Going Global – One Size Doesn’t Always Fit All

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

With the ever increasing influence of the universal language of social media, technology and electronics in our day-to-day world it’s easy to forget about individual cultural attitudes reflected in values, language, religion, aesthetics, behavior, even food.

 

Even after living in the US for some 20 years, as a British ex-pat I still believe that tea is best when drunk out of china cup (and quite possibly the answer to all ills), that manners maketh man, and that gas is something that comes out of my stove and should not go into my car.

Why do languages have words that are practically untranslatable in other languages? Greek “filotimo”, Portuguese “saudade”, French “dépaysement”, Spanish “duende”, German “extrawunsch”.

My point is – certain cultural behaviors and beliefs are ingrained: we may adapt but do we really change?

Today’s technology is making international business faster and easier. We’ve all heard the “think global act local” refrain but what does this really mean? Certainly from an operational standpoint you can leverage economies of scale by standardizing wherever possible, but if you truly want to succeed in the global arena, you need to be ready to adjust to those individual cultural attitudes that are ingrained within the country you are trying to enter. Indeed, this is the approach Electrolux took as they tracked market trends and realized that they could maximize value by standardizing basic chassis and components to leverage efficiencies then localize brands to meet the needs of individual customer groups (check out this great HBR read by Christopher Bartlett and Sumantra Ghoshal)

So How DO You Act Local?

As you look to adapt your products and marketing to individual markets, research ahead of time to see what does and doesn’t work in the market(s) you are seeking to enter. Do not assume that a market strategy that worked for your products at home will automatically work in other countries.

Differing approaches to sales by distributors or representatives from region to region could impact how you market and promote your product; consumer perceptions in different regions will affect how you position your product; in some cases, you may even wish to consider localized branding (let’s face it – we’re not all Coke or Nike).

Here are some items to take into consideration as you go global with your small business:

Language – Simply translating your marketing materials from one language to another can open a Pandora’s box of problems – even more so when the nuances of local jargon, idiom
or puns are used as part of the slogan. For example, Qantas’ great slogan “Don’t be a Wallaby, Fly Qantas”, would lose much of its national flavor in any translation and, there is a slew of examples where poor translations resulted in a less than effective marketing campaign – even for some of the best multi-national corporations. Avoid using online translation tools and make sure the cultural “flavor” of your marketing is relevant to your target customer!

Education – a high vs low literacy rate within a culture may impact how you package, deliver and market your final product. For example, countries with a low literacy rate have a tendency to feature a picture of what’s inside a particular package, while usage information is presented in easy-to-understand icon format rather than step-by-step written instructions.

Religion – while religion is often considered a taboo subject, it is smart business to be aware of religious beliefs that may cause offense in your promotional efforts or even your package design; one should also be aware that some religions prohibit the use of certain

goods and services while at the same time creating potential opportunities for markets in alternative products. For example, if you are entering a market where certain foods are taboo or avoided during specific religious periods, is there a potential for offering alternatives?

Aesthetics – designs, forms, colors, shapes, sounds, fragrances, music. Colors have different connotations in different countries, music tastes vary across countries, and different fragrances appeal to different regions as any fragrance manufacturer can tell you. Did you know that…

  • Campbell alters its recipe of tomato soup to suit palates in England, France and Italy;
  • the color red is considered good luck by ethnic Chinese while in the west the color is more often associated with danger or love. What message are you trying to get across and where?
  • in some cultures, black is considered the color of mourning, while others consider white or purple to be the color of mourning;
  • in Japan, products are rarely – if ever – sold in fours since the pronunciation of the Japanese word for four sounds like the word for death.

Do your research and make sure you are aware of the consumer preferences in your target market ahead of time – it’s a lot cheaper than a failed marketing campaign!

Social Organization, Social Behaviors and Material Culture – how people relate to each other (while it’s acceptable to refuse refreshments in most Western European cultures, to do so in the Middle East or Asia is usually considered offensive), the roles of men and women, social classes, family and extended family, marriage, attitudes. Any of these things can contribute to the psychology of a purchasing decision – from the most basic consumer buy to a B2B purchasing process.

Regulatory Requirements – make sure you are aware of the regulatory requirements of the markets you are entering. Protectionist markets such as Brazil have specific requirements regarding the import of certain goods into their country; certain countries prohibit the use of components that are commonly used in others. Find the right experts to help you navigate these areas.

Growing Globally

As your company grows in your chosen global market(s), make sure your ongoing marketing decisions are made with the benefit of local input and ensure that you leverage local strengths. One of the fatal flaws of a global strategy is to assume that “we know it all” based on a single experience or pure economic analysis, but your local representatives – if well chosen – should act as a resource for local opportunities as well as potential threats. In today’s highly connected world – an opportunity or threat can easily extend to other markets so these should be assessed and acted upon quickly and effectively.

As always, the final word goes to the expert:

“Any communication or marketing professional needs cross-cultural research and communications skills to be able to succeed in the future”

 Marye Tharp

Why Continuous Learning Matters

Written by Dora Cheatham, Program Manager, Emerging Enterprise Center

“It does not matter how slowly you go as long as you do not stop.”  Confucius

When I first entered the world of business more years ago than I care to remember, it was a very different place.  Word processors were just making an appearance and sending a fax was the ultimate in high speed communication, the internet barely existed, and Amazon wasn’t even a glimmer in Jeff Bezos’ eye.

Fast forward to 2018 and while the basic principles of business remain the same, the way we DO business is infinitely different. Technology has changed how we make decisions and embark on a strategic direction, how we execute on strategy, how we transact business, how we communicate. Equally, we have access to more informational and educational resources than ever before. For the small business owner today – more than ever – to ignore the need for continuous learning is to remain stagnant at best, fail at worst.

The Emerging Enterprise Center’s Business Growth Workshops hone in on business processes that every small business and entrepreneur needs while tying into the ever-evolving business environment.  Among these:

Marketing & Communication:  30 years ago, sales and marketing were almost synonymous and advertising represented the main thrust of the marketing and sales effort.  Today the world of sales and marketing couldn’t be more different, yet too often small business owners still believe that, as long as they market their product or business “customers will come”.  This couldn’t be further from the truth, so it is critical that new entrepreneurs as well as small business owners are clear in their own minds of the differences between strategic marketing, marketing communications, advertising, and sales so that they can develop and implement a sustainable business growth plan.

Selling Value:  Probably the toughest thing for first time – and sometimes serial – entrepreneurs to grasp, is the difference between selling a PRODUCT or SERVICE and selling VALUE.  Entrepreneurs and innovators, rightly, are passionate about their product and their passion is reflected when they speak about it.  What it can do, how it can do it, how it was developed, the features, the benefits.  The more clearly those features and benefits can be articulated into end user value, the less important price becomes as a part of the sales equation.  This translates into a more valuable business model that generates greater revenue.  To quote Warren Buffet:  “Price is what you pay, value is what you get.”    Are you clear about the value that you are providing to your customers?

Innovation: “Innovate or die” has become a 21st century mantra and rightly so.  Failure to innovate led to the slow demise of companies like Eastman Kodak, Blockbuster, Sears and, more recently, Toys ‘R’ Us.  In today’s world of rapid technological development, changing tastes and increasing competition, product life cycles are becoming shorter and shorter.  Businesses that fail to update are gradually squeezed out of the market.  Innovation doesn’t have to be disruptive – it can be gradual and incremental.  The key is to remain relevant!

Globalization:  Globalization can be a hotly contested topic but has nevertheless had a profound impact on business with increased competition, expanded markets, increased resources, technology transfer.  The increased ease with which business can be transacted internationally means that even the smallest of businesses can access customers and markets which in the past may have seemed unreachable, either directly or through strategic business alliances.

In the end, while ignorance – at times – can be bliss, when running a business, it can be fatal.  As a business owner, I’m all too aware of the fact that the first step to growing a business is the ability to acknowledge that “I don’t know what I don’t know.”  So I make sure I continue to learn.

For more information on the Emerging Enterprise Center’s Business Growth Workshops, contact Erica Crell at (302) 294-2063 or via email.