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International marketing mistakes
May 2008
The Chartered Institute of Marketing
The mistakes of international marketing have passed into urban myth. Every marketer can recount the story of the car brand Nova that means ‘doesn’t go’ in Spanish. Or the product whose packaging was painstakingly translated into polish and bombed because after years of communism, what Polish shoppers wanted were goods that looked as if they came from the west. But there is more to international marketing than making sure that your brand name isn’t a rude word in German. Understanding the market is of course important whether one is trying to sell in a new county or on a new continent. But while it may be dangerous to assume that tastes are the same in New Malden and Newcastle, when moving into territories even further from home, these assumptions will be even more hazardous.
While with some relatively straight forward desk research it is possible to get to grips with obvious differences such as language issues, distribution methods or the types of advertising media that are available, but stepping outside one’s own cultural frame of reference is not always easy. We are all the centre of our own universe, and prejudices and pre-conceptions can cloud judgement. Many of the business decisions that can lead to success in the UK are based on hunches that are correct because we are immersed in the culture in which we operate. A colour that has one significance in a particular culture, for example could mean something completely different in another, while the way consumers shop and the way they make choices will vary widely. Taking it for granted that the same rules apply in international marketing can lead to costly disaster.
The economy, the political and social situation, the culture and the legal framework of the target market will all need to be investigated thoroughly before venturing into uncharted waters. The phrase ‘think global, act local’ may be a tired one, but it still contains an essential truth. Successful exporting depends upon the sound foundation of detailed knowledge. It is about marketing (producing and promoting the right product in the right way for the right people) – not simply selling.
The economic conditions of the intended market need to be carefully analysed. Is the population growing or declining? Is the economy booming or heading for bust? How do the costs of energy, raw materials or labour compare to those at home? The political and social situation within the country may be a factor. Is the country stable? Does the government encourage or resist international trade?
Cultural differences must also be measured. What are the religious or historical issues that form the countries heritage? How does the population spend its money? The legal framework could also be important and legislation affecting trading methods, product standards, labelling or advertising could all present a problem for the unwary.
Once the unique nature of the intended export market has been explored, the next stage is to work out how to approach the new market. If target consumers have similar needs, (in a technical or highly specialised area for example), the same product can be promoted in the same way. Alternatively, the same product can be promoted in a different way by adapting a marketing campaign to the local media or emphasising a different message. Finally the product can be changed to suit local tastes, or a totally new product can be developed.
It may be sensible to begin international marketing by tackling one country at a time. Trying to launch break into a number of new markets where conditions differ widely would involve making a vast number of changes to the way a company produces and markets a product. This will put a strain on even the largest organisation. However, by grouping markets with similar characteristics, the same marketing methods can be used across a ‘cluster’ of territories, and an export programme can be expanded relatively easily.
While a first foray into international marketing may involve little more than shipping goods abroad, there are many other ways a business can expand its international horizons. Sales can be managed from home, using an overseas agent, by establishing an overseas base or by licensing agreements. Similarly manufacturing can be organised locally via a licensing arrangement, under contract, as a joint venture partnership or by setting up a subsidiary abroad.
International marketing can open up a wealth of new possibilities. With careful planning, and by following the rules of responsible marketing, even the smallest business can become a ‘multi-national’.
