Forty-Sixth Edition - Going Global

Taking advantage of global opportunities during uncertain economic times will give your business a competitive edge by turning challenges into opportunities. For instance, dealing with currency fluctuations is tricky even in the best of times, but a lower domestic currency will make your products and services more competitive in global markets. And, during an economic slow-down it may be easier to find willing partners for synergistic alliances that expand your business capabilities and facilitate your entry into global markets. Finally, a going global can help your business to ride out local market fluctuations.

Five global marketing tips
 

1. Market and sell directly to the end-customer

Businesses of all sizes can market and sell directly to their customers with an e-commerce site that serves as a marketing and communications tool and a transaction, and distribution channel. Interested buyers anywhere in the world can visit e-commerce sites at any time of the day or night to find information about products, answers to frequently asked questions, and even to make a selection and make purchases.

Direct marketing was critical to the success of Dell, Inc., the world's most successful direct marketing computer business. Dell not only reduced costs, but also found out exactly what their customers needed and wanted. Every Dell computer is built-to-order and icustomized to the customer’s specific requirements. Thanks to JIT (Just-in-Time) manufacturing, Dell does not need to keep inventory on hand, so they can adopt new technology quickly as it emerges. Thus, Dell is able to deliver to the latest technology at the lowest possible price; two of the reasons why Dell enjoys such a high customer satisfaction rating and level of success.

2. Target customers in their own language

"700 million of the one billion Internet users are non-U.S."
"An English-only e-commerce site will not attract this growing number of non-English web users."
(Source: NUA Internet surveys)

"Business users on the Web are three times more likely to purchase when addressed in their native language." (Source: Forrester Research)

"Internet spending outside the U.S. expected to top $914 billion in three years. This is equal to two-thirds of the world's $1.64 trillion in e-commerce." (Source: International Data Corporation).

Based on the above, it is not surprising that an increasing number of companies are rushing to make their businesses and products capable of addressing the linguistic requirements and country-specific logistics of a growing number of potential global customers. Always keep in mind that the world's most important language is your customer's language.
 

3. Develop a brand identity

In the 1960's Marshall McLuhan coined the “the medium is the message”. McLuhan’s message is that what is important is not the content of an innovation or its application, but how that innovation changes us and drives us to action.

In marketing, a successful message is one that goes beyond creating awareness of a product or service; it creates a need for that product or service and motivates consumers to acquire that product or service from a specific company.

The process of creating and disseminating the brand name is called “branding”. Fortune 500 corporations have always understood the importance of creating and maintaining a successful brand identity. Branding gave Nike an edge over Adidas and Reebok in the 1980’s and 90’s. Some brands have even become “symbols” of the products they represent. Thus, Ikea has become synonymous with ready-to-assemble furniture; Kleenex with tissues, Xerox with copying, Starbucks with coffee, Rolex with the time piece that many dream to own, Coca-Cola with thirst-quenching drinks, and so on.

A solid branding program is just as important for small and medium businesses. Customers like to feel that they are dealing with an established, reliable business. A branding campaign designed for your target market should not require a huge investment. It can take the form of a website, a well designed logo, a concept that differentiates your business from the competition or some other form of corporate identity. To develop such an identity, it is necessary to first learn what customers want and then send a clear message that your product or service can fulfill their needs and expectations better than the competition.

4. Target global markets wisely

Going global is not a walk in the park. It requires careful analysis and planning. Target market selection should be based on economic factors, including standards of living, credit, and income distribution in the potential target market. This will tell you how many internet users could become potential buyers. A direct sales strategy must also take into account logistics, such as how to handle orders in different currencies, characters, and measurements. And keep in mind that there are differences in the way that different cultures handle the Web.

5. Differentiate your product or service from the competition

Whether your business is on the Internet or a brick-and-mortar, it will be competing against other businesses that provide similar goods and services. And, whether you decide to go global or not, your business will have to compete for market share with businesses worldwide that provide similar goods and services. It is also a fact of life that businesses in geographical areas where operating costs are lower are able to provide similar products or services at lower costs. Therefore, to compete successfully you will have to answer the question "What sets me apart from the competition?"

Successful businesses deliver added value to a targeted group of customers and send a clear message to their customers that they are committed to delivering that value consistently. Others make the competition irrelevant by creating an uncontested market space (Reference: Blue Ocean Strategy, by W. Chan Kim and Renée Mauborgne)
 

An Overview of Potential Global Markets

Asia Pacific Region (including India)

Three billion people live in this region, 25% of the world business and 50% of the population of the world, and these figures are growing. The Asia-Pacific region is even more attractive since China's entry into the WTO (World Trade Organization) and Vietnam's signature of the trade agreement with the U.S. 

China

With a population of 1.3 billion, China is the fastest growing consumer market in the world. Approximately one out of every five people in the world lives in China.

American exports to China tripled between 1999 and 2003 – growing from $13 to $28 billion and accounting for more than one-half of America’s worldwide export growth over that same period. According to the PPI, the rate of export growth to China is actually a bit higher than the rate of import growth from China. (Source: Progressive Policy Institute (PPI) (www.ppionline.org – May 2004),

On the other hand, Chinese imports to the United States rose from $100 billion to $152 billion, accounting for all of America's import growth between 2000 and 2003. (Source PPI).

India

Goldman, Sachs & Co. believes that India will be able to sustain a 7.5% annual growth after 2005. With the working population of the U.S. and China expected to shrink, India could grow to be the country with world’s largest population of workers and consumers by 2020.

Singapore

According to the World Economic Forum, this region has displaced the United States as the country that is best positioned to exploit information and communication technologies. (Source: The Economist, March 19th 2005 issue).

Latin America

In 2004, this emerging market had a GDP expansion at 5.5 %, the best in 25 years. The Yankee Group (www.yankeegroup.com) predicts that B2B e-commerce in Latin America will increase from the current $11 billion to $63 billion by 2005, and an IDC (www.idc.com) survey of 500 companies in Brazil, Argentina and Mexico found that 25 percent already engage in B2B Internet purchasing.

"We see a tremendous amount of activity with ISPs and with traditional brick-and-mortar institutions adopting the Internet and getting into supply chain and CRM aspects, building portals, all sorts of things. If anything, it's the same sort of level of activity we're seeing in the United States," says Paul Sweeny, general manager of IBM Global Services' Latin America division.

Emerging Markets

The "digital divide" between poor and rich countries has narrowed during the past four years, reports The Economic Forum. (The Economist, March 19th 2005).

Immigrant Market in the U.S.

This emerging market is increasing by more than one million new immigrants annually.

Ready to explore global marketing opportunities?

We stand ready to help you. Team with InterSol and open a world of opportunities. We provide the linguistic, cultural and technical knowledge required for a successful global marketing strategy, so you can focus your energy and resources on developing customer relationships and networks and gaining access to target markets.

Why InterSol?

We have been successful in contributing to the global success of large and small customers in most business sectors.

What can we do for you?
 

	We can convert your software product or game into many languages, including subtitles, voice-overs, screen help, user instructions and packaging so you can tap into established, growing and emerging markets.
	We can convert your marketing materials, corporate communications, product documentation, packaging materials and more to Asian, Middle Eastern and European languages.
	We can design a multilingual e-commerce website or convert your current e-commerce website, so you can market directly to your global customers.
	We can handle most formats and software programs, so we can provide a full-service, delivering a finished product in the same format as the original (QuarkXpress, FrameMaker, XML, and many others). And more… Contact us soon to put your business of a global path to success.