Malaysia - Selling Factors and TechniquesMalaysia - Selling Factors

Malaysian buyers—whether individual consumers or purchasing agents for businesses or the government—tend to be highly price sensitive. Concepts such as total life cycle costs are not well understood, so a higher cost product that is higher quality, longer lasting, and lower maintenance will frequently lose out to the lowest cost product or the one that seems to have the most compelling discount. Malaysians are brand-conscious, as well, so brand and reputation can successfully trump cost, but only once the brand is well known.

Cultural Considerations
When marketing general consumer goods, U.S. companies should keep in mind the cultural norms and standards of the Malaysian population, as well as the fact that Malaysia is a multi-ethnic country (Malay, Chinese, indigenous, and Indian). The majority of the population is Muslim which means that certain food products must be halal, meaning lawful and permissible to use and consume by Islam guidelines. Companies often focus on halal certification (or at least avoid non-compliant ingredients or images such as pork and alcohol) in order to appeal to a larger market. It is also advisable to conduct some research on the possible implications of advertising or promoting non-halal activities in Malaysia.

Food and Consumer Goods
U.S. food and other consumer goods are primarily marketed to the rapidly growing urban middle class and tend to occupy the upper end of the local retail price spectrum. While value for Dollar/Ringgit is important, the "brand name" status of certain products appeals to Malaysians with a higher level of purchasing power. However, the same techniques used to market upscale goods and services in the United States may not be as effective in Malaysia.

Equipment and Materials
Export of equipment and materials are usually via specialized trade fair, advertisments in their specific trade publications or direct canvassing.  Equipment are usually capital outlays and in most situations the local industry representatives or agents can handle the sales.  The sum of the sales are usually directly proportional to the level of the business contacts i.e. the bigger the value the higher the level of the contact.  Thus it is important that U.S. companies foster a good working relationship with their clienteles.  Materials that are classified as consumables are usually treated as commodities and in most cases, pricing prevails.  

Sales to government or large-scale projects usually require extensive high-level lobbying by local representatives.  In such situations, courtesy calls by representatives of pricipals from the home country can greatly enhance the position of  the machineries or materials.   Branding is another aspect that U.S. companies must pay attention to as brand image is another factor that local companies look for in a product after pricing. Image building is often achieved via published articles in relevant publication and advertising in local business journals, sponsoring conferences and events.

Agricultural products
U.S. agricultural exporters face strong competition from foreign producers such as China, Australia, India, Thailand, Holland, New Zealand, and Indonesia. Although the Malaysian market is price sensitive, price is not the only factor that determines the success of U.S. agricultural exporters. Developing strong business relationships with local industry players (including importers), maintaining the availability and the quality of the produce, effective promotional campaigns, and targeting the right markets are other important marketing factors to consider when operating in the Malaysian food and agricultural sector.
 

                  Source: Global Trade Atlas