Dynamic Business

Marketing law
Apart from the linguistic considerations mentioned earlier, other laws may apply. Check with the relevant authority in the destination country to see if you are infringing on existing intellectual property, such as trademarks or copyright on promotional material. It is recommended that you register your intellectual property in that market to prevent others from imitating you and skimming business from your marketing.
Other laws may apply depending on your product, service or channel of communication. If you are marketing the eco-friendly properties of a product, for example, you may need to supply evidence of your claims. Channels such as email marketing may be subject to spam legislation.

The principles of international marketing are generally no different to marketing domestically, provided you are sensitive to the differences and tailor your campaign accordingly. The expense of marketing overseas teaches many Australian businesses the value of researching the destination market thoroughly before rolling out a campaign—but shouldn’t that apply to all marketing?

The World MAP
Michael Durie, marketing consultant at Australia Post, offers a step-by-step guide to developing a world marketing action plan (MAP).

1. Have a plan from start to finish. Include a SWOT (strengths, weaknesses, opportunities, threats) analysis, measures of success, and cover off the four Ps: price, product, place and promotion. Exporters must also have systems in place to respond promptly and efficiently, as meeting service standards in overseas markets is essential.
2. Work out the campaign return on investment and budget. Exporters need to know the acceptable return on customer acquisition investment across every sale. Know the true and current costs of every element and allow for exchange fluctuations and overruns.
3. Do a lifetime value calculation of each customer. Due to the higher cost of marketing overseas, it’s useful to determine how much income can be derived from a customer. A customer database will enable you to gather data to enable better allocation of resources by prioritising the most important customers and prospects.
4. Target the right customer with the right offer. Spend time developing your core proposition. Exporters need to communicate in an appropriate way using language and terms that respect local customs; this requires knowledge, planning and understanding.
5. Choose the channel(s) of communication carefully. Online and emails are cost effective, but one-to-one contact such as meetings, telephone and direct mail work just as well, especially in business-to-business environments where gaining buyer trust is paramount to building long-term relationships.
6. Test, learn and refine. When targeting overseas markets, it is vital to adopt regular campaign testing as part of the process. Not accounting for local and cultural differences can cost the sale. The cost of marketing overseas means every dollar must count, so it is important to test the message, the offer, the price, the packaging and/or channel regularly. Also consider the timing of the campaign.
7. Consult the experts! Talk to Austrade, your state export office or Australia Post’s direct marketing specialists (see www.mailmarketing.com.au).

Making a mark
When Ron Van Prooyen, managing director of strategic branding company Di Marca, visited the Vladivostok Austrade office, little did he know what their small business would become in Russia’s Far East.
Earmarked for the 2012 APEC Conference, Vladivostok is an emerging economy that has recently become a destination for global brands, introducing sophisticated competition for local companies. That’s where Melbourne-based Di Marca stepped in.

“Our client Primorskiy Konditer is a very traditional confectioner, but with new competition taking their market share, the brand started to dissolve into the supermarket shelves,” explains Steve Alley, Di Marca’s joint managing director. Di Marca examined the brand and compared it to the competition, then developed the essence of the brand through workshops with management. “We created the slogan ‘The choice of generations’: we were emphasising the history of Russia, playing on the fact this was an established Russian brand that has been loved for generations as opposed to a Cadbury.”

Di Marca’s brand strategy for Primorskiy Konditer included a complete visual brand identity for its packaging, business stationery, signage and delivery trucks, plus fashioning the confectioner’s head office and factory into a landmark.

To establish relationships in Vladivostok meant travelling there every six weeks to meet with companies and discuss opportunities. “Business takes time: they want to get to know you, but once they do, off you go,” says Alley. “Most of them had a need to do something once they saw other brands come into the market.”

In Di Marca’s favour was a portfolio including famous beer brand Foster’s, and the fact they were Australian. “We are closer to the Russian Far East than their capital city,” says Alley. “Dealing with design agencies in Europe is more expensive for them, and we’re working in the same time zone, so we’re able to communicate with ease whether it’s through email or telephone.”

Another aspect that endeared Di Marca to the region was their dedication to the market, demonstrated through their willingness to educate businesses about how branding works. “If you go in and are genuinely committed to helping their businesses grow and flourish, they’re going to pick up the integrity of that,” explains Alley.

As for marketing advice for exporters, Alley believes that while there might be differences in the market, the rules of branding remain. “You have to undertake local research that’s relevant to the project to get a feel for the landscape, and understand the essence of your brand,” he says. “We’re using the same principles, but applying it to a different market and different consumers and different companies. There are fundamental differences, but the principles of working through them are the same.”

Finding funding
Austrade’s Export Market Development Grants scheme has been designed specifically to reimburse businesses for export promotional activities. For information on eligibility see:

www.austrade.gov.au/exportgrants

Also check with you state or territory government to see if there are grants or other types of assistance available for your business.