1. define target market and customer needs

The first step in market entry consulting is to define the target market and customer needs. Target market refers to the market that customers want to enter or expand, and customer demand refers to the needs, preferences and purchasing behavior of potential consumers in the target market. The purpose of defining the target market and customer needs is to provide the basis and direction for subsequent market analysis and strategy formulation.

There are several ways to define the target market and customer needs, such:

Market segmentation method: According to the geographical, demographic, psychological, behavioral and other characteristics of consumers in the target market, the market is divided into different market segments, and then select the most potential and most suitable for customers as the target market.

Market demand method: According to the demand level, demand type, demand intensity and other factors of consumers in the target market, analyze the overall demand of the market and the demand of each market segment, and then select the market segment with the greatest demand and the most in line with the customer as the target market.

Market Opportunity Method: Identify market opportunities and threats based on consumer problems, pain points, expectations, satisfaction and other indicators in the target market, and then select the market segment with the most opportunities and the most suitable for customers as the target market.

The considerations for defining the target market and customer needs are the following:

The target market and customer needs should match the customer's resources, capabilities, goals and vision, and avoid choosing markets and needs that are too large or too small, too difficult or too easy, too high or too low.

The target market and customer needs should have clear boundaries and characteristics, and avoid choosing fuzzy or confusing, generalized or refined, static or dynamic markets and needs.

Target markets and customer needs should be based on adequate market research and data analysis to avoid selecting markets and needs that are subjective or biased, one-sided or incomplete, outdated or inaccurate.

2. assess market attractiveness and competitiveness

The second step in the market entry consultation is to assess market attractiveness and competitiveness. Market attractiveness refers to the potential and advantages of the target market in terms of scale, growth, profit and stability, while market competitiveness refers to the challenges and risks of competitors, substitutes, barriers and regulations in the target market. The purpose of assessing market attractiveness and competitiveness is to provide customers with judgments and recommendations on the feasibility and difficulty of market entry.

There are various ways to assess market attractiveness and competitiveness, such:

Five Forces Analysis: According to Porter's five forces model, analyze the power and influence of industry competitors, potential entrants, substitutes, suppliers and buyers in the target market to assess the degree of competition and profitability of the market.

SWOT analysis: According to the SWOT model, analyze the strengths, weaknesses, opportunities and threats in the target market to assess the strengths, weaknesses and trends of the market.

PESTEL analysis: According to the PESTEL model, the macro factors such as politics, economy, society, technology, environment and law in the target market are analyzed to evaluate the external environment and influencing factors of the market.

Considerations for assessing market attractiveness and competitiveness are the following:

Market attractiveness and competitiveness should take into account multiple dimensions and indicators, avoiding looking at single or superficial market data and information.

Market attractiveness and competitiveness should be dynamically tracked and updated to avoid ignoring market changes and developments.

Market attractiveness and competitiveness should be analyzed and evaluated objectively, avoiding overly optimistic or pessimistic, exaggerated or belittling market judgments and recommendations.

3. determine market entry mode and positioning

The third step of the market entry consultation is to determine the market entry mode and positioning. Market entry mode refers to the way and path of customers entering the target market, and market positioning refers to the target customer base, differentiation advantage and brand image of customers in the target market. The purpose of determining market entry mode and positioning is to provide customers with market entry strategies and directions.

There are various ways to determine the market entry mode and positioning, such:

Market entry mode selection method: according to the different dimensions of market entry mode, such as control, risk, investment, flexibility, etc., compare and select the most suitable market entry mode for customers, such as export, authorization, joint venture, sole proprietorship, merger and acquisition, etc.

Market positioning method: according to the three elements of market positioning, namely, target market, differentiation advantage and reason proof, determine the customer's target customer group, differentiation advantage and brand image in the target market, such as high-end, mid-end, low-end, function, quality, service, etc.

Market segmentation positioning method: According to the results of market segmentation, different market entry modes and positioning are formulated for each market segment to meet different customer needs and preferences, such as region, age, income, gender, etc.

The considerations for determining the market entry mode and positioning are the following:

The market entry mode and positioning should match the market attractiveness and competitiveness, and avoid choosing market entry mode and positioning that are too conservative or risky, too simple or complex, too traditional or innovative.

The market entry mode and positioning should be consistent with the client's resources, capabilities, goals and vision, and avoid choosing a market entry mode and positioning that exceeds or falls below the client.

Market entry mode and positioning should have clear objectives and plans, and avoid choosing vague or chaotic, random or disorderly, lacking or excessive market entry mode and positioning.

4. development of market entry plans and budgets

The fourth step of the market entry consultation is to develop a market entry plan and budget. Market entry plan refers to the specific actions and steps taken by the customer to enter the target market, and the market entry budget refers to the prediction and control of the cost and benefits of the customer's entry into the target market. The purpose of the market entry plan and budget is to provide customers with the basis and tools for the implementation and evaluation of market entry.

There are various ways to develop market entry plans and budgets, such:

SMART method: According to SMART principles, develop market entry plans and budgets with specific, measurable, achievable, relevant and time frames, such as market share, sales, profit margin, customer satisfaction, etc.

GANTT chart method: According to the form of GANTT chart, make a market entry plan and budget with timeline, task list, progress bar and milestone, such as market research, market analysis, market strategy, market execution, etc.

PDCA cycle method: According to the process of PDCA cycle, develop a market entry plan and budget with planning, execution, inspection and improvement, such as market objectives, market actions, market results, market feedback, etc.

Considerations for developing market entry plans and budgets are as follows:

Market entry plans and budgets should be consistent with market entry models and positioning, and avoid choosing market entry plans and budgets that are inconsistent or conflicting with market entry models and positioning.

Market entry plans and budgets should be operable and adjustable, avoiding choosing market entry plans and budgets that are too ideal or realistic, too fixed or flexible.

Market entry plans and budgets should have clear responsibilities and division of labor to avoid selecting market entry plans and budgets that are lacking or repetitive, vague or confusing, single or multiple.

5. execution of market entry actions and monitoring effectiveness

The fifth step of the market entry consultation is to execute the market entry action and monitor the effect. Market entry action refers to the specific activities and measures implemented by the customer in accordance with the market entry plan and budget, and the market entry effect refers to the actual performance and results of the customer after entering the target market. The purpose of performing market entry actions and monitoring effectiveness is to provide customers with methods and recommendations for the implementation and improvement of market entry.

There are various ways to perform market entry actions and monitor effectiveness, such:

4P Marketing Mix Method: According to the elements of the 4P marketing mix, implement and monitor the customer's product, price, channel and promotion strategies and effects in the target market, such as product features, price strategies, channel selection, promotional activities, etc.

7S management model method: according to the elements of the 7S management model, implement and monitor the strategy and effect of the customer's strategy, structure, system, style, skills, personnel and shared value in the target market, such as strategic objectives, organizational structure, management system, leadership style, core skills, human resources, corporate culture, etc.

Balanced scorecard method: According to the four dimensions of the balanced scorecard, implement and monitor the customer's financial, customer, internal process and learning and growth strategies and effects in the target market, such as financial indicators, customer indicators, process indicators, learning indicators, etc.

The following considerations for implementing market entry actions and monitoring effectiveness are included:

Market entry actions and effects should be consistent with market entry plans and budgets, and market entry actions and effects that do not match or differ too much from market entry plans and budgets should be avoided.

Market entry actions and effects should be implemented and monitored in a timely manner to avoid delaying or neglecting the implementation and monitoring of market entry actions and effects.

Market entry actions and effects should be fully implemented and monitored to avoid missing or ignoring important or key aspects and indicators of market entry actions and effects.

6. evaluation of market entry results and continuous improvement

The sixth step of the market entry consultation is to evaluate the market entry results and make continuous improvement. Market entry results refer to the overall performance and results of the customer after entering the target market, and market entry improvement refers to the adjustment and optimization of the customer's market entry strategies and actions based on the feedback and analysis of the market entry results. The purpose of evaluating market entry results and making continuous improvement is to provide customers with opportunities and methods for summarizing and reflecting on market entry.

There are various ways to assess market entry results and make continuous improvements, such:

KPI Evaluation Method: Evaluate the results of the customer's market share, sales, profit margin, customer satisfaction, etc. in the target market, such as achievement rate, growth rate, rate of return, satisfaction, etc., based on the key performance indicators (KPIs) set by the customer.

SWOT Analysis: According to the SWOT model, analyze the customer's strengths, weaknesses, opportunities and threats in the target market to assess the customer's strengths, weaknesses and trends in the target market.

PDCA cycle method: According to the process of PDCA cycle, according to the feedback of market entry results, the plan, execution, inspection and improvement of market entry are adjusted and optimized, such as market objectives, market actions, market results, market feedback, etc.

Considerations for assessing market entry results and continuous improvement are as follows:

Market entry results and improvements should match the client's resources, capabilities, goals and vision, and avoid evaluating or improving market entry results and improvements that are too high or too low, too difficult or too easy, too fast or too slow.

Market entry results and improvements should be objective and effective, and avoid evaluating or improving subjective or biased, one-sided or incomplete, outdated or inaccurate market entry results and improvements.

Market entry results and improvements should have clear standards and methods to avoid assessing or improving lack or duplication, ambiguity or confusion, single or multiple market entry results and improvements.

Conclusion

Market entry consulting is a complex and important consulting service, which involves the analysis and decision-making of many aspects and links. Taking the experience of Shangpu Consulting Group as an example, this paper introduces the six steps of market entry consulting, namely, defining the target market and customer needs, evaluating market attractiveness and competitiveness, determining market entry mode and positioning, formulating market entry plans and budgets, executing market entry actions and monitoring effects, evaluating market entry results and making continuous improvements. The purpose of this paper is to provide a reference and guidance framework for clients and consultants interested in market entry consulting, hoping to help them better conduct market entry consulting and achieve market growth, competitive advantage and profitability.