Market Entry Strategy
“Strategy without tactics is the slowest route to victory.
Tactics without strategy is the noise before defeat.”
– Sun Tzu
What is a Market Entry Strategy?
A market entry strategy is a plan to bring a new product or service to the market. One of the most critical market entry considerations for a startup is the sales cycle. Understanding the sales cycle is key to success when you have a limited amount of time, money, and resources. The faster you can learn your sales cycle and the shorter the time from contact to close, the greater the probability of success.
Items Included in a Market Entry Strategy
- A well-defined target customer
- A carefully crafted value proposition
- Determine the options for bringing the product to market
- An options analysis to determine which option(s) are most attractive
- Develop a customer hypothesis and marketing experiment(s)
- Start experimenting!
Frequently Asked Questions
WHAT ARE THE KEY PARTS OF A MARKET ENTRY STRATEGY?
A market entry strategy is a combination of art and science. My experience has shown that an effective way to start acquiring new customers is a combination of primary and secondary research. First, the study will help identify your target customer. Next, a value chain analysis and stakeholder map will help identify a path to market. Finally, when you know your target customer and approach the market, you are ready to start conducting marketing experiments.
Marketing experiments generate leads and validate your value proposition. In addition, the information generated by the experiments should help build an inbound sales pipeline. Marketing experiments and a functional inbound sales pipeline allow you to learn and continue to improve.
WHAT ARE THE OUTCOMES OF A MARKET ENTRY STRATEGY?
- Identify your target customer
- Validate product price points
- Determine a path to market
- Conduct several marketing experiments
- Generate leads
- Start building a sales pipeline