What Market Entry Barriers are and why they matter
Market Entry Barriers stand between you and your product´s success in the target market. Which boils down to 2 questions:
- Will any organization buy your product?
- Will people use your product?
People hate change
People, as well as organizations, don´t like to change the way how and with whom they do business. Especially, they hate to deal with foreigners under new terms and conditions.
Important Market Entry Barriers
- People and organizations historically have grown comfortable with the status quo. – Cognitive Hurdle
- The greater the shift in strategy, the greater the resources it requires for execution. – Resource Hurdle
- Do opinion leaders need to be motivated to carry out a break from the status quo? – Motivational Hurdle.
- One needs to overcome opposition from powerful vested interests? – Political Hurdle.
Overcome Market Entry Barriers with Fair-Process
Fair process is a concept developed by W. Chan Kim and Renée Mauborgne that builds execution into the strategy by creating people’s buy-in upfront.
If the fair process is exercised in the strategy formulation phase, people trust that a level playing field exists, inspiring voluntary cooperation during the execution phase. Research has shown that people care about outcomes and the process that produces these results.
What fair process means
For a decision process to be seen as fair, the people affected must have the opportunity to give input and the decision process and rationale must be transparent and clear.W. Chan Kim and Renée Mauborgne
Whether people are senior executives or shop employees, they all look to three mutually reinforcing elements:
- Explanation, and
- Clarity of expectation
Fair Process establishes stakeholder buy-in upfront. However, it requires some serious efforts to identify stakeholders and their personal agenda, especially when one is going to market in a new region.
How we help clients to identify stakeholders
Even without an existing presence in the market, one can still investigate through enhanced web searches and expert communities.
Combining e-research and local expert interviews
Competitive monitoring means learning as much as possible, as soon as possible, about the industry in general and relevant competitors. customers, distributors, technologies, and macroeconomic data.
Done correctly, competitive monitoring gives you the required information to build and execute the local go-to-market implementation plan.
The alternative: try multiple value propositions
While you may try different value propositions in B2C, that´s hardly an option in B2B (due to implementation efforts). Digital marketing platforms allow you to approach the market with multiple campaign types. A/B-testing works in pre-sales but will fail in sales implementation. (especially with complex agreements under local law).
Beware of using web-service strategies in a B2B environment. German working culture is about being efficient and reliable.
It a no-go and waste of budget to approach customers and partners without preparation. You are not only wasting your time and budget.
- Do your homework before asking for the meeting.
- Be clear about your ambitions, and be reliable in execution
- “Fake it till you make it” only works in the Berlin startup environment.
Working with a local go-to-market specialist will give you access to local insights in the form of target market know-how and unbiased expert feedback. And as any bait has to appeal to the fish, not the fisherman, you should focus on your target customers in the new region.
Local content marketing exposes your ambitions to the new market actors, which may be customers, competitors or suppliers in the new region. Local Content Marketing is the Key To Success in Germany.
Showcase before approaching customers
Showcases on an own blog and topical forums offer advice and get the name and concept. Bridgehead and cross-promotions with customers of your partner business will learn about your company as a result of the joint project, and you’ll instantly have access to a second audience. If you chose your partner carefully, this second audience could be a natural fit as customers of your business.
Focus on bridgeheads and premium content
Leveraging our Network with Premium Content to make connections takes very little time. Post regularly on topics that are relevant to your business, and cultivate a reputation for being knowledgeable and active