Planning and Preparation For Export: Export-Import Theory, Practices, and Procedures Belay Seyoum 3 Edition (Or Newer)

LECTURE 2
Planning and Preparation for Export

Export-Import Theory, Practices, and Procedures
Belay Seyoum
3rd Edition (or newer)
Chapter 4
Export Import Process Saiful Islam

1
EMBA Program, Fall 2020 Dept. of International Business
Lecture Overview
• Assessment and Selection of Products
• International Market Research
• International Market Assessment
• Overseas Travel and Promotion

2
Assessing and Selecting the Product
Tariffs
Inflation
Currency exchange Controls/risks
Global threats and opportunities
Taxation

3
Advertising
Market data
The success of the product in domestic markets
Product condition- status of its life cycle
Participation in overseas trade shows

4
• Assessment for selecting product is important for success, which
needed
• Long term management commitment
• Allocation of financial and personnel resources
• Hiring consultant if the company have insufficient knowledge about foreign
market/ choosing appropriate product

5
New
Products
Systematic Reactive
Approach Approach
6
• Systematic Approach
• Selecting product or service based on overall market demand
• Selecting products or services based on familiarity and skill of
exporters
• Proximity of the producer or manufacturer to one’s home or office
in order to maintain crucial manufacturing activities

7
• Reactive Approach
• Selecting a product based on immediate market need
• Identify the consumer need and then select a product or service to
satisfy
• Contacting potential importers to indicate exporter’s interest in
supplying the product
• Lack of focus on a given product or market
• Absence of long-term relationship with the importer

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International Market Research
• International market research deals with
• Decision of choosing an appropriate market
• Allocation of resources in markets
• Identify the potential markets
• Helping to maximize sales and profits
• Why conduct international market research
• Careful and objective assessment of foreign markets
• Taking decisions about different foreign markets considering environmental
differences

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• The purpose of international marketing research is to,
• Identify, evaluate, and compare the size and potential of various
markets and select the most desirable market(s) for a given
product or service
• Reassess market changes that may require a change in a
company’s strategy

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Market Research
Primary Research Secondary Research

(Primary Data) (Secondary Data)

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• Primary Research (using primary data)
• Conducted by collecting data directly from the foreign marketplace
through interviews, focus groups, observation, surveys, and
experimentation with representatives and/or potential buyers.
• The advantage of being tailored
to the company’s market
• Often expensive and time-consuming

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• Secondary Research(using secondary market data)
• Based on data previously collected and assembled for a certain
project other than the one at hand
• Information could be found inside the company, public or private
organizations, market studies, country market surveys, export
statistics profiles, etc.
• Readily available and inexpensive

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• Secondary Market Research has certain limitations
• The information often does not meet one’s specific needs- be too
broad or too narrow in terms of their scope of coverage and out of
date
• There could be differences in definition
of terms or units of measure
• It is difficult to assess the accuracy
of the information

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International Market Assessment
Secondary Screening
Preliminary Screening Third Screening (Political
(Financial and Economic
(Basic Need and Potential) and Legal Forces)
Conditions)
Final Selection Fifth Screening Fourth Screening (Socio

(Field Trip) (Competitive Forces) cultural Forces)

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1. Preliminary Screening (Basic Need & Potential)
• Assessing basic need for the company’s products or services in foreign
markets- climate, topography, or natural resources
• Determining whether the need for the product or service has been
satisfied
• Assessment of market’s overall buying power by examining country-
specific factors such as population, gross domestic product, per
capital income, distribution of wealth, exports, and imports

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2. Secondary Screening
(Financial & Economic Conditions)
• Screening financial conditions such as trends in inflation, interest
rates, exchange rate stability, and availability of credit and financing
• Economic data are assessed to measure market size, market intensity
(degree of purchasing power), and growth of the market (annual
increase in sales)

17
3. Third Screening (Political & Legal Forces)
• Assessing type of government and its stability
• Democratic governments tend to be politically stable and favor open
trade polices
• Assessing also legal forces in the countries
• Entry barriers
• Limits on profit remittances and/or ownership
• Taxes and price controls and protection of intellectual property rights

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4. Fourth Screening (Socio-cultural Forces)
• Consideration of socio-cultural forces such as customs, religion, and
values

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5. Fifth Screening (Competitive Forces)
• Appraising the level and quality of competition in potential markets
• The level of technology, the quality and price of the products and/or
services, and estimated market shares of competitors

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6. Final Selection (Field Trip)
• The final stage involves a visit to the markets that appear to be
promising in light of the market assessment technique
• It could be in the form of
• Trade missions (a group of business and government officials that visit a
market in search of business opportunities) or
• Trade fairs (a public display of products and services by firms of several
countries to prospective customers)

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Overseas Travel And Promotion
Planning &
Overseas
Preparing for Publicity
Promotion
the Trip
Making Prior Arrangements

Acquiring Basic Knowledge
of the Host Country Advertising
Obtaining temporary Personal Selling
entrance permission Sales Promotion
Business Negotiations
Documentation
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A. Planning & Preparing for the Trip
1. Making Prior Arrangements
• Confirmation & timing of the meeting
2. Acquiring Basic Knowledge of the Host Country
• History, culture, and customs, weather & Visa process
3. Obtaining temporary entrance permission
4. Business Negotiations
• Planning & preparation, determining boundary of contract
5. Documentation
• Document various meetings to record for company files

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B. Overseas Promotion
• Designed to open new markets,
maintain and increase existing
market share, and obtain market
intelligence
• Should motivate customer to
react positively- which requires
promotional message are
tailored for cultural sensibilities
and unique

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• Promotional tools are Direct
Mail, Advertising, Trade Fairs/
Missions, and Publicity
• Promotional material indicating
customized products create a
favorable image among public

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1. Advertising
• Any paid form of non-personal presentation & promotion of ideas, goods, or
services by an identified sponsor
• One or a combination of vehicles can be used like newspapers, TV, radio,
direct mail etc.
• Process involves budgeting, determining media & preparing the
advertisement package
• Available media to use are,
• Foreign media
• Government-supported advertising
• Commercial publications
• The Internet

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2. Personal Selling
• Oral presentation used during the first stages of internationalization,
marketing of industrial goods
3. Sales Promotion
• Refers to marketing activity other than advertising, personal selling, or
publicity- trade shows, trade fairs, demonstrations
• Trade shows are supported/organized by
governments in order to promote exports
• Trade missions

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C. Publicity
• Publicity is communicating with an audience by personal or non-
personal media that are not explicitly paid for delivering the messages
• Public Relations (Publicity) program-
• Charitable donations to schools, hospitals, and other social causes;
• Sponsorship of youth athletic teams;
• Participation in local parades;
• Or inviting the media to cover special events
sponsored or supported by the export company

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End of Lecture 2

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LECTURE 2

Planning and Preparation for Export

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Primary Research Secondary Research

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Final Selection Fifth Screening Fourth Screening (Socio

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Making Prior Arrangements

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

Export Import Process Saiful Islam

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