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Saturday, October 12, 2013

How to Find New Markets

New markets can mean markets in a new location or country. However, on a more practical level, a new market is simply a set of customers who have not purchased from you before. This means that a new market could be customers in a different part of town, socio-economic group, country or industry.
To be successful, all businesses must constantly work to get new markets to:
  • ensure increasing sales,
  • reduce dependency on existing customers,
  • replace customers who have left because of lack of need or who have switched to a competitor
  • build a customer base for a new product or service or when entering a new sales territory
If you are thinking of entering a foreign market, Market Reports, and Trade Offices can be an excellent sources of information about countries, their markets and business practices.

Market Entry Strategies

There are a variety of ways to enter a new market including:
  • Indirect entry - working through an agent or distributor in the foreign market
  • Direct entry - exporting your products/services
  • Cooperative strategies - utilizing licensing agreements, joint ventures, strategic alliances to gain a market presence or enter a market directly
  • Direct investment - establishing a retail location, manufacturing facility or sales office in the new location.

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