Global expansion is the next logical step for companies that have already developed a solid footprint in the U.S., and in the current economy, companies are doing all they can to go global, fast. There are, however, several considerations a company must bear in mind. The risks of operating in multiple regions fall into two categories: not meeting the needs of distant regions and not having insight into what they are doing.
In general, prospects are unwilling to make allowances for anything they perceive to be a shortcoming. For example, if your marketing materials are in English only, this will be a significant setback to expansion, even in countries (such as the Netherlands and Denmark) where many people speak English as a second language. The reality is that people want to be able to operate in their native language. It is also a sign of respect to make local offerings reflect the preferences of prospects and customers.
One common cultural mistake is relying exclusively on American executives and managers to run overseas operations. The lack of a local expert or local face puts the newly arrived company at a considerate disadvantage. Just as local representatives are experts on the needs and preferences of their prospects and customers, regional business executives have a much better understanding of the most effective way to do business in their region.
That said, if local teams all over the globe start reinventing the wheel, this will be very costly for a company. Furthermore, communication on a brand level should be consistent and recognizable. A brand is built with much care and effort. This process, usually taking many years, is in danger when local teams start giving their own twist to the related content.
In short, there is often friction between the desires of a company’s headquarters and the needs of a local division or site. But this is not an insurmountable challenge. The most important thing to remember is that the overall feel of a campaign, the brand identity, should always stay recognizable. Within a standard brand identity, it is possible to create localized messages aimed at target groups of a certain country or even a specific region.
There are three key elements to successfully implementing a localized marketing program. First, regional field staff must be able to access and localize core marketing materials. Just having materials translated into local languages does not address local preferences or any differences in how to sell in different regions.
Also, product preferences can change from region to region. Even in the U.S. you can see this with something as basic as food preferences: fried in the Southeast and grilled in the Northeast. Now, factor in disparities in upbringing, political systems, banking platforms, language, and currency, and you can understand why decisions about what offers are most effective and how to word them are best left to the local experts—the local field representatives.
The second important element for a successful localized marketing program is having an option to include an approval loop. This allows headquarters’ marketing staff to confirm that regional changes remain true to the company’s core brand and messaging matrix.
The third element is an approach that automatically feeds to headquarters intelligence regarding which campaigns are used and their effectiveness, providing insight into field operations that is often lacking. This will enable headquarters to better understand the uniqueness of each region and what is working best.
By using the right combination of solutions, an organization can guarantee consistency of its brand identity while the local sites have the opportunity to adjust their messages depending on the consumer, the market, and the sales teams they want to reach. More and more companies are seeing the advantages of thinking globally and acting locally.
Erik Laurijssen is chief marketing officer/executive vice president of platform, alliances, and channels for marketing solutions provider Luma Technologies.
