by Mort J. Spiegel

As appeared in....

The United States has been widely recognized as a land of opportunity for international firms seeking new markets. And yet, the news from America recently has included reports of proposed trade barriers and an increase in protectionism sentiments. How accurate is the perception that U.S. markets are now less open to exports? How can a company that hasn't participated in the U.S. market assess its prospects there? What difficulties should it avoid?

After you filter the confusion, delete accumulated misinformation and ignore anecdotal reports about unsuccessful efforts to market to prospects in the U.S. -- the facts remain: America is huge, stable, monolithic and offers enormous sales potential. A company with international marketing goals that lacks a sales presence in the United States, may not be claiming its rightful share of the global market. In addition to the potential the U.S. offers, establishing a viable business here can open or strengthen opportunities in Canada and Latin America.

With careful planning, proper product positioning for the special needs of the U.S. and a little extra effort to anticipate a number of marketing obstacles the sales and profit rewards can be significant.

Is Free Trade Still Truly Possible?

Historically, America has been a citadel of free trade. But popular reports in the press may have created a degree of confusion for those outside the U.S.

The trade deficit for the United States continues to be a major political issue. Chauvinistic rhetoric has been in the headlines and some candidates for office in the last election used protectionism phrases while campaigning. Many business organizations emphasize the need for international competitiveness. "Buy American'' bumper stickers are often seen on automobiles in the streets. The overall perception may appear discouraging to international manufacturers. The reality, however, is that the U.S. is still fully supporting free trade, still purchasing imports and still intensely receptive to innovative raw materials, equipment and finished products from around the world.

A Renewed Emphasis on "Quality"

The publicity surrounding the U.S. trade deficit -- and especially the quality issue in the automotive industries -- has improved significantly the quality of American industry. As little as five years ago, international marketers may have enjoyed immense advantages in competition with some U.S. producers of similar products. That won't typically be true today. American manufacturing employees are more quality conscious. American firms have improved their customer service and technical support programs. And you will find that domestic producers are more willing to accept somewhat higher prices in return for long-term purchase agreements. In general, American suppliers are getting better at building partnerships with their customers, therefore making it more difficult on international competitors -- especially if these firms use marketing strategies that have not been designed to meet American perceptions.

The "bottom line,'' as Americans like to say when summing up the economic impact of a business decision, is that given a choice between two apparently equivalent products, one made in the U.S. and one made overseas, American managers will probably select the U.S. made product.

Therefore, if you are going to compete in the United States, there will have to be demonstrable advantages. In most instances, you will get an opportunity to present your best sales arguments. If you can explain superior performance, improved quality, or additional value, you will have an excellent opportunity to sell the prospect.

Specific Requirements in the U.S. Market

American buyers will probably not be interested in generic products (frequently called "me-too'' products) for which there are many domestic suppliers, unless the imported products offer exceptional pricing and local availability, which in most instances can not be offered. American firms are looking for innovation -- products and materials that help them solve long-standing problems, help them improve performance or produce cost reductions (with no decrease in quality.) Offer a better product with extra benefits, and the American industrial prospect will be interested in your presentation. Products with features and demonstrable benefits that impact on three important national business issues get special attention.

Environmental Impact

Can a product reduce waste, reduce energy consumption, utilize recyclable materials or replace a hazardous substance with an environmentally benign material? Environmental protection and consciousness in the United States have lagged behind these concerns in many other industrialized countries. But regulations and citizen concerns have changed the situation. Any product or material that addresses these needs, even when priced at a premium, will create considerable interest for the marketer.

Quality

Some American manufacturers may have been slow to understand the importance of quality -- but they recognize it now and seek quality improvements with conscientious intensity. If you have a product, material or technology that enhances quality with little or no increase in cost, you'll find interested sales prospects.

Value

Is value a concept perceived in an idealized situation, or a proven fact in the business world? Value brings together performance, quality, technical support, customer service and pricing. Marketing communications -- from industries ranging from autos and computers to plastics and tools -- use the phrase "value-added.'' In many instances, it's a meaningless statement. However, if you can support that phrase with tangible features, advantages and benefits, there will be sales opportunities.

Six Obstacles for the International Marketer

Even when you have a superior product with a better price, it doesn't assure success in the United States. International trade makes special demands on manufacturers -- demands you must meet or you will never achieve your objective. Consider the U.S. automobile industry, exporting left-hand drive automobiles to Japan where right-hand drive is required. Even the most ardent American can understand this is one reason why American cars are not widely sold in Japan.

Fortunately, most international firms can sell products in the United States with little or no technical modification -- just some planning and commitment that acknowledges the differences in the standard U.S. market. Here are six obstacles they must overcome:

1. Unfamiliar Product Literature

Catalogs, brochures and data sheets, even when available in English, can still have a distinctly unfamiliar look and feel -- and have a negative impact on a sale. For one simple example, some sales literature that conforms to international standards won't fit in American file drawers. Success in U.S. markets generally requires that sales and technical literature be translated into "American'' English and fits conveniently in U.S. files.

2. Excessive Reliance on Technical Data

International companies, especially European firms with established name recognition in their primary markets, will initially present sales prospects with technical data: Specifications, performance tests, application studies, long-term aging tests and more.

Your sales aids for your market in the United States requires a selection of product literature. The data may be excellent, very impressive and support the sales argument. But it's not enough.

First, you must introduce your company to a new market populated by people who may never have heard of your company and may not be able to pronounce its name. Tell them the history of your company, so they can understand the growth and success of the firm. Then you need to provide some selling aids, promotional materials and brochures for your products. Provide an index or abstract of the technical data and highlight the features, advantages and benefits for the technical, as well as the non-technical personnel who have a significant impact on the sales decision.

3. Insufficient Resource Allocations

As noted, the U.S. is a huge market, but growth in sales is not easy to achieve. You will have to plan on spending time and money to earn the rewards this market can offer.

A sales effort in the United States requires an overall strategy and a business plan. Market analysis and a critical assessment of the competition are important topics to be included in the plan. When you have identified your objectives, you can budget the resources. The specific tactics in support of each objective will take time and effort to develop and control.

4. Logistics, Logistics, Logistics

It's a big country, and many international firms underestimate the logistical requirements. American firms will import materials, components and tools, but they expect proper support. That means having suitable amounts of material or spare parts available in the United States.

Timeliness in satisfying orders is a critical issue that has to be addressed. An American firm will not usually wait "a few weeks'' to receive a shipment. Maintaining an inventory in local warehouses may be necessary and local technical support capabilities may also be required.

Also, consider the selection of your sales agent carefully. A local sales staff can be trained to handle most routine questions concerning your products. The personnel at some agencies include technical specialists who assist the sales staff. A committed, highly motivated American sales agency can give you a three- to five-year advantage in the market. With the correct choice of a sales agency, you can quickly generate the revenue required to build your sales in the United States.

5. Discouragement

Some companies lose interest in the U.S. market after they have initial contact with a few of the major prospects without a sales commitment. Do your people return after a two or three week sales expedition and report "not much interest'' in the United States?

The people they have met may have the technical responsibility. But in American business, they may not be the decision makers. While business in the U.S. may not be layered with the mysterious twists and customs of trade in some more exotic cultures, it's not as simple as it seems on the surface.

Additionally, these superficial initial contacts with large prospects may entirely neglect the huge, fast-growing segment of small and mid-sized companies. They may have a smaller requirement for products or technology, but they might be more flexible and searching for competitive advantages that you may be able to offer.

6. Lack of American Sales Support

A marketer does not have to commit personnel and establish a local operation in order to get a realistic determination of the U.S. market potential. Marketing specialists with industry knowledge, relationships with major prospects and a network of sales contacts throughout the United States are available to help you. This type of consultant can help you determine how your product will be perceived in the U.S. Since they are not your employees, you should get an honest evaluation from the prospects you visit, not a "polite hearing'' from people who may or may not make decisions on recommendations that influence purchases.

A consultant will help you avoid costly mistakes, develop an effective business plan with your guidance, interview potential sales agents, establish the correct technical and logistical support which will result in an acceleration of your sales growth.

Marketing Planning and Implementation

In considering the U.S. market, it may be worthwhile to involve a strategic marketing agency. At a time when you may need advice, a market research, business planning and cost analysis for advertising, direct marketing and sales promotion plus other services, this type of organization is certain to meet your needs.

Some "advertising agencies'' specialize in creating ads and rely on commissions from large media budgets to maintain their business. You'll also encounter marketing consulting firms provide planning services and research, to the exclusion of creative services.

The full service marketing communications firm employs people with a wide range of marketing disciplines and contains all these capabilities under one roof. As a result, you get impartial advice and recommendations; their only concern being the ultimate success of your venture, not the path you choose.

Don't Underestimate (or Overestimate) Americans

Americans may be difficult to understand. They are basically friendly and forthright, yet they have personality characteristics common throughout the world. Some are stubborn and intensely loyal to current suppliers. Others may be willing to delay decisions, take advantage of your willingness to supply technical information and ultimately, not place a single order.

Some will put "buy American'' first. Most won't. Some appear naive and are -- while others appear naive and are not. Whether it's in a major corporation or a small, privately held firm, your U.S. sales prospects are Americans. Introduce with value-added products together with "Americanized'' sales benefits, technical assistance and logistical support -- and the U.S. market can play a major role in your company's expansion into international markets and continued sales growth.