Marketing teams are usually responsible for carrying out market research that determines where a company should expand. Their job is to create a plan to attract customers to a new location.
Not Specifying Enough
In order to succeed internationally, marketers must specify exactly where they want to go. This includes identifying specific countries and regions.
For example, if your company wants to sell products in China, then you should know that China is made up of 22 provinces, autonomous regions, municipalities directly under central government control, and Taiwan.
You also need to know that there are many different currencies used throughout China. To make matters more complicated, China uses both the Chinese Yuan and the Hong Kong Dollar as legal tender.
It’s essential to break up broad geographic “markets” into individual countries with distinct revenue and lead generation goals and conduct adequate local market research before launching a new product or service.
Being more specific from a start-up helps tremendously with prioritizing a market over others, creating a staffing plan and budget allocation. All of this is necessary to help a company achieve its desired global goals.
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Not Understanding Local Markets
Understanding local markets has to be focused on understanding the market size, customer challenges, current solutions, and where your product fits in.
Many companies fail by ignoring these basic principles of product positioning at the national level and overlooking things like strong local competition.
There are many ways to get information about the world around us. We need to know what others think about our products or services.
We also want to know if we are doing well or poorly. This information helps us decide whether to continue working on a project or to stop. When we learn new things, we feel better and become happier. Information is power.
Relying On 3rd Party Data
The company relies heavily on third party data sources to make decisions about its products. Analyzing its own data helps it answer the question of whether it has a strong product-market match.
It sees a surge in leads from certain markets despite not investing heavily there. It sees a shorter sales cycle in some countries. Average purchase prices are higher in some markets.
In many countries, people prefer to buy things from friends and relatives instead of buying them from big corporations. This is because they trust each other more than they trust large corporations.
So if you want to sell your product or service to these people, you should use a network marketing model. You can also try using a software-as-a-service model. These two methods work better than traditional sales methods.
Not Focusing On Different Channels
Marketers should focus on different channels based on the behavior of each country. In Brazil, Facebook may be the most popular channel, while in other Latin American countries, Twitter may be the most effective channel.
Product-market fit is achieved by launching a product in a specific market. This means that the product must be tailored to the needs of the target market.
In order to do this, the company must understand what the customer wants before starting development. Once the product is launched, the company must constantly adapt the product to the changing needs of the market.
Pricing is a similar issue. Different countries have different forms of payment. Some markets are dominated by cash, while others are dominated by credit cards. To succeed in these markets, marketers must adapt their pricing strategy accordingly.
For example, if a company sells products primarily in cash-based markets, it should price those products differently than it does when selling them in credit card-dominated markets.
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Not Observing Ground Realities
Local teams need to be involved in strategy discussions. They may know more about the market than the company does.
This is extremely important, because this individual knows the country in question, and he/she knows your business. The biggest challenges companies face in incorporating local insights tend to be communication.
The marketing team must therefore put a system in place to help ensure local views are captured and distributed frequently enough.
Don’t come into a country the hard way. Leverage your existing relationship, and make sure to pay attention to their feedback. They are by far the most credible advisors.
Global logistics are an important part of any business. Marketing must be aware of the different markets and how they differ. Software should be designed to meet the needs of each market.
Marketers should focus on countries where they want to sell their products or services. They should consider how to display local currencies, be able to send emails in the customer’s time zone, and support the language used by their target audience.
Companies should avoid making these common mistakes when entering new international markets.