Entering international markets can be both risky and expensive. Proper research must be performed and an understanding of local regulations established before proceeding with such expansion plans.
Understanding your target market, their needs, expectations and preferences is paramount to successful business operations. Furthermore, cultural considerations must also be considered and regulations met.
1. Know your target market
Expanding internationally is an enormously complex and time-consuming undertaking that demands both resources and dedication from management. Before allocating them, it is vital to study demographic and economic characteristics of each new market thoroughly in order to plan effectively and allocate the appropriate amounts of resources accordingly.
Start by identifying your primary target market for your product or service. This will enable your research efforts to focus on those most likely to purchase it, whether that means asking what pain points and issues your products or services solve or reaching out directly to existing customers for feedback via social media, personal emails or phone calls.
Psychographic and behavioristic variables will also provide valuable information about your target market, helping to create marketing campaigns that speak directly to their needs and increase brand recognition and loyalty among potential customers. Psychographic variables could include age, sex or location data. An excellent source for such data are industry publications or special reports which you can locate by searching “size of market for [industry or product name].” The more detailed your profile is, the more targeted will be your marketing and sales efforts.
2. Research the market
Once you’ve identified your target country or countries, it’s time to conduct market research on its market. Pay special attention to per capita income, demographics and more as this will give an indication of whether your product and business model can work effectively there – for instance if your product appeals mainly to retirees while the target population of that particular country consists mostly of younger people it might be prudent not to invest in international expansion.
Attend trade shows specific to your industry and walk the floor – speaking to people and gathering business cards – talking with attendees and collecting business cards. Get an understanding of cultural differences such as color, packaging and lifestyle elements that add value for domestic consumers.
Keep in mind that expanding internationally takes time. Many companies entering new markets see gradual gains before reaching breakeven – that’s why it makes sense to strengthen your foundation before entering new markets – one way is partnering with an established local firm in those markets.
3. Develop a marketing strategy
International market expansion can be daunting and finding a strategy can be hard, so developing a marketing plan to expand into new markets is an integral step to help your business expand its operations.
Understanding local culture, laws, regulations and customer expectations. Furthermore, adapting your messaging accordingly.
Step one in creating a marketing strategy is identifying your goals for entering a foreign market, such as increasing brand recognition or revenue. Once defined, then create a campaign which will accomplish those aims.
One approach for entering foreign markets is exporting, which involves selling products and services directly to customers abroad. This may be an appropriate option for companies with standard models that need minimal localization requirements.
Establishing a local presence in the target country may also provide more control of market and understanding of customer needs than any other option. This may involve setting up branch offices, distributorships or franchising arrangements – although this approach may incur greater expenses.
4. Develop a sales strategy
Implementing sales strategies is integral to turning target audiences into customers and reaching your sales goals, which may include metrics such as number of sales across a period or revenue. A strong sales strategy can also help your organization meet regulatory compliance obligations that exist on sales transactions.
Establishing your sales process and outlining an ideal customer profile are integral parts of business expansion, helping identify which countries would offer optimal opportunities based on factors like per capita income and demographics. Furthermore, doing this allows you to evaluate potential new markets as well as revising and revamping existing lists of prospects to decide how you plan to market products to them.
Spend 6-12 months learning about international expansion. Attend international trade seminars offered by RISBDC counselors, Chamber of Commerce groups, Bryant University’s Chafee Center for International Business (CCIB), Bryant University or other organizations and read as much as you can on its nuances – this will increase your export IQ and help prepare you to enter new markets without making mistakes that set your business back.
5. Build a local team
Expanding into new markets requires significant financial commitment. One effective strategy to help navigate this complex process is hiring local employees or partnering with businesses with established presence in each of your target markets – this will save time and money, as well as provide access to expert knowledge of each market you enter.
Keep in mind when expanding into international markets that different countries have different laws and regulations. Be sure to conduct thorough research into this matter and seek legal advice prior to making any definitive decisions.
International market expansion brings many advantages, from increased revenue and brand recognition, to diversifying your business and mitigating economic instability risks, to helping attract and retain top talent and accelerated growth compared with non-exporting businesses. With just some careful preparation, your company could be ready to tackle the world!
