Best Practices for Penetrating New Markets

By Peggy Tierney Galvin, Force4 Technology Communications 

As we discussed in a recent blog, uncovering new markets can be a key growth method for B2B tech companies. But how do you actually enter these new markets successfully? We recommend that tech marketers:

• Prioritize resources
• Adapt marketing and messaging
• Reposition the strengths of your brand in your existing market for the needs, challenges and care-abouts of the new market, and do so deliberately to reduce risk and increase chances of success

We’ll cover these items in depth soon, but first, let’s look at some common pitfalls to steer clear of.

Penetrating a new market segment: Three things to avoid

Having done your homework is half the battle. The other half involves knowing what mistakes others have made so that you can avoid them. Those include:

1. One-size-fits-all marketing: Avoid using the same marketing strategies and messages that you use in your existing market; they will need customization. Different market segments have unique needs, preferences and cultural nuances that should be considered. Tailor marketing efforts to specifically address the target market’s pain points.
2. Neglecting customer insights: Avoid making assumptions about the target market segment without gathering real customer insights. Conduct surveys, interviews or focus groups to understand their preferences, needs and pain points. This data will help you create accurate marketing personas and develop content that truly resonates with the target audience.
3. Ignoring competitive analysis: Failing to analyze the existing competition in the new market segment can be detrimental. Identify and analyze your competitors, their market share, strengths, weaknesses and unique selling propositions. This analysis will help you differentiate your offerings and develop effective strategies to stand out from the competition. 

How to adjust marketing for different markets and audiences

First, you must understand the target audience and decision-makers in the new market. To do this, you’ll need to identify the job roles and stakeholders involved in purchasing decisions. You’ll also need to identify budget holders and daily solution users.

Determine the key individuals responsible for budget allocation and those who will use the solution regularly. Demonstrate the past successful return on investment of your existing customer base and highlight your innovative ideas and fresh perspectives that can benefit the new market.

Next, create persona assets and market-specific messaging. Develop persona profiles that outline the specific needs and challenges of the target audience in the new market. Tailor marketing messages to showcase how your solution addresses their unique market-specific needs, addressing common issues like time efficiency, operational improvements, and revenue generation.

Gaining a customer base

Landing the first customer is the hardest step, but that customer will pave the way for others. Make sure the customer in the new market is successful and satisfied by allocating resources to provide extensive support for a successful deployment.

Use the first customer as a “lighthouse” customer to demonstrate successful collaboration and problem-solving. Leverage their experience as a reference for future customers in the new market space.

It’s important to set goals for new business from the new market. Collaborate with the management team to establish a specific target percentage of new business or number of new customers from the new market. Continue that collaboration to implement and track progress towards the set goals. This will help you measure your market penetration success, as well as make any necessary adjustments to your strategy.

Toward a successful market penetration

Successfully penetrating new markets requires strategic approaches and resource allocation, as well as careful consideration of market-specific factors. To avoid common pitfalls, B2B tech companies should customize their marketing strategies instead of relying on what worked in another market. Gathering real customer insights and conducting competitive analysis are essential to understanding the target market’s needs and differentiating from competitors.

Adjusting marketing efforts involves identifying key decision-makers, creating persona assets, and crafting market-specific messaging that highlights the unique value proposition for the new audience. Your first customer’s success can serve as a reference for future customers. Setting goals and collaborating with the executive team ensures progress tracking and enables necessary adjustments for a successful market penetration strategy.