Marketing in the USA

It is time to disclose a terrible secret. Business in the USA does not start from company registration. Instead, business in the USA starts from marketing. If you haven’t made a prior market research with the view to demand for your goods or service, your business will run blind. The US market is the largest in the world, but the competition is respective. If you are ignorant of either the price levels, or target group segments, or competitors’ advertisement media – the start of your business in the USA will be sorrowful.
Many businessmen of both Russia and Ukraine do not simply know that a website – is the basic advertisement instrument in the USA. No website – no company. It is in Russia that goods and service are inquired on the Internet by less than 10%. In the USA – it is around 80%, as 92% of American families possess at least one computer. Those, who did not realize that in time, are already working in a different business. American companies not developing their websites fall out of business within a year.
Even in restaurant business in US big cities, if it is not possible to book a favorite table in a restaurant online, that restaurant is not considered as decent…
Now, about the goods. Tastes of Russian and American public are drastically different. Heaven and earth – is a very mild metaphor…
There are many businessmen who have scored serious success in Russia and are trying to duplicate their success in American market. That is laudable, but the problem is how they are doing it.
For example, the myth that if you sell clothes in the USA, it is best to start with Versace! We assure, that Versace in the USA is absolutely unpopular among the Americans (not Russians!) and, to a great extend, a simple unknown brand has a reverse effect – say, guys, you don’t understand anything at all, what are you talking about. Result? Within a year less than 15% of the consignment procured was sold (and including all the sells-out!).
The standard recipe of “Russian” business in the USA. Purchase everything bright, glittering, taking breath away and the most important is – the most expensive!
Gentlemen, it will not work. And it has never worked. The problem is in the difference of psychologies. In Russia, a businessman having earned money, immediately buys a house as big as possible, a car, as cool as possible, and meets several lovers, as very soon either he’ll be jailed, or everything will be just taken away and that is why he has to live that short moment as brightly as possible and as “glamorously” as possible! To have something to remember (if there is someone to).
There is no fear in the USA that everything will be taken away from you tomorrow. But there is a firm conviction in the USA that if you have some money today, it is better to put it off for tomorrow or invest into a cause, but not to try to squander it away as quickly as possible. That is why “Russian” glamour projects have exclusively limited success only among “understanding” Russian circles. Really, what type of decent “Russian” business can be done in a country where even billionaires drive THEMSELVES, fill fuel and even wash (!!!) their absolutely non-billionaires’ cars and can even drop to McDonald’s (!!!) to have a quick snack. And that is done by people, owing their own business-empires and flying in their own planes!
You will laugh, but in the USA (as well as in Europe in fact) work is honored and money’s counted. If you wish, you can write-off that fact to Protestants’ ethics.
By our observations, main millions in the USA aren’t earned by those who sell Rolls-Royces, but by those who produce and sell small screws and gaskets for taps, or something else very small and imperceptible, but sell all that in millions and continuously. Namely this type of business will be the most successful in the USA. By the way, similar proportions start appearing in Russia. Those who specialize in small but successful business can actually earn more the luxury stores with super-expensive goods.
Perfect option is when business self-creates a market for itself. At the same time you don’t have to be a Bill Gates at all. We know a story of one small company which started producing (or reselling) excellent professional dish-washing machines for restaurants. But for majority of restaurants they turned out to be expensive (it is rather difficult to enter an established market). And the restaurants which could afford them already had their own machines. Then the company president made a brave marketing move. He started giving his machines free to new restaurants along with obligatory signing of a long-term contract for their weekly servicing. Now the company is prospering and earning millions as thousands of restaurants pay monthly for washing agents and servicing.
How much real are your business development plans in the USA?
On the whole, the businessman suggests, and the customer disposes.
What are your hopes based on, that your goods or services will be purchased in the USA at the rate which you count on? Experience in Russia and intuition in general?
Many our customers reasoned the following way: “I’ll register a company, make advertisement, and then we’ll see”. Do you know what they subsequently saw? It was hundreds of thousands of dollars thrown after bad.
In fact, people are more willing to believe in their luck than in their work. Market research – is a rather catch-all term. But anyway it is better to spend some money in advance than to waste very big money on dead-born business.
What kind of information can we find for you?
- At which rate and to whom to sell your goods or service in the USA?
- A portrait of your prospective customer.
- Tastes and habits of your prospective customers.
- Market structure in your segment (along with break-up by price categories).
- Competitors. Who by what lives.
- Temporary demand structure.
- Largest exhibitions and shows in your direction.
- American literature about your business.
- Which market share will you be able to occupy within a certain time span.
- Where and which advertisement of your offer shall be put up.
- A lot of other (depending upon your goods or service).
Why is it better to contact us on the issues of US market research as applicable to your goods and services?
Because it is us who will manage sales and talk to customers. It is us who will make calls, hold meetings, put up advertisements, in one word, sell to bring you profit from your American company, to give you an opportunity to concentrate on strategic development of your business in the USA and not to get stuck in daily operational management taking up dozens of minor issues.
How to lay down the purpose of marketing research?
Just agree upon that with us. On the basis of your tasks, we will decide on the target-setting of the research. Frequently, within the course of discussion it turns out that all the data our customer is interested in is freely accessible. All that is required is a bit of assiduity and attention. Sometimes, vise-versa, it makes sense to gather a focus-group, or even not to be lazy to visit several prospective customers in the USA with the Russian client in order to receive information at first hand. There are different cases.
Print This Page