PTL Group China’s
Market Entry Strategy to the United States
Study:
“Bachelor of International Marketing”
University:
Xi’an Jiaotong-Liverpool University
Submission date:
29 April 2018
Camila Sneli Mørch
“This paper is done as a part of the undergraduate program at BI Norwegian Business School.
This does not entail that BI Norwegian Business School has cleared the methods applied, the results presented, or the conclusions drawn”
1.1 摘要
目的：作为⼀家市场咨询公司，PTL Group China 已决定进⼊美国市场。该公司需要的研究包括：
可以最有效地影响美国和中⼩企业决策者们购买 PTL 咨询服务的渠道、以及宣传策略⽅⾯的具体 主要数据。
设计：本研究使⽤定性与定量两种研究⽅式来调研以上问题。定性研究是以 3 次深⼊的采访为基 础、进⾏探索性的设计；⽽定量研究则是以 4 次问卷调查为主，进⾏描述性的设计。
研究结果：研究发现，最有效的渠道可能来⾃于介绍，像是从某些来⾃美国的个⼈、中⼩型企业
⽹络（尤其是美国咨询公司以及贸易组织）的引介、在美国当地的亲⾃联系，或者，在会议或业 界活动中⽆需透过旁⼈引介⽽直接⾯对⾯接触等⽅式。此外，由于决策者很可能都位居“⾼管”职位，
因此 PTL 应选择使⽤他们所偏好的沟通渠道与宣传策略来进⾏联系或接触。虽然，这些渠道之中，
最有效的宣传策略可能是透过向潜在客户展⽰、他们的期待可经由 PTL 来获得满⾜，进⽽说服该 潜在客户、让他们发现到聘⽤ PTL 的重要性。在提供重要优势的同时，亦不具备不利的双重特性。
研究限制/影响：这项研究有⼏点局限性。虽然受访者们都在市场咨询公司上班，⽽其中有⼀例是 在美国政府机构为美国公司进⾏国际化咨询，但本研究对咨询公司客户⽅或潜在客户⽅并未作过 采访。定量研究试图透过问卷查明潜在客户们的观点，然⽽却只收到少数回复。因此，PTL 应多 从客户⽅取得更多的反应和回复。
实际影响：基于上述分析，结论是 PTL 应该透过以上沟通渠道及宣传策略来⿎励企业使⽤该公司 的服务。因此，针对顾客认为有利之处予以重点强调，以及因应客户们的需求，是 PTL 最应注重 的要务。
创意/价值：最有效的沟通渠道与宣传策略是本研究的重要发现。PTL 可以透过采⽤这项研究结果、
更成功地打⼊美国市场。
1.2 Abstract
Purpose: The market entry consulting firm PTL Group China needs specific primary data on which channels and promotional strategies can most effectively influence United States, small and medium enterprises decision-makers to purchase PTL’s services, since PTL has decided to enter the United States market.
Design: This study uses qualitative plus quantitative research methods to investigate this issue.
The qualitative research has an exploratory design based on 3 in-depth interviews, while the quantitative research has a descriptive design using 4 surveys.
Findings: The research discovered that most efficient channels are most likely introductions from somebody in the United States, small and medium enterprises’ network, especially United States consulting firms and trade organizations, contact made in-person in the United States or being contacted directly without an introduction at a conference or industry event. Additionally, the
decision-maker is likely in the C-suite, therefore PTL should choose the communication channels and promotional strategies they prefer. While the most efficient promotional strategies within these channels is likely to convince the potential clients that it is important to hire PTL by
showing that their expectations will be met, they can offer important advantages plus not possess disadvantageous characteristics.
Research limitations/implications: There are several limitations of this study. While the interviewees work in market consulting firms or in one case for a US government agency that advises American companies on internationalization, no interviews were conducted with consulting firm customers or potential customers. The quantitative research sought to ascertain these potential customers’ views; however, only a small number of responses were received.
Therefore PTL should obtain more responses from customers.
Practical implications: Based on the analysis, the conclusion is that PTL should use the mentioned communication channels and promotional strategies to encourage purchase of the firms. It is important that PTL emphasizes what the customer finds advantageous plus adapts to what the customers’ want.
Originality/value: Key findings of this study are the most effective communication channels and promotional strategies. PTL can use this study to enter the United States market more
successfully.
1.3 Acknowledgements
There have been many contributors to this study who deserves to receive appreciation. To begin with, Dr. Ellen Touchstone has given support throughout the process of creating this final year project by guiding what needs to be done plus encouragement on the rocky roads, which is highly appreciated. Next, I would like to thank Jun Peng for offering the opportunity to make this
interesting study happen and meeting with me in Shanghai to go through what information is needed for PTL’s market entry to the United States. Many thanks are also due to Peter Rasmussen, Emily Oursler and John Hensley for their time as interviewees and finally to the 4 respondents of the surveys for contributing to this study.
1. Table of Contents……….5-6
1.1 Chinese Abstract………..………..………iii
1.2 English Abstract……….iii-iv
1.3 Acknowledgements………..………..iv
2. Introduction and background to the research topic……….6-8 2.1 Background and Motivations………...6-7 2.2 Research questions and objectives………...7-8 3. Literature Review………..………....8-11 3.1 Promotion and Channels………....8-10 3.2 Research Gap………...10-11 4. Methodology………..………..……….11-13 4.1 Primary Research and Secondary Research………..………....11 4.2 Qualitative Research………..………..………11-12 4.3 Quantitative Research………..………..……..12-13 5. Presentation and Evaluation of Results………..………...13-24 5.11 Analysis of the Qualitative Data………..………..13-20 5.111 Communication Channels………..………..13-16 5.1112 Communication Channels: Awareness………..14-15 5.1112 Communication Channels: Explore and Expand………...16 5.112 Promotion Strategy………..………16-20 5.1121 The Decision-maker………...16-17 5.1122 Promotion Strategy: Awareness………..17 5.1123 Promotion Strategy: Exploration………...17-20 5.1124 Promotion Strategy: Expansion………..20 5.12 Analysis of the Quantitative Data………..………20-23 5.13 Limitations of Research………..23 5.14 Future Research……….23-24 6. Conclusions and recommendations………..………..24-27
6.1 Sub-Question 1………..………..……..24 6.2 Sub-Question 2………..………..…25-26 6.3 Conclusion: The Main Research Question………..26-27 7. References………..………..………27-36 8. Appendices………..………..………37-70
Appendix A In-depth Interview Guide………..………37-39 Appendix B In-depth Interview Answers………..………....40-61
Appendix C Findings in E-mails………..………62-65 Appendix D Quantitative Research’s Questionnaire………66-70
2. Introduction and background to the research topic 2.1 Background and Motivations
PTL Group China is a consulting management company, which is a one-stop shop that can help international small and medium enterprises (hereafter referred to as SMEs) to enter the Chinese market, more smoothly and cost-effectively. As a “one-stop shop”, they offer a wide range of management services, since then clients only have to deal with one company instead of many different companies in their Chinese market entry activities. In the first meeting with PTL Group China, Jun Peng, Head of China Marketing for PTL Group China, conveyed (2017) that it is easy for companies to make mistakes when they first enter China, but PTL can prevent them. For example, it is important to have a skilled salesperson in China, but it is difficult to hire a Chinese national if you are not a Chinese legal entity. Because PTL is already a Chinese company, PTL can offer the services of a trained salesperson to client companies under their legal entity. She explained that many over-confident companies have said that they did not need PTL, but have come back to PTL for help after they failed.
At this time, according to Peng from PTL Group China, the company must discover some cost- efficient and suitable ways for them to enter the United States (hereafter referred to as US) market, since this is their target for next year. More specifically, they want to discover two things:
1) Which channels PTL Group China will attract US decision-makers in SMEs with revenue up to $10 million US who have an interest in expanding to the Chinese market and
2) which promotional strategies will be most effective in these channels.
It is important for PTL to obtain primary data through this study due to the lack of specific secondary data on which channels and promotional strategies most effectively influence US, SMEs decision-makers to purchase PTL’s services. A mixed-method design was used. The method of research to obtain the primary data is quantitative method, which are based on primary data from the qualitative method. Questionnaires were used by the researcher for the quantitative data collection, while in-depth interviews was used for the qualitative collection of data. In the in- depth interviews, interviewees were individuals from consulting firms or a US government agency who advises US companies on internationalization. The respondents of the surveys were US decision-makers in SMEs with revenue up to $10 million US who have an interest in entering
the Chinese market. In order to analyze the quantitative data, descriptive statistics were used, which is a typically used method at the start of a statistical analysis (Larson, 2006; Analyzing, n.d.). To analyze the qualitative data, the qualitative method constant comparison/grounded theory was used (Glaser & Strauss, 1967). In addition, information from the literature review and the research questions was used to analyze the data from the in-depth interviews, for example the 3 first phases called awareness, exploration and expansion in a B2B relationship development model was used to analyze the qualitative data (Dwyer, Schurr & Oh, 1987) plus the research questions gave directions to the analysis (Touchstone, 2018). Moreover, the research results came to the conclusion that there are several communication channels that would most likely be
successful for PTL Group China when entering the US market. The first channel is introductions from a person in the US, SMEs’ network, especially US consulting firms and trade organizations.
The second channel is to make contact in person in the US. The third channel is to contact them directly without an introduction at a conference or industry event. In addition, the decision-maker is probably in the C-suite, therefore PTL should choose the communication channels and
promotional strategies that are suitable and are adapted to them. While the most efficient
promotional strategies within these channels is probably to convince the potential clients that it is important to hire PTL Group China by proving that the customers’ expectations will be met, PTL will offer important advantages and they do not have characteristics that the customers’ consider disadvantageous.
It can greatly benefit US, SMEs who are interested in entering the Chinese market to enter China.
It is forecast that Chinese consumer spending will be more than $6,4 trillion US annually by 2025 (He, 2015; Yan, 2015). Even though there has been a slowdown in national economic growth, the Chinese consumers continue to spend (Chen, Gong & Zipser, 2016). Additionally, a survey states that over half of the Chinese population believe economic growth will increase their income, which could make them more inclined towards spending money rather than saving it (Di, 2017).
Consequently, US SMEs who have a product or service that is in demand in the Chinese market can tap into a pool of approximately 1,3 billion people and this $6,4 trillion US. This means that the potential is huge.
2.2 Research questions and objectives
The main research question of the dissertation is as follows:
“How can PTL Group China encourage awareness, exploration and expansion, these three awareness, exploration and expansion are steps in a business-to-business relationship
development model by Dwyer, Schurr and Oh (1987), for their management services among US decision-makers of SMEs who are interested in expanding to the Chinese market?”
This main question is divided into 2 sub-questions to answer:
1. Which communication channels influence decision-makers’ high involvement business decision-making such as market entry consulting services the most?
2. Within these channels, what are the most effective promotion strategies for influencing these US SME decision-makers to purchase PTL’s services?
3. Literature review
3.1 Promotion and Channels
It is a mistake to treat customers in a “one size fits all” way (Gripsrud, Olsson & Silkoset, 2016;
Stuntebeck, 2012; Helsen & Kotabe, 2014). One should rather ask oneself “What customer groups will we probably succeed with?” (Gripsrud, Olsson & Silkoset, 2016; MaGee, n.d.), this is a process known as market segmentation (Biong, Nes & Sande, 2016; Hunt & Arnett, 2004). It is important to segment the SMEs in the American business-to-business (hereafter referred to as B2B) market who are interested in entering China. The reason why is that segment data enables PTL to tailor the promotion strategies towards each segment, which makes PTL’s services more appealing for each segment and can probably increase PTL’s profitability (Crittenden et al., 2002;
King, 2015; Hague & Harrison, n.d.). Prospects are often different, for example in wants and background, and they need to be approached according to this in the promotion (Biong, Nes &
Sande, 2016; Sande, 2017). B2B firms often use the two-step process of macro- and micro
segmentation, relevant micro variables for this study are some of the US, SMEs decision-makers’
personal and cultural characteristics, such as attitudes (needs, values, wants), risk tolerance, and ways of doing business (Sande, Nes & Biong, 2016). After segmenting, the B2B marketer may create a communication strategy that aims to convey a consistent message to the segments, which could interest and engage these segments, then achieving the communication activities’ goals (Brennan, Canning & McDowell, 2017).
Promotion is an important part and tool of communication in the B2B market. If the consulting firm promotes effectively to the prospects, then it will most likely lead to a positive brand image of the company among them (Bečková & Hanuláková, 2016), which can become an important factor for success in growingly competitive markets (Brennan, Canning & McDowell, 2017;
Kotler & Pfoertsch, 2007).
Consulting companies as a service provider often use the marketing mix of 7 Ps – product, price, place, promotion, people, process, and physical environment – in their marketing strategy
(Bečková & Hanuláková, 2016). Promotion and product are the most relevant Ps to be investigated for this study, since those can contribute to generating answers to the research questions. It is also important to communicate the services’ attributes, benefits and value of benefits (Biong, Nes & Sande, 2016). Today, B2B marketing practitioners and scholars perceive value as an important factor that influences satisfaction in an exchange, therefore all parties should gain value in the exchange (Brennan, Canning & McDowell, 2017). Additional value is especially an important part of the product in the B2B market, since the products that have it will most likely beat their competitors (Slater, 1997; Woodruff; 1997; Glowik & Bruhs, 2014).
Moreover, offering consulting services with additional value is a central way to create a positive brand image and grow demand (Bečková & Hanuláková, 2016). These reasons prove that it is important to find out what are the additional values for the target market. Though, the marketing mix is criticized for not stressing the importance of the marketer and customer relationship as an underlying foundation of understanding and sustaining value creation in exchange (Brennan, Canning & McDowell, 2017). However, these promotional strategies can be used in the process of building relationships with customers, but it is necessary to use other ways as well to develop customer relationships.
Relationship building is an important part of promotion in the B2B market (Biong, Nes & Sande, 2016). Dwyer, Schurr and Oh (1987) have created a model that shows 5 phases of B2B
relationship development, which PTL Group China can use in their promotional efforts. The phases are (1) awareness, (2) exploration, (3) expansion, (4) commitment and (5) dissolution.
Only phases 1 to 3 are relevant for this dissertation. Phase 1 entails that one party identifies another party as a feasible exchange partner before interaction has taken place. Therefore, the parties can use positioning and promotion to attract the other. Phase 2 entails that possible relational partners evaluate the relationship’s obligations, advantages and disadvantages.
Additionally, the relationship is fragile due to little investment and interdependence makes it easy
to end, but trial purchase might happen. This phase includes 5 sub processes (1) attraction, (2) communication and negotiation, (3) development and exercise of power, (4) norm development, and (5) expectations from the relationship. Phase 3 entails that advantages received by the
exchange partners plus interdependence are increasing. The trust and common satisfaction created in phase 2 increase risk-taking. It is important that the two partners prove trustworthy behavior towards each other when they start a relationship and interaction, because first exchanges might be small to reduce risk, but when trust is established, exchanges and risk might increase (Glowik
& Bruhs, 2014). It can bring the prospects through the beginning phases of Dwyer, Schurr and Oh’s relationship development model.
It is important for PTL to know how prospective clients make decisions in order for them to influence the US, SMEs managers to purchase PTL’s services. Selecting initial market entry mode is a very important part of decision-making in international marketing (Lu, 2002). This type of decision has many parts, such as risk and uncertainty evaluation, commitments, control,
roughly calculated returns and other strategic goals (Anderson & Gatignon 1986; Brouthers &
Hennart 2007; Ji & Dimitratos 2013). On the one hand, there are many studies that describe factors that influence the decision-making of mode of foreign market entry (Ahi et al., 2017). On the other hand, there has not been conducted many analyses of the decision-making process in practice (Aharoni, Tihanyi & Connelly, 2011; Brouthers & Hennart, 2007; Nemkova et al., 2015).
In addition, the strategic decision-making process is stated to be largely ignored in the
international marketing literature (Hennart & Slangen, 2015; Ji & Dimitratos, 2013). Of these reasons, in 2017 Ahi et al. published a peer-reviewed journal article particularly focused on SMEs called ”International Market Entry: How Do SMEs Make Decisions?” As this journal article explains, there is little information on SMEs decision-making process in practice regarding international market entry, which means market entry consulting firms entering the US market do not have enough secondary data to make well-informed decisions on how to enter the US market.
Therefore, more research should be conducted on this specific topic.
3.2 Research Gap
PTL Group China has conducted secondary research, but has had difficulties in finding specific information about market entry consulting firms targeting US, SMEs entering China (Peng, 2017).
Therefore PTL Group China could not discover a satisfactory answer to which channels and promotional strategies can most effectively influence US, SMEs decision-makers to purchase PTL’s services. Hence, PTL wanted the researcher to gather primary data in order to discover
how they can do this. Thus, the information from 3.1 in this proposal was used to design the primary research (Touchstone, 2017).
4. Methodology
4.1 Primary Research and Secondary Research
Secondary and primary data can be used jointly to answer the research questions and achieve the research objectives (Tao, 2017). The strength of secondary data is that firms often can use it to save both time, since high amounts of information is accessible online or offline, and money, because the researcher does not have to spend money on transportation to collect the data
(Boslaugh, 2007; Korneliussen, 2007). Therefore the literature review of this research study was based on secondary data. In addition, the literature review should be used to design the primary research (Touchstone, 2018; Løland, 2016). Moreover, the weakness of secondary data is that the world is constantly changing with large amounts of secondary data being out of date or not
directly relevant (Boone, L. & Kurtz, D. 2015; Helsen & Kotabe, 2014). Since there is not enough relevant or recent secondary data to answer the research questions, it is important for the
researcher to collect primary data (Touchstone, 2017; Bhasin, 2018). To analyze a market through primary research, one should choose a research design, which describes what the analysis process shall look like to solve the research questions (Jacobsen, 2015; Gripsrud, Olsson & Silkoset, 2016). The primary research of this dissertation consists of both qualitative exploratory and quantitative descriptive research (Supphellen, Thorbjørnsen & Troye, 2014; Saunders, Lewis &
Thornhill, 2012).
4.2 Qualitative Research
For the qualitative research an exploratory design can be used (Kumar, 2011; Sander, 2016).
There are many reasons why this is a well-suited design. As this dissertation is trying to obtain better understanding of the prospective clients, many important variables are unknown and our insight is limited (Gripsrud, Olsson & Silkoset, 2016; Løland, 2016). The advantages of in-depth interviews are that they generate large amounts of individual information quickly, and a group does not influence the person being interviewed, which can happen in focus groups (Chadwick et al, 2008; Westat, J. et al, 2002). In addition, it is often difficult to assemble all the interviewees into the same place at the same time since all of them are in general busy, therefore in-depth interviews are more suitable than a focus group (Workbook E, n.d.; Granot, Alejandro, Motta, 2012). The disadvantages are the possibility of self-report data, and that the interviewers’ lack of
in-depth interviewing experience limits how much information can be gathered (Chadwick et al, 2008; Helsen and Kotabe, 2014; Westat, J. et al, 2002).
The first step was to develop an interview guide based on the information from the literature review (Sander, 2017; Taylor, Bogdan & DeVault, 2016). Then the interview template was used in an in-depth interview to collect and generate primary data that could help to answer the
research questions (What is an, n.d.; Chadwick et al, 2008). Individuals who work in market entry consulting were invited to an in-depth interview, since they more likely have relevant knowledge for this study (Neale & Boyce, 2006; Løland, 2016). These individuals were found by Doctor Ellen Touchstone’s network. The interviewees for the in-depth interview were Emily Oursler, a China market entry consultant based in Shanghai, Peter Rasmussen, Chairman of Asia Base Group that advises foreign firms entering China, plus John Hensley, an international trade
specialist who works for a state government in the US. Usually, in-depth interviews last from 1 to 1 ½ hours (Gripsrud, Olsson & Silkoset, 2016; Løland, 2016). Though, in the beginning the interviewees was invited to a 30 to 45 minutes long interview, because business people are usually busy, but if they had more time then the interview could last longer than 30 to 45 minutes (Granot, Alejandro, Motta, 2012; Touchstone, 2018). Finally, each interview lasted
approximately 1 ½ hour each. The interviewer and the individuals interviewed discussed each question to provide better understanding of their answers.
Data was analyzed using the qualitative method constant comparison/grounded theory, which entails categorizing behavior or themes, naming and then coding these categories, then finally comparing them (Glaser & Strauss, 1967). A limitation in the exploratory research is that all the interviewees are either from consulting firms or are a middle person and are not customers.
4.3 Quantitative Research
Descriptive design is also important (Omair, 2015). The three main techniques to conduct descriptive research are questionnaires, observational or diary method (Gripsrud, Olsson &
Silkoset, 2016; Kowalczyk, n.d.). A limitation of questionnaires as well as the diary method is that the respondents have to answer based on own memory (DeFranzo, 2012; Gripsrud, Olsson &
Silkoset, 2016). Observation could avoid this, but observing firms while they are making a market entry decision could take too much time before they reach the decision to enter a market. In addition, the diary method is too time consuming for this study, since this method, like
observation, entails that the respondents experiences, behavior or activities in a period of time are
registered (Flaherty, 2016; Vettini, 2018). Therefore, surveys are the most suitable method for this quantitative research.
A questionnaire of standardized questions, which makes it suitable for statistical analysis, was developed for the data collection (Ringdal, 2012; Aliaga & Gunderson, 2005). Relevant data from the qualitative study and the research questions used to design the questionnaire (The Difference, n.d.; Rossiter, 2012; Touchstone, 2018). There are many factors one has to consider when
designing a questionnaire. Firstly, it was important to identify what information was needed from the respondents (Millikin, 2016;Quantitative and Qualitative, n.d.). Secondly, it was central to not present too many questions, otherwise the respondents can suffer survey fatigue (Harrison, 2007; Fryrear, 2016). Thirdly, it is important to make the questions simple and clear in order for the respondents to answer the questions easily (Siniscalco & Auriat, 2005; Vannette, 2015). 3- point Likert scales were used in this survey to uncover the respondents’ attitudes towards market entry (Likert, n.d.; Likert, 1932) with Disagree, Undecided and Agree as the options (Touchstone, 2018). The quantitative research attempts to determine if the findings of the exploratory research are representative of the actual target market (The Difference, n.d.; Qualitative, n.d.). The
questionnaire was made available for responses on Facebook, emails, and LinkedIn as well as to trade associations and Ellen Touchstone’s and Camila Sneli Mørch’s own network to find
respondents for the survey who are US, SMEs decision-makers who are interested in or who have entered the Chinese market.
To analyze the questionnaire responses, descriptive statistics were used, as means, which is often done in the beginning of a statistical analysis (Larson, 2006; Analyzing, n.d.). These statistics were generated using the statistical tool SAS JMP. JMP required the scales used in the survey to be converted to numbers. Thereafter, the analysis explains trends in the data (Gripsrud, Olsson &
Silkoset, 2016; Touchstone, 2018). A limitation to the quantitative research is that there was not enough time to obtain more than 4 responses to the questionnaire.
5.1 Presentation and Evaluation of Results 5.11 Analysis of the Qualitative Data 5.111 Communication Channels
It is important for PTL Group China to know which communication channels influence decision- makers’ high involvement business decision-making such as market entry consulting services the
most, since then PTL can choose the most effective communication channel to influences the decision-makers to purchase and become aware, explore and expand PTL’s services.
5.1111 Communication Channels: Awareness
The communication channels to drive awareness to PTL according to all the interviewees are introductions through network or face-to-face. All the interviewees had both different and similar opinions on how a market entry consulting firm should be introduced to the potential US, SME clients or how the consulting firm should contact the potential customers.
According to John Hensley, initial contact should be performed through meeting the potential customer face-to-face at a trade event or industry event where businesspeople are for a reason and are open to talking to the market entry consulting firm. He stated that it is important to attend trade shows in the US at some point. Though, he thinks that in the beginning one should attend and network at trade shows or events in China before investing resources in attending US trade shows, but those shows or events that have significant American presence. In terms of initial US representation of PTL Group China, he believes it is good idea to have it if it makes sense to pay them. Hensley believes it would be better to establish some type of strategic partnership with a US consulting firm, as offering the consulting firm a fee for discovering customers for PTL.
Many of these business owners who are the decision-makers of whether a US, SME enters a foreign market are not necessarily a generation that obtains their business information through social media. LinkedIn may be an effective channel of communication, because it is heavily used in the US by the human resources, but the owner makes the ultimate hiring decision. In addition, he encourages avoidance of e-mail as way of contact the first time PTL contacts a potential US, SME client, because many people receive emails and they do not pay attention to them if they see they are just a business elicitation type of email. He thinks that the US Department of
Commerce’s list of Chinese companies that the Commercial Office has had good experiences with is good since it is short (Business Service, 2017), the department cover probably 75 or 80 countries worldwide, are in almost any significant market, and have the stature of being a US government department, which gives it more credibility. When it comes to introduction through network, many US, SMEs are introduced by their state government, their state export promotion agency, through a commodity group or trade organization, since they have the connections already.
Secondly, in Emily Oursler’s opinion initial contact with the US, SMEs is best as an introduction by being put in touch with the potential customer by Skype call, email or LinkedIn messaging.
Thereafter, she believes it is important to firstly be persistent, but not desperate, because then it seems like the firm does not manage to obtain business. Secondly, PTL should have results driven communication. Thirdly, the market entry consulting firm should be able to write well-formed emails. Fourthly, she recommends PTL to have good marketing materials that they can attach to the emails. Fifthly, they should follow up. The fifth and fourth point highly contrasts with Peter Rasmussen’s point of view in the next paragraph. Another way to obtain US, SME clients are to attend conferences or trade shows in China, whether it is by the US chamber of commerce, the US state department or other trade organization. Though, exhibiting at trade shows can be quite expensive, in her experience it is not worth it. In addition, she does not think it is necessary to invest much in going to the US to find clients. In connection with US representation, she thinks it is best to become partner with a US consulting firm based on a referral fee structure, which means that PTL give the consulting firm a fee for each US, SME customer they manage to provide to PTL. She believes PTL should invest heavily in their website, or social media, especially LinkedIn since it is considered more professional and people in China do not use Twitter or Facebook. Then potential customers have one place to learn about PTL’s services. Lastly, the US Department of Commerce’s list could be helpful since one client is one client plus the fee is small ($175 US – $350 US annually), but it should not be a main priority in their US market entry strategy.
Thirdly, according to Peter Rasmussen initial contact with the potential US, SME customers is always best as an introduction, especially due to referrals. Another way of initial contact is by contacting the customer directly. However, he would never cold call a potential customer. A method he uses to find clients is to contact the potential customer directly after having a seminar, presentation or a workshop somewhere by asking the audience whether someone are planning to set up their business in China. After participants in the audience answers yes, he will ask him or her to talk to him afterwards. If the potential clients explain that they plan to enter China in the future, but not soon, he will contact them again when he thinks they will really enter the Chinese market. If something stops him from speaking at the seminar, presentation or workshop he will ask for the list of all the participants. When he has received the list, he goes through the list of participants trying to evaluate who will most likely enter the Chinese market soon. Thereafter, Rasmussen will contact the participants who will most likely enter China’s market in a short time.
In addition, he does not believe in lists or advertisement for market entry consulting firms.
Therefore, he thinks PTL should avoid to use these as promotional strategies.
5.1112 Communication Channels: Explore and Expand
In the second and third phase, explore and expand, there are diverse opinions between the interviewees. According to Peter Rasmussen a company has to specialize in something, such as accounting or law, to survive as market entry consulting firm in China. Therefore, Rasmussen claims that this company will not enter the explore and expand phase, but they might have one or two customers they know already and maybe they will get a third one by chance, then they will file for bankruptcy, or they will eventually be forced to specialize in something. Though, John Hensley and Emily Oursler believe that once communication is established one can follow up with email, but if one does not receive a response to e-mails, it is then acceptable to call them at an appropriate time in relation to the time the email was sent. Hensley said that receiving responses to e-mails are sometimes quite difficult when dealing with SME owners. In addition, due to time differences and language barriers emailing may be better way of contact than calling.
Emily said that as business continues email is the best, since one can attach material to an email.
She thinks that the market entry firm should select one channel such as email, and be consistent with that. This is normal procedure, because then the consulting firm can in the future trace the communication with the client’s email quite easily.
5.112 Promotion Strategy
It is important for PTL Group China to know who the typical decision-makers of choosing the way a US, SME enters China is. This information enables PTL to tailor promotion strategies that specifically target the decision-makers. In this way, the market entry consulting firm can more effectively influence the decision-makers to purchase PTL’s offerings and become aware, explore and expand to PTL’s services.
5.1121 The Decision-Maker
The decision-maker of how a US, SME enters China is often the business owner according to Peter Rasmussen and John Hensley. Hensley states that it is like this because the owners are often involved in almost all aspects of the company, while Rasmussen said it could be the general owner as well, but the general owner would not choose without the owner. Though, Emily Oursler believes it depends on industry, for example the healthcare industry is highly regulated, therefore it is very difficult for a business owner to make those decisions, or it would be key business development people and C level marketing executives. However, Oursler commented that she has few years of experience.
The next step is to discover the most effective promotion strategies within the communication channels introduction through network and directly contacting potential customers for influencing US SME decision-makers to move from the phase awareness to expansion in Dwyer, Schurr and Oh’s model (1987) and purchase PTL’s services.
5.1122 Promotion Strategy: Awareness
The first phase is awareness, which entails that the market entry consulting firm identifies a SME as a feasible exchange partner before interaction has taken place. Thereafter the consulting firm position and promote itself to attract the US, SMEs. According to the interviewees’ opinions in regard to this theory, the consulting firms should use introductions and directly contact potential customers to create awareness of their services to an US, SME. In addition, Rasmussen explained that when he knows quite certain that a potential customer will enter China, he will contact them to arrange a free of charge meeting about China and the customer in the potential client’s country.
Usually, people say yes since he is well known in at least Europe. A market entry firm can also find customers in the news. Being too persistent can irritate the potential customer, which may cause them to not wanting to work with the firm when they have the need for a market entry consulting firm.
5.1123 Promotion Strategy: Exploration
The second phase is exploration, this entails that the SME and market entry consulting firm evaluate the relationship’s obligations, advantages and disadvantages. As mentioned in the literature review, additional value is a central component of the product in the B2B market. The products that have additional value will most likely beat the competitors and have a growing demand. Therefore, it is important for PTL as a part of their promotional strategy to communicate the additional values they provide. Another significant issue for PTL Group China is to convey the attributes, benefits and value of benefits of their services. Plus, it is advantageous for the firm to be aware of own disadvantages for the purpose of self-improvement. The interviewees had both similar and dissimilar perceptions on what additional value, benefits, value of benefits, obligations or disadvantages of a market entry consulting firm or PTL are.
Firstly, focus is on obligations and expectations of a market entry consulting firm. Typical obligations of the SME according to Rasmussen, Oursler and Hensley are to provide all the information the consulting company needs to help the SME. Rasmussen explained that sometimes information is wrong, fragmented, delayed or incomplete, but the SME would still have to pay plus Emily conveyed that the consulting firm could be working with someone that could be
sharing a better work cooperative project. Thereafter Rasmussen explained that an obligation of the consulting firm is to be careful with the SME’s money. Additionally, the SME expects the consulting firm to perform what is agreed on, but the SME also expects them to be somebody they always can approach for help. Unlike the other interviewees, Hensley shared that the firm should expect the SME to not neglect their marketing in China and focus on easy US sales when the US economy are doing well. According to Oursler, SMEs expect that the consulting firm will deliver high-quality within deadlines, consultants are good communicators, all valuable
information are kept confidential, the firm improve their business with measurable results, plus clear communication about expectations is important.
Secondly, focus is on advantages of a market entry consulting firm. According to Hensley the additional value of a market entry consulting firm is their experience and their network in China.
By experience he means within own industry or product, business in general and performing the type of services they need. Most of these companies would most likely not have familiarity with the market and government regulations, not even logistics or customs. Above all, the SME would value a consulting firm that can assist with building them a long-term customer base. He also emphasized the value of being able to provide the potential customers first hand referrals of PTL Group China who can explain their experience with PTL. Moreover, it would be more effective to put the potential US, SMEs clients in touch with firms that has a product that is complementary rather than a competitive product to the potential client’s product, since this adds credibility.
Hensley believes that the greatest assets of PTL are that they have the experience to offer many services while being a single point of contact, to assist the exporter with avoiding making mistakes and overcoming obstacles, to have a salesperson without establishing a legal entity to hire that person in China, and satisfied customers.
According to Oursler the additional value of a market entry consulting firm is a competitive price, being a real partner in their business through own doing plus speed, since consulting firms can quickly provide a well-thought strategy the SME might not be able to come up with on their own.
She added that the central values of PTL is their first-hand experience, cost-effectiveness, ability to help the SME to avoid mistakes, testimonials, wide range of services - being a generalist and an expert at the same time is a pretty good combination -, and they have sales representatives. To increase the decision-makers’ desire to hire PTL, she believes they should share examples of past projects by showing good testimonials plus great marketing materials that point to past project that have been a success by showing real figures, numbers, as sales and growth.
Next, Peter Rasmussen believes that a market entry consulting firm with additional value is trustworthy, inexpensive and practical. Practical means that the consulting firm will help the SME with everything almost whenever they need it, such as calling a taxi or writing a contract in Chinese. It is important to make the customer feel like they and the consulting firm are a team. In addition, it is important to develop a personal relationship with the customer. A good promotional strategy is to make the client addicted to the consulting firm’s great service, because when they visit a legal or accounting firm without as good service they will remember how much better the market entry consulting firm were. According to Rasmussen, PTL do not offer something better than its competitors. The firm offers what everybody can offer, but they could specialize in for example law or accounting to differentiate the firm from its competitors.
Thirdly, focus is on disadvantages of a market entry consulting firm. Peter Rasmussen explained that a major disadvantage of a market entry consulting firm is when they are generalists, due to being a one-stop shop. This will lead to the market consulting firm’s bankruptcy, unless the firm decides to specialize in something, such as law or accounting. Therefore, he believes that PTL will go bankrupt if they do not specialize, but specialization will make the service more expensive.
In addition, PTL do not stand out, since the firm offer what all of their competitors can offer, but they would stand out with obtaining one specialization. Unless they specialize, PTL would not be not be allowed to speak at presentations, seminars and workshops, but PTL could remedy the issue by going around the room with name cards and get the other peoples’ name cards. Moreover, if PTL specializes they could speak at a conference about China in the US. In addition, he
believes that PTL should find people in the US who can introduce business to them.
According to the other interviewees there are more main disadvantages of a market entry
consulting firm. Emily Oursler stated that main disadvantages of the firms are price, and some of the market entry consulting firms fail to really see the US, SMEs’ vision and the value of their product, because the consultants often see the big picture instead. When it comes to disadvantages of PTL Group China, both Hensley and Oursler agree that a major drawback of PTL is that they do not have industry preferences. The reason why is that in some industries people want a consultant who is a real expert in their industry and the SMEs are afraid of not generating the desired results and losing their money. Hensley stated that the decision-makers are very sensible, since they do not have many resources as time and money to make mistakes or have extraneous things and are quite focused on results. Then he emphasized that an issue in the US is that when the US economy is doing well some SMEs focus on easiest sales instead of prioritizing their international marketing. In addition, he explained that the SMEs are risk averse, since they avoid
entering a market when they think it may waste time and resources, such as having to switch partners. Emily mentioned that since it is risky to enter China, one have to make that person
comfortable enough not to just enter China, but investing in that market entry consulting company.
However, Peter Rasmussen argues that the decision-makers are not afraid of risk, since they do not invest much money, but they have usually thought about the risk of entering China in beforehand.
5.1124 Promotion Strategy: Expansion
For PTL or any market entry consulting firm to reach the expansion phase, it is important that the firm deliver the promised advantages, because this creates trust that might lead to increased exchange and risk plus interdependence between the exchange partners.
5.12 Analysis of the Quantitative Data
It is important for PTL Group China to know whether customers agree with the data generated from the qualitative research conducted with people working in market entry consulting. In addition, this quantitative data can be used to answer the research questions. In the end, 4 people responded to the survey. To keep the respondents anonymous they are called respondent A, respondent B, respondent C and respondent D.
Question 1 asked “Who would be the typical decision-maker in your company who would choose the strategy for entering the Chinese market?” All the respondents gave different answers to this question. The respondent A stated that this would be the chief financial officer. Another
respondent, called C, answered that it is a managing director. The respondent B answered that the typical decision-maker of deciding on the entry strategy to the Chinese market would be the chief executive officer. The last respondent, named D, answered that the decision-maker would be the president.
Question 2 asked “How important is it for the decision-maker to hire a market entry firm for China market entry?” Most of the respondents of the survey answered that it is not very important for the decision-maker to hire a market entry consulting firm to enter the Chinese market. Though, respondent A thought this kind of conduct was very important for the decision-maker, while respondent C thought performing this action was only slightly important.
Question 3 asked “The preferred way for the decision-maker to find a market entry firm to help them enter the China market is...” Most of the respondents answered “… by introduction from
somebody in own network”. The respondent D conveyed that he was undecided on what way the decision-maker prefers to discover a market entry firm to assist them in entering China’s market.
Question 4 asked “Does the decision-maker prefer that the market entry firms contact them in person approach them in the US or China?” Almost all of the respondents answered that if the market entry firm would contact them in person they would prefer it to happen in the US, while respondent A answered China.
Question 5 asked “What is the preferred way of a potential market entry firm to make first contact when someone else is introducing the market entry company?” All the respondents answered that the preferred way of a market entry firm to make first contact with them would be by email, but respondent A and respondent C also answered phone call, while respondent C specified phone call for follow up.
Question 6 asked “I prefer to be introduced to a market entry firm by a…” All four respondents answered the decision-maker of whether a US, SME enters an international market would prefer to be introduced to a market entry firm through a US consulting firm, but respondent B also answered trade organization and respondent D responded state government, state export promotion agency and trade organization.
Question 7 asked “I prefer to make contact with a market entry firm directly without an
introduction at a…” All the respondents answered that making contact with a market entry firm directly with out an introduction would for the decision-maker preferably be at an industry event or a conference. In addition, every respondent answered trade show, except respondent A who was undecided. While 50 % of the respondents agreed on seminar, workshop and presentation, the remaining 50 % of the respondents were undecided on these kinds of communication channels.
Question 8 asked “From which promotional channel does the decision-maker prefer to learn about a market entry firm’s product?” For this question, all the respondents answered LinkedIn. Though, beside the checkbox “Other:” respondent D answered Facebook as well, while respondent A specified Google websites and respondent C answered press releases in addition to industry news.
Question 9 asked ”I prefer a market entry consulting firm who will…” All the respondents had several of the same expectations of a market entry consulting firm. Firstly, they expect the market entry consulting firms to help them with everything they need assistance with. Secondly, they
expect the firm to communicate their expectations of the relationship. Thirdly, they expect the market entry firm to be careful with their money. Fourthly, they expect the market consulting firm to show measureable results. Fifthly, they expect the market entry firms to be good
communicators. Finally, they expect the firm to deliver high-quality within deadlines. Though, respondent A ticked the box undecided for “… show measureable results.”
Question 10 asked “I would not hire a market entry consulting firm if they…”, which shows what customers consider as disadvantages of market entry firms. 75 % of the respondents answered ”...
are generalists. Specialists - as in law or accounting - who are also generalists are best”, and “...
do not have industry preference, because industry expert consultants are best”, while respondent D was undecided for these two advantages. In addition, 75 % of the respondents answered “...
don’t see our vision and value of our product, consultants only see the big picture”, though respondent A was undecided. Then 75 % answered ”... are risky in terms of resources, because one can lose money and time if the entry firm fails” and 75 % were undecided to “ ... are demanding when the US economy is going well and focus could be on easy US sales”, but here respondent A disagreed to both these statements.
Question 11 asked “I would like to hire a market entry consulting firm if they…” According to all of the respondents, the decision-maker of whether a US, SME enters a foreign market or not would like to hire a market entry consulting firm when the entry firm has certain advantages, these advantages are “... have excellent service”, ” … are specialized, as in law, plus are
generalists who can help with anything”, ”... become a part of the team”, ”... have less expensive consulting services”, ” ... possess specialization plus great service, even if it is expensive”, ”... can quickly provide a good strategy one might not be able to come up with oneself. Consequently, avoid mistakes.”, ” ... are able to offer testimonials before purchase”, ” ... have proof of their past success stories”, ”... offer a wide range of services and being one single point of contact.”, ” ...
have sales representatives, otherwise the SME has to establish a legal entity to hire that
person.”, ”... can put a customer handling a complementary product in touch with us for first-hand referencing”, ”... have a network in China”, ” ... possess first-hand experience in SME’s
industry.”, “... have first-hand experience in SME’s product”, ” ... possess experience in
performing service needed.”, and ”... can offer assistance in building a long-term customer base.”
Though, there are some respondents who was undecided or disagreed to some of these widely considered advantages among the respondents. The first exception is that respondent B and respondent D was undecided to ”... become a part of the team” and ”... offer a wide range of services and being one single point of contact.” While respondent C was undecided to “… have less expensive consulting services.” Then finally respondent A was undecided to ”... have
excellent service”, ”... become a part of the team”, ”... have sales representatives, otherwise the SME has to establish a legal entity to hire that person” plus ... can put a customer handling a complementary product in touch with us for first-hand referencing. In addition, respondent A disagreed with “... can offer assistance in building a long-term customer base”, “... have first-hand experience in SME’s product”, “... are able to offer testimonials before purchase” and “... can quickly provide a good strategy one might not be able to come up with oneself. Consequently, avoid mistakes.”
5.13 Limitations of Research
The qualitative and quantitative research brings about many advantages as mentioned. Though, there are some limitations of this study. The first limitation is that the qualitative research is only based on interviews with individuals who are not customers. The individuals interviewed are working at market entry consulting firms or a US government agency that counsel US firms on expanding to other countries. In addition, Emily Oursler only has a few years of experience as a China market entry consultant. These limitations were to some degree dealt with in the
quantitative part by sending out a survey to customers. The second limitation is that the respondents of the surveys have to answer based on memory, which can be wrong or the respondent has forgotten even though he or she thinks he or she remembers. This limitation is quite difficult for the researcher to deal with when creating the questionnaire. The third limitation is that only 4 people responded to the survey. Ideally the survey would have at least 200
respondents. Due to these limitations, it is not possible to conclude and recommend actions for how PTL Group China should enter the US market with as high probability of success as if the limitations were not present in the research (Gripsrud, Olsson & Silkoset, 2016). Therefore, it could be beneficial for PTL Group China to do some further research in the future.
5.14 Future Research
The primary research of this study generated data that PTL Group China can use to enter the US market. Though, there are some aspects that emerged from the research, which lacks some details to show PTL more specifically how to enter the US market in connection with which promotional strategies and communication channels to use. Therefore, PTL should spend time to discover more of the details of these aspects. The first aspect the firm should focus on discovering more details about is on potential US consulting firms and trade organizations that can help PTL to identify potential US, SME customers in the US market. The second aspect is that the market entry consulting firm should find which conferences, trade shows, seminars, presentations,
workshops or industry events they should attend in order to make initial contact with potential US,
SME clients. Though, the exploratory research propose that PTL attend events by US chamber of commerce, the US state department, American Chamber of commerce, and American Chamber of Commerce in Shanghai. The third aspect is that the way of communicating in the communication channels are a choice that should not be chosen with out careful consideration, otherwise PTL may not decide on using the most appropriate and successful way of communicating with the potential client. The fourth aspect is that PTL could research whether it would be more beneficial for them to specialize in something, as law or accounting, as well as offering a wide range of services in addition to being a single point of contact. The reason why is that Peter Rasmussen strongly recommended PTL to make this change and many of the respondents of the survey thought market entry firms with these characteristics could influence them to spend more money on the market entry firms’ services and they consider it advantageous. It is important for PTL Group China to uncover the details of these 4 aspects in order to perform the recommended strategies in the next section successfully.
6. Conclusions and recommendations 6.1 Sub-Question 1
The first sub-question is “Which communication channels influence decision-makers’ high involvement business decision-making such as market entry consulting services the most?” The survey from the quantitative research provides the information that the US, SME decision-makers can have many different job titles, such as chief executive officer, chief financial officer,
managing director or president, but what they have in common are that they are in the C-suite.
Therefore, PTL should choose the communication channel they would likely use. The most effective channel for influencing the decision-makers is by obtaining an introduction from somebody in the US, SMEs network. The customers would most likely prefer to be introduced to a market entry firm by a US consulting firm or trade organization. If the customers were to make contact with a market entry firm directly without an introduction, then it should be at a conference or industry event. Almost all of the customers in the quantitative analysis prefer that the market entry firms that contact them in person approach them in the US. Though, it can become very expensive to approach the potential US, SME customers in the US due to travelling expenses.
Therefore, it is better for PTL Group China to approach them in person in China. After choosing the channel for communication, it is important to choose a suitable way of communication within the communication channel. If someone else is introducing the market entry company to the US, SME, then email is the best option. In addition, the customers find it important to be able to read about PTL’s services on LinkedIn.
6.2 Sub-Question 2
The second sub-question is “Within these channels, what are the most effective promotion
strategies for influencing these US SME decision-makers to purchase PTL’s services?” First of all, it is important to create promotional strategies tailored towards the C-suite, since these are central decision-makers for this type of decision. Most of the respondents to the quantitative research’s questionnaire do not believe that it is very important to hire a consulting firm. Therefore PTL has to remove this mental barrier among the potential customers through their promotional strategy.
The first way is for PTL to show the US, SMEs that they will fulfill their expectations by helping them with everything they may need assistance with, communicate their expectations of the relationship, are careful with their money, show measureable results, be good communicators and deliver high-quality within deadlines.
Another promotional strategy for PTL is to not have the qualities customers consider
disadvantageous of market entry consulting firms. There are many disadvantageous of market entry firms according to the survey respondents, as when they “... do not have industry preference, because industry expert consultants are best”, “... don’t see our vision and value of our product, consultants only see the big picture”, and ”... are risky in terms of resources, because one can lose money and time if the entry firm fails”. PTL has several of these qualities, therefore PTL can prove that they truly see the vision and value of the US, SME’s product. In addition, PTL can put a customer handling a complementary product in touch with the potential US, SME customer for first-hand referencing, to prove to the potential customer that having an industry preference is not necessary. Their past success can be used to prove to the US, SMEs that they will most likely not lose money or time.
The third way PTL can remove the psychological barrier is by emphasizing the advantages of their services in their promotional strategy. The central advantages that PTL should possess is to
“... have excellent service, ”... become a part of the team”, ”... can quickly provide a good strategy they might not be able to come up with themselves. Consequently, avoid mistakes.”, ” ... are able to offer testimonials before purchase”, ” ... have proof of their past success stories”, ” ... have sales representatives, otherwise the SME has to establish a legal entity to hire that person.”,”...
have a network in China”, ” ... possess first-hand experience in SME’s industry.”, “... have first- hand experience in SME’s product”, ” ... possess experience in performing service needed.”, and ”... can offer assistance in building a long-term customer base.” The quantitative research survey answers informs that the customers would like market entry firms that ” … are specialized, as in law, plus are generalists who can help with anything”, ” ... offer a wide range of services and
being one single point of contact.”, ”... have less expensive consulting services”, ” ... possess specialization plus great service, even if it is expensive”. Therefore, PTL Group China could benefit from specializing in addition to offering a wide range of services and being one single point of contact, since this could allow them to increase the price of their services. Otherwise, PTL has to keep their prices low plus continue doing business unspecialized.
6.3 Conclusion: The Main Research Question
The main research question is “How can PTL Group China encourage awareness, exploration and expansion for their management services among US decision-makers of SMEs who are interested in expanding to the Chinese market?”
This main question can be answered with information from the sub-title 6.1, which answers,
“Which communication channels influence decision-makers’ high involvement business decision- making such as market entry consulting services the most?” The recommended actions for PTL in terms of communication channels are to obtain an introduction with the potential US, SME customer from somebody in the US, SMEs’ network or a US consulting firm or trade
organization. Another recommended action to PTL in regard to communication channels is to meet potential customers either at a conference or industry event. Even though the US, SME decision-makers of whether their firm will enter a new market would prefer to be contacted by the market entry consulting firm in person in the US, it is recommended for PTL to begin with
contacting them in person in China due to high travelling expenses to the US. In addition, PTL should use the communication channels US, SME decision-makers in the C-suite would most likely use. When PTL has decided on a channel for communication, they should select an appropriate communication method in the communication channel. In the situation that an
intermediary introduce the market entry consulting firm to the US, SME, email is the best way of communication. Moreover, the clients believe that it is important for them to be able to read about PTL’s services on LinkedIn. Therefore, it is encouraged that PTL’s LinkedIn page is informative.
The main question can also be answered with data from the sub-title 6.2, which deals with
“Within these channels, what are the most effective promotion strategies for influencing these US SME decision-makers to purchase PTL’s services?” It is recommended that PTL create
promotional strategies designed for the C-suit. In addition, it is recommended that PTL try to convince the potential clients of hiring a market entry consulting firm for they China market entry instead of entering the Chinese market in other ways. To persuade the potential clients, PTL should attempt to prove that they shall meet all their expectations, such as being good at
communication, expectations of the relationship are communicated, measurable results are show, not being careless with their money, providing high-quality before deadlines and assisting them with everything they need help with. Moreover, PTL should not possess the characteristics potential customers consider disadvantageous of market entry consulting firms in order to
persuade them to purchase PTL’s services. To prove to the potential customers that PTL does not have these disadvantageous characteristics it is recommended that PTL really see the vision and value of the US, SME’s product. They should also enable the US, SME to have a conversation with one of PTL’s customers handling a complementary product in order for the potential
customer to trust that it is not necessary for PTL to have an industry preference. In addition, they should try to convince the US, SMEs that they will probably not lose money or time with them if PTL can prove them their past success. The final recommended way for PTL to convince the customer to use a market entry consulting firm, especially PTL, for their China market entry, is to emphasize the advantages of PTL’s services to the potential customer. These advantages include having excellent services, becoming a part of their team, possessing positive testimonials, proving past success stories – as with numbers –, offering sales representatives, quickly providing good strategies, mistake avoidance, offering help in building a long-term customer base and having experience in performing service needed, in the SME’s industry and in SME’s product. If PTL wishes to increase their prices and be attractive to more US, SMEs, then it is recommended that they specialize in for example law or accounting as well as offering a wide range of services and being one single point of contact
Using these communication channels and promotional strategies can encourage awareness and exploration of PTL Group China’s services among US, SMEs. Finally, for PTL to reach the expansion phase with a customer, they must deliver the promised advantages, since this creates trust that might lead to increased exchange and interdependence between the partners.
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