February 22, 2012 by admin

Starting A Global Network Marketing Business

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A global network marketing business is defined as simply the chance that people have to expand their already existing network marketing business into additional countries. This is especially advantageous today when an increasing number of countries are becoming more business-friendly and, thus, opening themselves up to the network marketing industry. Hence, more and more people will also be interested in joining this business model of network marketing.

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To give an indication of how expansive global network marketing business is already, consider just 2 of the biggest network marketing companies, which are Amway and Herbalife. Each of these companies already does business in upwards of 80 countries. Other network marketing companies are following suit and expanding by moving into new markets in new countries. They simply understand that the market for growth exists.

A distinct attraction of global network marketing is that it is actually possible for you to construct your own business from the comfort of your own home. Thanks to the interconnectivity and reach of the Internet, nearly every person has the power to promote their products and services (their business) to any person from any country. This means that people have no need to travel in order to develop or to promote their business. They can simply rely on using instant messaging, sending out e-mails or even utilizing webinars that are low-cost. Another bonus of trying these approaches for your attempt at global network marketing is that it actually lets you save money.

The world of global network marketing is getting bigger and bigger, too, because a lot of people from different countries all across the world are trying their hand at it. These people are realizing the perks of such a business model for the exact same reason that you are trying your hand at it. They would like the liberty that owning their own business provides them with, yet they do not have the startup capital to get their business off the ground. This is a common problem for many budding businessmen out there. Another reason for peoples reluctance to start a traditional business is that they just do not feel like bothering with all the headaches that automatically accompany a traditional business. This would be aspects like employees, inventory, insurance, rent, utilities and other issues. Network marketing of a global nature solves a lot of these concerns for many people.

Global network marketing operates on the exact same principles as regular old network marketing. The only difference is that it does so on a larger scale because it involves penetration into foreign countries. Essentially, this kind of business model just involves marketing and promoting your products and services to people of other countries in addition to your home country. Thanks to the reach and the power of the Internet, you are able to get in touch with more people in foreign countries more easily. Promoting your business and its products and services can be as easy and straightforward as just sending e-mails or using webinars.

About the Author:

Let Brian Garvin & Jeff West give you more information about Legal Consulting and Direct Sales at MLM Legal.

Article Originally Published On: http://www.articlesnatch.com


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February 21, 2012 by admin

Cultural Marketing Factors That Can Impede Global Business Efforts …

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Culture is vital to marketing when companies are planning to introduce products or services to international markets. While cultures are always in flux and are often willing to accept new products or idea, they can also become hindrances to market development if a business does not understand the culture it is trying to appeal to. Businesses often spend time and funds researching a market carefully to analyze what culture it is grounded in and what this culture will be willing to accept.

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Business Structure

A culture affects the business structure through the norms that govern typical organizational politics and processes. For instance, some cultures may value consensus and have boards that must unanimously agree on policy before putting it into action in the business. This can be very taxing to a business partner trying to agree on a marketing strategy and implement it before competitors outrace them. Likewise, in some cultures business decisions are made based on strength of personality or family rather than the normal hierarchy of business (even if it is in place), which can lead to more confusion between partners trying to agree on market initiatives.

Language

A different culture often means a different language, and this is one of the primary hindrances to marketing in foreign countries. Marketers may find that names, symbols and messages that mean one thing to them have wildly different, even insulting, meanings when translated into a different language. Even colloquial meanings, which cannot easily be taught, may change the name of a product or slogan to mean something utterly different within the same language. A business often finds the most success by setting up a marketing division within the culture it wants to enter, staffing the division with lifelong members of this culture who understand the intricacies of its language.

Aesthetics

Aesthetics refers to what a culture believes is beautiful or attractive. Some cultural groups will not consider certain products because they do not fit with the current style or ideas of beauty in the culture. Little profit lies in selling beds to a culture that prefers to sleep on mats or hammocks, for instance. Aesthetic considerations affect primarily entertainment and art industries and, like other aspects of a culture, are often in a state of constant change.

Financial and Moral Behavior

Other types of cultural mores influence behavior in a more general way. A culture that values saving money and keeping it close at hand will not respond to marketing efforts for speculative investment. Cultures may be influenced by morality and religious beliefs that proscribe buying alcoholic products or certain types of meat, which can lead to additional useless marketing activity.

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February 14, 2012 by admin

International Marketing – Find International … – Business.com

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International Marketing

Understanding who will buy your goods is key to selling abroad

By Greg Brown

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Who wouldn’t want your widget? It’s well-made, cheap to operate, handsome on a desk and beats the stuffing out of its competitors; has for years. Problem is, no one in a foreign country even knows your name. Even well-known global brands fight this battle daily in the struggle to create awareness of what are, effectively, completely new products in the developing economies of the world. If it’s tough for General Motors and Coke, it’ll be tough for you. But not impossible, and chances are you literally have no competitors yet in many of these markets. It’s just a matter of:

getting your foot in the door, and;

following through.

Do the mental legwork

A big part of selecting a target international market is understanding how buyers there can afford your product, and why they might want it. Market research – always vital – is absolutely essential when going abroad.

Try: Both Standard and Poor’s and Euromonitor operate extensive subscription databases that provide tremendous detail, including private company data and tools to identify potential partners.

Understand the obstacles of marketing a foreign name

No one knows your brand, and there’s no money to do a big splashy launch. Getting to your customers isn’t impossible, but it is harder than at home.

Try: MarketingProfs.com runs a channel of articles specifically about global marketing. It’s written by professionals and academics.

Find the distributors and the deals

It’s a little-understood fact, but there are thousands of small importers in every country looking to source just about anything they can turn into an opportunity to sell more. Find them and understand their needs.

Try: Globus provides trade leads and market research by sector from the U.S. government. The U.S. Commercial Service also has full-text market research searchable by country or sector.

Bring in professionals

After “where” and “what,” it’s time for “who.” Hiring a research organization or an agency in-country can help you direct resources to the right effort early on.

Try: GreenBook and International Market Research Information have databases of marketing agencies and focus-group facilities. Esomar , the international research association, also has a database of experts searchable by geography.

Before you go, write out the plan

Global sales and marketing plans look a lot like any other business plan – except deep down, they’re not. Get a cheat sheet using software that pre-writes a template, then plug in your own research.

Try: Palo Alto has business planning software, including a global business plan template.

Get a serious market review done before you launch. It’ll cost you, but it would help to know which, if any, of your competitors is already on the ground. If not, why not?

Consider pricing carefully. The cost of shipping and getting past customs could drive your profit margin down to negative figures. Price too high, and sales plummet.

Most companies start out with resellers and then, once a market is established and profitable, edge them out in favor of an office. Some never do.

An accurate, well-translated web site is essential as Internet penetration rates rise in the developing world. Not being “local” on the Web can make your company seem unserious. A badly translated site is worse. Hire local talent for this.

Spend media money carefully. TV might seem comparatively cheap, but is anyone with money watching that channel? Here, an in-country agency is key.


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February 12, 2012 by admin

The Right Way to Restructure Conglomerates in Emerging Markets …

The Right Way to Restructure Conglomerates in Emerging Markets.

Article from: Harvard Business Review | July 1, 1999 |

| Copyright 2002 Harvard Business Review ( Hide copyright information ) Copyright

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Tarun Khanna is an associate professor and Krishna Palepa is the Ross Graham Walker Professor of Business Administration at Harvard Business School in Boston. Their previous HBR article on emerging markets, “Why Focused Strategies May Be Wrong for Emerging Markets,” was published in HBR July-August 1997.

In many countries, diversified business groups substitute for the institutions that support effective markets in capital, labor, and goods and services. Their capacity for doing this must be strengthened through restructuring, not destroyed through dismantling.

WESTERN CORPORATE STRATEGIES have long been held up as role models for businesses in emerging markets. The reaction to recent financial crises in Asia and Latin America has only served to reinforce this practice. The multilateral financial institutions, consultants, and academics that advise businesses and governments in emerging economies have all been pressing for a closer convergence of first- and third-world business models for the private sector. The details differ, but the advice boils down to the same thing in virtually every emerging economy: dismantle the diversified business groups that dominate the private sector. These include huge conglomerates such as the chaebol in Korea, the Tata Group in India, and the Koc Group in Turkey. The arguments for restructuring conglomerates are simple. Selling off assets could quickly reduce the huge debt some of these groups have built up. More fundamentally, though, breaking up these mammoth organizations could reduce their gross inefficiencies and promote greate r entrepreneurship. Implicitly or explicitly, then, the Western financial community is encouraging business groups in emerging economies to unbundle their assets in the same way that companies in advanced economies did in the 1980s.

Although well intended, this advice is flawed. Behind the recommendation that business groups should be broken up to create more focused and efficient companies lies the notion that well-functioning markets can be mandated into existence. But our research, conducted in a broad range of emerging economies including those of Chile, India, and South Korea, demonstrates that even with the best intentions, it takes longer than a decade to build the kind of institutions that can support well-functioning markets for capital, management, labor, and international technology.

Rushing to dismantle the business groups that now fill these institutional voids could do more harm than good. It would simply reinforce the inefficiency of the private sector and may intensify social distress, which emerging economies are extremely ill equipped to handle. It also poses practical problems. For instance, how easy is it to estimate a reliable breakup value for a business group in the middle of a fire sale and in the absence of a well-developed market for asset sales?

But if dismantling business groups is not a sensible option, what should industry leaders and governments do instead? We believe the answer is to encourage business groups in the short term to pursue alternative internal reforms that improve their performance and their ability to substitute for market institutions. Governments in developing countries must focus on building up those market institutions in the long term. The dismantling of business groups will, we believe, follow naturally once those institutions are in place. Increasing competition will force the business groups to restructure themselves.

Of course, that’s not to say the government plays no role in business reform. Any initiative to develop emerging economies must acknowledge that the business groups themselves may want to maintain the status quo. Those groups wield considerable economic and political power that can be used not only to block immediate attempts at dismantling them but also to stifle the longer-term development of markets and to work at cross-purposes with the government. But the government should focus on forcing only those reforms that are vitally necessary to build independent market institutions. First, though, let’s look at the underlying challenges involved in creating such institutions.

Building a Market Infrastructure

In any market — for capital, labor, or goods and services — two forces tend to increase the costs of transactions: unequal information and potential conflicts of interest between buyers and sellers. Advanced markets attempt to minimize these forces through effective intermediaries, sound regulations, and contracts that can be enforced. In the U.S. financial markets, for example, investment bankers play an important intermediary role in the markets’ allocation of capital to business, while the rules of the Securities and Exchange Commission ensure that investors can rely on corporate disclosure. Similarly, the existence of hundreds of business schools that train and certify managers contributes to the dynamism of U.S. managerial labor markets.

When institutional mechanisms such as those are underdeveloped or missing, transaction costs rise, and the economy’s scope for growth is limited accordingly. Thus, the existence of this soft infrastructure to serve a country’s capital, labor, and product markets is just as important to a modern economy as a hard physical infrastructure, such as roads, ports, and telecommunication systems. In the long run, the absence of a soft infrastructure depresses a country’s standard of living and restricts its access to international capital and management talent.

Building this soft infrastructure poses a significant challenge for emerging countries because they find it tough to import basic concepts and practices from the West. Consider Korea’s financial market infrastructure. One would think the strong presence of foreign investment banks, consulting firms, and accounting and auditing companies &


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February 12, 2012 by admin

Franchise Your Business to Enter an Emerging Market

Franchise Your Business to Enter an Emerging Market

By Nazir Daud

Franchising your existing business might be the best possible way to take the opportunity to enter emerging markets. Markets like India and China have complicated rules and regulations about who is entitled to own and operate a business there. The best way often to circumvent these rules is by franchising your operation in these markets.

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By using franchising the franchisee owns the business whilst the franchisor takes a share of the profits. Why does an established business want to deal with headache of red tape and restrictive trade practices when with a leap of the imagination the franchise model allows them to achieve the same profitability without the same hassles?

Many British retailers including Argos and Mothercare have used the franchise model to dabble in new emerging markets. The franchise leaders that are quick to carve out major niches in these new emerging markets will grab unprecedented market share before their slow and sure footed competitors move in.

The largest emerging market place is China with India being a close second. China could become the largest market place in the world within the next ten years and overtake the USA.

Franchising is the ideal route for many US and UK companies who want to test the water without expending large sums of capital. This gives them a chance to dip their toes in the water without risking large sums of capital.

Once large organisations find that their business model does actually work in the new, exciting and dangerous market place they can dedicate their resources to find better ways to keep a higher percentage of long term profits for themselves.

China and India are very unique marketplaces. Unlike say for instance Australia not everybody in China speaks the same dialect. The divide between rich and poor is also vast. Tastes vary enormously as does buying power.

In India there are literally hundreds of different languages whilst admittedly the main bulk of buyers with money can be targeted by 2 languages… Hindi and English. Again here spending powers vary and so do belief systems.

In reality trying to expand new emerging marketplaces without testing the waters first is fraught with danger. Franchising offers a real solution to test out the marketplace, learn the structural issues and change your products and marketing so that it identifies with the local marketplace. This does not mean that you can not enter the marketplace independently. You can franchise x numbers of units and then create non franchised units in other territories.

Throughout history economic powers have grown and declined. Asia is growing rapidly and will play an ever increasing role in the ever demanding need for companies to find new customers. The buying power of Asian consumers is rising at a dramatic pace and the consumers are demanding better products and improving service. The opportunity is there now for Established US & Europe brands to market their brands and test the waters before entering fully.

To sum up, the emerging markets are predicted to compete with the western powers in terms of buying power and economic strength. Any company which ignores this is turning a blind eye and letting its competitors expand, gain a foothold and exploit the opportunity whilst they watch and wait.

About this Author

Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.


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February 11, 2012 by admin

Let Global Internet Marketing Work for Your E-Commerce Business

Home Page > Business > Management > Let Global Internet Marketing Work for Your E-Commerce Business

Let Global Internet Marketing Work for Your E-Commerce Business

Posted: Dec 03, 2010 |Comments: 0

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The onset of e-commerce was a great breakthrough for many businesses. Business people realised they could earn more by selling goods and services on a global scale and benefit more thanks to operating without the conventional costs incurred by brick and mortar stores. What followed was that for a particular product or service, there was a choice of over a million websites to choose from. From this scenario of multiple options one can clearly see that many businesses were definitely short of customers and were consequently operating at a loss. What such business people had not realised is that internet advertising is different – this is what global internet marketing seeks to address.

The concept of global internet marketing is that the internet is an interactive platform where products are offered, customers give feedback, and from this response a better product or service is provided. This concept further touches on how dynamic a business is in response to feedback and it deals with how much your business is adaptable and flexible to the demands of the customers. The change in direction of a business so as to provide what customers demand shows that it is fast in answering customers needs and with this speed there is always a greater demand in products that require to be serviced almost immediately.

The unique thing about e-commerce is that the process of checking out a product, its price, quality and reviews is incredibly shortened. A single online store can generate this information and this is done in comfort e.g. from home, the office etc. What happens is that the prospective customer’s response time is shortened and thus provokes a sense of immediacy with the end result being requesting for a sample or requesting for more information. This in itself is response to your business and once you respond appropriately you will have added more customers to your business.

Having a global internet marketing plan means that you can add lots of international customers; your website becomes a tireless 24/7 regimen to serve them and with them come a whole lot of other business opportunities. Through proper advertising and elaborative descriptions, your website can start working for you optimally for the purpose it was first set up.

With global internet marketing there are a whole lot of different methods through which your website can obtain optimum potential. Every business is different and as such one method may not necessarily work for all. It is therefore time to reach out to global internet marketing professionals like www.geotradeglobalmarketing.com who will provide a tailor made program based on current marketing technologies to steer your website into greater profitability.

Jacob Stewart – About the Author:

For more information about global internet marketing please visit www.geotradeglobalmarketing.com

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February 10, 2012 by admin

Global Marketing Sample Business Plan – Executive Summary – Bplans

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Executive Summary

West Pacific Marketing Consultants aims to provide marketing services to targeted business environments in Indonesia, Asia, and the west Pacific region.This plan seeks to generate a significant increase in company sales and profits from thedelivery of retainer consulting, project consulting, market research and industrial analysis, feasibility studies, and strategic analysis and reporting services, compared tothe preceding year.

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The highlights of this plan arethe targeted gross margin and sales-revenue. The targeted gross margin and sales-revenuefor each of the first five years of this plan are presented in the following chart and the tables presented later in this plan. These figures represent the key prospects available for West Pacific Marketing Consultants. These targetsare attainable through a proactive approach to the candidacy of clients, teaming-up with technology providers, and partnering with reputable local and regional engineering suppliers and construction firms to reduce competition, improve pricing, and reduce risks.

This business plan has been created on the basis offive yearsof market research. Data conclude the size and growth of the market and geographical segments, customer needs, perception, and buying behavior trends have been on the upswing, and are expected to continue in this trend for the next five years. West Pacific Marketing Consultants feels thatitis able to fill the hole in the marketing niche, and will benefit from operations beginning in January, Year 1.

Note: Allfigures within this plan are in the U.S. dollar, and reflect the currency exchange rate of $1 = Rp 7,200.

1.1 Objectives

West Pacific Marketing Consultants’ objectives are to make an equal and fair profit in the business-to-business (B2B) and business-to-consumer (B2C) marketing services industry. This goal isto be reached by attaining the numberspresented in the Sales Forecast and Financial Plan topics.

1.2 Mission

West Pacific Marketing Consultants offers companies, government institutions, nongovernment organizations (NGO), and individuals reliable, high-quality, and cost-effective consulting services for various purposes. Our services include business development, market development, market intelligence, industrial sectors analysis, and channel development on a global scale, as well as sales assistance for global companies in theIndonesian market.

The situation in Indonesia iscurrently characterized by the facts that times are tough, investment appetites are low, industries are cutting costs, and budgets are being slashed. Fully aware of this situation, West Pacific Marketing Consultants, after completing a five year research study, has come tothe conclusion that its potential clients would be interested in doing things in a smarter way, with good support of a reliable and efficient market intelligence. West Pacific Marketing Consultants believes that it can provide both solutions and value creations to its clients. Its senior executive consultants have been working with some reputable U.S.-based global companies for more than 14 years, andhave extensive knowledge of Indonesian, Asian, and Pacific business environments.

1.3 Keys to Success

The are two keys to success that West Pacific Marketing Consultants is focused on. These are broadlky characterized as Internal and External Factors, and are explained in more detail in the following two sections.

1.3.1 External (Business Environment) Factors

The Asia-Pacific Region is now living in an interesting era: the process of change from the “old economy” to the “global new economy” brings a tremendous development growth of e-commerce, mobility of capital, and liberalizationto the region. Since the newglobaleconomy brings new economics, new market structures, new industry structures, and new company structures, the profile of customers has alsochanged. Customers have evolvedfrom “solution demander” to “value demander,” and from “clients” to “business partners.”

West Pacific Marketing Consultants is proactively focused on establishing relationships with multiple digital contents, companies, government institutions, regional (provincial) government offices, NGOs, and individual customers as its prospective business partners.

1.3.2 Internal Factors

The company feels that it controls its own success through some basic internal factors. These are:

Selling and Marketing Power. The services the company provides are made attractive in order to maintain a certain percentage of B2B and B2C clients. Being a market intelligence services provider, business and market development consulting services provider, and business and sales representative, West Pacific Marketing Consultants demonstrates a successful approach in converting its reputation into an excellent brand to ensure the conversion of its clients’ knowledge into their intellectual property, thus creating value for its clients.

Excellence in fulfilling the promise. Clients do not buy features, they buy benefits. To realize a benefit, a claim must be made and proof presented. This company has had success on claim after claim.

Developing visibility to generate new business leads. Participationby the company in online business affiliations with reputable global players of e-business technology is a necessity. Two of these players are Palo Alto Software and B2BToday.com.Strategic relationships must also be made with companies, government institutions, regional (provincial) government offices, and NGOs,as well as withindividual customers.

High-quality serviceand customer satisfaction. Everythingthe companysells is guaranteed; therefore, the services have to do what the customers want, and do itwell. Long-term customer satisfaction is critical tothe survival of the company.

Create multiple opportunities from a single line of expertise. West Pacific Marketing Consultants is able to leverage from a single pool of expertise into multiple revenue generation opportunities: business development, market development, market intelligence, industrial sectors analysis, and channel development on a global scale, as well as sales assistance for global companies in the Indonesian market.

Key management team. The right management team is integral, and must have a strong foundation in marketing, management, finance, and services development. The company is confident in its team.

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February 6, 2012 by admin

New Business Models in Emerging Markets -

Source:Harvard Business Review

9pages. Publication date:Jan 01, 2011.Prod. #:R1101E-PDF-ENG

Many Western multinationals expect to find most of their future growth in emerging economies. But they have frequently struggled to exploit the opportunity, relentlessly cutting costs and accepting profit margins close to zero. The problem, say the authors, who are all with the innovation consultancy Innosight, is not that these companies can’t create viable offerings but that simply transplanting their domestic business models to the new markets won’t work. They must devise fundamentally new mo… Read More

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Many Western multinationals expect to find most of their future growth in emerging economies. But they have frequently struggled to exploit the opportunity, relentlessly cutting costs and accepting profit margins close to zero. The problem, say the authors, who are all with the innovation consultancy Innosight, is not that these companies can’t create viable offerings but that simply transplanting their domestic business models to the new markets won’t work. They must devise fundamentally new models-by identifying an important unmet job consumers need to do; performing that job profitably at a price the customer will pay; and carefully implementing and evolving the model by constantly testing assumptions and making adjustments. Drawing on their experience investing in, incubating, and consulting for companies that have created 20 new business models in developing markets, the authors describe the vast potential demand represented by the “middle market” in emerging economies-the millions of people who have the desire and wherewithal to pay for goods and services, from refrigeration to clothes washing to money transfers, that will help them do the “jobs” no current offering adequately can.

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February 4, 2012 by admin

Transform Your Home Business With A Glob -

Transform Your Home Business With A Glob More Details about Transform Your Home Business With A Glob here.

The typical home business owner today is operating on a very limited small scale. If you want to keep your business local, and small, and are happy with your income, then this information will probably not be for you. However, if you are not satisfied with the size of your small home business, and you would like to create a serious career replacing income, then stick around, because I am sharing with you the basics of transforming your current strategies into a global marketing system that can produce for you 24-7.

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Unfortunately, most home business owners only tap into a handful of methods to advertise and market their business. The majority of home business owners never really grow beyond their local area, and rarely hit the jackpot with a global marketing system. This is simply the result of lack of experience and lack of skills, because the people teaching new home business owners, lack in the same areas. Up to this point depending on the products or services you offer, most likely you have been doing one or more of the following marketing methods – home parties or the equivalent, classified ads online or offline, word of mouth marketing, referral plans, direct sales, hotel meetings, blasting people on social media sites, passing out DVD’s or brochures and catalogs, or maybe purchasing Internet leads and making cold calls. Any of this hitting home with you?

Since most likely you are using the above mentioned tools, and have not implemented a global marketing system, many of the online strategies may sound unfamiliar. Examples are – search engine optimization, driving traffic, online list building, blogs, content marketing, video strategies, PPC, self promotion, attraction marketing etc. If most of these terms sound foreign to you, you are not alone, and there is hope for you. Before you can make a decision to market your home business online, you need to understand why you should. This is the information age, so even though people may hear about a product, service, or idea elsewhere, they do most of their research on the Internet, and that is where real choices are made.. Wouldn’t your advertising dollars be better spent, by meeting your customers where they are really making their purchases?

Since you are in agreement, the next step is determining how and where to develop your strategies and your Internet presence. The answer to this question is not a simple one, because it involves your goals, your target market, your budget, and your willingness to learn new skills. The good news here is that it won’t require you to go back to college to learn this stuff, and it’s not as difficult as many might perceive. In order to change your existing advertising methods and develop a global marketing system, you will need to do some research. If you have a decent advertising budget of around $1,000 a month, you may want to investigate PPC (pay per click) advertising. For those that are limited in funds, take the time to learn the lower cost strategies like blogs, article marketing, and video marketing.

The important element to understand, is when it comes to online marketing, visibility and exposure is key, and there are a few great sites online today that generate a ton of traffic that you can use for free, such as social media sites, and video sites. When you can create a marketing campaign to combine these high traffic sites, and allow them to work in synergy all directing them back to you and your blog site, you’ll be amazed at what can happen to your exposure. Having some basic promotion skills is a plus, so if you don’t at least understand the basics of promoting, take some time to learn about promoting and branding yourself. You may be thinking this sounds like a lot of learning and a lot of work. The fact is, anything that will produce a good return and pay out will require time and effort. You can increase your productivity and shorten your research cycle by finding a resource that provides all the training and systems under one roof. Get excited, because as you understand the fundamentals, you will be equipped to transform your home business strategies into a global marketing system! Imagine the possibilities!

To learn more about online global marketing systems and transforming your business seek Jodi Ouellette’s traffic revolution training. The following link is a short video training on growing your business with Jodi Ouellette, a home business transformation authority, success marketing coach, and leadership trainer.

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February 2, 2012 by admin

Advantages & Disadvantages of Doing

Advantages & Disadvantages of Doing Business in Emerging Markets

by Neil Kokemuller, Demand Media

Partnering with local businesses or suppliers often helps companies get established in emerging markets.

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Advantages & Disadvantages of Starting a Business From Scratch

Emerging markets are economies that are emerging in developing countries to present a viable business opportunity. As undeveloped or less developed countries become more developed economies, they present opportunities for small companies looking to acquire new business. Emerging markets usually come with new needs or wants, or innovation presents opportunities for new businesses to enter.

First-Mover Advantages

A main driver of companies doing business in emerging markets is the opportunity for first-mover advantages. If a company can set up shop in an emerging economy and build early success, it can become the recognized brand in its industry. This is an appealing opportunity, especially for businesses that are not among the elite brands in the United States. A successful first mover can build local partnerships and has an advantage over competitors that come along later.

Access to Capital

Access to new capital is what drives many businesses to take on the risks of doing business in emerging markets. As new economies emerge, untapped capital is up for grabs and building and maintaining a pipeline to those funds helps companies not only expand abroad, but also bring in new resources for domestic growth. Emerging market capital can breathe new life into companies that have maxed out potential for new capital domestically. Small businesses may have opportunities to grow in emerging markets not available to them in domestic markets.

Cultural Risks

A disadvantage of trying to do business in emerging economies is the challenge in overcoming cultural risks. Cultural perspectives, rituals and product usage vary around the world and when new economies emerge, they may have different expectations than ones in which a business is established. A U.S. business, for instance, may struggle with understanding how to do business in China and Brazil, among the faster-developing markets in the early 21st century. These challenges increase for smaller companies with fewer employees and resources.

Limited Protection

In his February 2011 article “Upside vs Downside of Doing Business in Emerging Markets,” Alexander Gordin discussed many of the problems U.S. companies face in emerging markets because of limited protection from corruption. Emerging countries often have less evolved legal and ethical protections, forcing businesses to risk encounters with criminals or crooked law enforcement agents. Stealing or scrupulous business transactions are common, but violence and even murder can happen in some countries.

References

Harvard Business School; Sharpening Your Skills: Doing Business in Emerging Markets; Dec. 6, 2010

About the Author

Neil Kokemuller has been an active freelance writer and content media website developer since 2007. He writes regular feature articles for LiveCharts and has been a college marketing professor since 2004. He has four years of additional professional experience in marketing, retail and small business, and he holds a Master of Business Administration from Iowa State University.

Photo Credits


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