COMPETING IN A GLOBAL MARKETS

A global market is an exchange for goods or services that across national boundaries to encompass the entire world or nearly the entire world. The term may be used to refer to the sum total of all of the market activity that takes place in the world. It may also refer to the market in a specific commodity product or currency, as in "the global market in oil". Markets on this scale are affected by a complex combination of international economic forces and the combined and interacting results of regulation in all of the nations that comprise the marketplace.

Take Advantage of the Internet

The Internet has leveled the playing field against much larger companies. A well designed website coupled with search engine optimization strategies means customers from around the world can see what your company is capable of doing. Because English is a second language to much of the world, the language barrier can be overcome.

Study Customer Needs

A similarity between marketing in the U.S. and internationally is that to be successful, you have to identify customer needs that your company can address with its products and services -- and address them more completely than the competitors you will face in those countries. Ideally, you will find a market where local competition is minimal, giving your company an immediate competitive advantage. One critical issue to consider in estimating potential demand is how many consumers in the country have the discretionary income to be able to afford your products, even if they have a desire to purchase them.

Start With a Small Niche

Rather than viewing the entire globe as a potential market, choose a readily addressable niche in one country to start. Test-market your products and services to that niche with a modest marketing budget that could include local print or radio advertising. Engage a marketing consultant familiar with the country to help you craft a message that resonates with the local population. Cultural factors affect how consumers respond to the content of advertising messages, including aspects such as humor.

Work through Distributors

If you are convinced that there is a market for your company’s products in a foreign country but you have no experience marketing there, consider working with distributors, local entities who buy the goods and sell them in that country. Carefully research the reputation and reliability of any prospective distributor. Obtain references and, if possible, meet them at their offices. The travel cost will be well worth it in helping you find a distributor you can trust and build a long-term relationship with.

Establish Joint Ventures

Another option in selling internationally is to look for companies in the country you have targeted that sell complementary products to yours, or sell through the same distribution channels. Set up a joint venture in which each of you receives a portion of the proceeds from the products sold. Your joint venture partner will know all the packaging and labeling regulations for that country -- one less issue for you to worry about.

Offer International Licenses

When selling internationally, consider a licensing agreement with a local company in which it manufactures and markets your products and pays you a royalty. Beverage products, for example, are costly to ship long distances. Licensing the formula for a popular American beverage brand helps the American company expand its brand recognition without having to incur shipping cost.