Marketing your products and services
Market entry
The majority of successful Australian suppliers to the UK technology sector have achieved success through a direct presence. This can be important commercially, as it is seen as a sign of commitment to the market.
Setting up in the UK is an expensive business, and may not be viable for many potential exporters. With or without a presence, the supplier will be expected to generate initial leads and create a market for their products before approaching potential partners - be it a systems integrator, reseller or distributor. The supplier can do this in a number of ways:
- Spend time in the UK generating interest from customers themselves (can take anything from three to 12 months).
- Engage the services of a local lead generator, specialist consultant or incubator firm who can act as sales representatives, usually for a fee either up front or combined with a share of resultant revenue.
Austrade has developed a wide network of 'enablers' - organisations that can provide suppliers with access to customers within specific verticals.
Once initial sales or leads have been achieved, the supplier is then in a position to take their offering to potential partners. In 90 per cent of cases, it does not work the other way round - as most partner candidates in the UK are a delivery mechanism for software suppliers rather than sales operations.
British companies are relatively risk averse when purchasing technology. While Australian technology, including software and services is well regarded, there will be a reluctance to deal with new entrants to the market.
The use of case studies involving internationally recognised organisations helps to increase confidence and demonstrate the relevance of the product.
A first approach should clearly state the benefits of the technology to the customer, in terms of cost reduction or efficiency. Approaches should be tailored for each company or sector. Clearly demonstrated return on investment models will also be of great value as part of your marketing package.
There are many specialist IT trade shows in the UK. These always focus on specific technology verticals or market sectors, such as Government Computing or Healthcare Computing.
Internet penetration in the UK is among the highest in Europe, and the use of the Internet to deliver services is rapidly increasing. Many companies, when seeking products or services make extensive use of the Internet to gain information on new suppliers, but then expect to follow up by phone for all but the most basic items. This usually implies a UK-based contact point. The use of business models such as Application Service Provision are still being developed.
Distribution channels
Distribution channels in the UK are highly developed, and the most effective route to the market depends on the product in question. |