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Q: I have
been invited to attend a federal-government sponsored trade mission
and I am not sure if I should go. What would you recommend?
A:
The fact
that you are hesitating already suggests you should not be a
participant in this trade mission. 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?
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