You’ve done the legwork and you’re ready to launch your business in a new international market. Now it’s time to get the word out!

To say that “preparing your business to expand into a new market is a lot of work” is an understatement. Now that you’ve done the hard part, it’s time to reap the rewards of your research & development through a marketing plan that will ensure your target market knows about your product or service.

At this stage, you may be wondering:

Do domestic and international markets really differ?

The answer to this question is both yes and no. The basic marketing principles employed in domestic and international marketing are the same. However, there are additional areas to consider when participating in international marketing.

Who are your customers and how can you reach them?

Although the principles of marketing remain the same, international marketing differs from domestic marketing. There are several reasons why this is the case, mostly because:

• Getting and staying close to the customer is more difficult at long range; understanding customers from a different cultural environment with different cultural values is more difficult;
• Surveying and understanding customers in a foreign market may be difficult or even impossible using methods normal for domestic markets;
• Modifying or redesigning products to conform to foreign tastes and preferences could be costly;
• Being perceived as foreign could be an added barrier that companies must overcome when marketing abroad;
• Communicating (advertising, media, sales techniques) may be quite different in the target market;
• Distributing goods over long distances poses an additional set of logistical challenges;
• Providing certain features may simply not be cost effective at long distance;
• Providing after-sales service may be more difficult; and
• Monitoring customer satisfaction may require techniques that are different and more intricate.

Revise your strategy to reflect your market’s environment

All of these factors mean that international marketing is more complex than domestic marketing. It requires commitment, resources, a different kind of market research, and above all, a different set of strategies.

In accomplishing the international market objectives, the international marketer must also develop an understanding and appreciation of:

• differences in industrial, economic and technological levels among countries and their varying standards, expectations, capabilities and skills;
• cultural differences, such as languages, values and aesthetics;
• political and legal differences;
• differences in business practices; and
• varying levels of competitive intensity.

Copy + Paste won’t work, even within segments of one market

Even within Canada, there is sufficient diversity to make it inappropriate to adopt a single, standard approach. Advertising programs that have been successful in English Canada may not work in Quebec. Marketers know that Quebec is different and that Quebecers have lifestyles and expectations that differ sharply from those of Albertans or British Columbians.

Such cultural distinctions are multiplied many times over once a company steps into the international arena. Conducting focused market research can identify these and other issues that impact doing business internationally.

This is not to suggest that a concept or strategy developed for the domestic market cannot be adapted to work elsewhere.

A good idea should be able to transcend borders, and there are numerous examples of successful global marketing strategies.

This is particularly important in an era of gradual reduction of barriers in international trade, emergence of global standards for a number of products, spread of international communication technology, and increasing global tastes and preferences in a number of consumer products such as clothing, footwear and convenience foods. These are possible because technology and globalization are, at least to some extent, homogenizing tastes and preferences.

In certain aspects of their lives, people are growing more alike in their wants and behaviours; for example, in clothes, technology, entertainment and even fast food. However, the language and cultural symbols used to express these wants continue to differ markedly. The international marketer is challenged to become a skilled communicator, capable of addressing both the global as well as the local nuances.

Few international marketing plans will be successful unless they are shaped by local people to reflect local realities and sensitivities. That is why companies seek the advice and counsel of advertising, marketing and communications professionals when attempting to penetrate foreign markets.

The post Is there really any difference between marketing domestically and internationally? appeared first on Trade Ready.

Many companies adopt an incremental approach to marketing—they start local and then go international. For those companies that go international, several distinct evolutionary stages have been identified:

1. Domestic marketing

Companies in this category are primarily preoccupied with their domestic markets and management is typically not interested in exporting. Management is willing to fill unsolicited orders from abroad but makes no effort to explore the feasibility of active exporting or to assign specialized staff to this function.

2. Pre-export stage

This will involve some in-depth international trade research. One of the most important things to determine during this stage is the market segment and therefore audience you will be targeting with your new strategy.

The inherent nature of a specific market segment or geographic market can vary greatly from one target market to another. A key element of the strategic planning process is to identify which target markets are appropriate for the company’s products or services.

Based upon the market intelligence for the particular target market and the customer profile for this market, the company can decide if this market has the potential to meet its objectives. Considerations in the evaluation of a target market are varied, but will typically include the size of the market (number of customers, economic potential, buying power); the proximity and/or ease of access to the market; and the sophistication and/or cultural customs of the market.

Some markets or market segments will not be appropriate for a company’s products or services due to the very nature of the market. For example, attempting to sell energy-efficient heating systems to markets within tropical climates would be a failure. This is an obvious example, but it illustrates the importance of proper target market selection. These factors become even more important when considering international market selections and options.

3. Experimental involvement

Companies start limited international trading. In Canada, the company experimentally exports to some culturally close country like the United States or the United Kingdom.

4. Active involvement

The company becomes an experienced exporter to that country and adjusts exports to optimize changing exchange rates and tariffs.

5. Committed involvement

Management explores the feasibility of exporting to additional countries and allocates its resources to international opportunities.

Decisions to enter foreign markets and resulting successes are related to the level of management commitment; time, human and financial resources available; and the expectations of satisfactory profits.

Once companies have become familiar with the intricacies of international business—even if they have no obvious cultural links to any market—they may venture into more challenging markets.

They may address markets such as Japan where language, culture and business practices are completely unfamiliar. Alternatively, they may look to complex markets such as India in which many different languages and cultures co-exist. The point is that companies generally tend to tackle challenges that are more complex only when they have gained the insights and experience needed for success in a larger arena.

 The importance of a strong marketing plan

The basic principle of marketing revolves around the two-way communication between a company and its customers.

Customer focus is one of the core tenets of marketing. One of the goals of successful marketing is to create value for customers.

There are many methods for creating and recognizing value.

The roadmap for all marketing efforts for any company is set down in the corporate marketing plan. There are several marketing concepts that are applied in the development and implementation of a marketing plan; some are more relevant than others depending upon the nature of the company and the product or service that it is marketing. In addition, there exist many marketing functions within the company and the marketing plan itself.

In order to make this transition successfully, companies must understand the reasons for attempting to enter foreign markets. They must also understand that foreign markets are different and will require a thorough knowledge of the market to develop the appropriate strategies and activities that will form the international marketing plan.

The post The 5 stages of evolution in your international marketing plan appeared first on Trade Ready.