Haldoor Company

Type of business: service business

Intorduction
Our a critical facilitator of internationalization of markets depends on three components as
market drivers that is the presence of similar customer needs and tastes, the presence of global
customers e.g. the growing trend in car components companies being internationalized as their
customers become internationalized

Our vision is a business world full of connection, meaning and prosperity for all.
Our mission is to be experts in sales and marketing alignment and masters of
message. We strive to destroy the apathy that sucks the life out of the business world by daring
to ignite the mind, inspire the spirit and penetrate the heart during business hours, every single
day.

What Is Strategic Market Planning?

Strategic market planning is a process through which a certain company formulates

marketing strategies and plans its implementations in the target market. This process helps
in identifying the promotional opportunities and evaluates these opportunities for them to
be applied to the company. The target market is identified through comprehensive research.
You may also see define marketing plan and its purpose?

Although marketing is a challenging and complicated process and cannot be simply

planned and implemented in a short period of time, strategic market planning can be done

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for both long-term and short-term goals. It considers various parameters to plan according
to the target market and the trend in the economy.

Three Stages of Strategic Market Planning

1. Segmentation of the market and customers

You must be well aware of the difference between your target market and any other
customer. When you say customer, this pertains to anyone who drops by your shop to buy
anything that you are offering. This may also include your target market. You may also
see how to create an executive summary of a marketing plan.

On the other hand, your target market are the ones whom you think are those who would
buy your goods or avail your services for they answer their problems and provide them
their needs as you are tailoring your goods and services specifically for them.

2. Profiling of the market segments

Segmenting your market is the process of dividing your customers into subgroups, known
as segments, by identifying their common needs, their characteristics, their interests, their
lifestyles, or their demographics.

In this way, you will know the common needs of each segment that you are going to
address as well as how to address them. This is important since different market segments
require different marketing programs, different offers, different prices, different promotion,
or different distribution. You may also like marketing strategy plan examples.

3. Development of the actual marketing strategy

After you have clearly identified your market and know their needs, you can now develop
the actual marketing strategy that would specify the general plans on how you would
introduce your goods and services, your marketing tools and strategies, the medium that
you are going to use, and the step-by-step implementation of your plan.

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 There are a number of ways that firms can enter a foreign market.  The most important ways are:
 Exporting.  In this mode, a firm simply produces its goods in its own country and ships them to
the foreign market to be sold.

 Licensing.  Here, the firm takes payment from a firm in the target country.  In return, the firm
that pays gets the right to use the other firm's intellectual property such as trademarks and
production methods to produce goods in the target country.

 Joint venture.  Here the firm and a firm in the target country work together in a partnership.

 Foreign direct investment.  Here, the firm that wishes to enter the market simply buys facilities in
the target country and starts to produce goods.

Export Strategies

An overview on how exporting can be one of the best ways to grow a business and offer help if
competition in the domestic market intensifies. This article is part of the U.S. Commercial
Service's "A Basic Guide to Exporting" provided to assist U.S. companies with exporting.

Advantages of Exporting:
The following are the advantages of exporting as an international entry strategy for a new firm;

Increased sales volume resulting in improved market share as well the generation of profit
margins that are often more favorable than the domestic market,

Increased economies of scale through the reduction of unit cost of manufacturing as the sales
volumes rise

A diversified customer base thus reducing dependence on home markets.

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Minimized risk and maximized flexibility compared to other entry strategies as the firm can
easily and quickly withdraw from an export market.

Lower cost of foreign market entry as the firm does not have to invest in the target market or
maintain physical presence especially through the use of agencies or franchises. The firm can
therefore test the new market before committing greater resources through foreign direct
investment.

It helps stabilize fluctuations in sales associated with economic cycles or seasonality of demand
e.g. a firm can offset declining demand at home.

In a nutshell the low cost , low risk nature of exporting, combined with the ability to leverage on
foreign partners makes exporting suitable to a new firm in the international

Disadvantages of Exporting
Because exporting does not require the presence of the firm in the country it is exporting its
goods or services, the firm usually does not meet with its customers as a result it does not get to
learn about the interests of its clients, the competitors and the market.

It does not allow the firm to benefit from the location advantages of the host national.

The exporting firm has limited opportunities to gain knowledge of local markets and competitors
as it does not dwell in the target market’s countries, hence posing a business risk.

There is serious exchange risks involved as the firm deals in foreign currency due to fluctuations
in exchange rates. Without proper hedging, the organization may encounter significant exchange
losses depending on the economic situation of the target foreign market and apart from losses,
exchange rates may cause the exporters goods being expensive in the target market and therefore
lose market share in the host national.

The exporting organization is exposed to trade barriers such as import duties/tariffs depending on
the area of the host national whom it trades with. The existence of certain regional groupings

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may affect the exporting firm positively or negatively especially if the firm is from outside the
region.

Exporting usually involves transporting goods for production companies involved in goods
marketing and distribution. This may be a constraint in the smooth distribution and realization of
business objectives of economic growth and profit generation. This may also depend on the
location of the target market and the socio-economic situation in the host nations as well as
infrastructural development.

The fact that the exporting firm does not dwell in the host country may result in limitations on
the ability to respond quickly to customer demands as there may be no one from the firm on the
ground to respond on time.

Exporting may create dependence on export intermediaries and therefore may not have the grip.

Another disadvantage of exporting is the high transportation costs that can make exporting
uneconomical especially if the organization is exporting huge or bulk products.

Conclusion
It can be concluded that a critical facilitator of internationalization of markets depends on three
components as market drivers that is the presence of similar customer needs and tastes, the
presence of global customers e.g. the growing trend in car components companies being
internationalized as their customers become internationalized. In accordance to Yip (2003) costs
may be reduced by operating internationally through increasing volumes beyond what a national
market may support and therefore can give rise to economies of scale both on the production as
well as on the purchasing side. Scale economies are particularly important in industries with high
product development costs. It also noted that internationalization is promoted were it is possible
to take advantage of country specific differences. Other drivers may be due to policy including
tariff barriers, subsidies to local firms and license to trade.

Therefore among the methods of internationalization, exporting has proved to be more popular in
certain types of business operations and largely depends on what stage a particular firm is in the
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process of internationalization. Mostly this method is used by firms in the initial stages of
internationalization especially by small and medium sized enterprises (SMEs) and strategy
becomes less popular as firms grow in size.

The two main strategies firms use to export is firstly by collaboration , where a firm goes into
partnerships with other firms either locally or abroad to complete value chains in the business
through joint ventures, licensing, franchising and other strategic alliances.

The second strategy is the go it alone or autonomous strategy were a firm going into export
through the establishment of its own infrastructure in the target market such as a distribution
office, its own employees. Therefore this strategy involves the foreign direct investment (FDI)
with a view to establishing a long term commitment in the foreign market involved. However, it
is less popular especially for firms going on the international market for the first time.

Through analysis of the export strategy, the method has got a lot of disadvantages despite having
a lot of advantages and therefore the choice of using for internationalization will depend on
various factors such as being an entry strategy, or depending on the economic conditions of a
particular region, take advantage of market conditions prevailing at a particular time. This is after
taking into account the various factors or drivers such as costs, competition, market condition
and local and host government policies.