10 Misunderstandings of Entering the International Market

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The following are 10 misunderstandings about the company’s entry into foreign markets.

  1. If we make a better mousetrap, they will buy it.

The question here is, do you think this factor alone is a necessary and sufficient condition for overseas sales? If it’s always about quality, why doesn’t everyone always buy the best products?

  1. English is the universal language, so we can simply sell in English.

This illustrates several questions: Does everyone in the client’s organization speak, read, and write English? Keep in mind that decisions are generally made on the basis of consensus and that your marketing materials can be widely disseminated within the client company and posted on many desks.

  1. Our labor costs are too high to sell our products abroad.

  2. Our price is too high for foreign markets.

Do you plan to compete only on price? Many commodities (oil, wheat, cement, corn) are price sensitive, but most international commodities are not.

  1. Our marketers can compete in foreign markets.

If we define marketing as awareness, understanding, and belief, we must ask ourselves:

Does my marketer know how to market products to foreign markets? Do they know how to explain products, attributes and benefits in terms that are meaningful to locals?

  1. Our domestic foreigners can sell to foreign markets.

In one example, an American CEO told me that his Chinese wife could negotiate with the Chinese government to enter the market. My question is: is she a skilled negotiator? Do you understand the sales process? Do you have the motivation and energy to enter this difficult market?

  1. Our local partner will be responsible for all marketing work.

The idea of ​​giving up market control while enjoying great success is really rare. Most of the time, overseas partners will count on the parent company to help stimulate demand, deal with problems that arise, understand distribution channels, provide subject matter expertise, and prove that the parent company has indeed invested in the market.

  1. Customers have expressed their opinions on all purchased posters and even said “yes” to our proposal.

Many foreign companies pretend to be buyers to conduct market research. They deal with competitive intelligence in the same way. Your banker will tell you that the sale is complete only when the money is deposited in the bank.

  1. We don’t need to invest too much; our website provides us with a sense of presence.

Your website actually provides you with a booklet, but it is not a way for companies and consumers to get support, contact and experience your products, understand your company and your employees, handle returns, modify products and enable The actual location of the marketing agreement.

  1. If it works here (in the US), it will work there.

This is local ethnocentrism. Success at home can also be an obstacle to success abroad. Arrogance and impatience are often by-products of domestic success. Market conditions, purchasing conditions, business practices, trading strategies and product specifications vary from market to market.

So how to choose a market?

Hundreds of variables have to be processed, and finally saved. The market access toolbox will help you. The Market Access Toolkit is a collection of articles, spreadsheets, selection mechanisms, white papers, manuals, and audio products produced by international market access experts.

Contains episodes from our radio show: How to lose a shirt abroad.

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Uses the market access toolkit to analyze and select the right market and the right way to enter.