Market knowledge

One of my client’s has been working on the Danish market for a while. Because nobody in the company speaks Danish updating the Danish webshop was rather challenging. It is also difficult to target the market with keywords without knowing the language or competitors. It is difficult doing export marketing without market knowledge.

A local account manager

Two months ago a Danish account manager was hired. She started improving the website right away. Last week we started to add new keywords and writing Danish Adwords ads. I am looking forward to see how the Danish campaign will improve. Already I feel that we are making a difference in 2 of the 5 product groups we have been looking to improve. In about a week I feel we shall be ready to finish the work that needs to be done on the campaigns and the website and I am excitedly looking forward to the results.

Export market research

Export-markets-september

It can be daunting to choose a new market to export to. A marketeer can be of great assistance in the research if he thinks of the following: size and traffic.

Size

Size. Size matters. Depending on the size of the markets you already dominate, one should consider the size of the target market. Bigger is not always better. If one’s home market is small it can be a mistake to enter a market that is too big. An example. A company from Denmark: Holger AS. Suppose Holger AS dominates the Danish market for little reclosable bags. Is it a good idea to enter the bordering German market? Or should they rather go to neighbouring Sweden or Norway?

Comparing population bases

The German competitors of are going to be huge. Danmark has less than 6 million inhabitants. Germany 80 million. Even if the German competitors do not have a strong online presence, once the Holger AS makes big inroads selling reclosable bags Online winning 10 percent of the market, the Germans will have deep pockets to fight back. Simply by imitating the Holger AS webshop and moving a big budget to Google Adwords, they will be well positioned to push up the prices for relevant keywords in the Google Adwords auction and smother Holger AS’ marketing campaigns. It is a better idea, to capture the Scandinavian markets first. Norway with a 5 million population and Sweden with a 10 million population are relatively easy to capture from a Denmark’s 6 million population base. Suppose they can be dominated in 3 years, then Holger AS has a 21 million populations base. That is a much better base to dominate the German market than the hopeless 6 million base.

Traffic

Looking at the size of the population is a very rough indicator of the potential of a give market. A quick way to estimate a market’s potential is by looking at the traffic for the essential keywords. In this case “packaging”. Entering “packaging in Google’s export tool gives the following results:

Country Traffic

Germany 6.800
Danmark 2.900
Norway 880
Sweden 3.100

Measured by traffic Sweden and Norway add 4.000 keyword searches to Denmark’s 2.900 adding up to a total of 6.900. That is the equal to Germany’s 6.800. This quick and dirty analysis indicates that capturing the other Scandinavian countries is the key to online parity in Germany for Holger AS.

Google Export Tools

At the 2012 Google Export Event on November 7 the Manager of the GET Teams Karl Ryan introduced the Google Export tools. They are the:

A. Google Market Finder

B. Google Consumer Barometer

C. Google Translate Plug-in

D. Our Mobile Planet

E. Google Analytics

F. Google Channels

G. Seasonability Calender

What struck me is that an Google Industrial Barometer for B2B marketing is missing.

I will elaborate on these tools in the coming weeks.

Export with Google Adwords

Last Wednesday 7 November Google Europe organized a Forum about Export.

Specifically the forum was about using Google Adwords in markets outside one’s home market in order to sell goods and services there.

In the morning there were Export clinics in which I was introduced to the GET Teams. These are the Global Expansion Teams. Google has organized its team in such a way that they are enablers of a company’s international growth. All the members of the GET Teams are proficient in three or more major languages. I spoke to people who spoke Italian, German, French, Arabic, Turkish, Chinese and Dutch. The language of the event was off course English.

Later there were two speeches on the importance of Export in a context of a shrinking European economy.

There was a panel discussion by some Internet Export Veterans. They were Martin de Boer of Dutch online travel group Travix, Johannes Schaback of Germany’s shopping comparison sites Visual Meta and finally Olga Safonova of Danish online Saxo Bank.

Finally and perhaps most interesting Google’s Karl Ryan, Manager of the GET team demonstrated Google’s Export Solutions.

Later there were social meetings in Dublin. Both the panel discussion and Google’s Export solutions require elaboration in further posts on thsi blog.