unl1 lll

1 Ident|f|cat|on of Iore|gn Markets

2 1he se|ect|on of export markets
3 CrganlzaLlon of an LxporL ueparLmenL and
LnLry SLraLegles
4 lannlng of exporL markeLlng sLraLegy
producL prlclng promoLlon and
dlsLrlbuLlon channel
3 1rade Shows and LxhlblLlons 8easons
Lypes classlflcaLlon LlemenLs of Lrade
shows
Market|ng kesearch vs Market kesearch
1hese Lerms ofLen are used
lnLerchangeably buL Lechnlcally Lhere ls
a dlfference
W Market kesearch deals speclflcally wlLh
Lhe gaLherlng of lnformaLlon abouL a
markeLs slze and Lrends
W Market|ng research covers a wlder
range of acLlvlLles lL may also lnvolve
markeL research
1wo sets of Categor|ca| a|rs
1arget market
W onsumer MarkeLlng research and
W 8uslnessLobuslness (828) MarkeLlng
research
Methodo|og|ca| Approach
W ;uallLaLlve MarkeLlng research and
W ;uanLlLaLlve MarkeLlng research
-eed of Internat|ona| Market kesearch
W 1o ldenLlfy Lhe markeLs ln order Lo selecL markeLs
slze compleLlon eLc
W ldenLlflcaLlon of sulLable producL
W 1o prevenL Lhe use of lnapproprlaLe markeL enLry
W ApproprlaLe packaglng declslons
W rlclng declslons
W roducL poslLlons
W romoLlons
omest|c Vs Internat|ona| Market kesearch
W 1he complexlLy of research deslgn due Lo
operaLlon ln a mulLl counLry mulLl culLural and
mulLl llngulsLlc envlronmenL
W 1he lack of secondary daLa for many counLrles
and producL markeLs
W 1he hlgh cosL of collecLlng prlmary daLa
W roblems ln coordlnaLlng research and daLa
collecLlon
1yp|ca| Informat|on -eeded
W Lconomlc
W ulLural soclologlcal and pollLlcal
W Cvervlew of markeL condlLlons
W Summary of Lhe Lechnologlcal LnvlronmenLs
W ompeLlLlve slLuaLlon
1yp|ca| Informat|on -eeded
W Lconomlc
W ulLural soclologlcal and pollLlcal
W Cvervlew of markeL condlLlons
W Summary of Lhe Lechnologlcal LnvlronmenLs
W ompeLlLlve slLuaLlon
Iactors cons|dered before se|ect|ng a
part|cu|ar market
W Access|b|||ty lf a company ls barred from
enLerlng Lhe markeL due Lo hlgh Larlff non
Larlff barrlers and governmenL and lmporL
regulaLlons lL would be sheer wasLe of Llme
money and efforLs Lo pursue furLher research
lor example !apan ls consldered a hlghly
proflLable markeL buL ls vlewed as lnaccesslble
due Lo Lhe percelved dlfflculLles ln overcomlng
Lhe Lrade barrlers
Iactors cons|dered before se|ect|ng a
part|cu|ar market
W rof|tab|||ty 1he avallablllLy of currency
exlsLence of exchange regulaLlons governmenL
subsldles Lo local compeLlLlon prlce conLrols and
subsLlLuLe producLs are assessed by a researcher
aL macro level Lo check Lhe markeL proflLablllLy
lor example many Afrlcan counLrles are very
accesslble buL Lhe ablllLy of Lhe Lradlng parLners
Lo pay ls a quesLlonable aspecL because Lhe rlsk
of nonpaymenL decreases Lhe proflL reLurn
calculaLlons
Iactors cons|dered before se|ect|ng a
part|cu|ar market
W Market S|ze and Growth of Market Share As
assessmenL ls made Lo check Lhe poLenLlal
markeL slze Lo evaluaLe wheLher Lhe fuLure
lnvesLmenLs can be successful
C|ass|fy|ng and Ana|ys|ng Markets
W Lx|st|ng Markets ln Lhls markeL Lhe consumer needs are known
and are already belng servlced by exlsLlng suppllers and producLs
LnLerlng Lhese markeLs would be dlfflculL unless a flrm has a
superlor producL or an lnnovaLlve concepL Lo offer Lhem Also Lhe
markeL opporLunlLles can be analysed based on Lhe consumpLlon
raLe esLlmaLes and Lhe share of lmporLs ln Lhe currenL
consumpLlon
W atent Markets 1hese markeLs have poLenLlal cusLomers buL
because no one has offered a producL Lo flll Lhe laLenL need Lhere
ls no exlsLlng markeL
W Inc|p|ent Markets MarkeLs whlch may noL have a greaL poLenLlal
now buL whlch may open up abundanL opporLunlLles ln Lhe fuLure
are called as lnclplenL markeLs WlLh more counLrles opLlng Lo slgn
Lhe World 1rade AgreemenL lnclplenL markeLs wlll open up wlLhln
Lhe nexL 3 Lo 10 years AL presenL Lhe compeLlLlon ln Lhese
markeLs wlll be very less
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W Industr|a| Lconom|es
W More eve|oped eve|op|ng Lconom|es
W kaw Mater|a| Lxport|ng Lconom|es
W Subs|stence Lconom|es
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W Industr|a| Lconom|es
Lmphaslze on research and developmenL
uevoLe Llme Lo produce more sophlsLlcaLed producLs
Clve preference Lo lmporL slmple Lechnology and slmple
manufacLurers
Pave acuLe shorLage of labour hence lmporL labour
lnLenslve producLs llke elecLronlcs and llghL englneerlng
goods
Pave large markeL
no lmporL resLrlcLlons
Lx uSA uk lrance !apan Cermany consLlLuLe 40 of
Lhe LoLal world lmporLs
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W More eve|oped eve|op|ng Lconom|es
refer Lo updaLe Lechnology of Lhe exlsLlng
manufacLurers
refer Lo lmporL machlnery and equlpmenL Lo seL
up new manufacLurlng faclllLles
lnLeresLed ln [olnL venLures wlLh oLher less
developed counLrles
Lx 8razll Mexlco Pong kong lndla eLc
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W kaw Mater|a| Lxport|ng Lconom|es
1hey face wlLh large changes ln forelgn exchange earnlngs
because of flucLuaLlons ln Lhelr exporL prlces
Pave lnadequaLe lnfrasLrucLure and Lherefore need varlous
Lypes of goods almosL anyLhlng consumer durables food
producLs LransporL equlpmenL servlce faclllLles eLc
lnLeresLed ln lmporLlng Lurnkey pro[ecLs
hanges ln Lhese counLrles Lake Llme
1he level of sophlsLlcaLlon requlred ln producLs ls much
less Lhan requlred by Lhe developed counLrles
Lx Culf ounLrles Many Afrlcan and LaLln Amerlcan
ounLrles
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W kaw Mater|a| Lxport|ng Lconom|es
1hey face wlLh large changes ln forelgn exchange earnlngs
because of flucLuaLlons ln Lhelr exporL prlces
Pave lnadequaLe lnfrasLrucLure and Lherefore need varlous
Lypes of goods almosL anyLhlng consumer durables food
producLs LransporL equlpmenL servlce faclllLles eLc
lnLeresLed ln lmporLlng Lurnkey pro[ecLs
hanges ln Lhese counLrles Lake Llme
1he level of sophlsLlcaLlon requlred ln producLs ls much
less Lhan requlred by Lhe developed counLrles
Lx Culf ounLrles Many Afrlcan and LaLln Amerlcan
ounLrles
C|ass|f|cat|on based on the bas|s of
stages of deve|opment
W Subs|stence Lconom|es
need equlpmenL Lo explolL Lhelr unLapped resources
as also lnfrasLrucLural faclllLles llke rallways roads
bulldlngs LransporL equlpmenL power generaLlon
equlpmenL Lransmlsslon llne Lower eLc
rovlde scope for Lurnkey pro[ecLs llke houslng
schools hosplLals eLc
ompeLlLors may noL have offered laLesL
developmenLs ln producLlon Lechnology
CpporLunlLles much greaLer for developlng counLrles
llke lndla for exporLlng Lhelr producLs Lo Lhese
economles
C|ass|f|cat|on based on the Lconom|c
Var|ab|es
W G-
W G- ercap|ta
W opu|at|on
W Income and ersona| Consumpt|on
W Income e|ast|c|t|es |n |mports and exports of
the target countr|es
C|ass|f|cat|on based on the Geograph|ca| Cr|ter|a
W r|mary Cpportun|ty
lor long Lerm sLraLeglc developmenL Lhese markeLs are Lhe besL
opporLunlLles as Lhey have hlgh compaLlblllLy wlLh Lhe company
and also are very aLLracLlve ermanenL presence ls an ldeal opLlon
for companles hence a full scale research program ls lnlLlaLed
W Secondary Cpportun|ty
MarkeLs opporLunlLles are ldenLlfled ln Lhese markeLs buL due hlgh
and percelved pollLlcal and economlc rlsks a long Lerm
commlLmenL ls undeslrable 1hey are handled ln a more
pragmaLlc way afLer a comprehenslve markeLlng lnformaLlon
sysLem ls ldenLlfled
W 1ert|ary Cpportun|ty
1hese markeLs are of hlgh rlsk hence resource allocaLlon ls
mlnlmal Cb[ecLlve ls Lo have shorL Lerm and opporLunlsLlc
sLraLegles and caLch all LhaL a flrm can caLch Llll Lhe relaLlon lasLs
Short |st|ng robab|e Markets
W AcLual physlcal feaLures especlally Lhe cllmaLe
W Slze of Lhe markeLs
W Lconomlc varlables llke lncome wealLh work hablLs
and occupaLlon consumer moblllLy eLc
W ollLlcal lnfluences affecLlng consumers presenL and
poLenLlal suppllers lnLernaLlonal Lrade pollcles
economy llke buslness cycles moneLary moblllLy
dlsposable personal lncome (LaxaLlon sysLem) and
amounL and dlsLrlbuLlon of wealLh
W Mode of LransporL and communlcaLlon ln Lerms of
speed frequency and cosL
W Soclal developmenL pro[ecLs for lndusLrlal developmenL
and forelgn dlrecL lnvesLmenLs comlng lnLo Lhe counLy
1he SelecLlon of LxporL MarkeLs
W Lxamlne Lhe laLesL domesLlc exporLs sLaLlsLlcs and
lmporL sLaLlsLlcs of selecL counLrles whlch are
offlclally publlshed naLlonally and lnLernaLlonally Lo
undersLand Lhe relaLlve slze of Lhe varlous markeLs
and Lhelr exporL Lrends
W lrom Lhe exporL and lmporL sLaLlsLlcs undersLandlng
and assesslng posslble unlL value reallzaLlon and
prlclng
W Lxamlnlng Lhe research sLudles of varlous research
agencles
W lnLeracLlng wlLh Lhe experlenced exporLers
1he SelecLlon of LxporL MarkeLs
W CbLalnlng help by conLracLlng Lhrough Lrade
assoclaLlons and chamber of commerce
W Scannlng economlc Llmes and oLher economlc
dallles for laLesL updaLes
W CaLherlng lnformaLlon from commerclal banks and
frelghL forwarder ln Lhe paymenL poslLlon and
exchange conLrol resLrlcLlons ln shorLllsLed
counLrles
W lnformaLlon provlded by Lhe ommerclal
represenLaLlves regardlng healLh sanlLary and oLher
regulaLlons ln markeLlng and labellng requlremenLs
and ln selecLlng agenLs
Sources for -ecessary Informat|on
W LxporL romoLlon ounclls
W 1he lndla 1rade romoLlon CrganlzaLlon
W varlous hambers of ommerce
W Llbrarles malnLalned by forelgn embassles ln lndla and abroad
W 1he unlLed naLlons publlcaLlons of lnLernaLlonal 1rade SLaLlsLlcs
W ommerclal 8anks
W LxporL redlL CuaranLee orporaLlon
W CLu (CrganlzaLlon for Lconomlc ooperaLlon and uevelopmenL)
W World 1rade SLaLlsLlcs
W 88l
W lndlan lnsLlLuLe of lorelgn Lrade