Aegis (ARELS Newsletter)
Critical Success Factors for Effective Marketing in Latin America

Faced with increased competition from organizations both in the UK, US and increasingly Australia, New Zealand and Canada, the quest for new overseas markets is of ever growing importance. And judging by the huge interest shown at last year's conference on educational opportunities in Latin America organized by the DTI with The British Council, Brasil, Argentina and Mexico at least are finally being taken seriously by more than a small minority of "aficionados".

However there is a huge difference between awareness that a market exists and actually being able to tap into that market; a huge difference between deciding to go on a trip and actually bringing back business. The following critical success factors for effective marketing are not meant to dampen enthusiasm, but to encourage those willing to commit themselves to Latin America to research the market and plan an effective long term campaign before actually getting on a plane.

1. Relationships

It is relatively easy to get lists of people who are important in Latin America, and lists of people you should meet. Indeed the British Council, the British Embassy and the Chamber of Commerce can all be extremely helpful in providing leads, and in the case of the British Council organizing programmes.

What you cannot buy is the relationship with people, which has to be built up personally over time. In Latin America it is the relationships you have which are crucial to providing students for your organization rather than anyone else's.

2. Continuity

15 years ago very few people indeed were interested in Latin America, and very few invested either time or money in markets here. Loyalty to those who have continued to do business in the area throughout all the economic and political crises is quite evident, and again it is that loyalty which provides students for you rather than others. People are more likely to change their allegiance to an organization rather than their allegiance to a friend.

3. Good agents

Agents perform an extremely important function in Latin America as the majority of customers prefer all the organizational problems to be sorted out for them. In the quality market the majority of agents are either educational consultants or involved in academic institutions of some sort, and in both cases a great deal of time is spent talking to parents and students about what UK schools and colleges are like, and which one might be more suitable for students.

However you do need to find good agents. Once you have them, the more likely they are to support the quality image of your own organization, and the more likely they are to promote your organization as it really is, giving students realistic expectations.

4. Understanding the different cultural and regional variations

People still tend to think of Latin America as one market. Although there are similarities between what people want in some countries or regions, there are also considerable differences in what is wanted, where, at what levels, for what age range and at what price.

To get the maximum advantage from the region it is crucial to be aware of these differences.

5. Linguistic competence in both Spanish and Portuguese

Often British people promoting courses in Latin America speak enough Spanish to get by and this is extremely helpful: however very few people speak both Spanish and Portuguese. Someone who speaks both provides a huge competitive advantage for any organization particularly outside the major capitals.

6. Geographical/Logistic competence

It goes without saying that Latin America is huge. Although there are large concentrations of agents in the major cities, increased competition and opportunity demand visits outside the Rio/Sao Paulo/Buenos Aires circuit. In Brasil outside Rio and Sao Paulo there are at least 5 cities with over one million people.

In order to plan the most effective trip it is essential to know not only the geography of the countries involved, but also the way the transport systems work, and the amount of time it takes to get from one place to another.

7. Timing

To maximise the business effectiveness of any trip it is essential to get the timing of promotional trips, promotional materials and new dates and fees right. It it also important to understand the psychological timescale for choosing and booking courses, and the influence of holidays (and in the case of Brasil, carnival) in the equation.

8. Competitive Intelligence

In order to develop the right courses at competitive prices it is essential to understand what the competition is doing, what prices they are charging and what they are advertising. This can only be done effectively on trips to those countries, as often special deals are country specific .

9. Appreciation of economic factors

Although there are signs of increased economic stability in Latin America as a whole, and Brasil has finally managed to bring inflation down to less than 1% per month, the region has historically been a kind of merry-go-round with some countries showing growth, some countries showing decline, but rarely the same ones in any 2 consecutive years.

Situations change very quickly and it is crucial to follow developments in key markets so that market needs can be met and you are not faced with huge overcapacity, or indeed undercapacity.

10. Long term investment

Market entry and market development in Latin America requires long term commitment and long term investment. A one year strategy, mainly consisting of tactics is extremely unlikely to provide the basis for sustained growth.

Indeed a logical timescale would involve an investment commitment of at least 5 years due to:
-the necessity of more mailing than would be the case in longer established markets.
-the need to build up personal relationships with agents and contacts.
-the need to travel more extensively and for longer periods of time.
-the roller coaster nature of Latin American countries, which may be 'up' one year and 'down' another.

A joke going round some time ago was that the Mexican economy was like a truck which had crashed at the bottom of a cliff; the Argentine economy a car which had broken down by the side of it, and the Brasilian economy a bus which was chortling along at the top of the cliff but no-one knew where the driver was. The joke is already out of date but the last critical success factor is most definitely a sense of humour.

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