7 Keys to Entering the North American Marketplace
by Paul Travis, Interim Marketing Executive
The affluence, consumer culture, established distribution channels, and technology adoption of the U.S. market attract the interest of astute businesspersons worldwide. However it can be intimidating to consider such an expansion initiative when one already has a full day of problems to solve.
While there are no guaranteed success formulas to entering the North American marketplace, there are a number of key factors we have found to be important. You may be familiar with a number of them in the operation of your small- to mid-sized business. By going through this process, you can work consciously through critical decision points where competitors make implicit assumptions (they “don’t know what they don’t know”)!
1. Recognize the distinct distribution options you have in bringing products and services to this marketplace.
Each has its advantages and disadvantages, in terms of capital investment, profit margin, and ownership of the customer and any associated credit. Go direct to customers, by establishing a North American office or by outsourcing or contracting out North American sales/service. Or go indirectly, through distribution/reseller partners and/or OEM partners.
2. Target your offering at a specific industry “vertical”, rather than a horizontal approach.
This is the most effective way to bypass the competitive “noise” in the marketplace. It is easier to reach those buyers who you want to hear your story. For example, if you are in the CRM software business, you’ll be more effective with a “CRM for Real Estate” product than offering “CRM for small business”.
3. Make sure your value proposition is clear and concise.
The end customer of your product or service must be able to tell another person, so it has to be simple. Based on your distribution choice above (1) you are likely to have another important customer constituency — your prospective partner must be compelled by their own clear and concise value proposition. If they are any good, they will have other things competing for their attention!
4. Create a 12-24 month plan/timetable.
Go into detail, identifying specific persons with the right skills sets and the right connections and give them responsibility. Also identify specific activities to be accomplished in the marketing/sales/partnering/product development realm. You’ll find that specificity, early in the process, builds confidence internally and with your partners, and often illuminates hidden concerns. Don’t worry — change is inevitable and can be managed.
5. Determine criteria to measure the success of your plan.
You might set your benchmark based on number of new customers, revenue level, or a profitability target. Commit to regular monitoring and course-correction, so you don’t look up one day and wonder where things went wrong. What gets measured gets managed.
6. Prepare to make the appropriate investment to manifest your plan.
There is truth in the old saying, “it takes money to make money.” Having gone through the planning process, you now recognize that your expansion plan can never come into being with a couple lucky phone calls. Establishing a significant business in North America is possible, and will take a concerted effort.
7. Be conservative in your planning.
Things always take longer and cost more than you originally expect!
Paul Travis is an interim marketing executive at OneAccord. Mr. Travis is based out of Seattle with 25 years of experience in high technology, marketing, and consulting. He can be reached at Paul.Travis(at)oneaccordpartners.com and at 206-910-2222.
Photo by unfoldedorigami
