Market Entry Strategies: Communication, Advertising, and Public Relations

Posted on Feb 14, 2025 in Marketing

Item 5: Market Entry Strategies

5.1 Reactions to Market Entry and Overcoming Barriers

Entering a new market can face obstacles, including:

  • The need for significant technological innovation.
  • Highly competitive existing companies.
  • Defensive strategies from incumbent companies (e.g., improved quality, discounts).

Ways to Overcome Barriers:

  • Analyze Market Differences: Identify opportunities presented by the new market.
  • Establish Competitive Strategies:
    • Cost Leadership: Offer lower costs.
    • Product Differentiation: Offer unique products.
    • Focus on a Segment: Specialize in a specific market segment.

5.2 Communication Strategies

1. Instruments of Communication:

  • Advertising
  • Public Relations
  • Promotion
  • Product Messaging and Facility Presentation (Unscheduled Communication)

2. Objectives of Communication:

  • Inform about the company and its products.
  • Create a favorable company image.
  • Encourage purchases.

3. Communication Process:

Message transmission from sender to receiver through a channel.

  • Barriers to Communication:
    • Message does not reach the receiver.
    • Message is not understood.
  • Support for Communication:
    • Message aligns with the receiver’s feelings.
    • Strong brand loyalty exists.

5.3 Advertising Plan

1. Types of Advertising:

  • Direct Mail: Personalized communication via letters, leaflets, or telephone.
  • Indirect Advertising: Impersonal communication targeting a broad audience through TV, radio, etc.

2. Advertising Communication Process:

  • Phase 1: Defining Objectives: Establish goals and desired image, primarily to stimulate sales.
  • Phase 2: Identifying the Target Market: Analyze the product’s situation, market size, customer profiles, strengths, and weaknesses.
  • Phase 3: Determining the Message:
    • Content: Emphasize advantages.
    • Format: Oral, written, visual elements, etc.
  • Phase 4: Choosing Advertising Media: Print, TV, mail, etc.
  • Phase 5: Setting the Advertising Budget: Consider objectives and available resources.
  • Phase 6: Assessing Results: Determine if objectives were achieved.

3. Merchandising:

Actions at the point of sale to encourage purchases and increase product influence. Includes showcases, gondolas, displays, labels, posters, TV, and product placement.

5.4 Promotion Plan

1. Promotion Objectives:

  • Increase sales in the short term.
  • Defend against competitor actions.
  • Support new product introductions.

2. Types of Promotion:

  • Promotional Materials: Economic incentives, discounts, gifts.
  • Promotion Games: Promotional games, sales animations.

3. Effects of Promotion and Costs:

  • Promotions should be temporary to avoid customers becoming accustomed to them.
  • Costs include discounts, staff, materials, and gifts.

5.5 Public Relations Plan

  • Target Audience: Broader than advertising, including customers, media, public institutions, opinion leaders, and sports fans.

Stages of Public Relations Planning:

  1. Define objectives.
  2. Analyze available tools.
  3. Select instruments.
  4. Set budgets.
  5. Perform the operations plan.
  6. Recruit results.

Objectives:

  • Acquire notoriety.
  • Create a favorable attitude toward the business.
  • Increase sales.

Instruments:

  • Relations with the Media:
    • Direct contact with journalists.
    • Contact news agencies.
  • Sponsorship.
  • Relations with Public Institutions:
    • Ensure favorable laws.
    • Prevent adverse laws.