Skip to content

Importance of Market Entry Strategy

If you want your business to achieve great success within a short period, and you want it to stand in the market, then you need an appropriate market entry strategy. The absence of a flawless market entry strategy might undermine all your other marketing efforts. In this blog post, I have provided some of the best market entry strategy examples that can help you maximize your profit from the get-go!

Whether you want to start your own business or work for someone who owns a small business, market entry strategy becomes a vital aspect of business development. It can be defined as the plan of action to enter a particular market to reap maximum benefit. Being the process that requires sound judgment and relevant participation to get the maximum gain from minimum expense and investment, it is important to have a feasible market entry strategy.


Entry into the market is always associated either with the appearance of a new company on the market or with the appearance of a long-existing company in a new market (expansion, scaling, etc.). The success of this is due to the ability of firms to compete with other brands and the willingness to take responsibility for risks.

Access to new markets can be free (in the case when it can be penetrated easily and compete with other manufacturers on an equal footing) and almost impossible (the presence of a monopoly in the chosen segment).

To enter the market as comfortably as possible, simple and with minimal risks, it is necessary to examine the target niche. Compliance with the product and mentality (if it is planned to “seize” the foreign market) of potential buyers, as well as their level of awareness of the product, significantly affects the return on investment. Also, market research of the development trends of the required sphere will soon show at what stage it is and where it is going.

Different market entry strategies

Direct exporting

This is where you export your products into the new market directly. You’ll have to handle all the aspects of the process independently, from transport to payments to operations in the new market.

This method requires more resources and time compared to working with an intermediary. You’ll need to create an exporting infrastructure, train employees, and make and receive international payments among many other challenging tasks.

On the plus side, this approach maximizes your profits as you don’t need to pay any third parties. You’ll also have complete control over your sales and marketing processes.

Indirect exporting

Indirectly exporting involves working with an intermediary. It has several advantages, such as:

  • Much lower risk. An experienced third party will take care of the exportation process which minimizes the risk of failure.
  • You’re able to focus on your own business and domestic markets without being occupied by your new ones
  • Fewer resources are required on your part

On the other hand…

  • Profits are lower since you have to pay your intermediary
  • You’ll be disconnected from your customer base, so you’ll miss out on important insights and lessons
  • You’ll lose full control over sales and marketing abroad

There are several different options when it comes to indirect exporting. Here are some of the most common ones.

Indirect exporting with buying agents

Buying agents are representatives of foreign companies that want to buy your products. You’ll work through them when selling your products to your new market.

They’re usually paid by commission and will try to negotiate the lowest possible price. Sometimes, buying agents are government agencies.

Indirect exporting using distributors

You can sell your product directly to distributors or wholesalers, who will then take care of distributing the product to retailers.

Indirect exporting through management and trading companies

Export Management Companies (EMCs) exist to take care of all your export and sales processes in your new market.

It’s worth taking some time to research and find the right EMC, as most specialize in a particular market and region. They’ll help you identify markets, find customers, handle all shipping and logistics, and much more.

Indirect exporting through piggybacking

Piggybacking is where you allow another, non-competing, company to sell your product. This can work extremely well if they already have an existing customer base and distribution infrastructure in your target market.

You’ll get immediate access to your new market but for a fee.

Producing products in the target market

Another option is to manufacture your products in the target market. This saves you the cost of transport and the many logistical challenges involved in exporting your product abroad.

However, you’ll also need to consider the many challenges involved in manufacturing your product abroad, any legal issues, costs, possible risks, and more. Depending on your situation, this could be a good option.

(For more information on the most effective strategies for entering a new market, check out our top four marketing strategies article).

Entering a new market can be extremely rewarding and can allow your business to move to the next level and achieve new growth. It’s important to take time to research all the possible options and ensure the export strategy you deploy is the safest and most effective for you.


No one will deny that the Internet is a favorable environment for the development of relations between producers and their customers. Indeed, the development of such a strategy of a new or existing company allows you to answer several important questions: what, to whom, when, and how to sell. The advantages of this strategy include: increasing sales, consolidating the brand in the market, increasing return on investment, improving customer service and increasing the cost of products, developing simpler sales channels.

To create such a strategy, it is necessary to define the goals of the enterprise: what you want from the business and how you want it to be received. You also need to determine your target audience and what methods of product presentation may be key when choosing advertising campaigns. Understanding customers will lead you to create a unique selling proposition and be able to communicate with a potential customer as efficiently as possible.

It should be remembered that the channels that you will use are also diverse. Think about what work is better and which is better, and what needs to be done for this. The distribution of functions and the definition of the desired results for each team will not be superfluous. Thus, you can always evaluate the effectiveness of a separate department and the success of brand promotion in general. By analyzing the effectiveness of your decisions, you can find bottlenecks and decide how to improve processes.

This strategic planning method eliminates location changes to conquer new markets. The scheme of work becomes simple: you just need to create a website, conduct an advertising campaign that is correct about the target audience, arrange delivery and that’s it. Business is working.


Before you choose an effective and working exit strategy, you need to gain knowledge that will help you in this. Of course, you can start exploring the right market yourself. And maybe you can do it. But do not forget that the invention of a bicycle will require resources and time. A leading market research company can conduct a competitive market analysis to test a new market before starting a business or developing an existing company.

customer experience entry by adloonix | Adloonix

Adloonix as a marketing agency can help enter a new market.

Market research before launching a new product or before entering a foreign market will provide a huge amount of useful and necessary information. Competitive analysis before launching a new project or business expansion will give an advantage: you will be able to study the mistakes of different strategies, and not duplicate them. The likelihood of creating a new unique selling proposition increases and will play only for your benefit. The disadvantages that you may not notice in your turn-based strategy, you will see in someone else’s. You can also confirm or deny your guesses before launching a startup or entering a foreign market. In addition, an analysis of the capabilities of competitors will help identify their strengths and weaknesses, reduce costs and time, optimize business processes.

The received recommendations on marketing promotion as a result of research can change your strategy for the better, before starting a new business or developing an existing one. The appearance of the site (design, colors, and other seemingly irrelevant elements) and the availability of effective solutions to the questions of potential buyers will make you come back to you again and again.

Customers are the main source of profit. But their behavior in the market is due to many factors that can be taken into account if we conduct a study on the participation of buyers in such market offers. If you do market research to analyze customer travels to increase your funnel, entering a new market will become easier.

Reaching a mutual understanding with customers will become much easier. After collecting and analyzing data on customer preferences, imperceptible problems, and expectations regarding your product or service, it is easy to develop a robust CX strategy.

The choice of channels of communication with customers every year becomes more and more diverse. It is necessary to find out which channels should be used and which should not. Understanding how you can attract attention and be remembered by potential buyers will ultimately benefit you. This will help build relationships with potential customers, which in the future will affect profits and allow you to gain a foothold in the selected market segment.

The use of market research will undoubtedly affect the profit, strategy, and turnover of any company. It is necessary to conduct market research of growth trends or possible changes in the market in the future, it helps to choose a more accurate and stable business scheme and reduce material losses on the way to the company’s profitability.

Competitive analysis will provide knowledge about competitor strategies, their benefits, and your ability to gain market share. Choose the best marketing strategy before launching a new product using our services. To do this, you only need to write us – [email protected]


Market entry strategy is the plan to enter the market and covers several areas that need to be thought through. In the world of business and commerce, the importance of a market entry strategy can never be overstressed. The market must be analyzed, risks must be mitigated, and a strategy must be formulated before any company gets into business. There is an art to seizing the right opportunity and reaping benefits from it.

Leave a Reply

Your email address will not be published.