Promotional
and Sales Strategies
How you decide to promote
your product or service to the Canadian market will be dependent on
the type of product or service you have and who the customer is. Canadians
- like most of us - value face-to-face sales efforts. Also - like
most of us - Canadian consumers are finding themselves with less and
less spare time and more needs for convenience and opportunities for
saving time.
A marketing strategy which
has gained increased acceptance by Canadian consumers because of its
convenience is direct mail. Direct mail strategies can be effective
for small businesses and entrepreneurs which may not want to invest
the additional expense and energy in a sales force or finding an agent
or distributor.
Direct mail marketing
in Canada
A recent study by the Canada
Post Corporation indicated that catalog sales - either for retail
stores or mail order - are the most acceptable form of direct mail
marketing for Canadian consumers. Free samples and magazine coupons
were also found to generate positive reactions from Canadian consumers.
These direct mail strategies are also effective for selling your product
in most U.S. markets. Not all direct mail strategies that are effective
here in the United States will be effective across the border.
American consumers, for
example, continue to be intrigued by "contest" forms of direct mail
marketing. Direct mail marketing strategies that offer the chance
to win prizes in the U.S. can be profitable even if the prizes cost
significant amounts of money. But Canadians do not view "contests"
as credible buying opportunities, according to the Canada Post research.
Another difference between Americans and Canadians is their reaction
to promotional sales material inserted in their mail. Condensed product
order forms in our charge card or utility bill will attract the attention
and buying power of the American consumer. However, less than 25 percent
of Canadian consumers react positively to products or services promoted
through inserts in bills.
All of this points to the
fact that "the American way" of marketing may not work for the international
customer even when they live only a few hundred miles away. There
is no substitute for knowing and understanding your customer wherever
he or she may live.
Canadian purchasing
factors for direct mail
In a survey conducted by
the Canadian Direct Marketing Association, Canadian consumers cited
the following factors as "very important" when purchasing merchandise
from mail order companies:
- Toll-free telephone
numbers for placing orders and customer service.
- Price and product quality.
- Speed of delivery.
- Flexible payment options.
Most major credit cards accepted in the U.S. are accepted in Canada.
- Clearly stated and documented
product guarantees and return policies.
- Order forms that are
easy to understand and complete.
There is assistance available
on both sides of the border for businesses for direct marketing efforts.
For resources and assistance, see the Resources document in this folder.
Agents and Distributors
Another successful way
to reach Canadian customers is through agents and distributors.
Agents: Agents
are much like sales reps. They earn their commission by selling your
product to international distributors, manufacturers or retailers.
Agents are also contracted to develop marketing strategies, make personal
contacts, and handle orders.
Distributors:
Distributors are merchants who either buy your product in order
to sell it at a later time or who will sell your product in Canada
for a commission. Distributors can also promote and advertise your
product, extend credit to the end-user of your product and provide
service and support.
Some companies believe
finding a good agent and or distributor is the foundation for sales
and marketing growth in the Canadian market. Because they will represent
your product and your company to Canadian consumers, give careful
consideration to choosing an agent or distributor. See the worksheet
"Choosing an Agent or Distributor" in the Worksheets document in this
folder.
Opportunities for Canadian
Sales
Canadians are interested
in products that range from specialty items to everyday household
goods. According to the U.S. Department of Commerce, U.S. products
most commonly sold in Canada include:
- Clothing
- Collectibles
- Small appliances and
electronic devices
- Non-food gift items
- Hobby and craft supplies
- Home furnishings and
decorations
- Office supplies
- Computer equipment
- Outdoor recreation equipment
- Seeds, trees and plants
- In addition to these,
the U.S. Department of Commerce's "Top Prospect" list for export
opportunities to Canada include:
- Computers and peripherals
- Computer services and
software
- Consumer electronics
- Medical equipment
- Plastics and resins
- Pollution control equipment
- Telecommunications
While these products and
services provide distinct marketing and sales opportunities, you should
not discount the potential for your product or service without effective
market research. Some of the best opportunities are those we discover
or create because of what we know and have learned about our customers.
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