How to choose a market entry strategy: 3 options

Before launching a new product or service, a market entry strategy has to be developed.

This way, the company or the entrepreneur will know they identified the best opportunities and solutions, avoided pitfalls, and prevented issues.

Of course, there are several types of market entry strategies, and choosing the most suitable one has to be made taking each particularity and the long-term business development goal into consideration.

1. Pricing strategy

Also known as the high price strategy, this is one of the most used tactics when launching a new product or service. It’s about setting a higher launch price compared to competitors who already have a similar product or service available on the market.

The strategy has to be applied when the market research shows that potential buyers associate the high price with the high social status they would get if they bought the product.

Thus, the high value of the product becomes an element of differentiation from other competing products.

Most of the time, this is the recommended market entry strategy for luxury products or services.

2. Product strategy

The product strategy has to reflect the dimensions, structure, and characteristics of the products sold by the company.

This way, the objectives can be achieved by:

• Strengthening the market position
• Successful market penetration
• Increasing market share
• Product differentiation: distinguish your products from the competition
• Better market positioning

3. Market strategy 

Market strategies can be differentiated and undifferentiated.

The differentiated ones have the following characteristics:

• A broad variety of products and services with different characteristics are launched on several market segments;
• Each product or service is promoted according to the specifics of the market segment on which it was launched;
• The strategy requires a great knowledge of the specifics of all market segments on which the new products or services have been launched;
• Each product or service has to be presented in response to a specific need for a particular segment;
• The products have to be as different as possible, in order to satisfy as many people (with different needs) as possible.

Undifferentiated market strategies have the following characteristics:

• Products or services are not oriented to the market’s needs, but to the production needs, therefore they don’t take the consumers’ wants and needs into account;
• The services or products are not adapted to the changing preferences of the customers but are made following old, tried-and-tested recipes;
• The products won’t be improved;
• This strategy is usually applied in niches where there’s no competition because customers have no choice and have to accept the products and services available.

To sum up, there are several options for the market entry strategy, and choosing the best one, advised by our specialists, will ensure the launch of a successful business.

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