When you are in a situation of internationalisation, you must analyse some minimum requirements that will indicate our success in this process.
It is necessary to take into account which characteristics to analyse, among which you can find factors such as the level of income of the country or economic capacity as well as the political stability and economic security of citizens.
The characteristics of the product will also reduce the possibilities of internationalisation to many countries.
Bearing in mind that it is about internationalisation of art and culture in that case, you will have to consider aspects such as taxes or the artistic tastes in each country, as well as the customs of the population with regards to attending exhibitions or investing in and valuing art.
That is why before deciding where to expand your market, it is very necessary to have analysed all aspects of your brand and know your product well.
Another aspect to consider when internationalizing your company are the barriers that you can find when you try to implement your brand in another country.
You must analyse if there is a sufficient market for your product, and for this you must know your target and have created your target buyer and compare it with your international target buyer to verify that they have the same characteristics.
On the other hand, the tariffs that may be imposed on your product are very important. Even if the currency of the country is different from ours and you need to know the advantages and disadvantages.
You must also to take into account if it is necessary to approve your product to be able to market in the desired country. It is also important that you know if there are products similar to yours and try to find a way to differentiate your brand if this is the case. You must know if you can get your products on time and with excellent quality standards.
Referring to the selection of markets, it is important to know that it is very difficult to implement your product at the same time in several target markets, since the economic capacities are limited and it is necessary to know how to distribute the resources to reach all the objectives.
-Contacts with existing customers
-Good knowledge of that market
-Public aid to access the market
-Clear competitive advantage
-A market with a good size and that is growing
-Little local competition
-Legal and political certainty
-Ease of communication
-Easy logistics and distribution
The first basic decision to be made by the company: How many markets can I enter? How many markets should I consider in my strategy?
The answer to this question is the choice between Concentration Strategy and Diversification Strategy. Which is best for the company: concentrating on a few markets or diversifying into several markets simultaneously?
Today any market can be considered a potential market for all types of products. Developing markets are equally interesting for low-end and high-end products. And therefore, there are countless possibilities for every company.
In this sense, three stages can be established in Market Research:
- Market pre-selection
- Market Comparison
- Verification and strategy phase
The resources, time, human and financial, will always be different at each stage of trying to make them profitable. As you advance in the process, the company will have to increase the resources to be invested in order to make decisions. Do not invest everything from the first phase but use them at the right time.
But what does each strategy involve?
A small number of markets are selected in order to develop the company’s ability to penetrate and find a position within them. A progressive development is pursued until each market is consolidated. It is a strategy Via Market.
This strategy seeks a rapid expansion aimed at several markets. The idea is to sell within a greater number of markets in order to obtain a high return with a minimum investment. The company is not looking for positioning but for the opening of the market or client. It is a Customer Way strategy.
You will have to carry out a comparative evaluation between the selected markets, because each country has diverse tools that populate the ministries of economy. (e.g. ICEX in Spain) to establish priorities for internationalisation based on.
Global Market Finder
Google's Global Market Finder gives you the possibility to analyse your direct competition with AdWords statistics.
To analyse each keyword that you use in your online communication, you can analyse the percentage of clicks to measure its efficiency and know the cost per click. Thanks to this, you can have an idea of whether the chosen market is growing or decreasing. On the other hand, will also allow you to calculate the costs of a Google AdWords campaign. You can see more of this in the following link: https://marketfinder.thinkwithgoogle.com/
As mentioned above, there are different types of buyers, especially when it comes to comparing consumers from different countries. For this reason, it is important to know potential customers, and their buying habits well so that you can match your product with their demand. Google provides us with several useful marketing tools, including google consumer barometer: https://www.thinkwithgoogle.com
This tool allows us to know the online behaviour for worldwide consumers. In this way, you can analyse the insights of different parts of the world and identify which values will be the most suitable to promote your business.
Each country has its own habits, be they social, cultural, or related to consumption and distribution. The PayPal Passport platform helps you expand your international sales by giving you an idea of each country's cultural traditions, national holidays, or laws. See more in : https://www.paypal.com/es/webapps/mpp/passport/home
-Peak sales in each season, including holidays and events
-Cultural customs, taboos and other trends
-Shipping and distribution costs
-Value of other currencies and rates
-Customs procedures and taxes
Methods of entering International Markets: https://www.youtube.com/watch?v=drK_S95gCJU