Top challenges in GTMs to new markets
Entering new markets is crucial for companies to achieve growth and reach new customers. However, it's not an easy feat, and marketing is one of the areas where you can face significant challenges.
In this post, we will discuss some of these top marketing challenges in GTMs (Go-To-Market strategies).
1 Maintain global brand consistency but get the local culture right
When you enter a new market, it means dealing with a new set of cultural and linguistic differences. Understanding local preferences and cultural nuances is critical for creating effective marketing campaigns that resonate with the local audience.
For instance, the international strategy for the marketing success of McDonald’s is based on a strong adaptation strategy. This means that while McDonald’s maintains a strong global brand consistency it also adapts its menu, business plans and advertising to suit each culture. As an example, the company’s advertising in the USA is typically skewed toward children whereas the Japanese ads are focused on adults as well as children.
Local research is the key element to global marketing: start with good market research to identify the right messaging and communication channels that appeal to the local audience. Maintain global brand consistency, and localize needed elements, messaging, landing pages and campaigns to create impact in new markets.
2 Create a localized digital sales and marketing strategy
Global digital sales is not one-size-fits-all, and it’s not enough to translate marketing materials from one language to another. Successful localization needs a comprehensive understanding of the local market landscape.
Nike successfully entered the Chinese market by creating localized marketing campaigns that focused on China’s rich history and culture. They collaborated with local celebrities, such as basketball player Yao Ming, and sponsored local sports events to build brand awareness.
When you localize marketing strategy:
- Create a marketing strategy that addresses local market needs, preferences, and channels. What are the most effective tactics to reach your prospects in the new market?
- Gain a good understanding of the local market trends, local search trends, competitor activities, and consumer behaviour before creating a localized campaign.
- Have clear goals and targeted messaging: if for instance, you are looking to increase brand awareness in new markets, make sure that your unique value propositions offer something compelling to your prospects in that market. Adapt your messaging to match each market, don’t just copy-paste and translate.
- Invest in localized marketing resources such as in-country marketing teams or collaborate with agencies with localized resources.
3 Manage digital sales costs
New market entry can be expensive, and marketing costs can quickly add up. Optimize marketing budgets to ensure that the most effective resources, channels and tactics are being used to reach the local audience.
For instance, Amazon entered the Indian market by focusing on online sales and investing heavily in logistics to manage marketing costs. They also enlisted rural mom-and-pop store owners as partners in the delivery platform so that village residents can go to these stores and use the owner’s internet connection to browse and select goods from Amazon.
4 ways of managing GTM marketing costs:
- Prioritize channels that have the most significant impact on target audiences in your new target market.
- Start small and then expand: focus on a few key markets and key channels rather than trying to do everything at once. If for instance, you are entering a new continent, start campaigning first in 1-2 key countries with a couple of well-thought-out and planned test campaigns. Gather insights, optimise and expand campaigning little by little in new locations.
- Leverage cost-effective digital marketing strategies such as SEO and content marketing. Conduct keyword analysis and competitor benchmarking to find out where your organic search opportunities lie. Leverage Chat GPT-3 or GPT-4 in cost-effective content creation or topical research.
- Align marketing, resources, tools and processes with your marketing objectives: make sure you have the right tools, tech, and processes in place to ensure marketing success and streamlined processes.
4 Address regulatory compliance and legal issues
Different countries have varying regulatory compliance requirements, such as data privacy laws, advertising standards, and consumer protection regulations. Ignoring or failing to comply with these laws can have serious consequences, including fines and damage to brand reputation.
For instance, Uber faced regulatory challenges when it entered the Indian market. The company had to comply with various regulations, including obtaining licenses and adhering to price caps, to operate in the market legally.
Stay on top of regularity requirements by:
- Conducting thorough due diligence on local laws and regulations.
- Engaging local legal counsel to review marketing materials and ensure that your marketing campaigns comply with local regulations.
By understanding local cultures, creating tailored marketing strategies, managing marketing costs, and complying with local regulations, companies can successfully enter new markets and reach new customers.