In the past, the marketing mix was commonly made up of the 4 Ps: product, price, place and promotion. An alternative to the 4 Ps approach is gaining popularity due to the digital age and the changing ways that customers gather information and make purchasing decisions. These are the 4 E’s.

According to Brian Fetherstonhaugh of Ogilvy & Mather, the market is now an ecosystem with “billions of unstructured one-to-one and peer-to-peer conversations”.

Fetherstonhaugh advises marketers to stop thinking so much about their product and start thinking more about the customer experience. This new approach encourages organizations to engage and create a relationship with visitors, leads and customers.

Now that marketers have better tools at their disposal, they can take a more targeted approach to sharing and gathering information. Digital channels, such as email, social media and mobile messages, allow businesses to share tailored content with segmented, regional audiences.

1. Experience

Instead of a marketing strategy that is planned around the product or service, this method puts the customer experience at the centre of attention. An example of an organization that changed its focus from products to experience is Hershey. Rather than putting up a billboard ad in New York City’s Times Square, they created a brand experience by opening a store on Times Square that is playful, stimulates childhood memories, and allows parents and children to explore candies together.

A customer’s journey is their overall experience with an organization from the time they first encounter its name. For example, customers might typically encounter an organization’s product on social media for the first time and from there go to the organization’s website to find more information, followed by a trip to a retail outlet to purchase the product. At some point, customers might return to the organization’s website to learn about a different product.

The organization’s goal is to make the journey enjoyable and relevant for the customer.

For example, consider the Swedish Tourism Association’s “Call a Swede” campaign. When tourists call +46 771 793 336, they are forwarded to a Swedish resident (a Swede) who provides the caller with the desired local knowledge, such as recommending a good restaurant, a fruitful fishing hole or a place to take Swedish folk dancing lessons.

Mapping the customer’s journey or path enables marketers to pinpoint weaknesses in the customer experience and correct them. The mapping exercise also identifies the technologies used, the people and processes involved, and the emotions experienced by customers along the path. It can be difficult to map the path because the customer’s journey is often non-linear and more complex than it was in the pre-digital era. It would be valuable at this point to consider when and how to collect customer testimonials at different points in their journey.

To assist with the mapping activity, marketers use customer personas for businesses and/or consumers.

Some organizations have deepened their relationship with loyal customers by using them as product and service experts. Customers who have developed product and service expertise are asked to help other customers in return for rewards. Consider the case of giffgaff, a British mobile phone operator that relies on knowledgeable customers to help other customers and promote its brand. The company rewards these customers with points, which they can convert into cash.

2. Everyplace

Everyplace is so named because of how consumers can now access information about products and services from multiple sources in multiple locations. Instead of expecting customers to come to the seller, the seller now goes to customers. This new dynamic allows the organization to provide information about its mission and products and services whenever and wherever customers seek it. And they seek it in many places, including social media, retail outlets, online stores, websites, blogs and more. The goal is to make contact with customers when they are receptive to it. For example, Ogilvy & Mather’s Digital Innovation Lab in Singapore invented an app for its liquor brand with a virtual personal assistant who helps customers by advising them of upcoming entertainment promotions and then, if desired, gets them reservations and VIP access to these events.

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3. Exchange

In the 4 Es approach, the focus has moved from the exchange of money for a product or service to the value of the relationship and long-term loyalty customers develop with the organization. Using the exchange approach requires each party to offer something of value to the other party. For example, many organization websites offer expertise and products for free. Marketers use the exchanges to establish credibility, create goodwill and build a relationship of trust. What organizations offer customers in the exchange hopefully results in long-term relationships and ultimately brand loyalty and revenue.

4. Evangelism

Evangelism involves creating a brand experience for customers that inspires them to engage with the organization and tell their friends about the experience. Ogilvy & Mather recommends starting with an organization’s key strengths and connecting them to an important cultural truth or trend to generate energy and passion.

Take for example, Dove’s Campaign for Real Beauty. Dove’s stand on the beauty of real woman of various shapes, sizes and colours resonated with women. The inspiration for the program was a study of more than 3,000 women from 10 different countries. Results showed that only 2% of the respondents considered themselves beautiful.

The Dove Campaign for Real Beauty was based on the idea that the world would be a better place if women felt good about themselves. Missions such as these can inspire employees as well as customers.

The Campaign for Real Beauty started with a website and a public relations campaign. Women were invited to join the debate, and millions did. The campaign’s Evolution has been seen by an estimated 500 million viewers. All this was achieved through consumer sharing and free media support.

Dove’s most recent research showed that the percentage of women who consider themselves beautiful has increased from 2 to 4%, although the brand recognizes that this increase cannot be attributed to Dove alone. The campaign’s impact on perceptions of beauty is hard to quantify, but it has helped drive Dove sales to record levels. Dove’s sales increased from USD 2.5 billion in 2004, the first year of the Campaign for Real Beauty, to USD 4 billion in 2014.

Another example of marketers who are good at finding the energy and passion in what they sell is Coca-Cola. The company ran a global campaign in 2009 called Open Happiness. As a localized campaign activity, the marketing team in Singapore installed a Coke machine on a university campus with “Hug Me” written on it. Whenever someone hugged the machine, they were rewarded with a free Coke. The marketing teams in Pakistan and India came up with a different interpretation of the campaign. In their regions, whenever someone in India put their hand on a Coke machine at the same time as someone in Pakistan, both machines dispensed a free Coke.

Evangelism also involves creating products and services that are so good and providing experiences that are so intriguing that customers want to let other people know about them. Apple is an example of a company that has achieved an image with which people want to be associated.

Has your business followed the 4 E’s model? How do you think it stacks up to the traditional 4 P’s of marketing?

The post Take your international marketing into the 21st century with the 4 E’s appeared first on Trade Ready.

Once a company performs, gathers and analyzes the results of its international trade research efforts, it is ready to make global marketing decisions. The next step is to determine how to effectively link research with applicable decisions in global marketing.

Size up the competition

To assess its prospects properly, a key task for any company is to identify its potential competitors, determine how well established they are and learn what it can about their current and future competitive strategies and tactics.

Although primary research is likely to be required to obtain some of the more detailed information (e.g., extent of competitor control over distribution channels, or customer and trade intermediary perceptions of competitor advantages and disadvantages), many of the pieces of the competitive picture can be assembled on the basis of secondary research.

Useful tools for identifying potential competitors include the Internet, trade and industry journals and associated buyers’ guides, trade directories and market research reports.

Journal articles can help develop an understanding of the competitive situation in a market, and advertisements can provide further details about the companies involved and their product offerings. Depending on the prestige and target readership of the publication, its annual buyers’ guide issue may be used as the basis for compiling a comprehensive list of the serious competitors in an area.

Trade directories can also be used for this purpose; the tighter the geographic and product focus, the better. In some cases, agents and distributors representing the competition can also be identified from these sources. Market research reports often provide information about estimated market shares of leading competitors and insights into their competitive positions.

Having identified the leading competitors and some of their products, a company can make effective use of the other research tools. By scanning publication indexes for the names of these companies and products, a wealth of information can be obtained about the competition.

Newspapers, the trade literature, consumer publications, corporate annual reports and brokerage house reports can all provide useful data. Consumer publications are valuable in that they may contain product reviews or yield information about product recalls.

Corporate annual reports and brokerage house reports can provide insights into the financial condition of competitors and possibly disclose information about their R&D, marketing and investment activities.

Where the company is looking at a developed country market, the quickest and easiest way to identify sources of information pertaining to companies and product names is by conducting a literature search on the Internet or in an electronic catalogue of library holdings. For those who are inexperienced in conducting searches on the Internet, it is possible to have the search done by a library that offers assistance.

Working with a reference librarian will help to prioritize and specify the company’s information needs and to identify the databases that are most relevant for the information required. An estimate for the cost of the search will also be provided, so the company can decide whether to proceed with the search.

Narrow down the optimal target market

The process of selecting a target market can be regarded as a kind of filtering process. Several market opportunities are initially selected, then various criteria are applied and assessments are made based on the information assembled. The effect is to screen out some of the less attractive opportunities, leaving only those that offer the best expected returns.

Canadian companies looking for a broad assessment of international market opportunities are also well advised to refer to a series of international business strategies prepared for various sectors of the Canadian economy. These are updated annually by sector teams representing both the industry in question and government researchers. These sectoral strategies, together with other country information, can be accessed on the website maintained by Global Affairs Canada (GAC).

Other factors may also be relevant for a company when deciding to choose which market to focus its international market research efforts on. For example, a company or individual may have a cultural, familial or lingual tie to a specific market, and thereby have a competitive advantage to research and enter that particular market.

Case Study – Cadbury Purple

There is no one correct way of performing a screening to identify a target market. A practical approach to identify promising countries includes the following four steps:

1. Filter the opportunities at a macro level, considering such factors as economic statistics (including analysis of trade statistics), social structures, geographic factors and political environments. The objective here is to eliminate countries with low potential, high risks and complexities that could make exporting difficult.

2. Focus on how potential markets relate to the products. Here the opportunities are filtered to establish a select group of countries with high market potential. To do this, researchers must analyze growth trends, market size, import restrictions, the level of economic development and cultural acceptance.

3. Assess the ease and cost of market entry, the strength of the competition, requirements for product modifications, projections of sales and estimates of profit potential. Considerable primary research is required to furnish the information required for this analysis.

4. Refine the results of the analysis. In order to establish a priority ranking of the target markets, the remaining opportunities are examined in light of the company’s resources, its strengths and weaknesses, goals, plans and return on investment criteria.

Regardless of where the market information is gathered or which target market a company is researching, the entire point of international trade research is to provide marketers and decision makers with necessary and fact-based data from which to draw conclusions and make decisions regarding the international marketing plan.

Depending upon the product or service to be offered to a specific international market, marketers and company decision makers need to know specific details about the market in order to prepare and execute a sound and successful international marketing plan.

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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.

Entering a new market requires a deep dive into the minds, lifestyles, habits and communication style of your new clients. Gathering accurate information to give you a full picture of this market will be the key to success in expanding your business into this new region.

Market intelligence can help companies determine current needs and preferences, future requirements, customer attitudes and factors that might have an impact on the market. This information can be used by decision makers to make more effective choices and develop better strategic approaches to markets.

Market intelligence is the process of researching, analyzing and applying qualitative and quantitative information about a market environment. It develops comprehensive knowledge about a market, such as how and why a market is changing over time.

Why you need to know every detail about your target market

During the past decade, oversupply, loss of market share, failing profit margins and general corporate under-performance have all exposed the inadequacy of planning based solely upon forecasts and budgets. Although beloved by accountants, such approaches could never explain how the desired results could actually be achieved.

Sound international marketing decisions cannot be made without accurate and timely data. Yet most SMEs do little or no formal market planning, nor do they conduct the market research needed to support their plan.

A company’s international marketing plan can mean the difference between success and failure, not only in the target market, but for the company as a whole. The money lost in a misdirected export-oriented venture may never be recovered from domestic activities. For this reason, the researcher that gathers the information and develops the analysis used in the marketing plan carries considerable responsibility.

There must be good communication and co-operation between the research and marketing functions. This collaboration extends through all phases of the process: initial exploration of the opportunity, identification of sources, conceptualization of the venture, data gathering and validation, analysis, planning, implementation and ongoing monitoring of progress and changes in the target market.

With this close collaboration, the researcher will have a better understanding of what information is required and will not waste time and resources gathering irrelevant material.

The firms that will survive base their success to a great extent on an early identification and analysis of changes in markets and industries in their international market environment.
– Bo Rundh, Karlstad University, Sweden

Marketing can’t operate in a bubble

Recognizing that the marketing function relates to or impacts the other business functions in a company, it follows that the preparation of a marketing plan involves input from all elements of the company. In many cases, such input should be provided on an ongoing basis in order to verify planning assumptions developed by the marketing function or to react to circumstances as they develop in the marketplace.

Product modifications must be validated with research and manufacturing. Innovative contractual terms should be submitted to the legal department. Changes in payment procedures should be checked with finance. The researcher must communicate with other divisions of the company, bringing them data that can help frame their decisions and finding out from them what additional information might be required.

In addition, the researcher can make a contribution that goes beyond any particular foreign market. For example, if research uncovers a new approach to manufacturing, this information could have a significant impact on the entire company. In this sense, researchers should know enough about the company to recognize the relevance of this kind of information when they run across it.

Find the market research approach that works for you

There are many ways to perform market research. Very large companies tend to have in-house research departments. In small companies with small budgets, this research may be conducted by senior executives, such as the head of the marketing function or even the president. There is one significant advantage to this approach—such concentration of functions ensures effective co-ordination of research, strategic planning and implementation.

The disadvantage, obviously, lies in the workload imposed on a few individuals. The danger is that the research will not be carried out as comprehensively and accurately as is needed and the company may find itself making costly mistakes that it can ill afford. For companies without in-house research capabilities, there is another alternative—hiring external specialists in market research.

Experienced market research companies, whose sole business function is to conduct market research for other companies, can be a very effective way of obtaining the required research.

These companies know the type and nature of information available through secondary sources. They know where to find the information needed and are aware of its completeness and accuracy from previous experience.

These companies can advise their clients on when direct market research in the form of surveys or focus testing may be required to obtain the level of sophistication and reliability needed to formulate a successful marketing plan.

Though such research may initially appear expensive, it can pay for itself many times over if it results in an effective marketing plan or if it helps the company avoid costly mistakes. Depending on a company’s need for ongoing research, it may be economical to contract out the market research capability on an as-needed basis instead of employing a full-time research person.

Over the longer term, however, if a company commits itself to doing business in foreign markets on an ongoing basis, it may find that it becomes cost effective to set up a dedicated research function in-house.

The post Create a winning international marketing plan by nailing your market research 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.

The following are prerequisites for successful planning and implementation of personal selling tools in your target foreign market. They apply whether one is undertaking a business trip, trade show or trade mission.

Remember, personal selling is a tool to help achieve the company’s marketing strategy. All initiatives need to be consistent with that strategy.

Successful implementation of personal selling tools in target markets

For each initiative, marketers must clearly define their goals and objectives.

The initiative may encompass a number of markets, and the objectives may differ from market to market. The research and the preparation prior to the initiative will depend on the objectives.

Identifying market opportunities on a business trip requires different preparation than a visit to negotiate a sales contract or to attend a trade show.

There may be a variety of objectives in each market. The company should ensure the timing and duration of the initiative allows the goals and objectives to be completed. If not, perhaps the goals of the initiative should be modified.

There are two primary components of any personal selling initiative; the program required to meet the objectives, and the logistics required to get to and from the market and to conduct business in the market.

Preparing your program for personal selling in your target foreign market

Program components include the following:

Contacts: Develop a list of contacts to meet with on the visit, mission or at the trade show.

Finalize meetings: Closer to departure, you should contact all prospects to finalize meetings. It is extremely important that times and places are clearly understood by both sides and that there is a way of getting in touch if plans change.

Business cards and marketing materials: Business cards and promotional materials describing the company (preferably in the language of the target country) should be prepared well in advance and any translations verified. If you wish to take samples or personal equipment (e.g., computers, audio-visual equipment), a carnet should be purchased through the Chamber of Commerce to ensure trouble-free passage through customs without duties being charged.

Study relevant cultural issues: As a business traveller, you should be familiar with business etiquette, practices and taboos in the target country.

Companies pursuing personal selling must absolutely ensure that their representatives are familiar with cultural nuances, commercial practices and business etiquette in the countries where they hope to do business.

Gifts: In many countries, it is customary to present small gifts to contacts as a token of appreciation. The purpose of these gifts should not be misunderstood. Some research is required to make sure they are appropriate.

Attitude: Attitude toward foreigners in the country. For example, are foreigners seen as suspicious, or are they welcomed?

Information: Background information on the country, history, politics, etc.

Planning your travel and in-market logistics

Logistical requirements will have a positive impact on your initiative if done properly, or they can be a distraction if there are problems:

Itinerary: Once you know the timing requirements of the program, you can work on itineraries and schedules. Where are your clients located? When are they available? What is the best way of meeting all of them? What connections are available between the home country and the target country or countries?

Hotel reservations: For business travellers, hotels are not just places to sleep. They are also places to do work and hold meetings. Make sure that accommodations are suitable for business purposes, especially if some meetings with clients have to be held at the hotel. Apart from price and availability, you should also check location and see about additional facilities, such as WiFi and meeting rooms.

Travel documents: You’ll need a valid passport to travel to most countries. Many countries also require a travel visa issued by their consulates. Health documents may be needed for entry into the target country and admission back into your own. Confirm visa and health requirements with the embassy of the target country or with your travel agent.

Currency: Where possible, make sure you take sufficient local currency for the trip. It is now possible to use international credit cards and bank cards in many countries, but this should be investigated before departure. Additional money can be carried in travellers’ cheques, although in many countries travellers’ cheques can only be exchanged in banks. If you’re carrying cash, U.S. currency is usually preferred to other currencies.

Travel conditions: The smart traveller will find out everything possible about travelling in the target country, including things like climate, normal business attire, local transportation (e.g., taxis, buses, rail), availability of translation services and normal business hours and national holidays.

Personal security: When travelling to any market, either domestic or international, make sure you understand the environment and avoid putting yourself in a situation that could affect your personal security.

Companies should ensure their employees are aware of the risks and should take steps to mitigate them.

For example, companies can obtain information on risks in the target market and purchase products such as hostage insurance.

Go with the flow in global markets

It is unlikely that all will go as planned. Meeting arrangements will not work, flights will be cancelled or hotel reservations will be lost. This can be frustrating and confusing, particularly if you do not speak the local language. Your ability to accept these problems, work around them and focus on the program objectives will determine the success of your visit to your target foreign market!

Did you ever have a time when your business visit in a target foreign market just didn’t turn out the way you’d planned? What happened, and what did you do to salvage the situation?

The post Top considerations for planning a successful visit to your target foreign market appeared first on Trade Ready.