Trade Missions - To Go or Not To Go?
Government-sponsored trade missions can be a valuable tool,
providing they are part of an overall marketing plan to enter
that specific export market. Export markets require a great deal
of support and the odds of you actually consummating any
business on your first visit to a country are remote. If you are
serious about that market, you must have the manpower and
financial ability to support the sales cycle, which in foreign
markets can be two to three times longer than in your home
market.
The black hole that many companies fall into is participating in
a trade mission and contracting with a manufacturers agent,
dealer, or distributor to represent the company in that
territory, with no prior thought of how much support will be
required to make them, and hence you, successful with your
product or service.
Initially it will take three to four times more effort to set up
a channel in a foreign market than in a domestic market. This
added effort is created by language barriers, travel, distance,
time zones, letters of credit, foreign exchange availability,
the added complexities of translating technical manuals and
literature, power requirements, warranty issues, service, spare
parts, local approvals, and import rules and restrictions. Do
not allow a trade mission to direct your export sales strategy -
and if you do not have an export sales strategy, do not
participate in trade missions.
Export marketing has a tendency to divert management attention
away from domestic markets - not only in the area of sales and
marketing but in day-to-day operations.
Anyone contemplating export markets needs to take a hard look at
the expense and time involved and then honestly ask yourself
this question: If I put that much time, effort and money into
the domestic market, would I be further ahead?
For additional business articles visit:
http://www.businessbuyersmanual.com