| |
Exporting
Marketing Techniques to Develop International Business
Exporting may seem daunting, but it's vital for many businesses to gain access to foreign markets in order to grow and maintain a competitive edge. Angela Santomieri, founder of Langu-EDGE Solutions Inc. (angela@langu-edge.com), a company that brings together language and leading-edge technology for companies looking to export, emphasizes the importance of utilizing appropriate marketing and communication tools when doing business globally and adapting them as necessary. Here are some of her tips:
- Do your research. You need to be aware of the differences in economics, industrial and technology levels between countries, as well as the cultural, political, legal and business practice differences - even the differences in levels of competitive intensity. You should shape your marketing to reflect the local realities.
- Establish credibility. Include customer testimonials, awards and any news coverage about your business in your promotional material. This goes a long way in demonstrating to potential customers in other countries that you are a solid, reputable company at home.
- Translate accurately. Studies have demonstrated that companies targeting markets by using the local language/dialects have a much higher rate of success. When prospects see information in their own language, they are three times more likely to buy.
- Interpret well. Understand the difference between hiring a translator and an interpreter. Translation is used for the written word and interpretation is used for oral activities such as meetings, conferences, and videos. Use experienced interpreters and brief them in advance on the purpose of the call/meeting, providing background material and any acronymns. When in a meeting, speak in short sentences and avoid humour, innuendos or slang that might be misinterpreted. And even if you are using an interpreter, learn at least some basics of language - greetings, key phrases - in your target market. That will be appreciated by your potential customer.
- Test market. Before launching marketing materials such as business cards, brochures, videos and websites, get a linguistic analysis done to filter the names of your products, brands and slogans. Ensure there is no negative connotation and adapt slogans so they will resonate with the local market. It's also worth your while to test them in the destination market to avoid problems like lack of precision, misuse of words, or hidden meanings.
- Invest in your web site. Your web site is a key element in today's global marketplace. Consider it your storefront to the world. A multi-language web site may prove to be the best investment you can make in your company. It's also the most inexpensive marketing tool to gauge demand for your products/services - you can monitor from which countries the most web hits are originating and tailor further marketing strategies to boost sales.
Don't wait to export. It takes patience and perseverance, but can be truly worth it in the end.
How to Partner with American Women-owned Companies on U.S. Government Contracts
A specialist in helping Canadian companies win U.S. government contracts, Judy Bradt, Principal & CEO of Summit Insight LLC, offers this advice to women-owned Canadian businesses on partnering to win contracts:
The U.S. federal government, which provides contracting preferences to American woman-owned small businesses, will spend over $350 billion on all contracts for goods and services this year. On contracts not completely reserved (or "set aside") for small businesses, U.S. government buyers must give a 12% price preference to responsible, responsive small business. That preference means access to big contracts!
The U.S. government aims for Federal agencies to award at least 23% of all its contract dollars to small business, and 5% of all contract dollars to women-owned small businesses. All large firms that win contracts valued at more than US$500,000 must have a small business subcontracting plan, and so seek qualified woman-owned small businesses to meet their obligations. However, the U.S. Small Business Administration admits that "the 5% goal has never been achieved on a government-wide basis." The best year so far was 2002, at 2.9%.
However, to qualify for the preference, firms must be established in the United States and meet other criteria including corporate size standards for number of employees (manufacturing) or level of revenue (for services). "Small" can mean up to 500 employees in manufacturing, and includes firms of up to US$18 million in annual revenue for services firms! (Read more at www.sba.gov) So partnership with such "small" businesses can open the door to big government contracts.
Buyers, prime contractors, and even the Central Contractor Registration system ask, "Are you a small business?" For many Canadian firms, the answer is probably "no", under those U.S. government procurement laws. The implications of an inaccurate response range from confusion and broken business relationships to contract fraud.
What That Means for Canadian Women Business Owners
Prime Contracts: If you have established offices in the United States - more than a sales rep or post office box - but a legal corporate entity, then your American company might be eligible for such preferences. Otherwise, you might consider teaming with an American small business, whether woman-owned or one of the other variants described by the U.S. Small Business Administration.
Services Partnerships: Many firms routinely team with small businesses on contracts for professional services, including technology, engineering, and systems integration. It's sometimes the only way that the large company can participate in a contract that is reserved for small business. Guidelines ensure that the core work of a set-aside services contract truly is done by the small business prime contractor.
Product Teaming: On "set-asides for small business", the contractor must supply an American-made product. However, Canadian manufacturers may partner with small businesses to benefit from preferences other than set-asides. The U.S. government wants to see more prime contract and subcontract awards to U.S. small businesses.
Reaching out to Find Potential Woman-Owned American Business Partners
The U.S. government offers several programs and resources to build partnerships with and among small businesses. Of course, you would want to conduct due diligence in exploring partnerships with any firms you identify through these or any other resources or programs.
- SBA Business Matchmaking Conferences: the U.S. Small Business Administration offers such events right across the United States all year long, and they have a strong focus on women-owned businesses.
- The National Association of Women Business Owners (NAWBO) works to improve federal procurement opportunities for women-owned businesses. Consider contacting one of its chapters in a city you'll be visiting soon, find out when its next procurement-related event is, and consider attending. Tel: 800-55-NAWBO,
e-mail: national@nawbo.org.
- The Central Contractor Registry (CCR) - www.ccr.gov - features a section where you can search for potential small business partners and contact them. The listings indicate whether the firm is a woman-owned small business. (If you plan to do business with the U.S. government as a prime contractor, you yourself will need to register in CCR.)
- WomenBiz.gov - www.womenbiz.gov - is the U.S. Small Business Administration's web site designed to assist women business owners seeking U.S. government contracts.
Find out more about the possibilities of selling to the American federal government at www.international.gc.ca/sell2usgov.
Judy Bradt, a Canadian based in Washington, DC (tel: 703-627-1074; e-mail: judy.bradt@summitinsight.com), writes and speaks extensively on all aspects of U.S. government procurement, after having served over 7,000 Canadian firms from 1988 to 2003 as Canada's top specialist in U.S. government markets at the Canadian Embassy in Washington, DC.
Creating Successful Global Brands
Brand leadership today is all about creating strong emotional relationships in order to win. That's the advice from Tim Love, former Vice-Chairman International, Saatchi & Saatchi, New York and a specialist in global brand building, who shared his perspective on the importance of branding in international markets at the 13th Annual International Conference of the Organization of Women in International Trade (www.owit.org) held in Calgary in September 2003.
According to Tim, whether you're dealing with "local only" business, or engaged in multinational/ global business, globalization is affecting marketing strategy. In addition, economic changes, the technology revolution, the shift from the knowledge economy to the attention economy, and international trade restructuring and worldwide changes in community and family structures have all changed how brands and consumers relate. While we used to think in terms of "think global, act local", a new marketing perspective is needed because borders do not exist quite so definitively today.
Tim's new perspective is: "Think Like the Sun". While the sun seems to go down each night, suspending its activity until dawn, that's not what really happens. The sun doesn't go up and down; it's the earth that revolves. Like the sun, our brands and businesses are making contact with consumers somewhere all of the time. Instead of focusing on borders and geography, it requires us to focus on brands, markets and consumers and to better appreciate cultural differences. This perspective asks us to embrace the dynamics of globalization in the global village.
Successful brands in the future will need to have an enhanced emotional relationship. Brand evolution has gone from product to trademark, trademark to brand, brand to trustmark…and now, trustmark to "lovemark".
How do you do this? Keep things simple, recommends Tim. Here are his seven key tenets to global brand building:
- Symbols, sounds and visuals speak louder than words - When you're dealing across borders, cultures and languages, these are the most powerful communication devices. While words can be difficult to translate, and need to be crafted culturally, symbols, sounds and visuals are emotional.
- Design is becoming a key element in relationship building - Good design communicates feelings and emotion and is therefore incredibly important in building lovemark relationships.
- Build brand equity - Start by determining the essence of each brand and what your customers think, not what you think. Without that essence, the brand doesn't live as a continuous brand across geographies and cultures.
- Ensure consistency - Differentiate and stick to it. You need a campaign vs. one-off executions. Consistency is imperative in building lovemark relationships.
- Use teamwork - This is a very important concept in going forward in this new world of global brands, as it's something that doesn't come naturally between geographies, countries and individuals globally.
- Harness consumer-learning power - Harnessing consumer learning power from around the world can actually deliver a competitive advantage to your brand. Learnings from other geographies can help you by giving great impact to the overall strategy for your brand.
- Be holistic - Use all forms of communication that people are consuming these days. And while it isn't just television, you better have TV in the plan if you are competing for peoples' love, as TV is still a very involving medium.
Selling Your Services Globally
While overseas clients can see and touch a product, services (as an intangible) are more difficult to export - clients are buying a 'promise' from you. To help eliminate some of the obstacles associated with exporting services, Andrina Lever, Founder and President of Lever Enterprises, a consulting firm specializing in international trade, finance and commercial development (aglever@rogers.com), recommends using a selling strategy based on relationship marketing.
In other words, listen to what the other person is saying and secure a relationship built on trust. Also establish your credibility - services are about your capabilities and filling customer needs. Promote your credentials, use referrals, cite your awards and the recognition your company has received, write professional articles and speak at events. And always, always network effectively by following up after each contact. Remember, everything you do is marketing.
Andrina's top 10 tips for doing business internationally are:
- Do your homework and use Canada's Trade Commissioner Service, embassies and consulates abroad to help you research.
- Do not be seduced by what may prove to be false incentives.
- Go where the money is and where people are buying.
- Be solvent. Entering the international market takes money and is not an answer to domestic cash flow problems. You need to invest a lot of time before a payoff.
- Be prepared to travel.
- Stay healthy and address personal security.
- Be targeted and be selective.
- Change your mindset - get past the emotional barrier of working in another country - train yourself to compete in the global marketplace.
- Resist the familiar - be conscious of biases and recognize that they are influencing your decisions.
- Make money and have fun!
Around the World in Many Ways: Globalization and Business Leadership
What do you need to go global? A panel of women exporters at Women's Odyssey, the annual conference of The International Alliance, held in Toronto shared perspectives on fundamental strategies and practices you need to employ to enjoy sustained global success. Here is a selection of their tips:
From Rosanna Magnotta, Executive VP, Magnotta International, Vaughan, Ontario
- Look for unique products or services to sell. For example, Magnotta's ice wine - a true Canadian product - has been a popular export.
- Be aware of regional and cultural differences and modify your products/services to fit these.
- Understand your target markets, particularly customs, tariffs, rules and regulations. A consultant can be helpful in these areas; remember, it's ok not to do it all yourself.
- Be sure to check the references of foreign agents or distributors you would like to use. Ensure they are strong in the background you need.
- Ensure that potential partners for joint ventures have a successful track record, are financially responsible and have similar ethics. If you're in doubt, don't proceed.
- Invest in the human factor. Budget for face-to-face meetings with international partners and develop relationships. That handshake can make the difference.
From Ellen McGregor, CEO, Fielding Chemical Technologies Inc., Mississauga
- Have credentials or hallmarks - such as ISO certification - to go global.
- Understand your growth tolerance. Be aware of the effect of global growth on your human resources and financial capital, and be prepared.
From Ellie Rubin, Author, Toronto
- Use storytelling as the number one strategy when entering a new market. Focus on the story of how you built your business and vision and frame it in local nuances. Minimize barriers and celebrate differences.
- Build cachet - i.e. your intangible brand - to build credibility and a buffer against market changes and fluctuations over which you have no control.
- Try to use a team approach to bring all the skills and attributes that may be needed.
- Put everything in writing when you first go into a deal, then go forward with complete trust.
- Amalgamate into the culture of your prospective client by doing your research in advance.
- As quickly as possible, bring someone from your staff (not a senior employee nor a sales person) to a new market, so they will appreciate and share the challenges with other staff back home.
- Surround yourself with champions - people who will give you footnotes on companies with which you want to do business elsewhere.
From Christine Rowland, President, Blue Cat Design, Port Hope, Ontario
- With today's technology, you can build effective relationships without face-to-face meetings. One of Canada's first Web site developers, Christine has never met over 90% of her clients and yet they have been with her for a long time.
- Use the Internet as a targeted sales tool to market internationally by having a Web site that is search-engine friendly. A prospective foreign buyer won't find you if you don't have key words that are localized.
- Build a content rich site and offer translated versions of it if you want to go foreign markets.
- Offering an e-mail newsletter on your site and asking people to subscribe to it is an excellent strategy to gather names of international prospects and expose them to your expertise.
Going Global
Advances in technology have created a huge global market. "The market belongs to those with courage," says Anne Rose of Taylor + Rose Consulting in Toronto ( anne.rose@sympatico.ca). "But analyze the risks and be prepared." Anne offers these tips for women venturing into the export market:
1. Be prepared to invest time and money to get started. Many cultures rely on building personal relationships first so be prepared to travel to make this essential face-to-face contact. This can be expensive. Make sure you have the budget to see you through the process.
2. Tap into government resources. Consult the trade commissioners at Canadian Embassies and consulates, located in every major capital city. They are an excellent - and generally free - source of local knowledge about culture, contacts, laws, tariffs and political risks. Industry Canada, International Trade Canada, Agriculture Canada and Ontario Exports are among the government departments that can help you. Check the web for these and other excellent resources.
3. Create an export plan. Identify a specific market and target leading companies. Ask yourself if there is an opportunity for your product. For example, a line of cosmetic products probably won't sell successfully in Muslim countries where many women partially cover their faces.
4. Forge a strong export team at home and abroad. Solidify your support by making alliances with strategic partners, agents and distributors.
5. Customize to local markets. This may sound obvious but there are many famous examples of this being overlooked. Incorrect usage of language is one way to blow it on the export market.
6. Market, market, market. You don't have to spend big bucks on major advertising campaigns to raise your business profile overseas. Inexpensive publicity is available through Canadian Chamber of Commerce publications and the foreign press. Be proactive and contact editors with your company news.
7. Keep a global perspective. Technological developments have opened world markets, creating increased competition and risks such as currency fluctuations. Be aware of these obstacles so you can confront them.
8. Stay committed, but don't get overly ambitious. Poor market research, weak alliances and a casual attitude can weaken any foray into exporting. Be attentive to your plans and stay flexible while keeping your goals realistic.
Women Entrepreneurs in Trade Initiatives
Landmark Canadian research, programs and events that are encouraging more women to export.
A number of groundbreaking initiatives which support women's trade activities and encourage more women to export have been undertaken over the last several years, which the RBC Royal Bank has been proud to sponsor or support. These include:
- The first-ever Team Canada Businesswomen's Trade Mission to Washington, D.C. in 1997. Over 120 women entrepreneurs came together to find out more about exporting to international markets, to enhance their networks and to explore potential market opportunities and business partnerships in the mid-Atlantic States.
- Canadian Businesswomen's Trade Mission to Los Angeles in March 1999. Over 75 Canadian women entrepreneurs returned home with contacts, inspiration and deals after participating in this event, hosted by Kim Campbell, then Consul General of Canada in L.A.
- Canada/U.S. Women's Trade Summit in Toronto in May 1999. This historic gathering of 250 export-ready Canadian and U.S. businesswomen and policy makers included business matching between delegates, workshops offering practical strategies and policy discussions with senior government officials about trade barriers for women. Designed to help women tap into the lucrative export market between Canada and the U.S., the week-long Summit was the largest event of its kind in the world promoting women entrepreneurs.
RBC Royal Bank was also one of the sponsors of research undertaken in 1998 by the Canadian Trade Commissioner Service to examine women in exporting. Key findings were presented in the landmark 1999 report, Beyond Borders: Canadian Businesswomen in International Trade. Heralded internationally for its demonstration of women's economic impact, this study highlights how to better support women exporters and maximize their potential in the global marketplace.
Another initiative supported by RBC Royal Bank was the start-up of the Organization of Women in International Trade - Toronto, the first Canadian chapter of a worldwide organization dedicated to increasing global trade opportunities for women. Membership benefits include networking, business development, education and training.
Growing Globally: Advice from the Exporting Front-lines
Shared wisdom from women exporters, courtesy of the Beyond Borders report.
Whether you're an experienced exporter or just thinking about new markets, you'll find plenty of inspiration and practical advice in Beyond Borders: Canadian Businesswomen in International Trade. This landmark report, released by International Trade Canada and supported by RBC Royal Bank, is the result of research based on 254 questionnaires and 54 in-depth interviews with Canadian women business owners. Report highlights include perceptions of success and the strategies women business owners employ in building their export markets.
Here's an excerpt from Beyond Borders:
Q: "If you could give one piece of advice to another business owner who was considering exporting, what would you say?"
A: (Top five suggestions, in order of frequency of responses):
1. Do your homework. You should know something about...
- The rules and regulations of exporting
- Brokerage fees and customs
- How government can assist in exporting
- Regulations, such as NAFTA certification
- The size and nature of your target market
- What kind of firm pricing strategy you need to have in place before meeting with clients.
"I've made some mistakes in terms of not doing my homework well enough. You need to be very clear about all of the expenses and costs, and make sure you are working with the best people possible so that you know your business in that country...."
2. Enlist the help of others. Solicit input and advice from as many sources as possible: clients, suppliers, trade commissioners, foreign tax services and community economic development personnel, for example. Also...
- Work with a network, subcontractor or co-operative
- Keep asking questions until you get the answer that feels right
- Don't try doing everything yourself
- Find out what others' experiences have been.
"Ask for help, ask for help, ask for help. One day at a time.... It's all a huge pile of gobbledygook at first but then it's one little step at a time. Ask. Ask the post office. Ask customs. Stir things up on your own."
3. Know your markets. To better understand your markets, exporters advise you to:
- Understand cultural differences
- Quote in local currency
- Start with a broad sweep of the market (to build understanding) and then concentrate on your best prospects.
"Do some market research to see if a new product or service is appropriate and look at the nuances. There are subtle nuances in every country and culture."
4. Go for it! Survey respondents believe the opportunities are there if you...
- Don't be afraid, be persistent.
- Take a calculated risk but only invest as much as you can afford to lose
- Set your goals and work towards them.
"You just have to be very persistent... there is a huge amount of business out there. It's a question of knowing your specific skills... and going after those niche markets."
5. Ensure your financial security. Novice exporters need to remember that exporting...
- Is a long-term investment
- Requires cash flow to finance transactions that may be held up during production or in receipt of foreign receivables
- Requires strong financial management skills.
"Think about how quickly you are going to be able to recoup your losses because if you need instant cash, don't bother exporting."
For the complete on-line text of Beyond Borders: Canadian Women in International Trade, go to www.dfait-maeci.gc.ca/businesswomen/beyondborders
-en.asp.
How Women Export Their Services
A majority of women exporters provide services of one kind or another and many are successfully marketing these services to the U.S. and abroad. Here are some highlights from a landmark survey of Canadian women service exporters.
Services to Global Markets: A Profile of Canadian Women Who Export Services is a direct result of Canada's first all-female Trade Mission to Washington, D.C. in 1997 and the groundbreaking 1999 Canada/U.S. Businesswomen's Trade Summit held in Toronto. The report was published by the Foundation of Canadian Women Entrepreneurs and supported by RBC Royal Bank.
Over 86% of Canadian businesses owned by women are in the service industries. The Services to Global Markets report is the outcome of the first national research conducted into who these businesswomen are, what they do, where they export to and how, and what major challenges they face.
Summary of Survey Results
- Women export services to multiple markets.
- Women service exporters are the service they sell.
- Women teach themselves how to export their services.
- Managing growth is a major challenge
- Women rely on personal networks and referrals to succeed abroad.
- Foreign markets are less difficult to enter than expected.
- Women rely on internal financing to support export growth.
- Accessing external financing is very time-consuming.
- Women do not typically incur bad debt when exporting services.
- Family responsibilities pose challenges for success abroad.
Tips From Women Exporting Services
1. Be realistic.
- Be prepared to invest a tremendous amount of time and money to your exporting efforts.
- Everything will take longer than you expect.
- Know what the market will pay for your services.
2. Stay focused and plan ahead.
- Ask yourself what you are good at and outsource the rest.
- Keep your business plan flexible.
- Know your competition in the foreign markets you are trying to access.
- Establish a relationship with your banker. Provide her/him with business details to ensure they are not surprised if and when you require help.
- Ask yourself "what if" and support yourself with the appropriate resources to respond effectively with a contingency plan.
- Don't take no for an answer.
3. Network relentlessly.
- Get your name out there and ensure you're on the right mailing lists.
- Tell people why they need to be assisting you.
- Forge alliances; work with partners already established in your market.
- Make contacts by sitting on professional boards.
4. Engage with the global market.
- Think globally. Evaluate your business from the perspective of a global market.
- Keep your eyes open: opportunities come in all shapes and sizes - and often when you least expect them.
- Use satisfied customers as an excellent source of referrals.
5. Use the technology available.
- Use a Web site to provide information to prospective clients about your firm, products and/or services.
- Use e-mail and video-conferencing to cut down on trips abroad.
6. Invest in yourself.
- Never underestimate the power and benefits of nourishing yourself with training.
- Ask for advice. Learn from others' mistakes.
- Mentor, and be mentored by, both men and women.
Trade Resources Worth Tapping
Leap on the exporting train with these Web sites, organizations, publications and more.
- Business Women in Trade Web site: A user-friendly Web site designed especially for Canadian businesswomen in trade, hosted by the Department of Foreign Affairs and International Trade. http://www.dfait-maeci.gc.ca/businesswomen/
menu-en.asp
- Organization of Women in International Trade - Toronto (OWIT-Toronto); Alberta (OWIT-Alberta): The Canadian chapters of a worldwide organization dedicated to increasing global trade opportunities for women. Membership benefits include networking through local chapter meetings and an annual international conference; access to an international Web site with global business contacts; education and training through topical meetings, workshops and seminars, and informative newsletters. Info: www.owit-toronto.ca, www.owitalberta.org.
- Roadmap to Exporting: A practical guide to connect potential, prepared and experienced exporters with export programs and services offered by the federal government. Available free at www.exportsource.ca
/gol/exportsource/site.nsf/
en/es02090.html
- Exportsource: 1-888-811-1119 is your single point of entry to government trade programs and services for Canadian exporters. Connect directly with information officers who will answer your export questions and direct you to a program that best suits your needs.
- Export Development Canada: For financing and insurance products to help you manage your export risks, contact an EDC small business specialist at 1-800-850-9626.
- Foreign Affairs and International Trade Regional Offices: A one-stop shopping service for Canadian firms that are export-ready or currently involved in international business. Visit www.infoexport.gc.ca/regions/contact-en.html to contact the Trade Commissioner in your area.
How to Join a Trade Mission
Tips on how to get on trade mission invitation lists from women who have done it.
Participating in trade missions is a very effective way to develop international contacts and business, but women are often under-represented. There are a host of missions available - some very high-level (led by the Prime Minister), some sector specific, some specifically designed for women and some even "virtual."
These women exporters share their advice* on how to get in the loop and find out about upcoming trade missions:
- Make yourself known to government officials, federally and provincially. Moya Cahill, Pan-Maritime Energy Services Inc., St. John's, NF
- Plug into different networks, whether it's the World Trade Centre in Montreal, the International Trade Centre in Toronto, or the Board of Trade in Vancouver. Bianca Battistini, BB-Focus.com, Sherbrooke, QC
- Get involved in businesswomen's and industry associations and you'll find out about things. That's why networking is so important. Dana Peebles, Kartini International Consulting Inc., Toronto, ON
- Build business links and network if you're in the Aboriginal community because referral is how many Aboriginal businesses are often identified for participation in government programs. Beverley O'Neil, O'Neil Marketing and Consulting, Vancouver, BC
- Join your local Chamber of Commerce, especially if you're outside urban centres and look at bulletins in local libraries and colleges. Barbara Mowat, Impact Communications Ltd., Abbotsford, BC
Upcoming Trade Missions
What: 10th Anniversary Women's Trade Mission
To: Washington, D.C.
Date: November 13-19, 2007
Background: “Ten years after Canada’s International Trade Minister led the first-ever all-women Team Canada Trade Mission to Washington, D.C., it is appropriate that we recognize the achievements of Canadian women by making a return mission to Washington,” says Andrina Lever, President of Lever Enterprises, who is organizing the trade mission along with the Honourable Sarmite Bulte. “The first mission in 1997 was a large one to help put women on the radar screen of the Government of Canada. This one will be smaller and more focused.”
Info: Andrina Lever at 416-920-5114 or e-mail aglever@rogers.com.
Exporting for Small Business A to Z
Think you're ready to export? To learn about exporting opportunities for small business, export financing, common exporting errors and much more, check out the RBC Royal Bank's On-line Definitive Guide to Exporting for Small Business.
|
|
