It’s a given that international marketing is key to long-term business success. You just need to balance the risks with the rewards. We try to look on the bright side of life, so let’s start with the rewards.
Gains from Going Global
Expand your market - Business problems occur everywhere. Borders are irrelevant to threat actors, which is why cyber solutions automatically have an international market. Recognize and investigate broader opportunities. Go beyond your boundaries to attract a new customer base so your business doesn’t rely on a single market. Operating abroad provides your company with a cushion should your home country suffer an economic downturn.
Efficiently source and utilize production – Did you build too many widgets for your local market? Sell your surplus abroad instead of having it sit uselessly in your warehouses.
Gain a competitive edge – Benefit from the larger addressable market.
Create jobs - Marketing your solution globally means you must meet the expectations of a bigger audience - requiring that you upscale your operations, providing employment opportunities both at home and abroad.
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Risks of Expanding Your Reach
Confront poor economic conditions - Before entering a foreign market, research the country’s economic climate. If the country suffers from high inflation, high unemployment, sizable debts, widening trade deficits, slow GDP growth or other symptoms of a faltering economy, you’re unlikely to find paying customers. Seek out the red flags.
Prepare for foreign regulations - Governments of host countries impose protectionist entry restrictions and other operating limitations on foreign businesses. Don’t be surprised to discover constraints on business ownership, employment, wages, business structure, profit percentages, and currency exchange rates, among others. Establish your threshold regarding what’s worth enduring, given how these obstacles can hinder your success.
Face cultural difficulties - Each country has specific social, cultural, and business norms. In the United States, it’s okay to work through lunch and well past the end of the business day. In Spain, the mid-workday siesta is standard operating procedure.
Manage a global team - Geographical distance, different time zones, dissimilar business cultures, and varying degrees of technology access can all work toward dividing instead of uniting global teams. If your company is planning to go global, make sure you have the technology to facilitate regular, real-time interactions to keep your international team engaged and valued.
More Easily Manage Your International Marketing Team
Run into corruption, politics, or war – Politics, corruption, and war cast a shadow on everything. From labor costs to raw material costs, from logistics to transportation systems, your business investments are impacted by the everyday decisions of a country’s leaders. By following the news and getting inside information from local partners, you can make better strategic decisions on where to expand.
Reaping Rewards & Avoid the Risks
Entering foreign markets can be profitable if you develop international business skills, build a local network in the targeted country, invest in quality localization services for your marketing materials, hire the right personnel, and, of course, closely follow the news in your desired foreign market to keep you updated on the latest business, cultural, and socioeconomic trends.
Even more critical is partnering with an experienced international marketing agency. Consider an Israel-based American agency that delivers comprehensive, end-to-end marketing communications services across multiple channels. Its specialty: translating complex technology into “What’s in it for me” communications - an advantage enjoyed by 250+ clients over more than 17 years. K2 offers a truly global perspective, and we deliver American-level service at local prices.
Reach out today.