The U.S. is a large, complicated and compelling market that offers many rewards to a well-prepared company. Many international companies want access to the U.S. markets due to its unrivaled purchasing power, openness to international markets, product offerings, and numerous free trade agreements.

However, when they begin to execute their U.S. market entry, they are frequently unfamiliar and unaccustomed to the dynamics of the marketplace and common marketing and sales pitfalls. Frequently, they establish operations in the U.S. without a clear understanding of the target customer, proper research of that customer’s pain points and little strategic planning, only to abandon their effort and investment.

This is the first in a 2-part article series. We will examine 8 Strategies for Success that every international company, regardless of their product category or sector, can employ to reap the many rewards of the U.S. market


Treat the U.S. Market as Many Different Markets
The U.S. is a fragmented market that varies widely between regions and states. While it may appear deceptively simple to segment the U.S. on the basis of the 50 states, each with its own culture, laws, business climate, time zones, and codes, even that may not be specific enough.

Locating your business in the wrong city, far from your prospective customers and partners, can be fatal. Consider this— traveling from Los Angeles to New York is an 8-10 hour journey including time spent waiting at the airport. That is an entire business day that can be lost to travel time. Know your target market sector(s), where those companies are concentrated and use that data as part of your decision criteria about where to establish your U.S. headquarters. Proximity to your customers will help you build stronger and deeper relationships with them.

Establish a U.S. Market Entry Team
There is no substitute for a sound business plan and the involvement of all members of your management team in the market expansion process. Before you enter the U.S., you may have to make changes to the product, validate your message, value proposition, obtain government approvals, assign and/or hire key personnel, locate U.S. service providers, office space and much more.

Assemble a team to develop the U.S. market entry plan to address these challenges. The market entry team should include a representative from each functional group in your company. Representatives from sales, marketing, engineering, operations, finance, service and support should all be included, raise possible issues and develop a plan to overcome or avoid them altogether thus ensuring a successful launch. Make sure the company is represented by a U.S.-based lawyer, familiar with the U.S. legal system and, is experienced in negotiating deals and contracts.

Ensure there are adequate staff, budget and the appropriate expectation setting in place with the management team at home (off-shore) office before undertaking the U.S. expansion.

Know your Target Market
One of the single greatest challenges international companies face is getting the right message to the U.S. market. The ‘right’ message is one that resonates with the target customer and demonstrates a deep understanding of their challenges, needs and pain points.

Spend time on the market development process by regularly talking with prospective customers about their issues. What they share with you could dramatically change the way you do business. Their feedback could play a critical role in the development of new products and services, your message, your service and support strategies, the hiring and development of your U.S. staff, and much more.

Following the investment in the market development process and now armed with a clear understanding of your target customer; use the following 5 core components to begin developing your marketing message:

Target Market: Define the ideal customer profile with demographic information such as the sector, geographic location, company size and more. Create a psychographic profile that defines the target customer’s preferences, values, and interests.

Pain: What is your target customer’s pain, problem or issue that requires assistance? The customer will pay for a ‘pain pill’ first.
Solution: What results can you produce while working with your customers? What are the specific expected outcomes, and value they receive?

Proof Points: What references, testimonials, and case studies can you provide to build your company’s credibility?

Differentiation: What makes you stand apart from the competition? What is the true advantage you deliver over your competition?

Develop a Clear Value Proposition
A value proposition is an implicit promise your company makes to deliver upon a combination of values such as prices, performance, quality, convenience, expected outcome and more. Only through discussions with prospective customers during the market development process, will you know and understand the specific issues that will enable you to construct a crisp, clear message. Think in terms of the customer’s pain point and your competitive differentiation. Avoid buzzwords, technical jargon and acronyms. Here are some guidelines to use to create a value proposition.

1. For (target audience)
2. Who wants/needs (customer issue you solve)
3. The offering (what you do)
4. Which provides (your solution to the issue)
5. Unlike (your competitors)
6. Your offer (key differentiator)
7. Your evidence / proof

Now test your value proposition against the competition. Can your competitors’ name be inserted easily into the statement? Does your differentiator relate to the reason to buy or need? Is the want or need compelling enough to warrant a purchase today? Are your claims of differentiation based on specific evidence?

Is your positioning sustainable? If you answered “NO” to any of these questions, plan to spend more time on your value proposition. If you answered “YES” to all of the above questions, you are well on your way to successfully launching your product or company into the U.S. market.

Next month in part 2 of this article series, we will examine 4 additional Strategies for Success including planning for long-term success, projecting a professional image, realism in the sales cycle, and developing U.S. references quickly. These strategies can apply to every international company and ensure the greatest levels of success in the U.S. market.

Michelle Messina is the co-founder of Situational Marketing, Inc. a strategic marketing, services agency serving emerging and International companies launching into the U.S. market. Email: mmessina@sitmark.com