International Sales Strategy – 5 Reasons to Expand to International Markets
Here are five reasons why you must develop an international sales strategy now:
1. Increase your base of revenue (TAM)
The most basic reason is evident: the greater the market size of your product is the greater potential for revenue through your service or product.
With the exception of companies that have to deal locally, any company could expand its market by simply traveling across international borders.
Some may say my product is too high-tech/complicated/localized/cultural/unique to sell to another country. If you have the right marketing and sales approach the majority of products that are sold in your country are able to be sold in different countries. Don’t believe in this argument and let your potential revenue go unnoticed.
2. Diversify Your Customer Base
When it comes to investing, intelligent diversification is the key to success. The same is true for your market. Expand your international market to include markets that are not your current market risk.
This current crisis in the financial market in the USA is a good example of this. The UAE is among the markets that have been least affected by this financial crisis. Should you be selling your product in the UAE you could see an increase in sales, even if your sales in other countries were lower.
3. Enter High Growth Markets
An international sales strategy permits your company to expand into markets that may not exist in your home country.
Consider, for instance, as an example, the US website hosting market in comparison to that of the Vietnamese market. It is true that the US market is overrun by cheap hosting providers, who offer low and cheaper prices to entice customers in an uninspiring market. Vietnam is, on the other side, is growing rapidly because of its youthful population.
If you had a hosting business in the country that has an over-saturated market, in which area would you choose to concentrate on your sales efforts? The advantages of having a chance to compete in these markets are well worth the effort to develop and implement the international strategy for sales.
4. Less Competition (Sometimes)
International markets usually have fewer competitors than local markets, especially if the product is distinctive. This means a simpler selling process, less pressure, and more flexible product specifications. Anytime you can alter the landscape of competition in favor of you, it is an excellent thing.
5. Market Testing Grounds
Have you ever considered trying something different with your products but were hesitant due to the potential impact it could impact the sales of your business? Fear no more! The development of an international sales plan offers you the added advantage of having testing markets that are not influenced by domestic sales. Since every international market can be separated from the rest by at minimum an international border, any modifications you make will not have a direct impact on the other markets. If the changes work then you can implement them in other markets with conviction. If the changes don’t work only a tiny portion of sales experience the difference, but you’ve gained invaluable information that could have been a huge expense if you conducted the same tests in your local market.
If your business is large or small there are numerous benefits when selling internationally. There are of course complexities to creating an effective and profitable sales and marketing presence in the international market.
VSG Consultants can help. Our knowledge in international sales strategies and channel development will assist you in establishing an international presence in sales that meets your goals. The advantages are evident Let us now help you begin to reap them.