Building relationships in small markets is essential for businesses and organizations. Understanding how things work on the ground can yield significant competitive advantages.
But how do you do that? In this article we’ll explore how to learn more about the local culture, the networking strategies to use, and trust/credibility-building. By the end, you should be better positioned to enter new markets.
Understanding the local culture
Your first port of call is to get to grips with the culture. Business environments can be vastly different overseas.
Start by researching customs and traditions. Ensure your business won’t commit any faux pas that might offend local people. Get your dress code right and check the food allowed in the country.
Next, examine where consumers get their information. Is it still a TV-based culture, or do advertizers mostly go online?
Price your goods and services in line with what others do in your local industry (unless you have an exceptional reason not to). Offer discounts to attract buyers, but don’t make them the centrepiece if people find them gimmicky.
Lastly, pay attention to speed and customer service. Some cultures prefer a leisurely pace, while others expect instant gratification. Sixty percent of customers in North America define rapid customer service as 10 minutes or less of waiting.
Effective networking strategies
Once you understand the basics, the next step is to start networking. Connecting with local people will help you develop small market-specific knowledge to gain an advantage over your rivals.
For example, you could attend local meetings or volunteer in the community. You might also organize a charity wing to contribute to good causes.
Joining local business associations and chambers of commerce is also worthwhile. These grant you access to people in complementary industries who could support your business. Participating in these events can improve your profile and brand image and stay up-to-date with industry trends.
Building trust and credibility
Finally, new entrants must build trust and credibility in foreign markets. Consumers need a reason to switch to your products or services from their existing brand.
Interestingly, the best approach to building relationships in small markets is to underplay your abilities. Exceeding expectations will generate positive word-of-mouth.
It can also help to go the extra mile. If you surpass expectations, local people are more likely to trust you.
Social responsibility is an essential element in this. Supporting volunteer programs or educational institutions can help people think about your business positively. You’re showing an investment in the local community.
Conclusion
Building relationships in small markets requires a careful, tailored approach. Don’t assume that what works in your home country will work in foreign territory—often, they won’t.
Instead, find out what works and network with other professionals in the country. Learn as much as possible from them about consumer behaviour in small markets to see if you are on the right track. Understanding these elements gives your business the best chance of success.
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