If your business is saturating the domestic market, entering markets overseas can help to generate continued growth. Local consumers may buy as many of your products and services as possible, but it means untapped potential if international audiences don’t have access to your business.
So, what can you do about this? That’s the topic of this post. We look at cost-effective small market entry options for your enterprise and how you can become a roaring success.
Choosing the right entry mode
The first step is to choose your entry mode—the operational approach you will use to gain a foothold in the target market. Interestingly, this doesn’t have to be identical to your domestic operations.
Exporting is the most popular and straightforward method. Here, companies ship products to wholesalers who distribute them to target consumers. It’s low-risk (because other people are responsible for the distribution), but you can sometimes lose brand control (and get a tarnished reputation).
Franchising is another channel. Local entrepreneurs and business owners can run locations while sending you a royalty fee.
Joint ventures work, too. These involve partnering with local companies to share resources and expertise. Joining forces immediately grants you access to local knowledge and expertise.
Finally, licensing could be possible in small markets with reasonable institutions. You might let foreign users leverage your services in return for a subscription fee.
However, always exercise caution when implementing these approaches. Losing control can lead to brand dilution or even harm to your public image.
Leveraging digital marketing
Traditional marketing can be costly in foreign countries. However, digital marketing in small markets is often more cost-effective and has further reach.
Social media marketing is one such strategy. This approach lets you connect with global audiences, regardless of location, and get to know them more deeply.
Innovative firms can also use influencer marketing – leveraging local talent to deliver their messaging and build appeal.
Email is the most cost-effective method for reaching out to leads (provided you have an email list). Estimates suggest the channel generates $42 for every $1 you spend
You could also try pay-per-click (PPC) advertising. While it is costly in developed countries, deploying locally in small markets might be cheaper.
Building local partnerships
Finally, you can enter small markets cost-effectively by collaborating with local businesses and undertaking joint ventures.
For example, you could work with existing distributors that already have a relationship with your prospects. Due to their local knowledge, these businesses could rapidly deliver products and services to people.
Partnering with local marketing agencies may also help. Foreign experts usually better understand your audience’s psyche and how to pitch to them.
Finally, strategic alliances are another option. A joint venture can reduce costs by opening access to shared resources and help you conquer a new market quickly. It may minimize the risk by helping you avoid common pitfalls when entering a new market.
Conclusion
Getting into a small market cost-effectively is achievable, but it requires laying the groundwork first. Using inexpensive marketing methods and working with businesses at the destination can help you achieve it on a budget.
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