Identifying Your Potential Export Markets
Successful exporting is based on an understanding of foreign markets and
how U.S. products and services can satisfy foreign demand. No company should
seriously consider exporting their goods or services to foreign markets
unless their decision can quantifiably result in future revenue
opportunities, profits, or a chance to expand market share. Smart exporters
maximize opportunities to identify foreign markets, prospective buyers and
customers, as well as constraints within individual foreign markets by
engaging in methodical market research. Proper market research provides the
answers to the critical questions that will help make the "go" or "no-go"
decision to export.
This section emphasizes the value of market research to your export
decision. You will be presented with the basic methods for conducting market
research and a systematic approach to identifying your potential export
markets. In addition, this section will introduce you to the many valuable
resources available to assist you through your own international market
analysis, including the Internet and other forms of electronic media. By
applying this new knowledge you will better:
- Understand the role/significance of market research to the exporting
decision;
- Gauge the export market potential of your goods and services;
- Identify issues that should be addressed by market research;
- Conduct your market research in a methodical manner aimed to maximize
sales and marketing opportunities;
- Identify, evaluate, and target potential export markets based on
quantifiable research and your company�s personnel and financial
resources; and
- Identify resources available to help you select your potential export
markets.
There are many foreign markets to choose from and you will need to select
the market, or markets, that best fit your company goals and objectives.
When researching potential opportunities, you will want to ensure that the
information collected addresses the issues critical to the success of your
company�s export plan. The collection, analysis, and understanding of the
right information will help your company make sound decisions and avoid
costly mistakes.
Market research will not only assist you in determining which markets are
worth considering, it will also assist you in formulating the strategy for
penetrating those markets. Your company may have already received inquiries
from abroad which indicate some sales potential. Market research can help
your company determine the real level of demand and competition in these
areas. It can also provide important information about many other key
aspects to the foreign sales cycle including distribution channels,
marketing methods, cultural aspects, and after-sales service needs.
There are several ways to gauge the overseas market potential of your
company's products and services. One of the most important ways is to assess
your success in the domestic marketplace. If your products or services are
successful in the U.S. market, there is a good chance that they will also be
successful in markets abroad, wherever similar conditions and needs (market
and regulatory drivers) exist. Before embarking on market research for your
export activities, make sure your company has a solid understanding of its
positioning in the domestic market and how its products and services stack
up to the local competition.
Some international markets may differ significantly from the domestic
market due to a variety of factors, including government regulations,
political climate, socioeconomic factors, infrastructure, market size,
product modification, and competition. One strategy for export success is to
carefully analyze why a product is successful in the U.S. market to develop
a set of criteria for targeting markets abroad. In this way, you can
minimize misguided zeal and product modifications.
If your product's technology is not new or unique, there is the advantage
of having low-cost market research readily available. If the technology is
unique or has features that are hard to duplicate abroad, little competition
and high demand may combine to increase the chances for finding an export
market. Finally, keep in mind that some less developed markets that may not
need state-of-the-art technology, and may be unable to afford the most
sophisticated and expensive products, may have a healthy demand for U.S.
products that are considered obsolete by U.S. market standards.
Before your company can begin its international market research, you will
need to know the statistical codes for several basic classification systems.
These codes will help pinpoint the data you need to conduct your research.
Without certain codes you will not be able to access many existing data
sources, participate in government-sponsored and private export market
research programs, or most importantly, export your products.
There are two major types of classification systems: commodity
classification and industrial classification. The most common
commodity classification systems include:
- Harmonized Tariff System (HTS): A standardized
international system used to classify products for both tariff and
statistical purposes, the HTS assigns six digit codes for general
categories. Countries that use the HTS are allowed to define commodities
at a more detailed level than six digits, but all definitions must be
within that six-digit framework. The U.S. defines products using 10-digit
HTS codes for all of its export and import codes. Export codes (which the
U.S. calls Schedule B) are administered by the U.S. Census Bureau.
- Standard International Trade Classification (SITC): SITC
is a harmonized classification system maintained by the UN. This
five-digit classification is used to report aggregated national import
statistics to facilitate international comparability.
The most common industrial classification systems include:
- Standard Industrial Classification (SIC) - The SIC was the former
four-digit economic classification system used to describe industries of
the U.S. economy. It was replaced by the North American Industry
Classification System (NAICS) in 1997. One usually uses this system when
one wishes to compare trade with employment numbers or shipments.
- North American Industrial Classification System (NAICS) - NAICS is a
five-digit economic activity classification jointly created by the U.S.,
Canada, and Mexico. Starting with 1999 data, NAICS trade data will replace
SIC data. National implementation normally requires use of a sixth digit
to identify industries not recognized by other countries. The official
NAICS site is
http://www.census.gov/naics and has SIC4 to NAICS and NAICS to SIC4
conversion tables.
Schedule B Number (HS Code):
Probably the most important classification code, the Schedule B (HS Code)
is used throughout the export process. The HS Code is required by U.S.
Customs and must appear on the Shipper�s Export Declaration (SED) and other
required documents or your shipment will not be allowed to depart the United
States. In turn, the U.S. Department of Commerce, through the Census Bureau
compiles export statistics by quantity and value by country of destination
and customs district of exportation based on the SEDs collected by customs
officials at the port of export. You can obtain these statistics on the
Internet or CD-ROM from the Census Bureau. For more information go to
http://www.census.gov/foreign-trade/www.
In addition, foreign Import duties and tax rates by product by market are
also determined using the HS Code. You can find out the import duties and
tax rates by contacting the Trade Information Center (TIC) of the U.S.
Department of Commerce at (202) 482-0543. However, before you contact the
TIC you will need to identify and provide them two pieces of information: 1)
the country to which you want to export; and 2) the HS Code for your
product.
The HS Codes for your products are printed in the government publication
Schedule B: U.S. Foreign Trade Statistical Classification of Domestic and
Foreign Commodities Exported from the United States. This publication is
available for review at district offices of the U.S. Department of Commerce,
many foreign freight forwarders, and most major public libraries. To order
your own copy, including periodic updates, contact:
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402-9371
Tel.: (202) 512-1800
You can also determine your HS Code by contacting the U.S. Bureau of Census
at (301) 457-1084. If you have Internet access, you can connect to
http://www.census.gov/foreign-trade/schedules/b/ or
http://trading.wmw.com/codes/codes.html for immediate results.
Export Control Classification Number (ECCN):
Every product controlled by the Department of Commerce has been assigned
an Export Control Classification Number (ECCN). Located in the "Commerce
Control List" (CCL), which is a supplement to the Export Administration
Regulations (EAR), the ECCN Number consists of five characters that together
identify the category, product group, type of control, and country group
level of control. The ECCN is used to determine what export authorization
(i.e., License, License Exception or No License Required) may be used to
export and re-export the product to its intended destination. It also
contains the processing code that must appear on the application form to
secure a Validated Export License. Though the ECCN number is not tracked for
statistical purposes, it is required to complete an export transaction.
Note: Your company should classify products by either having a technical
person at the company review the product against the CCL in the EAR,
verifying the classification with the original manufacturer, or sending an
export control classification request to the U.S. Department of Commerce.
The National Technical Information Service (NTIS) of the U.S. Department of
Commerce can provide a hard copy or online version of the new EAR. For more
information go to http://www.bxa.doc.gov.
You'll begin researching which US-AEP markets have the best potential for
your company's products by using either primary or secondary data sources.
Primary market research involves collecting firsthand data directly from the
foreign marketplace through interviews, surveys, and other direct contact
with representatives and potential buyers. Primary market research has the
advantage of being tailored to the company�s needs and provides answers to
specific questions, but the collection of such data is time consuming and
expensive.
Secondary market research involves collecting data from compiled sources,
such as government trade statistics by country or commodity. Researching
secondary sources is less expensive and is the first step for your company
to focus its marketing efforts. Although secondary data sources are critical
to market research, they do have limitations. The most recent statistics for
some countries may be more than two years old; product breakdowns may be too
broad to be of much value to a company; statistics on services are often
unavailable; finally, statistics may be distorted by incomplete data
gathering techniques.
Yet, even with these limitations, secondary research is a valuable and
relatively easy first step for your company to take. It may be the only step
needed if your company decides to export indirectly through an intermediary
such as an Export Management Company (EMC) or an Export Trading Company
(ETC), which may have advanced research capabilities or distribution
channels already in place. On the other hand, if you opt to export
indirectly you may want to conduct secondary market research before
selecting an intermediary, since many intermediaries have strengths in
certain markets but not in others.
And then of course, your company may begin exporting without conducting
any market research at all as a reaction to unsolicited orders from abroad.
Although this type of selling is valuable, your company may discover even
more promising markets by conducting a systematic research effort.
Because of the expense of primary market research, most companies rely on
secondary data sources. There are three basic ways to conduct secondary
market research:
- Keeping abreast of world events that influence the international
marketplace, watching for announcements of specific projects, or simply
visiting likely markets.
- Analyzing trade and economic statistics compiled by product category
and by country. Demographic and general economic statistics such as
population size, size of middle class, GDP, per capita income, and
production levels by industry can be important indicators of the market
potential for your company�s products.
- Seeking the advice of experts. There are several ways to obtain expert
advice, including:
- Contacting industry-specific specialists with regional presence or
jurisdiction such as
the US-AEP Technology Representatives,
US-AEP
Infrastructure Representatives, the American Chambers of Commerce,
which are all located in the major cities of almost every major US-AEP
trading partner, or the Environmental Technologies Export Trade
Specialists at the Department of Commerce (http://www.ita.doc.gov);
- Contacting local area experts such as your nearest Department of
Commerce Export Assistance Center;
- Contacting experts in the field;
- Attending seminars, workshops, and international trade shows;
- Hiring an international trade and marketing consultant;
- Talking with successful exporters of similar products; and
- Contacting trade and industry association staff such as the National
Association of State Development Agencies (NASDA), Council of State
Governments (CSG), Water Environment Federation (WEF), Air & Waste
Management Association (A&WMA), etc. For contact information go to
http://www.usaep.org/contacts.htm#Partners.
Gathering and evaluating secondary market research can be complex and
tedious. However, several publications are available to help simplify the
process. The following approach to market research refers to these
publications and resources described later in this chapter.
The process for conducting market research for the export decision is not
that much different than conducting research when making marketing decisions
for the domestic marketplace. The process requires identifying those
concerns whose answers will provide you with information to make an educated
decision on whether your company�s product will sell and make a profit in a
targeted international market.
Market research to determine target export markets can be described in
three phases. Your company may find the following three-phased approach
useful:
This phase consists of basic research, analysis of generic information,
and an initial assessment of the number of possible markets. Remember that
your company cannot optimally market to the entire international marketplace
simultaneously. This phase will assist you in narrowing the number of
potential markets to a limited number (six) of the most promising markets.
You may decide to market regionally. For example, if your company is
considering Hong Kong, you should also take a look at Taiwan, Singapore and
China, or if you are looking at Thailand, you might consider looking at
Indonesia, and Malaysia. Analyzing secondary data across many areas can help
you make good business decisions.
Step 1-1. Obtain trade statistics that indicate product exports to
various countries. The federal government provides statistics on all U.S.
exports and is a good place to start. The U.S. Department of Commerce
(Census Bureau) provides U.S. exports of domestic and foreign merchandise by
Harmonized Schedule B (HS) Commodity Code on CD-ROM. You should also consult
the National Trade Data Bank, which is also available on CD-ROM, on the
Internet, or through many Department of Commerce district offices. Other
resources include the Export Information System (XIS) Data Reports (Small
Business Administration), or U.S. Industrial Outlook Reports (Department of
Commerce).
While the amount of government information is extremely vast, you may
find it quite cumbersome to wade through. Consider investigating alternative
resources and research tools for obtaining your export statistics. The
advantage to this is having all the comprehensive government information
plus additional proprietary information packaged in a way that gets you to
your market data quickly and easily. This allows you to readily find current
market and industry trends for a specific product by country, and you will
know right away which secondary government reports are going to provide the
market data that you need. With this information you are ready to proceed to
the following steps.
Step 1-2. Identify three or four of the largest markets for your firm�s
environmental technologies or services. Look at the market trends over the
past three to five years. Has market growth been consistent year to year?
Did import growth occur even during periods of economic recession? If not,
did growth resume with economic recovery?
Note: Long-term trends for the Asian region should look beyond the
most recent effects of the Asian financial crisis over the past two years
to historical data.
Step 1-3. Identify three or four smaller but quickly emerging markets
that may provide entry-level opportunities. Growth rates should be
substantially higher in these countries to qualify as up-and-coming markets,
given the lower starting point. If the market is just beginning to open up,
there may be fewer competitors than in established markets.
Step 1-4. Choose the six most promising markets based upon the
information you have just gathered. Although the differences between certain
countries may be slight, you must be decisive and final in your selection.
Note: A common mistake made by many U.S. exporters is that they
attempt to take on the entire world at one time (or an entire region for
that matter). The volume of paperwork becomes enormous, management becomes
discouraged, and exporting is eventually dropped because "it is too
complicated and not worth the effort." Do not fall into this trap!
Step 1-5. After you have selected six preliminary export markets,
schedule an appointment with an International Trade Specialist at the
nearest U.S. Department of Commerce district office or U.S. Export Assistant
Center (USEAC). Plan a meeting with a US-AEP technical representative to
find out more about the US-AEP programs. Indicate that you intend to
thoroughly research these six markets and ultimately select one to three
(1-3) primary target markets for a concentrated sales and marketing effort.
Note: Working closely with state and local export organizations,
USEAC�s consolidate in one central location the export promotion services
of the U.S. Department of Commerce, the Small Business Administration
(SBA), and the Export Import Bank of the United States (Ex-Im Bank).
USEAC�s provide individualized export counseling with clients. They are
especially useful for businesses and individuals in the early stages of
exporting. The US-AEP Program can provide specific counseling for
environmental companies.
Step 1-6. In preparation for your meeting, study the following paragraphs
that outline US-AEP and U.S. Department of Commerce reports and programs
that will be useful to you in selecting your most profitable foreign
markets.
Note: Some of the following reports may contain names and addresses
of potential agents and distributors. Place them in your files as they
become available. It will save you considerable time and expense when you
begin to seek out potential export sales representatives.
Customized Market Analyses (CMA)
A custom-tailored service that provides a quick, accurate market
assessment of your products in a particular country. In-country interviews
and surveys are conducted to determine the marketability of your products,
key local competitors, industry pricing, prevailing distribution channels,
promotional practices, trade barriers, possible business partners, and local
trade events. Prices range from $1,000 to $5,100 depending upon the country.
Country Commercial Guides (CCG)
A series of reports that list the most promising prospects for U.S.
exports in most major world markets. Each country report includes industry
trends with supporting statistical data, and suggestions on the most
effective promotional techniques to penetrate the local market. These guides
are available from the Department of Commerce.
International Business Practices (IBP)
An excellent source of data on 177 countries. Information on individual
countries includes important organizations, prevalent distribution systems,
attitude of local governments toward foreign investment, protection of
intellectual property rights (IPR), national taxation laws, local regulatory
agencies, and useful private and government contacts to further investigate
market potential. It is also available from the Department of Commerce.
Environmental Technology Network for Asia (ETNA)
The Environmental Technology Network for Asia (ETNA) is a U.S.
government-sponsored clearinghouse that collects trade leads from the
Asia/Pacific region and disseminates them to U.S. environmental technology
and services firms. For more information go to
http://www.usaep.org/ouractiv/etna.htm.
NASDA Small Grants
The Environmental Technology Fund provides grants to U.S. companies for
the purpose of facilitating the transfer of environmentally responsible and
energy-efficient technologies to the Asia/Pacific region. The objective is
to improve the quality of life and environment for Asians and Pacific
Islanders while stimulating demand for U.S. technologies. For more
information go to
http://www.usaep.org/ouractiv/nasda.htm.
Country Assessments
These US-AEP reports examine the factors driving environmental,
industrial, and urban management in ten Asian nations and territories.
(Published 1/97). To read these reports go to
http://www.usaep.org/country/index.htm.
Competing in Asian Environmental Infrastructure Markets
Developed by US-AEP, these case studies reveal how four U.S.
environmental infrastructure companies have succeeded in Asia. (Published
3/97). To read these reports go to
http://www.usaep.org/casestud/case.htm.
Step 1-7. After your meeting with the International Trade Specialist and
US-AEP technical representative, contract for as many of these reports and
information as you feel will be necessary to make a well-informed judgment
on each market. Begin your market research program as soon as possible. It
may take several weeks to receive all of the statistical data.
Step 1-8. Investigate non-governmental sources of information on export
markets. Make it known to appropriate individuals and organizations that you
are actively seeking export markets and that you would appreciate their
advice and counsel. You may receive useful ideas and valuable information
from the following sources:
- Private Sector: Detailed country-specific trade restrictions
and regulatory requirements, contact lists for your freight forwarding and
regulatory needs, and up-to-date news wires will keep you informed of
changing markets.
- Industry Trade Associations: Secure membership lists and
contact business associates who export products complementary to your
product line. Attend industry trade shows and participate in activities
that attract experienced exporters and overseas visitors.
- State International Trade Offices: Their purpose is to increase
export sales of firms located in their states. They usually have excellent
research facilities and overseas business connections.
- World Trade Centers: Many are equipped with computerized data
retrieval systems that provide valuable information on major foreign
markets.
- World Trade Associations: Membership fees are modest and the
cost will be justified by the assistance you will receive and the export
contacts you will establish.
- Multilateral Institutions (IDB, World Bank, IMF, OPIC, EximBank):
These institutions provide publications, databases, RFPs for major
infrastructure projects, loan programs and finance assistance, and
intervention to make corrupt practices less transparent.
- Treaty Organizations (APEC, ASEAN, WTO): Countries all over the
world have banned together in regional and international groups to create
various treaties or agreements designed to promote free trade within these
respective groups. They develop and disseminate regionally focused and
country-specific information and databases.
Note: Make certain that all market research information is current.
Even though the report you receive is only a few months old, it may
contain information that was probably compiled several years ago and is
obsolete or misleading. Be cognizant of current information and inquire
about recent changes that might affect your final decisions.
Step 1-9. Devise a list of categories that you will use to evaluate your
US-AEP markets and create a checklist that will allow you to evaluate your
potential export markets. The amount of information you will be receiving
from both the government and non-governmental sources will be extensive. For
this reason, it is important that you develop a baseline group of market
characteristics upon which you will make your judgments such as the
following:
- Current Market Size: Very small markets for your products
should be avoided until you have established a profitable sales network in
your more lucrative export markets.
- Potential Market Growth: Larger markets with strong growth
trends for your products will increase profit margins and reduce per-unit
production and marketing costs.
- Market Accessibility: You may be faced with price-cutting
pressures if duties are high and there are only a few suppliers and sales
representatives in the local market.
- Economic Stability: Persistent trade deficits may prohibit
potential customers from securing import permits and the U.S. dollars they
will need to pay for your products.
- Political Climate: Unstable governments may impose tariff
and/or non-tariff trade barriers to protect local suppliers from foreign
competition and to increase employment within the country.
- Other: Long distance to the market will increase transportation
and travel costs and raise local prices. Cultural and language differences
tend to create higher communication expenses.
During Phase 2 of your market research you will use the "Checklist for
Evaluating Potential Export Markets" to target the best one to three
market(s) for your product. This phase will require more detailed
information about the disposable income of the end-user and the spending
patterns for your product in your six potential markets of Phase I. This can
usually be done through secondary research, but may require some primary
research at times. This is where the help of US-AEP's in-country Tech Reps
can be extremely valuable.
Step 2-1. Determine the market size and level of middle class consumers.
Examine demand trends for company products as well as complementary products
that could influence demand. Calculate overall consumption (local production
and imports) of the product and the amount accounted for by imports.
Industry sector analyses (ISAs), alert reports, and country marketing plans,
all from the Department of Commerce, give economic backgrounds and market
trends for each country. Demographic information (population, age, etc.) can
be obtained from World Population (Bureau of the Census) and Statistical
Yearbook (United Nations).
Step 2-2. Ascertain the sources of competition, including the extent of
domestic industry production and the major foreign countries the firm is
competing against in each targeted market, by using ISAs and competitive
assessments (available from the Department of Commerce). Look at each
competitor�s U.S. market share (US-AEP's Export-Link Market Analyses).
Step 2-3. Characterize the customer segmentation of the product in each
market and end user profiles. Note the customary methods of market entry and
the internal distribution network prevalent in each of your primary target
markets. This information will play a major part in deciding upon the type
of export sales representatives you will select to penetrate individual
markets. Again, ISAs are useful, as is the Comparison Shopping Service (CSS)
offered by the Department of Commerce.
Step 2-4. Identify any foreign barriers (tariff or non-tariff) for the
product being imported into the country. Identify any U.S. barriers (such as
export controls) affecting exports to the country. Country information kits
produced by the Overseas Private Investment Corporation (OPIC) can be
helpful, as is the Dun & Bradstreet Exporters' Encyclopaedia.
Step 2-5. Identify any U.S. or foreign government incentives to promote
exporting of the product or service. US-AEP and your local Department of
Commerce Export Assistance Center will help you identify programs available
to your company.
Checklist for Evaluating Potential Export Markets
COUNTRY: ___________________________
Category |
Category
Rating |
Current
Market Size: |
|
Population |
_______ |
Total GDP |
_______ |
Per Capita GDP |
_______ |
Rate of Investment |
_______ |
Local Production |
_______ |
Import Value |
_______ |
|
|
Potential
Market Growth: |
|
Population Growth (over past
3-5 years) |
_______ |
Rate of GDP Growth |
_______ |
Rate of Per Capita GDP Growth |
_______ |
Rate of Investment |
_______ |
Growth in Total Consumption of
Product |
_______ |
|
|
Market
Accessibility/Disincentives: |
|
Import Duties and Tariffs |
_______ |
Local Suppliers/Competition |
_______ |
Foreign Suppliers/Competition |
_______ |
Sales Representatives Available |
_______ |
Pricing Methods |
_______ |
Promotional Practices |
_______ |
Credit Terms |
_______ |
|
|
Economic
Stability: |
|
Balance of Payments |
_______ |
Foreign Currency Reserves |
_______ |
Availability of U.S. dollars |
_______ |
Exchange Rate Performance |
_______ |
|
|
Political
Climate: |
|
Non-Tariff Trade Barriers |
_______ |
Favorable towards Imports |
_______ |
Attitude toward U.S. |
_______ |
Changes in Government |
_______ |
|
|
Others: |
|
Distance to Country |
_______ |
Cultural Differences |
_______ |
__________________________________ |
_______ |
__________________________________ |
_______ |
Overall Rating of Potential Market: |
_______ |
|
YES |
NO |
To be Investigated Further: |
|
|
|
|
|
DATE: ___________ PREPARED BY: _____________
� Export-Link, A Division of ExpoSoft, Inc. 1999
Step 2-6. Consolidate your market research information from all sources
on the "Checklist for Evaluating Potential Export Markets." Assign your own
weight to each category on a scale from 1 to 10. Rate each of the potential
export markets according to sales and profit potential. Be decisive and
final in the selection of your primary target markets.
Note: You will be committing a considerable amount of effort, time,
and money to develop your primary target markets. Hence, it is crucial
that your decisions are based on the most accurate and current information
available.
Step 2-7. Maintain individual folders on the countries that you have not
selected. Keep these files current with news clippings and reports from
business and trade journals. If a primary target market does not
materialize, you will be in a position to replace it promptly with another
qualified export market that you have already researched in depth.
During Phase 2 of your market research you may have chosen up to three
primary targets. However, after analyzing the data you may conclude that
marketing resources would be applied more effectively to only one or two
markets. In general, efforts should be directed to no more than one or two
markets if the company is new to exporting. Capture the first and then move
into the next. Your company�s internal resources will help determine a
reasonable level of effort.
This phase of your market research process will require in-depth analysis
of some the questions raised in Phase 1 and 2 so that a final decision can
be made about the ultimate targeted markets. This step requires primary
research--information that cannot be obtained from secondary research.
Phase 3 research requires more of a financial commitment. Remember, there
are programs out there that can ease your company's financial burden if you
qualify (e.g., NASDA Grants). Ask your US-AEP representative when you sit
down to talk with him.
Step 3-1. Record the names, addresses, and responsible executives to
contact for all firms in each primary target market that are currently
selling your type of products or complementary product lines. Include local
firms that have expressed an interest in representing products identical or
similar to yours. You will want to contact these firms in the initial stage
of your search for export sales representatives. Tap the ETNA database for
trade leads.
Step 3-2. Begin immediately to locate between three to six qualified
potential export sales representatives in each of your primary target
markets for personal interviews.
Finding your potential export markets can be an arduous but rewarding
task. Many companies may skip this part of the export venture because they
have received unsolicited inquiries about their product. Although this type
of sales opportunity (i.e., the easy sell) should not go unfulfilled, smart
companies will maximize their sales and marketing opportunities by
identifying the best prospective buyers in the foreign market through a well
organized market research program. One of the best strategies you can use to
determine the potential success of exporting your product is to carefully
look at how your product performs in the U.S. market, why it is successful,
and then target similar foreign markets.
Do not make the same mistake commonly made by many companies looking to
export � by attempting to take on the entire world at one time because you
see dollar signs. The volume of paperwork becomes enormous, management
becomes overwhelmed, and the exporting is eventually dropped because "it is
too complicated and not worth the investment." Don�t fall into this trap �
you may lose some rewarding opportunities. Examine your company�s personnel
and financial resources to determine a realistic number of markets to
target.
Although a systematic approach to market research takes time, energy, and
financial commitment, finding answers to key export issues will help your
company make better decisions and avoid unneeded costly mistakes. There are
many resources for obtaining market information, including the Internet and
other electronic media � be sure to tap these resources.
After selecting your primary target market(s) start building your
overseas relationships. Remember, the sales cycle for environmental
technologies and infrastructure projects is long, and those who foster
lasting relationships and show a commitment to the region are the ones who
seal the deals (see How Do I
Market and Sell My Products In Asia?).
Copyright � 1987-1999 Export USA Publications, exclusively
licensed by ExpoSoft, Inc. Reprinted by permission from ExpoSoft, Inc. All
rights reserved. No reproduction of this material, by any means, is
authorized without the written permission of ExpoSoft, Inc.
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