Inside Small Business | Small Business & Home Business Marketing

Are You Ready to Go Global?

Sandy Tapper

Everywhere you look, globalization is being hailed as the next evolution in Internet marketing. But before you jump on the globalization bandwagon with the expectation that the world will now beat a path to your online doorstep, there are a number of business and marketing issues that need to be considered.

Some may see expansion into overseas markets via globalization as the quick-fix answer. However, without evaluating your business model, implementing a globalization strategy can be viewed in the same misguided logic as “we’ll lose money on every sale, but we’ll make up for it in volume.” Huh?

Whether your business is brick-and-click or solely web-based, don’t assume that expansion into overseas markets or foreign language translation of your site will make up for a poorly thought-out business plan.

Key Issues to Consider Before Going Global
Focus your resources on identifying and addressing the strengths and weaknesses of your current core online strategy, including asking these questions:

Who are your primary and secondary target audiences who are most likely to take advantage of your product or service; i.e., those with a greater propensity to buy what you’re offering?

Which of these target audiences reflect your most profitable revenue source?

Will these target audiences vary from geography to geography, given cultural and purchasing behaviors? If so, how will that affect your online approach?

How effective is your current English-language-based web site in generating online sales or meeting stated goals, especially from other countries? (Check your site logs or web tracker to identify your visitors’ countries of origin.) What are the incremental gains to be derived by globalizing?

What traffic-building programs have you implemented to generate online sales or achieve other goals? Will similar programs implemented in other markets be as effective, or are there other issues to be considered?

What are the realistic goals of site globalization, and at what cost? What are the expected return-on-investment (ROI) objectives?

If resources are allocated or diverted for globalization, what impact will that have on the effectiveness of your core site? Will the necessary funding be available to fully market your globalized online presence without diluting other marketing strategies and tactics?

Consider “Glocalization”
Much has been written about globalization, particularly how it’s more than just translation: language options, content, navigation and cultural nuances are just a few of the many issues that need to be addressed by webmasters.Perhaps you should consider “glocalization,” defined by Logophilia’s WordSpy as “The creation of products or services intended for the global market, but customized to suit the local culture.” Many US-based companies opt to translate, manage and market their sites from either their US headquarters or from a single overseas office.Glocalization via localized staff involvement and/or localized outsourcing can help dispel the “outsider” or “foreigner” image that may negatively affect your brand image. However, glocalization involves more overhead and less centralized control. If you desire a singular universal brand, this lack of control may be an issue, unless you have a “brand identity cop” on board.Go It Alone or Create Strategic Alliances?
Once you’ve decided to globalize, do you launch your globalization plan simultaneously across several countries, or do you go on a country-by-country basis (which may tip your hand to competition)?

It’s already a given that globalization requires the substantial investment of time, money and resources. The multitude of languages, cultures, currency and buying behaviors, let alone back-office operational issues, creates a complex infrastructure that can present a logistical and budgetary nightmare.

As you start on a globalization strategy, it may be prudent to start out on a centralized basis to understand, first-hand, the issues emerging from your particular business, web site and marketing strategy. From there, you’ll be in a better position to evaluate and determine your roll-out strategy into other geographic areas.

A less expensive, less traumatic option may be to create alliances or joint ventures with already-established complementary businesses in those markets where you’d like to expand your business. There will be headaches of a different sort, such as the melding of different corporate philosophies. Yet, the potential of going online sooner with an existing business may offer a more immediate benefit to the bottom line.

Learn -> Anticipate -> Plan -> Implement
When all is said and done, globalization is a business strategy that should be considered within the context of your overall business model and profitability objectives.

The above-mentioned case study on LastMinute.com highlights some real-world glocalization pros, cons and contingencies that every organization needs to address before taking the globalization step. LastMinute.com’s experiences clearly illustrate the need to evaluate exactly how and why globalization will benefit your business before implementing it.

Sandy Tapper is a marketing maven and Internet evangelist helping businesses achieve an impactful, results-oriented web presence through strategically-driven site development and marketing.

With an extensive track record in packaged goods marketing, retail services, high tech and business-to-business. She welcomes inquiries and comments at http://www.tappernet.com or stapper@tappernet.com.

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13 Ways to Find New Hidden Markets

Laurel Delaney

What is your global strategy? Your answer is a decision that reflects an analysis of market potential, company capabilities, and the degree of marketing involvement and commitment your management team is prepared to make. And since strategy drives how we react and address the business issues we face everyday, let’s examine 15 ways to find new or hidden markets in the world marketplace.

1. Find and expand into new geographical markets for an existing product. This is the simplest and quickest strategy to grow your business. It requires minimal investment with infrequent and either direct or indirect exporting, and little planning of market development. Exporting is a common growth tactic for both mature international companies as well as smaller companies. This market entry strategy contributes to the revenue stream and profitability of an increasing number of enterprises.

2. Tap and penetrate emerging markets. We cannot wait for big emerging markets like India and China to grow up. The work should begin now to take advantage of opportunities presented by rapidly developing economies and to ensure that we are ready to reap the rewards when these markets explode.

3. Source new products that complement existing ones and offer them as a new, specially priced package deal. This should be a snap by surfing ThomasNet.com (http://www.thomasnet.com/), Alibaba.com (http://www.alibaba.com) and GlobalSources.com (http://www.globalsources.com), which provide a wealth of information on potential manufacturers.

4. Reduce dependence on existing markets. Protect your company against the risk of decline in domestic sales by exporting, using the Internet, licensing or franchising your industrial products.

5. Develop new applications for existing products that can be offered to new buyers. Here’s where a few months of actually living in a foreign country really pays off. It enables you to learn firsthand how the locals do things and what they need to do them better.

Perhaps a favorite food dish in China could be made better and or more quickly if you changed the speed of a kitchen mixer. Or maybe reconfiguring an existing vacuum attachment would be perfect for some out-of-the-way corners in Sri Lanka. Before you set out to do business in a particular country, ask some simple questions. How do the people there like to spend their time? What are their favorite gadgets? How do they clean their homes or cars? How are their clothes laundered? If you can’t travel there, the information-gathering strategies outlined above should give you some answers.

Think beyond the everyday uses of things as well as cultural constraints and you’ll be amazed at the opportunities that arise.

6. Cross fertilize your marketing efforts through a variety of industries. For piano wire, market coverage should pollinate over into the sporting goods (fishing), movie and soap and detergent industries to reach new and appropriate buyers and to broaden the scope of your business activities.

7. Take the market to your buyers. If you can’t beat or woo them, join them where they are located by setting up shop locally in the country in which you wish to do business. Are you making bicycles spokes and trying to sell them in a country without bikes? Then you better ship a sampling of finished bikes first, educate the consumers, find a small manufacturer and then secure buyers for those spokes!

8. Offer new services that complement your industrial products in order to boost profits. This segment of marketing involves all countries at every level of development; even the least-developed countries are seeking computer technology (China and India, for example) and sophisticated data banks to aid them in advancing their economics.

9. Move more production of subassemblies and parts to cheaper offshore factories. That’s what Hoveround Corp., maker of motorized wheelchairs and scooters in Sarasota, Florida did. The problem they ran up against was set prices by fee structures for Medicaid and by contracts with large insurers. By moving production outside of the USA, the company has consistently widened profit margins slightly each year.

10. Establish a strategic global alliance (SGA). An SGA is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. This strategy works well for market-entry or to shore up existing weaknesses and increase competitive strengths.

11. Globalize your business by forming worldwide product groups by function. Your design can be done in California; your manufacturing can take place in China and your distribution might start in Antwerp. Together, you have a powerful global network.

12. Form joint-ventures in places where you desire to do business. For example, many years ago, JCPenny had developed three alternatives for implementation in global markets: (1) owning and operating JCPenny department stores, (2) licensing for forming joint ventures with local partners, and (3) exporting private-brand merchandise to be sold through other retailers. Since then, the Internet has fostered another alternative for growth.

13. Market your business aggressively and in the language your buyers understand. For example, if you make one style of an electrical component, what happens if the market changes and your buyers no longer need your particular type of component or they learn how to source it cheaper elsewhere and on their own? In a case like that, it is best to supply many grades, more styles and more types of electrical components to ensure at least one product will always be in demand.

Global competition requires quality products designed to meet ever-changing customer needs and rapidly advancing technology. Develop your global strategy. Refine your international business practices. And discover every imaginable hidden market for your products and services. You will transform your business and take the lead in the world of expanding customer choices.

Global business expert Laurel Delaney is the founder of GlobeTrade.com and LaurelDelaney.com. She is also the creator of “Borderbuster,” an e-newsletter and The Global Small Business Blog, which are both highly regarded for coverage on global small business. She can be reached at ldelaney@globetrade.com.

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What Brand is That?

David Dresen, Director of Design, Logoworks by HP

A Brand. Just what is the big deal anyways? I’m just a small start up, with really no imaginary dreams of becoming the next monster clothing chain. I just want to have a nice little….blah, blah, blah.

Honestly, let’s be realistic, who doesn’t want to make as much money as possible? It doesn’t matter whether your starting a homemade candle company, or a new line of automobiles, the truth is we all become entrepreneurs to get away from “The Man” that has us boxed up in that 6’X 8’ cubicle. That is why we work, that is what drives this world, and that is the truth. Some people get lucky enough to actually work in a job they love (me included), and the rest of the world works because they have to. Most people who love their jobs wouldn’t do it for free! The cold hard facts of this world require us to work for money. There are great opportunities to provide service for others, but when it comes to our “jobs”, most of us prefer a paycheck; and the bigger the better.

So, you’ve broken away form the “cubicle”, and are starting your own business. I would like to talk to you about how you’re going to brand your company. The encyclopedia explains the meaning of a brand, far better than I can, and uses much more eloquent words;

[A brand includes a name, logo, slogan, and/or design scheme associated with a product or service. Brand recognition and other reactions are created by the use of the product or service and through the influence of , design, and media commentary. A brand is a symbolic embodiment of all the information connected to the product and serves to create associations and expectations around it. A brand often includes a logo, fonts, color schemes, symbols, and sound, which may be developed to represent implicit values, ideas, and even personality.]

I want to cover a few key elements of this description.

No where in this description, did it say that a brand was the logo!! I want to make sure everyone understands this. Your logo is not your brand. It can be the start of one, and may be included in such branding, but by itself it’s not a brand. As stated above, the brand includes, or may include the logo, colors, symbols etc.

The phrase “design scheme” is what I want to focus on here. As you start to design your peripherals (e.g. business cards, website, stationery, brochure etc), it is vital to keep in mind your logo, which should already represent you, and use that logo design for inspiration or guidance in designing the rest of your products. You don’t even have to use the logo as the main part in the design. For example, you have a startup coffee house, and you need to design your coffee grounds packaging. Your logo incorporates a circle with an image of coffee beans and an old world farmhouse, with rows of coffee plants. So, this illustrative logo opens up a myriad of possibilities in designing your packaging. Have fun, use elements of the logo, or just run with the concept of “Old World”. The logo itself can be place discretely on the package, and your product if designed correctly it will represent and strengthen your brand.

“A brand is a symbolic embodiment of all the information connected to the product and serves to create associations and expectations around it.” The catch here is this: an expectation isn’t good by default. That is up to you, your product, and your service. You can have the best logo in the world, and award winning design, but if your product is bad, or if your service is poor, it is not going to matter how well you brand yourself. People will always associate your brand with that bad product, and poor service.

The design of your peripherals is vital in establishing that strong brand. Everything associated with your company should say the same thing. Whether it is the use of fonts, colors, or design itself, your image should be repeated. The only way for a company to become branded is through visibility and repetition. I’m not just talking about seeing it either. You don’t need to have millions in financial backing to successfully market your product. Advertising is accomplished in many ways, and not all include paying for air time, or printed advertisements. Word of mouth can be extremely beneficial and effective in spreading your brand as well. Starbucks is a company that used almost no advertising, but had great design, and over a period of ten years developed such a strong brand that the company went from one shop to thousands.

I’m not saying that you shouldn’t use a marketing company. On the contrary, it is vital for you to seek out any professional help you can. Word of mouth alone will not be sufficient to establish yourself. Your design on everything from the business cards you hand out to the packaging of your products, and the hangtags on your shirts will say something about your company. Even the airtime you use on the radio should help strengthen your brand. Don’t underestimate the importance of seeking professional guidance in establishing a great brand. It can make all the difference in determining whether you’ll become the next Starbucks. As Howard Schultz would say;

A great brand raises the bar — it adds a greater sense of purpose to the experience, whether it’s the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you’re drinking really matters.” - Howard Schultz (CEO, Starbucks Corp.)

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