Executive Summary Leaving your domestic comfort zone to operate in another country or even continent requires careful planning. Expanding into new geographical markets is very exciting, but also very nerve-wracking. Any firm considering entering into international business transactions must understand that doing business abroad is not a simple task. It is stimulating and potentially profitable in the long-term but requires much preparation and research prior to the first transaction. Europe is probably the most heterogeneous continent on our globe, making understanding market potential more challenging than in more homogeneous markets. Because of the European Union, it’s tempting to view Europe as a single market. In reality, you must consider each country as a market, because each country has a different mix of history, culture, language and business etiquette. This How-To Guide will describe the steps required to successfully expand into the European market. Read this 7-page guide to understand the following: Understand market potential Identify product-market comibinations Identify a local partner Launch and start selling Demand Metric's How-To Guides are designed to provide practical, on-the-job training and education and provide context for using our premium tools & templates. If there is a topic that you would like to see covered, please contact us at info@demandmetric.com (link sends e-mail) to make a content request.

1. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
Entering the European Market Successfully
Executive Summary
You are successful in selling your products or services in the domestic market, with a
satisfied client-base that relies on your solution every day. You have proven that you know
how to successfully build a profitable business. You are managing a team of professionals
that are driving your business and pipeline with qualified opportunities. At the same time,
you need to think about the company future, as your goal is to increase revenues and
profits to create continuity and growth. One way to accomplish this is to expand your
geographical market. Many companies, particularly in North America, turn their eyes
toward Europe as an expansion target, because of perceived cultural and economic
similarities as well as lower language barriers.
Leaving your domestic comfort zone to operate in another country or even continent
requires careful planning. Expanding into new geographical markets is very exciting, but
also very nerve-wracking. Any firm considering entering into international business
transactions must understand that doing business abroad is not a simple task. It is
stimulating and potentially profitable in the long-term but requires much preparation and
research prior to the first transaction.
This How-To Guide will describe the steps required to successfully expand into the
European market beginning with understanding market potential, identifying product-
market combinations, identifying a local partner and then launching & selling your
solutions.
Understand market potential
Europe is probably the most heterogeneous continent on our globe, making understanding
market potential more challenging than in more homogeneous markets. Because of the

2. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
European Union, it’s tempting to view Europe as a single market. In reality, you must
consider each country as a market, because each country has a different mix of history,
culture, language and business etiquette. To properly understand the potential of the
European market, it’s important to research and focus on the basics:
 Target market. Don’t make the assumption that the same target market that has
produced domestic success exists in the same way in the European market.
 Existing providers. Very rarely is there a vacuum when it comes to solution
providers in the European market, and the cast of players likely looks very different
than it does in the market you call home. These existing providers will have better
presence, partnerships, relationships and networks than you will, advantages that can
easily negate whatever product advantage you can provide.
 Industry issues. The problems afflicting the industries you target in Europe may
differ dramatically from what you see in the domestic market. Just because the
industries are the same, it’s foolish to assume the same problems exist and the same
solutions apply.
 Trends. Different markets are affected by different trends, and without researching
the trends that influence your target market, your European expansion venture can
fail. For example, the European market is far more sensitive to environmental issues
than the North American market. Costs and technologies that benefit the
environment are often embraced in Europe when they are rejected in other parts of
the world.
It is possible to obtain European market information in analyst reports or online. While
these are valuable, there is no substitute for the expertise of in-market business
professionals. As you research your possible entry into the European market, identify local
advisors and experts that have hands-on experience in the region.

3. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
Identify product-market combinations
A major trap for companies launching business in Europe is to think that product or service
that sells well in the domestic market will have success in the European arena too.
However, this is simply not true! To avoid falling into this trap, good market research is
not only necessary for success, but for survival. The goal of your research is:
 To identify markets for your products. Use the same product management and
marketing disciplines that lead to domestic success, and these generally are product
positioning and market segmentation.
 Commit to the identified markets. Once your research has identified the highest
value market segments and the product positioning for them, commit fully to them.
This means staying focused on selling only these offerings into identified profitable
markets.
Identify a local partner
A mistake many companies make when expanding into the European market is believing
that a lot of physical infrastructure and personnel are required. You don’t need a fancy
office and a full-blown sales team to start your first market activities and prospect visits.
For most companies, there are better ways to quickly begin operations and generate a
revenue stream without dealing with:
 Recruiting and hiring staff.
 Unfamiliar, highly complex employee protective labor laws.
 Language differences.
 The many other challenges of gearing up a European business presence.

4. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
The best thing you can do is partner with an experienced, local business development
expert. A trusted local advisor can help you navigate the cultural and regulatory
complexities of the European market, saving your venture much time and frustration,
particularly in the critical start-up phase of operations.
Launch and start selling
After spending many hours at the drawing table, your research has identified target
countries, potential markets and the perfect offering which has appeal to prospects.
You’ve partnered with a local business development expert to have a base of operations
and streamline your entry into the market. Now is the time to pick-up the phone, talk to
your market and get the sales machine working.
Use your initial market contacts as a “soft launch” into the market. While it’s ideal to sell
something as a result of these early sales contacts, use the intelligence you gain from
these contacts to validate your research about target markets and your value proposition.
Don’t be afraid to change your sales pitch, narrow down the target market or change your
pricing. Adapt as necessary to succeed.
Once you’ve validated that your European business model is working, its time to scale up
your sales efforts and market presence.
Action Plan: Entering the European market
If you’re planning to expand into the European market, take the following steps in order to
succeed:
1. Gauge market potential
 Don’t let your domestic success lead you to assume success in Europe is
guaranteed. Use a disciplined approach to study the market. Assume that

5. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
the European market operates differently than the domestic market, because
it does.
 Your assessment of market potential needs to consider which target
market(s) is ideal, who the existing providers are, how industry issues differ
and what trends are influencing the market.
2. Identify market-specific offerings
 The offerings you sell domestically could sell well in Europe – or they could
fail completely. Do the research to understand what solutions are needed in
the European market, and then determine if you can provide them. Don’t
attempt to find a problem your existing solution can solve, because this
approach tends to lead to over-optimistic assessments of solution-market fit.
 Once you’ve identified one or more solution combinations ideal for the
European market, commit to them. This means putting the marketing
resources behind them to allow them to succeed. It also means ignoring
distractions and temptations to pursue sales for your other solutions that
have not been vetted for the European market.
3. Identify a local partner
 This action is perhaps the most critical success factor. An experienced local
advisor will understand the need to do all the things referenced in this How-
to Guide.
 Trust is the foundation of your relationship with a local advisor. Take the
time to build a relationship. Invite the advisor to meetings at your

6. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
headquarters. Take the time to travel and meet with the advisor on their
home turf.
4. Begin sales operations
 Begin making sales calls into the target market segments. Use your local
advisor to help schedule calls with ideal prospects. Include your local advisor
in these initial calls to help navigate the nuances of the local business culture.
 Use what you learn in your initial calling efforts to validate the positioning of
your solutions for the target market. Be agile and willing to change prices,
terms, features or whatever is necessary to gain traction quickly in the target
market segment.
 Once it is clear that you have a solution positioned well for the target market,
prepare to scale up quickly. Competitors will have almost instant awareness
that you are active in the market, and they will not grant you a “grace period”
to get established.
Bottom Line
Approach your international opportunity in the same way you would your domestic
operations – using sound business fundamentals. A local advisor can help you develop an
international marketing plan, assess your present market situation, business goals and
commitment - all of which will increase your opportunity for success in the European
market.

7. How-To Guide
© 2013 Demand Metric Research Corporation. All Rights Reserved.
About the author
Han Verbaas is a member of the Demand Metric Senior Analyst Network. Han has over
20 years of experience in corporate marketing, product marketing, go-to-market strategies
and sales & sales management for technology companies. He is the co-founder of
Emeago, supporting companies in developing their business in the Netherlands and
Europe with a focus on profitable product-market combinations. Prior to Emeago, Han
served in different international sales & marketing positions successfully launching
companies and solutions in Europe, Middle-East and Africa.