About this course
Welcome to Course 5 of Module 3 of our comprehensive course program, carefully designed and developed by professionals from prestigious VET providers within the scope of the Challenger project.
This is the final phase of your learning journey. Throughout this module, you will be able to apply the theories, frameworks, and strategies learned thus far to conceptualize, develop, and execute your innovative ideas. Working in a team guided by experienced mentors and industry experts, you will navigate the complexities of bringing your innovations to life, from ideation to market launch.
In Module 3, you’ll explore courses covering critical aspects such as business model development, ethical and sustainable considerations in the innovation process, market analysis, intellectual property protection, market entry strategies, and marketing branding, equipping you with the skills to launch your innovative ventures confidently.
Building upon the foundational knowledge acquired in Module 1 and the practical skills made in Module 2, this phase marks a significant transition as you develop your own innovative ventures.
- Module 1: Learning the basics
- Module 2: Applied Phase 1: Working on hands-on projects for business
- Module 3: Applied Phase 2: Creating your own innovations
All these courses are offered for free. If you registered for participation and handed in the group assignments to your tutor/role model, you will receive a confirmation of participation in the form of a digital badge. After completion of all courses of the module, you will receive an innovation certificate that will prove your experience and gained know-how.
The courses are aimed at learners in VET schools, bachelor students in universities, persons interested in developing their entrepreneurial mindset, persons interested in innovation and how to put ideas into practice, teachers/educators, industry experts, and community members.
Market Entry
In this market entry course, we will redefine success by making your customer the hero of your story. Learn the art of strategic customer engagement through data-driven approaches, understanding the impact of both offline and online channels. Discover the keys to improving customer interactions, ensuring a positive journey that aligns with your business goals.
The role of the hero
The most consistent mistake companies make is positioning their company or product as the story’s hero. If you want customers to buy, you must tell a story where the customer is the hero–not you. What is a hero? In stories, the hero (or heroine) is the star, the person who takes action to overcome obstacles to win the prize. Along the way, the hero typically meets enemies and helpers, but the story is about the hero, not the other characters.
If you’re selling or marketing something, you probably have a story where you, your company, or your product plays the starring role:
“For decades, our company has been the industry leader.”
“Our product solves problems, reduces costs, and increases revenue.”
“We are personally committed to providing the best service.”
Even when you tell this story with enthusiasm and confidence, you’re making a huge mistake because you’re making the customer a minor character rather than the star of the show.
Instead, you should tell a story where you, your company, and your product play a supporting role in making the customer into a hero. As sales great Mike Bosworth once said: “Be the wizard who gives the hero a magic sword.”
How It Works in Practice
Here’s an example of what we are talking about:
Wrong: “We recently saved ABC a million dollars. Don’t hesitate to contact me to learn more about our products.”
Right: “I recently worked with ABC to save them a million dollars. If you’re interested, I can tell you how they did that.”
Can you see the difference?
The CEO of Dale Carnegie Training, Peter Handal, gave a perfect example of telling a story with the customer as the hero:
“When I give presentations to prospects, I don’t explain how wonderful we are or why what we do works. Instead, I tell how Warren Buffett, when asked why he’s successful, gives two reasons: 1) value investing, and 2) learning to communicate at a Carnegie seminar.”
See how clever this is? Peter’s story is about how Buffett (and, by extension, every other customer) became a successful hero through his own ideas (value investing), with Carnegie playing a supporting role.
Which channels will be used to reach customers and engage with them?
It is believed that customers are kings. This sentence is true, and people who understand it constitute the most profit-making firms. When it comes to reaching out to customers and promoting a business, several questions must be answered. One major concern of the marketing teams is whether to select offline marketing channels or online marketing strategies. These channels have their own benefits and are potentially useful to the company to boost its profits.
Channels are crucial interfaces shaping an organization’s connection with customers, influencing the overall customer experience. Two main types, direct and indirect channels, play distinct roles. Direct channels involve the company’s sales department, offering real-time interactions and personalized experiences. The company’s website or app also serves as a digital platform for customer engagement. In contrast, indirect channels utilize intermediaries like retailers or distributors, expanding market reach. Integrating direct and indirect channels strategically ensures a comprehensive approach to customer experience management, fostering loyalty and satisfaction through diverse touchpoints.
When entering a new market, businesses typically choose between two main ways of selling: direct and indirect. Direct sales mean selling products or services directly to customers without middlemen. It gives the company more control over the entire sales process. On the other hand, indirect sales involve using intermediaries like distributors or retailers to reach customers. This method provides broader market coverage but involves giving up some control. Deciding between direct and indirect sales depends on factors like product type, market conditions, and business goals, making it an important choice for companies entering new markets.
Data-Driven approach
A data-driven approach to market entry involves utilizing comprehensive data and analytics to inform strategic decisions when entering new markets. This methodology encompasses thorough market research, including demographic and customer behaviour analysis, competitor assessments, and predictive analytics to anticipate trends and challenges. Companies can tailor products or services to specific needs by segmenting customers based on data-driven insights. Localization strategies, informed by cultural and regional data, aid in adapting offerings to meet local preferences and regulations. Risk assessment, performance metrics, and economic indicators are monitored through data analysis, allowing for agile adjustments to strategies. This approach empowers businesses to make informed decisions, mitigate risks, and optimize resource allocation, ultimately increasing the likelihood of successful market entry.
Understanding the values customers are willing to pay for is integral to any business’s success, as it directly influences revenue streams and business models.
- Sale of goods – the most traditional and widespread source of revenue is the sale of goods, where customers exchange currency for tangible products;
- Usage Fee – customers pay based on their utilization of a specific service;
- License fee – Customers are granted the right to use a protected intellectual property for a license fee;
- Membership fee – Sale of continuous access to the service;
- Advertising – Fees for promoting a particular product, service or brand.
Where is the greatest potential for improvement? Where does it make sense to start?
Suppose a potential customer for your product is out there in the market at this exact moment. A business friend may have recommended your company and is now studying the information on your website. The next step is to send a request to your company via email or to call your company directly.
During the telephone conversation, you realize that a personal appointment would make sense, which is arranged immediately. Send the potential customer a brochure or other information material in advance and include a friendly accompanying letter. You can then look forward to the agreed appointment with confidence.
Now, let’s pause for a moment in this fictitious purchasing process. What has happened so far? You may have noticed that your prospect has already gone through 4-5 contact situations with your company by this point. Your potential new customer will already have a more or less clear picture of your company, your range of services and the behaviour of your employees. This is even though there has not yet been any direct personal contact. These contacts have become even closer with every step in the purchasing decision process.
Next comes the personal conversation, which in this example gives the interested party five additional contact situations: the outside view of your company, the inside view of your company, the process at the reception, the inside view of your meeting room and the personal sales talk. Each element represents a perceptual block immediately interpreted by your potential new customer. Based on these perceptions, she makes assumptions about your reliability, competence, and responsiveness.
If the purchase decision goes in your favour, the customer will call your company again. Other contact situations during the service provision can also be broken down in similar detail.
These perception blocks are important because they are used to evaluate your performance. You decide whether the customer returns and whether he makes recommendations to his friends.
So, carefully analyze the path your customers take. Identify the individual stations, recognize their importance and take advantage of each individual contact’s opportunities.
Which KPIs can be taken to track and measure success?
“However beautiful the strategy, you should occasionally look at the results.”
Sir Winston Churchill (1874 – 1965), British Prime Minister
Some typical KPIs are…
- Units sold
- Users registered
- Pilot customers
- Paying customers
- Number of complaints
- Closed partnerships
OKRs: Objectives and Key Results
OKRs (Objectives and Key Results) are a framework that helps organizations define and track their objectives and measure progress towards achieving them. OKRs provide a clear and measurable way to align teams and individuals with the organisation’s overall strategic goals. The concept of OKRs was popularized by Intel and further developed by Andy Grove, and numerous successful companies, including Google, have widely adopted it.
OKRs consist of two main components: Objectives and Key Results.
- Objectives: Objectives are ambitious, qualitative, and inspirational statements that describe what an organization, team, or individual aims to achieve within a specific timeframe. Objectives should be challenging and provide a clear direction for everyone involved. They are typically set every quarter but can vary depending on the organization’s needs.
- Key Results: Key Results are measurable and specific milestones that indicate progress towards achieving the objectives. Each objective usually has three to five key results associated with it. Key Results are designed to be measurable and quantifiable, clearly indicating whether the objective has been achieved. They define the criteria for success and help teams stay focused on outcomes.
OKRs are typically defined and tracked at multiple levels within an organization. The high-level company objectives cascade down to department or team objectives, and individual objectives are aligned with team goals. This alignment ensures that everyone is working towards a common set of objectives and contributes to the organisation’s overall success.
OKRs are typically set collaboratively, with input from various stakeholders. They require regular check-ins and progress updates to track performance and make necessary adjustments. OKRs should be transparent and visible to everyone in the organization, fostering a culture of accountability, alignment, and continuous improvement.
The power of OKRs lies in their ability to drive focus, alignment, and accountability. By setting clear objectives and measurable key results, OKRs help organizations prioritize initiatives, track progress, and enable teams to adapt and course-correct as needed. They promote a results-oriented mindset and encourage teams to aim for ambitious yet achievable goals.
It’s important to note that OKRs are not a performance evaluation tool but rather a framework for goal setting, alignment, and driving organizational success. They provide a structured and disciplined approach to goal management, fostering a culture of transparency, collaboration, and continuous improvement.
Course materials
ADDITIONAL MATERIAL / LINKS
https://www.evadimitrova.com/go-to-market-canvas
Assignment
This assignment needs to be completed as a team effort. Your tutor or role model will guide you through the assignment. Please reach out if you require support. The final assignment should be submitted to your designated mentor.
Once your course is complete, your tutor or role model will confirm your completion and instruct you to upload the results to the platform to receive permission to obtain a badge. Upon completing all six courses within a phase, you will receive an innovation certificate for that respective phase.
Along with this course, you can find Go to Market Canvas, which was provided by Eva Dimitrova. Your task is to fill out the canvas with your market entry strategy for your project and present it to your teacher/role model.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Education and Culture Executive Agency (EACEA). Neither the European Union nor EACEA can be held responsible for them.
