowing what and when to share information about your private and professional life. It's easy to get caught up in sharing that it can lead to exposing yourself to certain unnecessary risks. So… be vigilant and cautious when online. The world is evolving and we all need to protect ourselves. Think before you share!

RM

You're part of a marketing strategy whether you like it or not...

Do you complete online surveys about your experiences when you shop, eat out or swipe reward cards when making purchases? Chances are you do. And the likelihood that you've been contributing to the collection of marketing data for a very long time without realising would probably alarm you. But alas, it's relatively harmless! You've probably been taking part in this type of market analysis or research for many years and your habits and opinions have helped shape your most loved and admired brands even if you don't realise.

Using those pesky reward cards at the check out (you know the ones! They are usually buried deep in your purse and you struggle to find them under pressure) actually obtains a lot of information without your direct knowledge. They instantly track where you are, what you've purchased and make comparisons, projections and assumptions on your shopping habits. This data is collected, analysed and reports on how to keep up with consumer demands and how best to evolve their products. It's a good way for companies to work out what is working and what's not. Not only that, but when you signed up for the cards you have also provided a lot of information about your demographic like your age, your address, your likes and dislikes maybe. You have a whole marketing profile and you're providing some really good marketing data!

I recently read a paper on 'The hidden side of loyalty card programs' 1. They highlighted the blindside of using such things as loyalty programs by providing so much information without your knowledge. You don't think about what you're actually providing to the company when you're handing over the card. You have just told them what you like to buy, at what time of year and where just to name a few! It is a rather powerful way to gather a lot of information whilst 'rewarding' the user. I have to admit, i do partake in swiping cards and getting tailored emails and redeemable vouchers. It sucks me in to continue to return shopping at that particular establishment as i feel like i'm getting something back but in fact I'm being rewarded for my data.

On the other hand, the most notable and direct way to get information from you and your habits is through the national census. It gathers an enormous amount of data which is then analysed and stats are made available for the public and allows the Government (and relevant departments including businesses and other organisations) to make informed decisions for the country, business and alike based on the research and analysis of the data. They provide a number of services to understand and use the data obtained from the census as well. One such tool is one that i tried out for myself this week. It asked a few simple questions about me and where i lived. And after working through the survey I was rewarded, yet again, with a cool info graphic snapshot about me and provided comparable information taken from the 2011 Census 2. 


Check out Spotlight 2.0 for yourself at http://spotlight.abs.gov.au and create your very own personal info graphic to see where you fit in Australia. You may just be surprised by some of the facts and figures! I know i was!

So from conducting these types of direct and indirect surveys businesses are able to better understand their markets, consumers and how to grow or diversify. It can also help identify problems and make better marketing decisions by formulating strong marketing strategies.

Let's go shopping!… 

RM 


References;

1. Professor Steve Worthington, Monash University & Josh Fear, The Australia Institute, December 2009, 'The hidden side of loyalty card programs', retrieved June 13 2014, http://www.buseco.monash.edu.au/centres/acrs/research/whitepapers/hidden-side-of-loyalty.pdf

2. The Australian Bureau of Statistics, June 2014, http://abs.gov.au