As a small business owner facing saturated domestic markets, how would you approach foreign markets? Develop a strategic plan outlining how you would research markets, get your product to potential customers, handle the financing side of the business, and grow your sales. Include information on what resources are available to help with this process.
As a small business owner facing saturated domestic markets, I would approach foreign markets only after I have concluded my research in the market of interest. Likely, it would be in a foreign market that is politically stable, has a free market system, and that has not experienced a surge in inflation or private sector debt. Most importantly, I would also research the market that I would see the most opportunity for current potential and for future growth and would analyze when would be the most opportune time to enter that specific market. If my product is something completely new, I would want to consider the timing of entry and if I am willing to incur pioneering costs. If I believe my product would be able to hold strong then I would want to take this opportunity and enter the market so I can obtain leverage with first-mover advantages. However, I would want to conduct in-depth research and study how other products have fared with first-mover advantages. Specifically, I would want to study how other products may have been impacted by any rules that govern business practices. In addition, incurring pioneering costs would need to be heavily weighted in the decision-making process. If researched sufficiently, I would have the upper hand if I invested correctly by informing my consumer why this product would be a potential game-changer and promote it with the end-user in mind. This can all amount to be quite costly for an early entrant to the market, but it can also help in establishing brand loyalty. Pioneering costs arise when the business system in a foreign country is so different from that in a firm’s home market that the enterprise has to devote considerable effort, time, and expense to learning the rules of the game (Hill & Hult, 2016). Pioneering costs also include the costs of promoting and establishing a product offering, including the costs of educating customers (Hill & Hult 2016).
Through my research, I would also gain knowledge on how best to reach the consumer. Today, some of the best methods in reaching consumers are by engaging your consumer base, testing the products by inviting them to preview an exclusive viewing and reaching consumers via social media advertisement.
You want to create a buzz around your product before its launch. One of the best ways to do this is to offer discounts for preorders, free first-time uses, and beta participation rewards that entice users to buy upon launch. This is an awesome product promotion, too. No one expects a product to be perfect in beta, so test, gather feedback and refine! - Kristopher Jones, LSEO.com (Forbes, 2017).
Throughout this journey, I would have secured a business plan with financial backing from either a bank or investors that fully support my product. As I launch my product, I would also have to be forward-thinking on the next version or improved version of my product. I would have to always have the consumer in mind. Through these exclusive viewings, I would gain input as if it were a focus group and glean what I could from it to understand how I can better serve my consumer by improving my product. This would help me in growing my product to the next version and future sales. Some of the existing resources I would be able to tap into to strengthen my strategy would be in obtaining customer management systems that would track transactions, building a customer loyalty program, building an email list, leveraging global platforms such as amazon to have my product more readily available, considering a licensing deal and creating a webinar to promote my product are just some of the few resources I would utilize. Webinars provide an automated selling tool for literally taking any product or service to market and reaching a wide audience quickly. The webinar medium is great for captivating audiences to clinch sale after sale, automatically (Entrepreneur, 2017).
C. Hill & G. T. Hult (2016). Global Business Today, 9e Edition. New York, NY: McGraw-Hill Education.
Forbes Agency Council. (2017, October 24). 17 Steps To Take Before You Launch A Product Or Service. Forbes. Retrieved fromhttps://www.forbes.com/sites/forbesagencycouncil/2017/10/24/18-steps-to-take-before-you-launch-a-product-or-service/#91c1ec219cf9
R.L. Adams, (2017, December 19). 15 Ways to Grow Your Business Fast. Entrepreneur. Retrieved from https://www.entrepreneur.com/article/306049
by EssayRoyal, Dec. 10, 2019, 6 p.m.