Underdeveloped markets have a few unique characteristics that call for a change in marketing strategy and fx broker tactics compared to the more developed markets. First, what makes a region underdeveloped? It is the lack of awareness of the product among the target audience and as a consequence the lack of serious competition, the absence of strong regulation and in some cases the lower cost of marketing in these markets.
Talking about strategy, when a company is promoting a ‘new’ product, the appropriate marketing strategy is to promote the category, not the product. And so it is with brokers in underdeveloped regions with few traders familiar with the product. In order to get any significant business, you need to explain the advantages of trading that product (be it FX or anything else) and resist the urge to talk about your company and its offering too much. The reason is that the public needs to become aware of the product and its virtues to be able to trade it, and through your ‘kind’ education will come to associate your company with that asset class anyway, as happened with for instance IBM when it came to computers back in the day.
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Seems logical, and yet many firms go in talking about their trading platform, spreads and trust worthiness. This is fine when you are after the few people that have become aware of the product and might be appropriate for those on a budget, but for larger firms there just isn’t the target audience to sustainably do this.
On to advertising tactics. Much depends on the chosen strategy but if the company will choose to go the product ‘education’ route the strategy should hinge on Thought Leadership tactics. This means a focus on content marketing, SEO, Public Relations and events all supported by ‘traditional’ online and offline advertising, and if there is the budget, perhaps supplemented with brand advertising. When it comes to those on a budget (i.e. going after the small audience that is aware of the product) then SEO, search engine advertising and RTB could be appropriate tactics to reach the audience at a lot cost.
No matter the strategy and tactics chosen, recognizing the aspects that make a market unique is key in determining a formula for marketing success.