In the world of global business, success relies on much more than just having a catchy slogan or the right product. Companies often fail in new markets because they lack an understanding of critical elements such as the market, competitors, buyers, and cultural nuances that drive customer behavior. While B2C brand failures are well-documented, B2B companies also face challenges when expanding internationally but have fewer examples to learn from.
Many companies take a lackluster approach to global expansion, prospecting abroad to “test the market” before deciding whether to expand, maintain, or close shop. However, this approach does little to set a company up for success or provide valuable insights for future endeavors. To truly succeed globally, companies need to invest in local experience and markets with dedicated marketing efforts on the ground. Building a cohesive global business, rather than separate international divisions, is key to success.
Committing to processes, infrastructure, and goals that enable rapid response to customer needs and market changes is crucial for global success. The “product operating model” has shown promising results in helping companies solve customer needs more quickly, leading to higher returns and operating margins. Simply translating marketing collateral and sending salespeople into new markets isn’t enough; companies need to adapt and respond to new market conditions to succeed in competitive environments.
Expanding into new markets can be overwhelming, from language barriers to different business norms and regulations. Putting marketing first in new markets is essential for sales success, as understanding target markets and buyer personas is key for effective B2B marketing. Even companies with advanced data-driven marketing practices need to invest in learning new markets, as online behaviors and intent signals can vary significantly by country. Having local marketing resources and personalized content is crucial for widening the prospect pipeline and generating more qualified opportunities for the sales team.
In conclusion, successful global expansion requires more than just a great product or a catchy slogan. Companies must invest in understanding critical elements such as the market, competitors, buyers, and cultural nuances to succeed in new markets. By adopting a holistic approach to global growth, focusing on building cohesive global businesses, and investing in local marketing efforts, companies can set themselves up for success in competitive international environments.
