{"id":389,"date":"2009-01-20T13:17:40","date_gmt":"2009-01-20T12:17:40","guid":{"rendered":"http:\/\/www.telekta.com\/blog\/?p=389"},"modified":"2012-07-25T13:17:57","modified_gmt":"2012-07-25T12:17:57","slug":"before-you-attack-a-new-market","status":"publish","type":"post","link":"https:\/\/www.telekta.com\/blog\/2009\/01\/before-you-attack-a-new-market\/","title":{"rendered":"Before You Attack a New Market"},"content":{"rendered":"

As you expand your business beyond your initial territory, anticipate an expensive launch.<\/strong>
\n\"Investigation\"<\/p>\n

I believe that sales in always best when done locally, but not for the reasons you might expect.\u00a0 I am forever hearing customers and salesmen explain that “this market is completely different within our <\/em>market”; however, I usually discover that the real differences are minor and few.\u00a0 Yet, knowing these subtle differences is almost as important as knowing the industry\/technology in general and therefore local sales is a necessity.\u00a0 Why?\u00a0 My theory is that people like to know that others cannot do their job better than they do it.\u00a0 There is comfort in knowing that only “special” people can work in this market.\u00a0 If they could use outside products\/services, then they might also be replaceable.\u00a0 They form a ‘club’ of insiders and create special terminology that exclude others.\u00a0 (any organization that loves acronyms and otherwise naming things is likely this type) By understanding and highlighting these “special” features of their industry\/market, you demonstrate that you are an insider that understands and respects their daily struggle.<\/p>\n

Whenever I expand markets with an existing product(or service offering), I often think about the Silicon Valley cliche that “every problem is an opportunity”‘.\u00a0 The problem is that you are walking into this new market without any credentials and\u00a0 that everyone will view your first approach with suspicion.\u00a0 Until you can get a few reference customers, it is going to be an expensive, slow battle.\u00a0 You will need to exhibit at lots of events, employ lots of lead creation techniques (like cold calling) and be very patient.\u00a0 Most recognize, but underestimate, this problem and nearly all miss the opportunity of a new market entry. So there is a problem with entering a new market, but is there an opportunity associated with being “undereducated and unknown”?\u00a0 Answer– yes, you are a threat to no one.<\/p>\n

Before you announce your intention to invest in the market, you can credibly say that you are “investigating” the opportunity in this new market.\u00a0 The difference is huge.\u00a0 Contact a potential customer and explain “we do XYZ in region ABC and now offer this to your market”– watch the defensive response and suspicion in your potential customer.\u00a0 Instead explain “we do XYZ in region ABC and we are considering making an investment into this market<\/em>.\u00a0 Could I ask you a few questions?”\u00a0 At this point, you have told him that you are not selling, that what you make is not even available on his market– therefore he does not need to have his usual salesman antibodies.\u00a0 He is also likely to be flattered that you are seeking his advice as an expert and will often try to reinforce your perception by demonstrating his expertise with advice.\u00a0 He also inherently wants anything that he can’t have and curiosity will drive him deeper into the conversation.\u00a0 What you want to know is who are the competitors, amongst the buyers who does what, what are titles of people who would buy, etc.<\/p>\n

Done correctly, you can summarize the last investigative meeting to the next person and get them to confirm or refute the first customer’s opinion.\u00a0 You can also explain a bit about the decision process in your market and ask them to tell you what is different.\u00a0\u00a0 \u00a0 All the while, they will then want to add information that you don’t already know to confirm their ‘expert status’ that you have given them.\u00a0 You can even learn about how they might justify such a product, what would be the internal politics, etc.\u00a0 Customers often want to know how their competitors solve similar problems or want to know if other companies have the same difficulty.\u00a0 Simply telling them what is normal difficult and what is abnormal difficulty has great value to them.\u00a0 ‘Differential questioning’ is often faster, identifies political as well as technical problems, and establishes that you do some something but are not arrogant.<\/p>\n

It is my experience, that such an approach can reveal fantastic information after just a few customer conversations.\u00a0 Often, I find that we learn enough that we start to question some of our assumptions within or legacy, core market.\u00a0 Most importantly, however, is that you will soon be recognized as an insider even though your product has never been proven on the local market.<\/p>\n

There are a few important things to remember when doing the “market research” exercise:<\/p>\n