Reaching new markets is a common strategy to achieve business growth. Drawing from our experience of supporting B2B clients over the past 20+ years, in this post, we've compiled key success factors that help to support and accelerate that growth. We also outline the common challenges that companies face along the way.
What do we mean by "new" markets?
A new market can be an industry segment or vertical in which you have very few to no current customers. A new market can also mean a new geography or territory in which you have very few to no current customers.
Gathering information for a market development assessment
Before expending resources to investigate and enter new markets, you need to have a solid understanding of current markets to serve as a foundation and reference point.
Here are some important questions you'll need to answer in the process of evaluating market development:
- What is the market size of existing/new markets?
- Who are the key customers per market?
- What is our company’s market penetration in existing markets?
- Who are the key prospective customers in new markets?
- What is the growth rate per market?
- What are the sales channels per market?
- How does our company’s value proposition and positioning differ per market?
- What are the important trends and economic drivers per market?
- How does the competitive landscape change per market?
- What are the biggest challenges per market?
- How does price sensitivity and requirements for our products differ across segments?
Compiling all that data
Yes, it can be a daunting task to compile this information. A lot of the data you need exists within your organization, perhaps in a CRM system or accounting database, or from previously conducted market research studies. In many circumstances, secondary research will help you compile the data you’ll need that exists on competitors, changes in customer trends, marketplace best practices, etc. And primary market research–interviewing potential/existing customers, for example–will give you a deep understanding of your customers' experience.
Organizing the data for analysis
We like to begin this process by creating a Market Evaluation Matrix in a large landscape grid, like the one below. List your new and existing market segments in the first column. List the most important attributes that you need to measure per market segment across the top row. It will look something like the image, below.
This summary level view of key information for new and existing customer segments helps your team to more easily compare the different markets. It also aids in prioritizing where resources should be allocated, whether it is additional research or future sales and marketing efforts.
Read how to drive growth through a data centered and strategic
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