ACCESSING THE U. S. MARKETPLACE OVERVIEW The United States, while viewed as being one country with a common currency, is anything but a single market. When considering selling to the U.S., the following elements need to be investigated: Size -- both geographically and population-wise. Structure -- governmentally, culturally and business-wise. Diversity Complexity Regionality Seasonality Channels of distribution The U.S. is a country of numbers. Its population is over 265 million people. The Gross National Product is $7.6 trillion, and its industries have been segmented into 9,999 classifications. The United States is made up of 50 states having six time zones and a wide range of climate and seasonal differences. A typical day could see temperature variations across the United States of 120 degrees. Communications between parts of the country must be carefully planned due to the time differences. (New York to San Francisco is three hours). Being a relatively new country, the United States has a culturally diverse base. Major groups include Caucasians, Hispanics, African Americans, Asians and American Indians. It is a true "melting pot" of cultures and backgrounds. Chicago alone has the second largest Polish population outside of Warsaw. Language is relatively common enough in the written word, but is definitely Americanese as compared to British English. There are numerous regional dialects which provide occasional confusion from one area to the next. New England (Maine, Vermont, Connecticut) has its own brand of conversational English, as does the Southeastern United States and areas such as New Orleans, Texas and Boston. There tends to be an unusually high number of clichés utilized in both verbal and written communications. DISTRIBUTION There are three basic types of distribution channels found in the U.S. Direct to user, where manufacturer/marketer offers the product on a direct basis to the end user - be it consumer or industrial. Direct to reseller, where the manufacturer/marketer sells to the dealer/distributor who in turn interfaces with the end user directly. Multi-level channels, where the manufacturer sells to a wholesaler/distributor, who in turn sells to a reseller/retailer/dealer, who in turn sells to the end user. SELLING METHODS EMPLOYED INCLUDE: Private label/O.E.M.--selling directly to a marketer or manufacturer who either uses the merchandise as part of their product, or applies their label to the product and sells it under their marketing program. In these situations, all of the marketing and related expenses are handled directly by the customer. Direct sales force, where a team of sales people working directly for the supplier calling on the appropriate distribution channel. These people are company employees, and as such are expected to be contributors to the company's success. Manufacturer's agents (reps) -- These sales people represent more than one manufacturer and work on a strictly commission basis while representing a variety of products, they do not have competing lines but, rather, have complimentary offerings. MARKETPLACE COMPLEXITY The marketplace in the United States is most complex. There are over 20,000 trade associations and well over 10,000 trade shows/fairs/expos. There are over 4,600 trade and industry publications. The business media consists of both print and broadcast, and is both local, regional and national in scope. Consumer media is even harder to sort through as the options presented are more varied. The last few years have seen a dramatic growth in electronic media (the Internet, E-mail, etc.). This will only grow over the next several years. STRATEGIC ISSUES TO BE CONSIDERED When evaluating entering the U. S. marketplace there are several strategic issues to be considered. The size of the market for the product/service. Primary target market -- who are the customers for the product/service. What is the nature of the distribution channel to get the product/service to the end user. Who are the major competitors and what are their strengths and weaknesses. What strategies do they employ to the marketplace. What are the trends in the marketplace. What is happening both near and mid-term. CUSTOMER IDENTIFICATION When identifying the target market the questions to be asked include: Who are the key customers? Where are they located? Who are the decision-makers within each customer? Who are the key influencers -- the ones who impact the making of the decision? What are the "hot buttons" -- what are the factors they are looking for that provide the difference in deciding on one product/service over another? INTEGRATED MARKETING COMMUNICATIONS PLAN THE "RULE OF SEVEN" As part of every marketing program, it is important to structure an integrated marketing communications plan, coordinating all the communication elements. It is important to keep in mind the "rule of seven" in putting your program together. Simply stated, the "rule of seven" states that one must impact a prospective customer at least seven times, in as many different ways as possible, to turn them from a prospect into a customer. The individual communication elements to be considered include: Advertising Public Relations/Publicity Trade Shows Brochures/Fliers/Catalogs Direct Marketing Newsletters Other SALES STRUCTURE The structure of the sales activity likewise needs careful evaluation. The options to be investigated include: Direct sales force Master distributor Exclusive vs. non-exclusive distributors Manufacturer's reps Methods of warehousing and distribution of the product/service Local, regional or national IMPROVING U.S. BUYER'S UNDERSTANDING OF YOU While it continues to improve, there is still a slight reluctance on the part of American buyers to understand the impact of global economics. It is important to improve the United States companies' understanding of your country's core competencies. You need to stress the capabilities and value of doing business with your country. This can be done through various methods including: Brochures Videos CD-ROMS Trade Shows in your country Trade Missions to the United States by your country's suppliers It is important that your message be consistent, frequent, capitalizes on your country's capabilities, and stresses the new product opportunities. While the above can be considered a general primer of information needed to effectively attack the U.S. market, there are specifics which will vary by product/service and by industry. Many of the distribution techniques found in the U.S. are in place in other world markets. Several remain unique, for the time being, to the United States. In the grocery trade, it is quite common to encounter slotting (or placement) allowances. The retailers require the vendors to pay for the "privilege" of having a slot (position) on their shelves. This is primarily true for food items. In the computer software industry, much of the business and sales come through VARs (Value-Added Resellers) who call on the end-users and assist them on recommending the proper products, installing them and bringing them up to speed. The U. S. can be a major opportunity, but it takes proper planning and a committed dedication to making it work. Presented by Elliott Black President, EMBA, Inc. and its Access USA division Other Articles to read... Advertising Tips Low Cost Ways to Build Marketing Muscle The 10 Commandments for a Successful Business Business to Business Advertising Elliott M. Black & Associates, Inc. Marketing and Management 2511 Windsor Lane  Northbrook, Illinois 60062 (847) 272-2884  Fax: (847) 272-3551  E-mail: info@EMBAInc.com