What Is a Market Entry Strategy?

When new products enter the market, there are two sizes to choose from: one is to comprehensively launch new products for the target segment, and the other is to use a certain order for rolling delivery to the target segment. The target market segment can be one or more. Generally, a market segment is also divided into multiple sub-markets in order to better allocate resources.

New product entry strategy

Right!

When new products enter the market, there are two sizes to choose from: one is to comprehensively launch new products for the target segment, and the other is to use a certain order for rolling delivery to the target segment. The target market segment can be one or more. Generally, a market segment is also divided into multiple sub-markets in order to better allocate resources.

Chinese name

New product entry strategy

Classification

Two sizes

Purpose

Better

The so-called reflection intensity of entering the market refers to the release of new products to all

The meaning of test marketing

The purpose of the new product market test sale is to do the last time before the new product is officially launched.

Analysis of early market entry strategies

Early refers to being the first to launch its own product on the market ahead of other manufacturers. This period often corresponds to the first stage of the product life cycle, which is the investment period. There are high-risk and uncertain factors in the market. However, entering the market early can form a competitive advantage, that is, it can establish and increase the entry barriers of the industry, prevent potential competitors from entering, and thus occupy a dominant position in the market. Earn a certain number of loyal customers in the market in the early stage. Through these customers, it may have a beneficial impact on other potential customers, which is conducive to establishing a strong market position. Especially for new products or products with rapid technology updates, products that enter the market early will often become or be defaulted to the industry standard. IBM (International Business Machines Corporation) is the world's earliest manufacturer and launcher of personal computers. Its computer products are considered "authentic" by the industry, and later

The same period refers to the introduction of new products to the market at the same time or very close to other manufacturers. During this time, whether it can become the first is not much different for the market and other stakeholders, because Before a new brand and product does not form a preference, the first entrant has not had time to establish barriers to entry, and the manufacturers entering later are in competition with the previously entered manufacturers

Late stage refers to the introduction of new products to the market after competitors enter the market. This means delaying the launch date of new products in order to achieve long-term competitive advantage. Of course, it is also possible that because the product development time is later than the opponent, they may be forced to launch their new products later than the opponent. Here, it is important to be good at learning from your opponent's experience.

Late Entry Advantage

Why enter the market late? From the early entry strategy, the two shortcomings of early entry are analyzed, namely the risks and costs of developing the original market. If the company's liquidity is not sufficient, the failure of the original market development may be related to the life and death of the company, such as Wan Yan's failure. Late entry can be avoided on the one hand

Price Strategy

(I) Determine the pricing target

In the marketing mix, price is the only factor that generates revenue,

New Product General Pricing

(1) Skimming Price. The use of skimming cheese from fresh milk as a metaphor for high-priced products to earn high profits from consumers is generally applicable to brand new, improved or repositioned products that are not easy to imitate, protected by patents, and consumers are in urgent need. There is less demand elasticity and there are no competitors or weak competitors. The advantages of this pricing method are mainly as follows: the initiative is large, and the price can be gradually reduced in stages over time, which is conducive to attracting new customer groups from other market segments; it is adaptable and can be adapted to production capacity, Limiting the rapid expansion of demand has resulted in a situation of oversupply; it can quickly draw profits from the market and recover costs quickly; in addition, it is also conducive to establishing a corporate, brand, and product image in the minds of consumers. However, its shortcomings are also obvious. The high price is not conducive to expanding the market. It also easily invites competitors and leads to vicious competition. DuPont is the main implementer of this pricing method. It initially set a higher price for nylon, lycra and other inventions based on the comparative benefits of new products and effective substitutes, but still made target customers think it was worthwhile to generate Large sales volume, when the sales volume gradually declines, and then lower the price to attract price-sensitive customers, so that DuPont has obtained a large amount of maximum revenue. Galanz, which has recently been designated as one of the 68 world-renowned brand-name enterprises in China, also invested in the production of microwave ovens with a "high starting point and high positioning" strategy in the early 1990s. In 1995, its sales reached the first in the country, with a share of 25.1% In August 1996 and October 1997, after a 40% price reduction, it occupied 78% of the market in June 1999, establishing Galanz as the leader in the microwave oven industry, and promoting the domesticization of microwave ovens in China. Winning an edge in the competition of a brand has established its international popularity.

Penetration Pricing. Contrary to the skimming pricing method, the goal is to gain the largest market share and target consumers. It has many advantages: new products can be quickly accepted by the market, quickly open up sales, so that costs decrease with the development of production, and because of low profit margins, competitors are discouraged and the intensity of competition is reduced. When new products have no significant features, fierce competition, and greater demand elasticity, it is advisable to adopt the function approach. But the premise of using this method is that there must be a huge potential market for new products, and the company also has a large production scale and large marketing experience. For example, the Shu Ermei women's products under the Kimberly-Clark International Group aim at the many characteristics of this market brand. On the premise of high quality, they set a lower price. This price is even lower than the mass consumer brand An Erle to occupy the market. Win consumers quickly in a short period of time. However, this pricing method will cause the brand image to be difficult to establish because the price is set too low, and even low enough to make consumers doubt whether it has quality problems.

Other pricing methods

The above-mentioned new product pricing method is a general pricing strategy, and a lot of skills and methods are required to be used comprehensively when setting specific prices.

(1) Psychological pricing method. Some pricing techniques cater to some specific consumer psychology, such as integer pricing and mantissa pricing. Many products have mantissas of 0.98 and 0.99 instead of 1.00, which is one price lower than this. This kind of "cheap" illusion reflects more positively and promotes sales. This is particularly evident in the pricing of clothing, which is often set at 99 yuan, 199 yuan, etc., while some products are priced for integers, because the target consumers believe that "cheap" No good goods, good goods are not cheap ", a higher price can stimulate consumers to buy. Some companies adopt a prestige pricing method for higher pricing of similar products, mainly for two purposes: first, to improve product image, and second, to satisfy some consumers desire for status and self-worth, such as Microsoft s Windows 98 Chinese The edition is priced at 1998 yuan. There are also many varieties of similar products that have formed a customary price in the market, but new products have no prominent characteristics. Raising or lowering prices will create consumer resistance and reduce the market development speed of new products.

(2) Discount pricing method. Discounted prices are one of the most commonly used methods for sales promotion of new products. There are different forms of discounts. For example, a cash discount is a price discount for consumers who pay their bills promptly. The quantity discount is based on the difference in purchase quantity and amount. The unit price decreases accordingly. The larger the purchase quantity, the lower the unit price. It is divided into a cumulative quantity discount and a non-cumulative quantity discount. This discount form is suitable for general consumers. Too high to discourage consumers. There are also trade discounts for middlemen. Production companies give different discounts and discounts according to the different tasks and roles of different middlemen in marketing in order to establish and maintain a good cooperative relationship. In the process of investing in the Chinese market, Weijie Ya Paper has always adopted the "buy two get one free" promotion method, which means that the average price has been reduced by 1/3, the brand has been established, and the market has quickly penetrated the market, achieving very good marketing. As a result, this discount was cancelled after the infiltration process was completed.

(3) Differential pricing method. Enterprises will also adopt different pricing based on different customer bases, product styles and performance bases, geographic locations, and time bases. For example, pricing for geographical locations includes in-situ delivery pricing, unified freight pricing, regional pricing, base point pricing, and freight pricing.

In short, the pricing strategy is changeable, considering different market environments, supply and demand conditions, corporate strategies, product costs, and other factors, and can flexibly fluctuate according to the situation. In short, the market is the best compass.

"Second", new product marketing channel decision

1. Analysis of marketing channel decision factors

(1) Product properties. Product properties include many aspects such as product life cycle, perishability, seasonality, popularity, volume, weight, price, additional services, frequency of purchases, and more. Generally speaking, the intensive distribution of convenience products and long channels are interrelated, and the selective distribution of special products in specific regions determines the short channels.

(2) Consumer characteristics. Channel design is also largely influenced by consumer characteristics. Consumers have various characteristics, such as the number of consumers, their distribution, purchasing psychology, cultural characteristics, and attitudes. When a company enters a large-scale or widely distributed market, it usually chooses a long channel to satisfy its purchase at any time, otherwise it can take a shorter channel.

(3) Enterprise status. It depends mainly on the desire and ability of the enterprise to control the channel. The scale, capabilities, and reputation of the company itself directly affect the choice of channels, as this involves whether the company can control sales channels and whether middlemen are willing to cooperate with the company. If the company's financial status is good and its marketing management ability is strong, it can assume part or all of the marketing functions of channel management. If the internal conditions of the company do not allow or have no desire to directly manage the channel, it can entrust intermediary agencies to manage, of course, these intermediaries I want to share the profits with you.

(4) Market environment. From a micro-environment perspective, the distribution channel of new products is best to adopt a different channel than its substitutes. New product managers must have a concept that the choice of channels can also be innovative. In addition, the size of the retailer is also closely related to the selection of the channel. If the retailer in a market is large in scale and has a large number of purchases and high frequency, the manufacturer can sell directly to the retailer without going through a wholesaler and adopt a shorter sales channel. On the contrary, if the number of small and medium retailers is large and the competition is fierce, the long channels of wholesalers will be used to obtain higher marketing benefits. From the macro-environment analysis, the economic situation also has a greater impact on corporate marketing channel decisions. In the context of inflation, market demand is decreasing. The key for enterprises is to control and reduce the final price of products and avoid unnecessary circulation costs. Therefore, most enterprises have adopted short-channel sales. If the economic situation is good, the initiative of enterprises to choose marketing channels will be greater.

2. General marketing channel decisions

(1) Channel decisions for new products and new products to open up new markets. The emergence of brand new products means that a brand new industry will be opened up, and new products entering new markets will be the same. The first problem facing the construction of this marketing channel is the use of direct sales or indirect channel sales. Direct marketing channels are what we generally call factory direct sales. This channel is an important method for verifying and developing customer interest. If the target consumer has been studied beforehand, you can only reach those prospective customers to quickly explore the potential of new products. If you can use letter or telephone (including 800 toll-free number), then the sales scope is limited. The biggest advantage of direct marketing is that it saves circulation costs, improves profitability, and is not subject to the various restrictions of intermediary channels, extending the time to market new products. However, if you want to occupy a larger market, the startup costs and costs are also great, and companies are fighting alone to increase the risk. Customers have only a single way and way to access new products, and they often cannot feel it.

If your new product has one or more of the following characteristics, direct channels have advantages over indirect channels: the complexity of technology leads to high requirements for information; the degree of customization of the product is important; the guarantee of quality is important Only a lot of high order; Transportation and storage and transportation are complicated.

Indirect marketing channels. General indirect marketing channels are composed of several layers of sales intermediaries, which mainly include sales agents or representatives, wholesalers or brokers, retailers, etc. If the availability or after-sales service of a new product is important, or consumers often buy this new product together with other products, it is more scientific to adopt indirect channels to sell.

If indirect channels are adopted, they will face the question of whether to build by themselves or rely on existing channels of distributors. In cooperation with distributors, they have a complete sales system that can sell your products within an effective geographic range, thereby greatly expanding the scope of your products. Some industry distributors will add services based on your products, such as cataloging in local inventory, financial support, and providing local after-sales service. But they are also distributors, which means that they have to share profits with you. They will also delay accepting new products or accept new products without promotion according to the specific market conditions of the products. The use of these methods depends on whether the distributors are profitable. Graph and how much can be profitable. And if the distributor has accepted your competitor's product, it will be difficult to get them to accept your new product. This is just one aspect. On the other hand, choosing an industry distributor means that channel innovation will not be possible, and the traditional sales model may not be entirely suitable for the needs of new products. At this point, we must carefully consider this. Risk is wrong.

After the sales model is decided, it is necessary to start a hard construction activity, just like Yan title mud, build your own kingdom little by little, and win your own competitive advantage little by little.

(2) Sales channels for new and improved new products. The emergence of such new products means that the products will enter the growth stage and competition will intensify. For new entrants, it is certainly advisable to follow up the sales model of new products. It is better to adopt some new elements in the channel construction, which is not only suitable for their own strength, but also an embodiment of differentiation.

The success of BusinessCom in the PDA market in 1999 was not only in successful advertising operations. The secondary channel sales method it adopted also had a lot to learn from. Henderson Albert re-entered the first barrel of gold, and it took only one year to establish its own unique distribution channel: a small-area exclusive agency system. They first conducted experiments in Zhengzhou, Jinan, and Zhangjiagang. After obtaining positive results and valuable experience, they quickly spread to major cities across the country and attacked towns with these cities as the center. Their agents are directly facing consumers, and their products are also supplied. Each agent is not allowed to cross-stock and sell across regions. There are more than 700 sales personnel distributed throughout the country to help agents develop markets and monitor market order. This is a kind of channel innovation, and the effect is very good.

The Red Genuine Storm marketing operation launched by Jinshan Company mentioned above also uses all the sales channels currently available to promote new products. He not only sells through franchise organizations such as Lianbang and Selec that he has been cooperating with, but also New products were launched in shopping malls, newsstands and online supermarkets, and they co-planned the "Sina Express Line" with Sina and launched a hot sale at 8848. The diversification of channels made Kingsoft PowerWord 2000 and Kingsoft Express 2000 almost within easy reach, and created shocking results for the software industry.

(3) Channel decisions for new products of series or reduced cost type. It is useless to say that the sales of fine new products will use the sales network that the company has established. This is the company's resources. One of the purposes of launching these two new products is to make full use of existing resources and use the original brand and sales The smaller marginal cost of the channel makes the most profit. Large enterprises such as Haier and TCL in China's home appliance industry spent a lot of money and energy in 1997 and 1998 to build their own unique sales networks, and each new product launched thereafter was sold in these networks, enabling products to be developed from research and development. The time it takes to reach the end consumer is greatly reduced, reducing costs and risks.