This is the sixth in a series on Mistakes Countries Make and How They Can Get It Right

We just began work for a client in our 18^th country.  While that’s only 7% of all the countries in the world, they add up to over 30% of the top 50 countries in GDP.  That’s not a bad sample from which to draw some conclusions about foreign businesses that are marketing products in the U.S.  We’ve noticed a number of mistakes and major assumptions that seem to be common among all of the countries that our clients have come from.

One I’ve increasingly noticed is the assumption that Americans are waiting for foreign products with bated breath.

It’s always struck me as unusual that foreign marketers often think that just their presence in this country will create demand.  Yet, I’ve been stymied for an explanation as to why this is the case.  I think I’ve finally hit on it.

For decades, people in foreign countries have looked up at the U.S. as the bastion of top brands, particularly among consumers.  American brands have become a badge for people to show that they travel and have sophisticated and Western tastes.  This says nothing about whether they like the U.S. or about their sentiments on American government policies or even whether, more recently, the glow of American brands is wearing off.  It’s history.

From the time of the Cold War when a pair of Levis could buy you a hotel and meal in Russia to today when Nike shoes can be found on the feet of people in countries around the world, Coca-Cola at their tables and McDonalds around every corner, American brands have had a pretty good track record of coming into a foreign country and quickly generating sales.  True, there have been monumental mistakes like GM trying to sell the Chevy Nova in Latin America, but for the most part, U.S. brands have meant sales.

So, it might stand to reason to someone from outside the U.S. to ask if they buy our brands just because we’re there, won’t we buy their’s just because they’re here?  Foreign marketers often miss two key facts about the U.S. that can cause their sales efforts to fail:

1.  We’re internally focused.

The U.S. is a big country, no secret there (take a look at the maps in an earlier post, “Mistake #5:  Size Matters”) The point is that most Americans don’t think about the rest of the world.  With the exception of only two countries, Canada and Mexico, we don’t have countries next to us, just more Americans.  Many Americans don’t read the newspaper or watch the news on TV and if they do, it is often likely to be local news or something specific to their interest or vocation.  Products from countries like Chile, South Africa, Greece, Vietnam, even those that are successful,  just don’t have top-of-mind awareness here.  (A rude awakening has been coming to many American companies as they find American cachet diminishing, which means more hard work for us to sell abroad.)

A by-product of internal focus is the notion of “American exceptionalism”.  Personally, I find this to be both arrogant and naïve on the part of Americans but it has been aggressively promulgated by one of our political parties, and is associated with blind religious faith that promotes a strong belief that God has chosen America to lead the world.  What many Americans forget is that Irving Berlin wrote “God Bless America” as a musical prayer to God to please bless us and this has been turned around so that many people believe it to imply that God does bless America at the exclusion of others.

The U.S. State Department recently announced that more than one-third of Americans now hold a passport.  Approximately two-thirds of those have traveled abroad.  Whichever number you pick, it means that the vast majority of Americans have never been out of this country.  Many of them operate on old beliefs about life elsewhere and simply don’t know how strong the middle class is and how good life can be in other countries.  Many of the cheerleaders for American exceptionalism condemn “European socialism” in the same sentence without noting that most Europeans pay far less for health care and education and take more vacation time off from work.

2.  We’re less well educated

This is closely related to point number one but consider these facts:

• The U.S. ranks 33^rd in student reading performance; 27^th in math; and, 22^nd in science. (OECD Education at a Glance, 2009)
• The ratio of teachers to students in the U.S. is just below average in pre-primary education when compared to other developed countries; also just below average in post-high school education.  We do rank slightly above average at the lower and secondary education levels. (OECD, 2005)
• We rank 9^th in national IQ scores but 21 other countries including Mongolia, Estonia and Poland.  (We can take pride in tying Latvia and just narrowly beating out Belarus, Malta and the Ukraine.) (Lynn/VAnhanen Study)
• The U.S. ranks 27^th in gender equality, a key sign of both education and modernity. (WEF, 2008)
• In the recent WEF 2011/2012 rankings, the U.S. finds itself 13^th in higher education and training, 20^th in technological readiness, 10^th in business sophistication, and 26^th in overall education,
• We rank 12^th in overall human development (UN Development Program, 2008)

I’ll never forget walking into a neighborhood restaurant in the town of An Giang, Vietnam, near the border of Cambodia, truly a different world, and seeing about 15 patrons riveted to the TV over the bar as they watched clips from the PBS Nightly News hour and then debated an interview with Donald Rumsfeld that they just saw.  Can you imagine the reverse in a similar scene in the U.S.?  Not likely.  It’s a generalization but foreigners tend to know more about the world and even about the U.S. than Americans do.

A Norwegian pharmaceutical executive told me a story about looking for a U.S. marketing partner.  While driving along the Delaware River near Trenton, New Jersey, he asked his prospective partner, “Isn’t this near where Washington made his famous crossing?” to which the chief marketing officer replied, “I don’t know.  I don’t follow that stuff.”  The Norwegian decided that if the man didn’t know the history of his own country that he didn’t want him as a business partner.

So what does this mean for foreign marketers wanting to enter the U.S. and expand their market?

First, don’t assume we know anything about you or your products.  Despite our flaws, we live in the most competitive market in the world and largest developed market.  You’ll need to educate us and that will take some time.

Second, there are so many competing products in the U.S., both domestic and foreign, that the quality of your products often matters less than the relationships you build with us.  We always say, “all things being equal, we’d rather do business with friends.”  Become friends with us.  Develop relationships.  Become a part of our networks and communities and like the first, that doesn’t happen overnight.

Third, find ways to link your values and experiences with ours.  What do you have in common with us?  Do you play baseball or basketball?  Fine, so do we.  Talk about it and you’ll connect more often.  Are you troubled by high taxes, inconsistent investments or supporting the elderly?  These trouble us too.  Show us how we’re alike and we’ll be more accepting of you and your products.

Finally and most important, think strategically, not tactically.  You need a consistent direction here in order to break through the clutter and to be successful, it should be based on the unmet needs of the U.S. market, not your perceptions of who you think you are (if you’re not convinced, start from the beginning of this article again).  A strategy based on market needs will trump tactics every time.  A set of ad hoc tactics that are not integrated or tied to a strategy won’t cut it.

And if you’re confused about market needs, adapting or developing your strategy or what kind of tactics work, all you need to do is ask us.

Tags: Americans, Assumptions, Brands, Canada, Change, Chevy Nova, Chile, Coca-Cola, Cold War, Creativity, Due Diligence, Exceptionalism, God Bless America, Governments, Greece, Irving Berlin, Latin America, Levis, Marketing, McDonalds, Media, Mexico, Mistakes, OECD, Outcomes, Positioning, Socialism, South Africa, Strategy, Trade Associations, U.S. Marketplace, UN, Vietnam

Did you notice what began right after Thanksgiving?  I’m not talking about holiday shopping, although if you haven’t started yet, join the club.  We weren’t even into the week after the holiday when I saw my first set of predictions for 2012.  By now they’re coming out at full throttle.  Predictions for food, wine, technology, social media, fashion, you name it, they’re on their way.

Some people make predictions to show how prescient they can be.  Others do it as a new business ploy, thinking that their business prospects will be swayed by their foresight.  One thing I haven’t seen yet is anyone measuring their success for the predictions they made for 2011.  I don’t think we’ll see much of that since it’s not part of the sport.  But I’m going to change that.  I’m joining the club of predictors and prognosticators and making twelve predictions for 2012, one for each month.  And I predict that they will all come true – 100%.  I’ll come back in a year to check and see if I’m right and then expect a crescendo of congratulations.  So here goes:

1. People will talk. You can bet on it.  With a national election next year, the economy trying to rebound and the usual celebrities acting out, there will be plenty of chatter on TV, radio, the all-important blogosphere and by the office coffee maker.  If you decide to spend the year in some distant atoll in the Pacific, don’t fret, you won’t miss a thing.  It will all happen again in 2013.
2. People will be interested in themselves. Face it.  There’s not a lot of altruism in the world.  Even those who say they’re altruistic often aren’t.  Political, business and social motives often spur our eleemosynary sides (always looking for an opportunity to use “eleemosynary” – look it up).  I’m not preaching about this.  I suffer from the same affliction.
3. We will become more distracted. It’s been said many times.  There’s too much information and too many ways to communicate.  It’s becoming increasingly difficult to focus.  That’s not going to change.  Huffington Post will probably add twenty more sections for us to while away the time.
4. We will become more desperate. I’m going to take credit for something.  In 2009, I gave a presentation in Chile about business prospects in the U.S. during the recession.  At that time, I said the U.S economy wouldn’t return to some semblance of normal until 2014 at the earliest and most likely, not until 2016.  Why?  As large as our economy is – $14 trillion – it can’t recover quickly when our housing value loss is about one-third and real unemployment (reported + unreported) is probably closer to 16% than the reported 8.6%.  We dug a giant hole for ourselves by conducting two wars and cutting taxes at the same time.  Most Americans wish someone, anyone, would wave their magic wand and make things better.   It doesn’t work that way.  We have the patience of a two-year old.  I hope I’m wrong but I’d bet $10,000 of Mitt Romney’s money that we’re not.  If you’re one of those impatient types, plan your desperation calendar now.
5. The economy may get worse but it could get better. Having just said that we’ve got a long row to hoe, we’re going to see some cycles in the midst of our misery.  Expect the current administration to do whatever it can to pump things up a bit before next year’s election.  And also expect the stock market to get overly pumped up before it gets let down.  Am I being overly dreary?  No, just realistic.  They also say pessimists are often happier people because their expectations are easily exceeded.
6. All politicians will lie to us except for those who tell the truth. In our current climate, does anyone really think anyone running for election to be truthful?  They’re more likely to meet Steven Colbert’s low standards for “truthiness.”  Yet, there will be a few who will tell the truth.  They’re either the ones not running, retiring or the losers.
7. Facts will be fungible. Who says you’re entitled to your own opinions but not your own facts?  Nobody’s going to stop writing their own facts just because Tom Friedman says to in one of his brilliant columns.  The most current book next year will be, as it was this year, 1984, published in 1949 by the way.  How prescient was Orwell?
8. Everything old will be new again. It happens every year, short is back and long is out or is it long is out and short returns?  Whatever.  Gotta keep those factories moving.
9. What goes around comes around. Not all that different from #8 but the point here is to be nice to the people you meet on the way up.  They’ll look pretty good to you as you head the other way.  Success can be ephemeral, just like fashion.
10. Blame will be assigned but not to ourselves. Here comes Tom Friedman again telling us to take responsibility for our actions.  When did this guy come along?  Sadly, we are in a world where no one jumps up and says “I take responsibility, now let’s figure this out together.”  It’s too easy to point the finger at politicians, business people, the media and each other.
11. Difficult decisions will not be made but will be forced upon us. If we had begun making good decisions 30 years ago, we’d all be driving cars that got 50 miles per gallon, that’s when we’re not taking mass transit.  We’d have a fair tax code.  Banks would be our guardians instead of robbers and CEO’s would be making 10 times the average worker, not 300.  All this may happen soon but at an enormous cost and it will be forced down our throats.
12. At year-end, predictions will be made for 2013. I can guarantee this one.  There will be plenty to say next year at this time.  I’ll check to see if I’m right but I don’t think I’ll make predictions again.  I’ll just reprint this entry.

Tags: Altruism, Americans, Assumptions, Blogosphere, CEO Compensation, Change, Chile, Crazy people, Desperation, Distractions, Dreams, Economy, Election, Events, Foresight, Governments, Huffington Post, Mistakes, Mitt Romney, Outcomes, Pessimist, Politicians, Predictions, Recession, Recovery, Situation Analysis, Steven Colbert, Stock Market, Success, Tax Code, Thanksgiving, Tom Friedman, Truthiness

(See prior entry for Part 1)

My travel ordeal from 9/11 was complete and I slept through much of that day.  My plan had been to get out and see Asunción but lack of sleep and hunger took over.  Besides, as I didn’t have my luggage and didn’t know whether it would arrive, one of my priorities was finding a few basic clothing essentials in case I was going to make my presentation the next day in jeans.

After lunch at the hotel, I walked outside where some workers were erecting a large sign for the conference.  They were showing me as the second headliner.  The top dog was Alvaro Uribe, former president of Colombia.  I suppose he deserved to have his photo over mine

I walked across the street to the local mall to buy a clean shirt and underwear.  (Something about the idea of talking to 700 people in suits while wearing three day old underwear didn’t have the right appeal.)  What can you say about a mall?  They’re pretty much the same all over the world in both developed and developing countries.  That’s both comforting to a wayward traveler and a bit disturbing as we continue to lose our national identities.  Was that Benetton store I just walked by the one in the Rosebank Mall near Johannesburg?  No, remember I’m in Asunción today and it’s the Shopping del Sol mall.  How could I forget?  There’s Burger King in the corner.  Maybe I can get some good Paraguayan food there.

Underwear and socks, no problem.  I picked those up at a completely forgettable store but now I wanted a nice shirt so the conference attendees wouldn’t think I walked to Paraguay.  I walked the corridors of Shopping del Sol mall looking for the right kind of store.  Then I saw the words “Christian Dior”, the store name, “Giorgio Patrino” and most important, “Liquadacion” plastered all over the windows and underneath “40%, 50%, 60%” – my kind of place.

Like most high-end stores around the world, the well-dressed staff looked me over as I entered and saw a downtrodden mess of a man and I could tell they were considering asking me to leave.  But my quick gringo response to the salesman’s query, “solomente buscando” gave me away as someone who might have a wallet stacked with credit cards, so he gave me the run of the store and I soon found the fancy shirt section.  After a few minutes, I found a nice Italian shirt in my size.  I looked for the price and there was none on the shirt, always a bad sign.  So I asked the ever-watchful sales man for the price.  He looked at me, looked down at the shirt, smiled and said 819,000 guarani.  Now that sounds like a fortune in guarani but a quick calculation told me it was about $190, in my world, a fortune to pay for a shirt.

So, I looked at him, looked at the shirt and said, “muy, muy, caro!”  He shrugged.

I pointed to the store windows at all the Liquadación signs and cleverly said, “es imposible que el precio es correcto; es mas barrato in los estados unidos; es mas barrato en Italia”  Although, frankly, I had no idea what the shirt would cost in Italy but clearly, he could see that he was dealing with one tough hombre.  So he took out his calculator and gave me a new price, “645,000 guarani.”

I shook my head and said, “todavia mas caro.”

He went to work again on his calculator, looked back at the store manager who nodded at him and, after a moment, he offered, “385,000 guarani.”

Maybe I could have gotten him down further but he had dropped his price by more than half, so I said okay and the shirt was mine for $90.  He seemed like a beaten man, although the manager was smiling behind him.  I left content but thinking that this exchange could have taken place almost anywhere in the world.

I returned to my hotel to work on my presentation.  As numero 2, I wanted to be good and I had been asked to speak for 90 minutes, something I had done once before but it’s a lot of work to keep the masses entertained for that long.  What preoccupied my mind though was what Karin had said to me during our drive to Asuncion when I asked how they were going to get me out of the country as I was there illegally without a visa.  She said, “there may be a bribe involved.”  I began to wonder what life inside a Paraguayan prison might be like.

Later that day, I met some of the officials of the Paraguayan Trade Fairs organization.  One told me he was a good friend of Paraguay’s Vice President and assured me that I wouldn’t have to pay the maximum fine, which I learned was $6,000.  “I’m sure we can get you out for no more than $1,000.”  Good thing I got that shirt for half off.

The conference and my presentation the next day will be covered in later blog posts.  However, the organization was very professional and my session was well attended.  I had started to think about looking like Steve Jobs up on the stage wearing jeans but Karin showed up the previous night with my suitcase, so I looked pretty much like every other suit in the place, only I had a headset mike and earpiece so the simultaneous translator could tell me to slow down or repeat a sentence.

The following day, I had scheduled a lunch with a cabinet minister in Chile, a meeting that I didn’t want to miss.  I looked to see if I could get to Buenos Aires the night after my presentation so that I wouldn’t miss my morning flight to Santiago but the last flight out of Asunción was too early for me to make it.  The next morning, I was scheduled for a 6:00 am flight to BA and then the short flight over the Andes to Santiago but that meant I would have to leave the hotel at 4:00 am to go through customs and make my flight.

I had dinner that night with the owners of Paraguayan Trade Fairs.  The same gentleman who told me about paying the fine sat next to me but said nothing about my visa.  However, he was genial, interested in my speech from earlier in the day and well-traveled.  He said something to me about the region that I think encapsulates some of the culture of the countries in the southern cone region of South America, “Paraguay looks at Argentina and Brazil; Argentina looks at itself and Chile looks at the world.”  I find all three countries to be a bit provincial but Chile is certainly the least so and the one that has built a strong economy based on global exports.

Years ago, on a Scandinavian trip, I heard an expression about that region which goes, “The Finns design a product; the Swedes build it; and the Danes sell it to the Norwegians.”  These are generalizations but there is a little bit of truth in them that describes their national character.

At 4:00 am the next morning, I was bright eyed and bushy tailed (as much as one can be with four hours sleep) at the hotel when Karin, her husband and 18 month old son pulled up to take me to the airport and get me out of the country without a jail term.  This couple deserved a medal for how they took care of me, although as my local travel agents, they felt some responsibility for not ensuring that I knew about the visa.

Karin asked me how much money I was carrying.  I told her a couple hundred dollars and a little more in euros.  “Forget the euros,” she said.  I was trying to as I acquired them when the euro was about 20% higher.

When we got to the airport, she walked with me right past the security entrance to go through customs.  There was a guard there but he didn’t bother to ask for our tickets or passports but ahead of us was the usual lineup of customs agents sitting in boxes stamping passports and asking probing questions about travelers’ visits.

I waited in line for our turn, not knowing what Karin had in mind.  She pointed toward the end of the row and said, “See the guy in the last booth?”  I nodded  “That’s our man,” she said.  Now, I knew some sort of fix was in but had no idea how it would turn out.  When we got to the head of the line and it was our turn, we walked over to our “hombre elegido”.

Karin asked for my passport, handed it to him and commenced a rapid negotiation in hushed tones.  She seemed irritated at what he was asking for.  I thought about my newly honed negotiation skills buying a shirt two days earlier and was about to offer some suggestions when I heard a stamp come down on my passport like a hammer. She took my arm, walked me to the side and asked, “Could you give me $60?”  I pulled a couple hundred dollars out of my wallet and began counting twenties.  She pushed my hands down so that no one from customs would see.  I gave her the bills and she directed me toward the x-ray machines.  I lingered for a moment wondering if I was to watch her buy my way out but she motioned for me to leave.

Thus ended my trip to Paraguay.  Smuggled in and bribed out, a first and hopefully, a last for me.  The flights to Buenos Aires and then to Santiago were non-eventful except for the incredible views of the Andes.  I made it to my lunch meeting in time.

On the whole, it was a pretty interesting adventure, although one loss was that I never got time to see Asunción.  Perhaps, though, my introduction to the wonderful hospitality of the Paraguayans made up for that.

One final coda to the trip was that from the time I got off my flight in Santiago until I walked into my hotel in the city about 15 miles away took about an hour.  It was the kind of efficiency one sees in places like Zurich and wishes for in London.  The contrast to my trek to get into Paraguay was evident and I thought again about the direction these countries face and the way they are developing themselves.

Tags: Americans, Assumptions, Asuncion, Chile, Governments, Mistakes, Negotiation, Outcomes, Paraguay, Situation Analysis

I think it was around 3:30 am as we turned into a parking lot in some godforsaken place in the middle of Paraguay when I realized it was the tenth anniversary of 9/11.  That morning ten years ago, I was having breakfast with the president of one of the world’s largest public relations firms and I replayed the day in my mind.  I wanted to forge a business relationship with his firm and I think he was there out of curiosity as his agency had recently lost a competition for an agency search I conducted for a client.

Ironically, we were in a restaurant called An American Place at Lexington and 51^st, now no longer there, and had just begun our breakfast when we noticed people gathering around the TV at the bar.  We asked the waitress what was going on and she told us a plane had hit the World Trade Center.  So we got up and went to the bar to watch.  I think only the first jet had hit at that point.  Like everyone there, we were stunned but went back to our table not quite sure what to do.  It may have been that the second plane then flew into the towers or something hit us that the country was under attack.  Uncertain of what to do, we got up, talked about calling our families and then parted.  I think Andy went back to his office as one of the airlines involved was a client.  I realize now that I don’t know what the rest of his day was like.

I was working out of my home office at that time having recently moved to New York, so I returned to my apartment on 43^rd and 1^st and, like millions of people around the globe, stayed glued to the TV for the next several days.  Much of it is a blur now but an image that will always be etched in my memory is waking up the following day and seeing snow outside my window.  When I went up to the glass to look, I realized that what looked like snow falling was actually ash.  I still shudder at the thought.

Ten years later, I was sitting in the back seat of a Toyota, somewhere in Paraguay, trying to sleep with little success.  In the front seat was a Paraguayan woman, 8½ months pregnant, reclining, sound asleep and next to her, her snoring husband in the driver’s seat.  I was wired from a day of coffee and soda so sleeping was out of the question.  I wanted to get out and take a walk but we were parked near a police checkpoint and I didn’t want to raise anyone’s suspicion.  I was there illegally.

It wasn’t meant to be that way.  I had been invited to be one of the keynote speakers at a prestigious business conference in Asunción, the country’s capitol.  I had been to Chile and Argentina many times but never to Paraguay and my image of the country was outdated and based on what I knew about a former dictator who was openly sympathetic to Nazis and stories of trading in contraband.  So I was curious and had been offered a reasonable fee to speak about branding.

The trip seemed uneventful at the beginning.  Business class on Tam Linhas from New York to Sao Paulo and then I’d get my connection to Asunción.  I left New York on the 9^th so I’d get two days to see the city and form some current perceptions of Paraguay.  Everything went the way you’d want it to go on an international trip until I went to board my flight to Asunción.  I was asked for my visa.

“What visa?” I replied.

“You need a visa to enter Paraguay.” a surprised gate agent told me.  “You can’t board this flight.”

No one had said anything to me about a visa.  Not the conference organizers, not the Paraguayan travel agency that booked my flights and not the speaker’s bureau in Chile that arranged for me to speak and negotiated my fee.  Nadie.  Nada.

Within a few minutes I was approached by the airline’s security officer who explained the visa requirement to me again and then told me that they were going to put me on a flight back to New York that was leaving in a few hours.  While he escorted me to the business class lounge, I negotiated with him to have four hours to figure things out.  If I couldn’t get to Paraguay, I’d go directly to Chile where I had meetings scheduled the next week.

Once settled in the lounge, I began to email, text and call furiously to the event organizers, travel agent, speakers bureau and my wife.  “Why didn’t anyone tell me about the Visa requirement?  How are you going to get me into Paraguay, now that I’m stuck in Sao Paulo with a visa?  If I don’t hear from you in three hours, I’m going to Chile instead.”

Within my three-hour time limit, I received instructions from the event organizers that they had bought me a ticket to Buenos Aires and then another one from Buenos Aires to a town called Posadas on the Argentine-Paraguay border.  They told me I would be met there and driven to Asunción.

With my spirit of adventure in tow, I followed the instructions arriving in Posadas at close to 10pm that night.  I knew nothing about Posadas except where it was located.  The airport reminded me of other small towns around the world – two gates and served by only one airline.  It was, as the saying goes, not the end of the earth but you could see it from there.  Not only was there little activity, but neither my suitcase nor ride were there to meet me.  So here I was, in the middle of nowhere, Argentina, no luggage and no ride.

I went to the airline desk to find my bag and after the desk agent made some calls, he informed me that my bag was in Buenos Aires and he could have it in Posadas the next night at 10pm.  I asked how far it was from Posadas to Asunción and after checking with his friend in the back office, he told me five hours by car.

“¿Qué? Cinco horas! ¿Cómo peudo reciber mi equipaje cuando estoy en Asucncion?”, I pieced together with my fledgling Spanish.  Not that he needed to come up with any ideas as my whereabouts wasn’t his problem, he kindly informed me that there was a flight to Ausunción at the same time the next night and he could have my bag sent there.  Yes! One problem solved, assuming it was, in fact, my bag that he found in Buenos Aires.  I hadn’t seen it since I dropped it off at the departure counter in New York.

Now, for my ride.  It was 10:30 and after solving my luggage problem, the desk manager said, “Señor, tenemos que cerrar el aeropuerto.  No hay más vuelos esta noche y queremos ir a nuestras casas.”

My ride had not shown up yet, so again, I began to text, email and call furiously but typical of many small towns, cell connections weren’t great.  Then, I noticed one more problem.  My cell phone battery was getting low.  They were turning off the lights in the airport and the three or four staff that were there were looking at me sympathetically and sadly but not with any ideas.

I walked out in front of the airport.  There was one cab there, still hopeful that maybe he’d get me as a fare to somewhere; perhaps to my long lost Argentine cousin or to some wealthy benefactors with a large estancia on the border?  If I was going anywhere in a cab, it would be to the nearest hotel where I would spend the night and get myself to Chile the next day.  Then, I finally got a text from the people coming to get me, “We are late, the traffic has been bad but we’ll be there soon.”

I decided to trust the text not really knowing who it came from, waved the cab driver off, watched the airport staff close and lock the airport doors and head off to their cars to go home.   They waved as they went by with an enthusiastic “Buena Suerte!”  I looked around and saw there were no benches so I sat down on the curb and waited.  The thought occurred to me as I looked around and saw only some distant headlights that I might spend the night there, wherever there was.

About thirty minutes later, a car drove up and a very pregnant woman and her husband got out.  They introduced themselves as Karin and Diosnel and apologized profusely but said the traffic from Asunción had been terrible and the drive took seven hours.  I looked at my watch and grimaced with the thought that the return trip is going to put me in bed around 5:30 the next morning.  Well, it’s off to Asunción we go.

It took about a half-hour to get to the border and I was beginning to wonder how we’re going to get me across without a visa.  The only thing my drivers could tell me in a tentative voice was, “We’ll figure it out when we get there.”  It was about at this point that my phone began to receive automatic texts from ESPN telling me every time there was a score in the Michigan – Notre Dame football game.  The game was going back and forth and was a high scoring affair so it was really running my phone battery down with each text, but being a Michigan alum, I couldn’t stand the idea of turning it off.

Argentina and Paraguay are separated by the Parana River, second largest in South America after the Amazon, with customs checkpoints on either side of the bridge.  There was long line of cars waiting to cross into Paraguay, probably Saturday night revelers returning home from the high life in Posadas.  When we got to the first checkpoint, the Argentine customs agent asked for our passports.  He looked at them in a rush, stamped them all and waved us through.  Now, for the hard part I thought, entering Paraguay with no visa.  My phone sounded a text announcing that Michigan had scored again to take the lead.  I envisioned myself spending the night in a Paraguayan jail, hungry, lonely but knowing the score in the game.  But when we got to the other side, the border police simply waved us through.

“Easy peasy!” Diosnel exalted, and then, “I’m hungry.”  Personally, I wanted to just get on the road and get to Asunción as soon as possible, ever hopeful that a five to seven hour drive was a bit of hyperbole.  But Diosnel was hungry and we drove through Encarnación, a ramshackle Paraguayan border town.  I hadn’t seen much of Posadas on the Argentine side but after a few minutes driving through Encarnación, I could imagine that a Saturday night in Argentina could be quite alluring.  After a few minutes, we pulled up next to an Italian restaurant.  Is there anywhere in the world where there isn’t an Italian restaurant?  And no different than at hundreds of other similar restaurants in small American towns, the food was lackluster but the beer was spectacular.  It was called Baviera and, maybe it was the late hour and my weary day, but I could have been in Munich as I drank that beer.  Then I remembered what I had known about Paraguay as a haven for ex-Nazis and great beer in Paraguay made sense.  What else do you do if you’re an ex-Nazi in hiding?

When we left the restaurant and got back on the road, I looked at my watch and saw that it was 1:00 am.  The memory of the beer quickly faded and I prepared myself for a long drive to Asunción.  It also occurred to me that Diosnel had driven seven hours to get me and so far, another hour on the way back.  How was this guy going to stay awake to get us back?

It was a bright, moonlit night and as the small-city lights of Encarnación faded, we drove past what looked like fields dotted with palm trees – probably quite beautiful in daylight.  I tried to sleep but had consumed too much caffeine during the day and the monotony of the drive began to wear on.  That’s when we turned off the road so Diosnel could take a nap.  I looked at my watch and realized that it was 9/11.  What were the terrorists doing ten years ago?  Waking up?  Bathing and shaving all the hair off their bodies?   Preparing for their day of infamy and promised meeting with 72 virgins?

When I was growing up, I knew that places like Paraguay existed.  I had geography in elementary school and loved it.  I used to play a word game with my father.  He would name a place in the world and I would have to name another that began with the last letter of the place he named.  Then it would be his turn.  I never tired of it and it was how I learned about the world.  How else would I know about the Sea of Okhotsk or the Pirana River if my father hadn’t pulled those answers out when I thought I had him finished with no more places beginning with S or P left in the world?

I replayed the day as Diosnel and Karin slept and while I was angry that I had gotten into this situation, I was appreciative of their effort and that I could still travel to places like this ten years after an event that would change us forever.  I think I was doing what you’re supposed to do at times like that – remember and appreciate – so perhaps, the fact that I was doing that in a parking lot in the middle of Paraguay was okay.  Technically, I had been smuggled into the country.  Unsure of what the rest of the trip was going to be like or how I’d get out legally was yet to be encountered.  However, I think I gained a certain perspective on the world that day and the one I had ten years before.

In my next post, I’ll complete the story about the conference and getting out of the country.  When I asked Karin during the drive to Asunción, she said, “There may be a bribe involved.”  Not what I wanted to hear.

Tags: 9/11, Americans, Argentina, Assumptions, Chile, Mistakes, Outcomes, Paraguay, Terrorists

I’ve been holding onto this one since last month.  I came across an article on Bnet.com, titled “Should we advertise on Glenn Beck?” by the CEO of Blinds.com an online store that sells all types of window blinds.  You can read the story for yourself but in short, he thought a good place to find a demographic for his company’s products would be consumers who listen to Glenn Beck’s radio show.

Within a week, he received a boatload of hate mail.  In his words, “It took all of about 6 days before the vitriolic verbal attacks against me and my company rolled in via Twitter. And they’ve been nasty — I’ve been called everything from a Nazi and a homophobe to a slew of other names that if published here my editor would surely censor….One day last week, within 24 hours alone, I received hundreds, if not thousands, of tweets along these lines.”  He went on to say that he never had any intention of endorsing Gleen Beck’s views.  In fact, he said he never listened to the guy.  All he was doing was looking for a demographic.

His article piqued my interest because we do so much consulting to clients about aligning corporate values with those of customers.  We know value is important but today’s consumer still wants more.  So I looked him up and sent him this email:

Dear Jay,

I consult on these types of issues with a lot of clients that are foreign countries and their industries.  As a large part of our business is foreign, I think it gives us some 30,000 foot level perspective on the U.S..

One thing I tell them, that you’ve discovered, is that Americans don’t just want value, they want values.  It’s both a negative symptom of our political and media polarization and a positive manifestation of our increasing awareness of globalism and multi-culturalism.

It’s not enough to buy an audience or demographic any more.  You have to consider how your values and those you espouse through your company relate to or resonate with a marketing vehicle’s audience.  Due to our extreme polarization, we have as many rabid against-anythings as we do pro-anythings and they will readily take action in opposition to the other.  This is a tough needle to thread for any marketer.

Personally, I probably wouldn’t buy from a company that advertised on Glenn Beck, although the only way I’d find out is from someone writing about it and the fact that they would and do tells you something about the environment we’re in right there.  Professionally, I’d be unlikely to recommend it because I know and you now know what would ensue.

There are so many ways to reach your target customers that are likely to be more effective, non-controversial and much more economical.  While I want to impart some good advice to you, I’d also like to sell some of those ways too.  You may get a hint of that from our website, but I can be more specific if you contact me through our website.

Good luck and best regards,

Well, I got a form email response back.  It was polite enough but no further dialogue ensued.  That’s okay though because I thought it was the perfect example of what a treacherous marketing world we’re all in.  It also tells us who’s really in control.  We have to decide where we stand, not just in business but personally, define our values and then adhere to them in the way we conduct ourselves personally and through work.  Otherwise, many of the people we’d like as customers, friends or associates will drop us like…well, as quickly as they can drop the blinds on their windows.

Tags: Americans, Assumptions, Blinds.com, Customers, Demographics, Fox News, Glenn Beck, Individualists, Marketing, Media Buying, Mistakes, Outcomes, Polarization, Situation Analysis, Social Media, Strategy, Tweets, Twitter, U.S. Marketplace, Value, Values

This is the fourth installment in a series on Mistakes Countries Make and How They Can Get It Right.

There are consultants out there who advise foreign governments to make everything they do perfect for their target markets.  They go internal to focus on changing policy, strategy, innovation and investment over a very long period of time.  The result is that governments invest their time on getting their house in order and the problem with that is that the people walking by the house have no idea what’s going on inside.  It’s simply not a case of building the perfect country so that all the investors come running.

There’s no question that real change only takes place when countries change what they do, not just what they say.  But in our marketing driven world, it’s not enough to simply make those changes and expect the world to notice.  In the 90’s we ran national image development campaigns in the U.S. for both Norway and Chile and saw ample evidence that perceptions were changed through use of marketing tools that often are used for common everyday products.

Marketing tools play a key role as long as they represent changes that are real.  Years ago, Michael Porter wrote that strategy is only valid if it represents real operations.  In other words, you can’t sell the store without knowing the goods are on the shelves.

Countries can change policy, strategy, innovation and investment over a very long period but if no one knows about it, export development and FDI will come at a much slower pace than if there is a coordinated marketing campaign that represents the real situation.

Over the years, we’ve done a considerable amount of country positioning work (our preferred term) and continue to do so today. We’ve found governments often make three major mistakes when considering their image or brand abroad:

1. Too many internal assumptions about what foreign markets think and want. For example, New Yorkers will often talk about garbage in the streets while foreigners exalt the skyline, energy of the city and multiple entertainment options. When Americans return from Chile, they can’t stop talking about the beauty of the Andes and the perfect manners of the people who live there.  Chileans on the other hand will talk about smoggy days and can be quite self-critical.  It’s human nature.  We see things in the mirror everyday that others around us see differently.  Countries have to adjust their marketing by what others think.  Effective strategy is found at the intersection of internal capabilities and external needs.
2. Failure to conduct sufficient open-ended research to determine what’s really on people’s minds in other countries. It’s not difficult to give thousands of people closed-ended questions with multiple choice responses or agreement scales and then make our own interpretations based on internal assumptions. The problem is that closed-ended questions create bias because they predefine the range of answers.  As to agreement scales, what’s the difference between one person’s 3 and another’s 4 and why?  Nobody knows but everybody has an opinion.  Real perceptions come by asking open-ended questions that begin with “What”, “Why” and “How”.  Effective positioning campaigns cannot be conducted without knowing what people really think on an unaided basis.
3. Perfect the model before showing it to the public. There is a lot in this blog about this for good reason.  Too many countries invest too much money into defining what they are before going out to the market.  What they often find is that the market has changed and their perfected “image” model is no longer relevant.  It’s better to move earlier into the market and get feed back on what you’re doing and saying so that you can adjust as you go. Today’s online marketing tools enable incredible capabilities to gather communities of interest and shared needs that will provide feedback and become brand advocates.  Nation marketing is now about building relationships through communities, both those that are publicly available and private ones too.

Change has to be real and long-term but I don’t know of any entity, that after instituting real change, didn’t benefit from a well-conceived marketing plan.

Tags: Assumptions, Change, Chile, foreign investment, Governments, Marketing, Michael Porter, Mistakes, Norway, open-ended research, Positioning, Strategy, U.S. Marketplace

This is the second of a series on Mistakes Countries Make and How They Can Get It Right.

So you don’t know who Harold Hill is?  You should.  He’s the fictional con man who in the Broadway musical and later movie, The Music Man, poses as a boys’ band organizer and leader and sells band instruments and uniforms to naive townsfolk before skipping town with the cash.  He’s a part of American folklore and culture.  He’s the classic American dreamer.

If you don’t know the U.S. well, here’s the problem:  The U.S. is a society of individualists.  We’re people who say we can do anything.  In fact, a client from Romania wrote me today, “When I was in NY I was impressed by the can-do attitude of the people, you could feel it in the streets. What is going on now is revealing me another side of US. I can imagine it’s a big country, but we need to work only with people with a can-do attitude.”  The difficulty is that as he noted, everybody shows a “can-do” attitude.  We see it in politics, business, culture and social circles.  It’s part of our unique American DNA.  It’s our greatest strength and weakness at the same time.

A South African client tells of buying an event sponsorship with the promise that his buyers will be there only to find the attendees had no interest in his business at all but were only looking for a free party.  A Spanish client came close to spending several hundred thousand dollars on a sister-city promotion until we informed him that the city he had in mind already had more than 20 sister cities and that the designation is of little significance here, even though he had been told otherwise.

The Harold Hills are plentiful and there are five things to know when being presented with the “the most incredible marketing idea ever.”

1. Due Diligence is required. Ask for references and call them.  Find out if the promise was fulfilled in the past.
2. Don’t get fooled by big names. Big isn’t always better.  The reasoning goes, if they’re big they must be good and if their name is well known, no one will criticize your decision.  But big companies have to feed their machine and will often charge more than they’re worth.  Foreign suppliers and trade officials can be easy prey because they often think the big U.S. companies can’t be wrong.  How would they get so big otherwise?
3. Don’t take things at face value. Dig deeper.  Ask “how”, “why” and “how do you know” when assertions are made.  If you don’t get answers that make sense, don’t buy in.
4. Look for tactical neutrality. You should expect an advertising agency to tell you that the answer to your problems is more advertising, a social networking firm to say social media will solve your problems and so on.  It’s how they make money.  They may have a good point but chances are they only provide part of the answer.  We live in an integrated world where people no longer think in linear ways, but make their buying decisions in a relational way.  That means you’ll need a tactical program mix, all pursuing the same strategy.  A good marketing service provider is going to think about your goals and recommend the best mix to reach the business objective.
5. Stick to your strategy. Make sure you have a market-based strategy but then adhere to the discipline that your strategy provides.  If an idea is off-strategy, say “no”.  And if it turns out that it was a good opportunity, you can know that others will come along soon.  We live in a dynamic market.

The American dreamer is out there.  He may make you rich or break your bank.  The five steps above will tell you which.  Finally, if you’ve never seen The Music Man, rent the movie.  It will tell you a lot about what makes us a country of dreamers.

Tags: Americans, Assumptions, Big Names, Due Diligence, Individualists, Marketing, Mistakes, Strategy, Tactical neutrality

The U.S. is the largest consumer market in the world and, despite our deep recession, most countries want to be successful promoting and selling their exports here. The problem is they often make assumptions about the U.S. that lead them down the wrong path. The good news is there are some easy ways to make things right.

MISTAKE #1: IF IT WORKS HERE, IT WILL WORK THERE

It seems obvious and there are some famous stories about Americans making foolish assumptions. Perhaps the most famous is Chevrolet trying to sell the Nova years ago in Latin America and being mystified as to why there were no customers. Nobody bothered to notice that “no va” in Spanish means “it doesn’t go.” Where Spanish is now so commonly spoken in the U.S., that’s unlikely to occur again – we hope – but countries often make false assumptions about our market, particularly that if it works at their home it will work here.

Years ago, we had a client in the alcoholic cider business. They had a great product that owned the market in their home country. It was a refreshing drink for their arid, hot climate. So where, they asked would you go to find alcoholic cider drinkers in the U.S. They figured it was logical to find them in a similar climate – Arizona. Only one problem: the market for alcoholic cider was very small in Arizona. It just never took off there and had never had much of a marketing push. That’s where we came in. We analyzed the market and found the top two states for cider consumption – Massachusetts and Washington – and advised them to enter the Massachusetts market. There they wouldn’t have to convince people to drink cider but to drink their cider, a much more achievable result. In no time, they found a distributor and entered the market.

It sounds simple but mistakes like this happen all the time. Another common mistake is to assume that marketing techniques and language are similar. Some countries sell based more on product features than on benefits. Their companies come here and try the same only to find nobody pays attention. In some countries, trade shows are places where people place orders without being coaxed and having relationships nurtured. Here it’s different. We want to window shop, assess our options, push, poke and probe, mull it over, decide if we like you and then buy. We also want to know there’s a good story behind a lot of products because market clutter is so common and product differentiation is so difficult in the U.S. Stories set products and brands apart. Yet, foreign suppliers will often take the position of showing a product, explaining its features and asserting that it’s flawlessly designed. Asked what the story is behind the product, they’re mystified as to why that’s important or why anyone would be interested.

The solutions are not difficult and most come when marketing plans are constructed based on research conducted in the U.S. among prospective customers and not based on internal assumptions. Americans love to be asked for their opinions, observations and ideas. Every foreign supplier eyeing the U.S. market would do well to come here first on a research and observation tour. The right assumption to make is that all your assumptions may be wrong. They need to be tested and people in the target market need to be asked. It can be done formally through market research or as Peter Drucker labeled it, “managing by walking around” but it should be done to avoid nasty surprises after a lot of money has been spent.

Tags: Assumptions, Marketing, Mistakes