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10 myths about entering international markets


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Here are 10 misconceptions by companies about entering overseas markets. 

1 If we make a far better mousetrap, they're going to pip out . 

The question here is, does one think that factor alone is that the necessary and sufficient condition to sell overseas? If it had been always about quality, then why doesn't everyone always buy the simplest product? 

2 English is that the universal language, so we will simply sell in English. 

This speaks to many issues: Does everyone within the client organization speak, read and write English? Remember, decisions often are made on a consensus basis, and your marketing materials may travel quite bit within the clients' firms and sit on many desks. 

3 Our labor cost is just too high to plug our product overseas. 

This myth are often refuted with one statistic: Fifty-five percent of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Japan's trade surplus with the us comes from industries where their labor cost is above ours. If labor cost was the deciding factor, then how on earth could Germany possibly sell anything abroad? 

4 Our price is just too high for overseas markets. 

Are you about to compete only on price? Many commodities (oil, wheat, cement, corn) are price-sensitive, but the overwhelming majority of international successes aren't. 

5 Our skilled marketers can combat overseas markets. 

If we define marketing as awareness, understanding and belief, we'd like to ask: 

Do my marketing people skills to form overseas markets conscious of the product? Do they skills to elucidate the products, attributes and benefits in terms that add up to the locals? 

6 Our in-house foreign nationals can sell to overseas markets. 

In one example, a U.S.-based CEO told me his Chinese wife could negotiate with the Chinese government for market entry. My questions were: Is she a talented negotiator? Does she understand the sales process? Does she have the motivation and energy to interrupt into this difficult market? 

7 Our local partners will handle all of the marketing. 

This idea of relinquishing market control while enjoying great success is rare. Most of the time, overseas partners will look toward the parent to assist stimulate demand, affect problems as they occur, get to understand the distribution channels, offer material expertise and show that the parent company has indeed invested within the market. 

8 The customer expressed all of the buying signs, and even said "yes" to our proposal. 

Many firms overseas conduct their marketing research by posing as buyers. They conduct competitive intelligence an equivalent way. Your banker will tell you that the sale is complete only the cash has been deposited into the bank. 

9 we do not got to invest a lot; our internet site gives us a presence. 

Actually, your internet site gives you a brochure, but no real place where businesses and consumers can get support, touch and feel your product, get to understand your company and its staff, affect returns, make product modifications and enable co-marketing agreements. 

10 If it worked here (in the United States), it'll work there. 

This speaks to local ethnocentrism. Success reception can also be a hindrance to overseas success. Arrogance and impatience are often byproducts of domestic success. Market conditions, buying conditions, business practices, negotiation tactics and merchandise specifications all differ by market. 

So, how does one choose a market?

With many variables to affect , there's finally help. The Market Access Toolkit will help. The Market access toolkit may be a collection of articles, spreadsheets, screening mechanisms, white papers, booklets and audio products, complied by experts in international market entry.

It contains episodes from our radio show: “how to lose your shirt abroad.”

And with a a refund guarantee, what does one need to lose?

Use the market access toolkit to research and choose the right market, and therefore the correct thanks to enter it.