Why international expansion ? How to excite shareholders ? Which geographic region & industries has largest TAM ? When & where to promote ? What approach ? All these are unraveled through INTERNATIONAL MARKETING..
GOAL of Product companies is to make their products used by each & every user from all the countries of the world possible.
Some key statistics are : US only has 4.5% of world’s population, US is the largest economy with 20 Trillion + , GDP growth in US is slower than many other countries of the world.
The above encouraging figures entice US companies to make their products accessible throughout the globe.
EXPANSION GOAL of Product Companies in America : Is to attract & convert more than 95% of the population residing outside America and leverage higher GDP growth rates of those countries so as to capitalize on US product in international markets
EXPANSION GOAL For Companies outside America: Is to get a pie of the largest economy “AMERICA” worth more than 20 Trillion so as to target the international products in US market.
VISIONARY INTERNATIONAL MARKETING Strategies makes the ABOVE DREAM INTO REALITY and thereby ORGANICALLY INCREASING REVENUE loved by Shareholders as well as Customers
Marketing is responsible for :
Analyzing & recommending where to grow
What product/offerings to provide .
Researching
INDUSTRY TRENDS,
GROWTH RATES,
COMPETITION,
PROMOTION,
MARKET SEGMENT,
PRODUCT OFFERINGS
WHY SO CHALLENGING?
Complex GOVT REGULATIONS,
TARIFFS,
QUOTAS,
LOCAL LAWS,
DISTRIBUTORS,
CULTURE,
CONSUMER HABITS,
MARKET READINESS,
COMPETITIVE PRICING,
EXCHANGE RATES etc
FACTORS TO CONSIDER:
POLITICAL - Govt structure in different countries:
Some COUNTRIES may see business as a threat to the local business and
Some see as a source of tax revenue
Some nations are more business friendly than others whereas some create challenges,
Trade restrictions in our industry,
Low import barrier,
High transparency
Useful sites: doingbusiness.org, transparency.org, Wikipedia, cia.gov
ECONOMIC: Understand Economic structure.
Currency Name,
Exchange Rate,
Historical Exchange Rate,
Forecasted Change in Exchange Rate,
Economy Growth Rate,
Industry GrowRate,
Tariffs,
Duties,
Quota ,
Markets,
Review reports & analysis done from oecd.org, cia.gov, buyusa.gov
SOCIAL : Various aspects of culture:
Value,
Customs,
Symbols,
Language,
Tone
Sense of humor,
If they value Ads done by celebrities or normal people
Country where Company's norms & values are NOT radically different
TECHNOLOGICAL : The technology infrastructure for product creation, distribution, promotion & support:
Equipments fit under the bridges,
Rail systems,
Store Shelves,
Customer’s physical environment to support the distribution, trials & offerings,
Understand end to end from shipping to product usage
Transport
Storage
Trial
Disposal
Complements
COMPETITIVE: The Product Competition that might be present
Unfair advantage of your product and we can be in the best possible position to win,
Best features,
Best price ,
Perfect distribution
Product
Price
Place
Promotion
Strengths
Weakness
LEGAL : The Types of Legal considerations to think:
Types of Law
Common
Code
Islamic
Socialist
Patents & IP protection
In some countries , No interest charging on Loans etc
STRATEGIC APPROACHES FOR EXPANSION INTERNATIONALLY:
EXPORTING
Lowest burden
Least cash
Faster to market
Distribution Agreement
Pays for product
Owns thereafter
Success depends on need for export partner
LICENSING
Pays Upfront Fee
Buys Product
Buys additional product materials
Style Guide / Brand Guide Documentation
License Agreement
Choosing a Franchisee or Licensee
JOINT VENTURE
Shared ownership
Brand owner has major stake
Some countries , Local ownership is needed
More effort, time & risk
DIRECT INVESTMENT
All activities for building, distributing, promoting & supporting is owned by the company
High risk
Useful Resources to utilize for making International Market Expansion
Cia.gov
Buyusa.gov ,
Embassies,
Export/import consultants
Local communities
Universities
Influencers
INNOVATIVE INTERNATIONAL MARKETING VISION & STRATEGIES:
Product Modifications or New Product Development catering for local consumption,
Optimal pricing keeping tariffs/tax/exchange rate/limits/distribution centers,
Distribution Issues around shipping/receiving/distance/import/export verification/supply chain,
Promotional methods to consider around search, social, tv ads, bill boards, direct mail , translation, back translation goes a long way to capture international markets & customers.
INTERNATIONAL MARKETING WHEN DONE RIGHT : SKY IS THE LIMIT OF SUCCESS !!!
More in next post !!!
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