Balance (Column In China Times) China is a country of balance, harmony and complementary forces. It is the land of yin and yang and Feng Shui. Principles from these philosophies may very well be applied by entrepreneurs when doing business. Obviously all elements of a successful business need to come together in harmony. The right product at the right time, with the right staff and the right approach. Applied psychology To reach that balance, marketing is the instrument of choice. Whereas Feng Shui teaches how space can influence happiness, marketing teaches how applied psychology can affect the success of a company. Marketing is about identifying consumer’s needs and creating and delivering value. Needs can be identified by putting oneself in the shoes of other people. It goes without saying that this is more difficult for entrepreneurs who want to do business in another country than in their native country. Still, knowledge about the customs and traditions is a prerequisite for selling products and services. The Netherlands is also a country where many companies commission market research. Therefore, the data you will need for a successful business here are probably already available. In my previous column, I wrote about the importance of a strategic plan. The marketing plan adds to that. Only with the right market research will you be able to reach the Dutch individualists. This a complicated process. Due to the scale of the competition and competition itself, customers will not come to your business just like that. One cannot conquer a market just by opening a web shop or display window and think that ‘Made in China’ will do the trick and sell. For a company, the five Ps should be addressed: product, place, promotion, price and personnel. It is also important to assess them constantly. Product The first question an entrepreneur should ask is whether consumers really need the product or service. Other questions may be: who will buy my product? How will the consumer use it? Does it meet a need in the Dutch market? In this matter, it is also important to keep track of the marketing policies of competitors. One can point a customer’s attention to the display window and stress the unique selling points of the product, but if there no interest, you will get stuck with the items. The demand analysis is crucial. Place It is also important to check from which location you will do business. Will you be located in the centre of town or in a business park? In what part of town can your target group be found? Where do many people come together? What about the price/performance of the property? Will people be prepared to go the extra mile for your product? Promotion Marketing is also the basis for the right promotion. Advertising at random is costly and not very effective. It is more efficient to conduct market research and check where your target group meets. When you own a carting track, a women’s website is not the right platform for your advertisements. When you sell mobile phones, a household products exhibition may be the right place e. That is, when the look and feel and functionality of the phone meets women’s requirements. It is also important to keep cultural differences in mind, within a country as well within the European Union. Price Pricing a product or service is extremely important. Do you want to sell in high quantity with a small margin or in low quantities with high margins? The price of an office building is a large part of the full costs. Therefore, it is essential to select the right location for your business. Products that are more expensive may appeal to a more sophisticated target group with more financial means. Pricing can also add a certain degree of exclusiveness to a product. In the software industry, it is not uncommon to offer a Ferrari for the price of a Fiat, or vice versa. In my former business, we were among the most expensive agencies in the Netherland. I was able to secure price and quality by offering high quality of services and after service. Due to the high price, there was hardly any competition. Lowering prices might even have affected my credibility in a negative way. Personnel The fifth P is personnel. Many foreign entrepreneurs hire fellow countrymen. This makes communication easier. Nevertheless, hiring local people makes it easier to come into direct contact with prospects. This is instructive and enables you to add knowledge of local personnel to your marketing strategy. Knowledge and experience are important for this P. If you need for example highly skilled and trained personnel, a city with a university – for example Utrecht – is the right location. Highly trained personnel are generally fluent in English as well. Walk a tight rope It is obvious there are many aspects you need to keep in mind. It looks a bit like dancing on a tight rope. Market research is a search for balance and harmony between your product or service and the market you want to target. In my view, the marketing strategy is your balancing pole. If you want to do business in the Netherlands, you are not on your own in your search for information. The Utrecht Investment Agency (UIA) can help you, free of charge. The UIA informs and advises companies on industries, locations and business establishment conditions in Utrecht en Amersfoort. The Chinese tight rope walker Zhang Fan is famous for his ballet-like act on the tight rope. He feels very much at home on the rope, which makes his act look easy. However, it is obvious it has taken blood, sweat and tears to accomplish it. The same applies to a business. The more you prepare, the more obvious the success of your company.
Posted on: Tue, 12 Aug 2014 08:20:59 +0000
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