One of the most crucial decisions a company has to make is expanding its operations to other countries. If you want your company to be successful on a large scale, you need to have a large market share, greater profits, and revenue. You might not want to expand your business to other countries in order to keep your large share of the domestic market.
When expanding internationally, even major companies like Nike, Coca-Cola, and Ford have made many costly mistakes in marketing. If you want to avoid looking like a tourist, here are some tips for you. You can use ten major international marketing principles to improve your marketing strategy. These draw inspiration from marketing’s 7 Ps.
What Are The Principles Of International Marketing?
People – Understanding Customer Behavior in a Different World
Most of what you do is because you want people to like you. In order to be successful, you need to sell your product or service to customers. The goal of marketing is to convince people that they need or want your product. You need to make sure that your target customer base and your product marketing are in sync with each other. At the beginning of the marketing process, you need to understand your target audience. If you don’t carefully consider who your target market is, you will waste a lot of money trying to sell the wrong product to the wrong customer.
There is a symbiotic relationship between the people you are marketing to and the product that you are marketing. We are starting with the people because if you do not first understand who you are marketing to, you may try to sell them a product they do not want.
When expanding a product or service to a new country, you must first assess whether there is a demand for it.
Product – Altering to Fit the Needs of Your New Market
It is also essential to see whether or not your product has demand in the market in another country. Checking to see if there is a demand for your product in another country is important because if there is not a demand then you will not make any sales. You may want to reconsider selling in a market if you think your current offerings will not be successful there. changing what you are offering to better match what the local market demands.
If you notice that the current offering of your product now won’t play in the new market you want to enter then you can do one of two things:
A.) Decide not to sell in that market
B.) Change your offering to meet the local demand
Prices – Choosing a Premium or Economy Pricing Strategy
Prices are probably what matters to customers the most. You need to decide whether you want to charge a premium price or an economic price. The type of customers that come to your store is determined by the placement of your store in the market.
If you have a product or service that is successful in one area, the price point will not be much different than the competition.
If you have a premium product, it’s likely that a similar product is premium elsewhere.
If you have a cheaper product that is more friendly to the economy, it will be the same in your new market.
This is for the sake of consistency. It can be difficult for a company to be seen as a more expensive, premium product in one country, and a cheaper product in another. There is a risk that your brand image will be damaged as a result.
Promotion – Choosing Strategies That Work in This New Environment
To be successful, you need to come up with plans that will work well in the situation you’re targeting. What marketing tool will best suit your business in a new market? It is not too different from formulating a strategy on your home turf to formulate a strategy in a new environment.
Some questions you could ask yourself are:
- Are buy-one-get-one-free deals more effective in retail stores of certain markets?
- Do people in this new country use email as much?
- Are coupons going to be effective here?
- Is YouTube a better place to advertise, or are TV commercials likely to be more effective?
What are the benefits and drawbacks of each potential strategy? Ask yourself what the benefits and drawbacks are for each potential strategy.
Place – Finding the Sales Avenue That Your Consumers Use
You must be aware of the sales channels through which your customers are operating. It is important to define where you will carry out advertising and marketing activities. This will help you to create a focused plan and avoid wasting time and resources. This means that you need to be where your target customers are so that they have access to your product or service.
Defining your target market is another. Determining where you will advertise your product or service is one thing, but determining your target market is another. Although it may be difficult to sell your product, it is possible to find the right place to do so. You should investigate whether or not you will be able to sell your product online.
In many European countries, people prefer to shop in person rather than online.
Depending on the country, the reason varies. Other people like to order online and have the product shipped to them. Some people prefer the convenience of buying things online and having them shipped to them, while others prefer the experience of shopping in person and seeing and touching a product before buying it. Or, they just have loyalty to that shop. Of all Europeans, Montenegrins are the most likely to prefer shopping in person. Romania, Cyprus, and Bulgaria are the next three on the list, with percentages of 48%, 40%, and 39%, respectively.
The U.S., U.K., Sweden, and France are at the top of the spectrum in terms of average e-commerce revenue per online shopper.
Packaging – Finding the Right Look
You also have to consider how much effort you want to put into presenting your product or service. How your product looks is extremely important. You will have to change your packaging depending on which market you are trying to enter.
The color of a product’s packaging is an important consideration. In many cultures, different colors can have significant meaning.
When translating or creating advertising materials, it is important to ensure that the words are conveyed correctly. Brands such as KFC and Coca-Cola have made similar mistakes in the past.
Some questions you should ask yourself when you design your label are:
Your brand name is important to make your product unique and distinguishable.
Are you offending your foreign buyers with your labels, colors, or signs?
If it was a legal requirement, would you be able to produce your labels in the official language? Do you need to give information about what is in your product? Do the products you are selling use the same unit of measurement as the country you are selling them in?
Positioning – Determining Which Messages Will Resonate With The Market
You need to know your position in order to determine which messages will appeal most to your new audiences. Entering a new market, especially a foreign one, is all about positioning yourself correctly from the start. If you don’t get the job you really wanted, it can cost a lot to change your product/brand. This is why companies strive to get their positioning right the first time.
How you market to people reflects your market positioning. This is what distinguishes your product or service from the competition and makes it attractive to your target market. Your UVP is what makes your product or service different from the competition and attractive to your target market. It should be composed of elements that are relevant, valuable, and unique. Your message should be derived from this UVP.
- Relevance means that your product or service should fit in somehow in the lives of your customers.
- Value means the benefits that come with using your products.
- Differentiation means that a customer should select your product instead of choosing another with the same price
Physical Evidence – Getting the Ambiance and Mood Right
The mood and ambiance of a business are important in attracting customers, particularly in the service industry.
While services are often intangible, they can be marketed just like any other product. The physical space where your customers come to get your services is extremely important if you want to tailor your product to the specific needs of customers in a new market.
There are three key areas that should be considered separately when designing a space – the physical environment, the ambiance, and the spatial layout.
The physical environment is the space where the consumer will be present when they receive service from you. They experience the space. The physical environment of a restaurant includes the ambiance within the establishment.
Ambiance can be a part of the physical environment. It is all about creating a certain atmosphere inside the space. The way customers perceive your establishment can be greatly affected by small details like lighting, music, and colors.
Consider the spatial layout as a karaoke bar. The performers are set up in an open space so that everyone can see and hear them. Karaoke bars are set up differently in Japan, so that the performer has more privacy. Groups can book rooms for a specific time limit. The Japanese prefer their karaoke spaces to be private instead of being open spaces where everyone can see them.
Local Teams – Don’t Overlook Them
According to an article in the Harvard Business Review by Nataly Kelly, one of the most common mistakes companies make when it comes to global marketing is failing to listen to their local teams.
Kelly expressed disappointment in companies who hire competent and intelligent locals to serve their overseas markets, but then don’t consider their input when making strategic decisions.
Many global marketing executives that Kelly has consulted for seem to not understand the importance of the local teams they establish. When she is asked why they aren’t succeeding in a certain area, she often responds by saying,” Ask your local teams.”
To successfully incorporate a global marketing strategy, it is important to involve local teams and utilize them as a valuable resource.
” Use your existing relationships to your advantage and take their feedback seriously. Your most credible advisors are by far the best option.
I’ve been disappointed to see companies hire competent, intelligent local people to serve their overseas markets, but then fail to take their input into account when making strategic decisions.
Understanding – Making a Positive Influence on Your New Community
All of these principles have a common theme of understanding your consumers. You should constantly be asking what your customers’ needs, wants, pain points, and desires are.
What is important to them? What do they truly care about? What are they missing in their lives? What is it that you can give to them that nobody else is able to? Including all of these questions in your global marketing strategy will help increase sales.
If a business only cares about making money in the present moment, they will not be successful in the future. This is not a sustainable way to operate. When you want to be successful in a new market, especially a new country, you need to make sure the environment you’re operating in will be good for business in the long-term.
Brands that focus on people, planet, and profit tend to be more successful globally.
If you want to sell your product internationally, you need to think about how you’re going to get it in front of your target audience. Shopping venues around the world should offer products that are specific to the region or market.
If a company can find the right placement in a domestic or international market, it will have a big competitive advantage and many benefits. If the company tailors its placement methods for national and local markets in another country while maintaining a brand image, it will portray itself as a strong and consistent one and will truly last the test of time.
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