Follow the following logical, step-by-step process to write your
market plan:
1. Objectives:
Examples:
• Sales of $XXX,XXX by the end of the second year
• Expansion into countries A and B by the end of the third year
2. Specific tactics:
Examples:
• Radio advertising in two cities
• Three direct mailings to each company or person on a specific
list
• Develop an Internet Web site and advertise the address
3. Schedule of activities or action plan:
Examples:
• A list of trade shows indicating those that you will attend,
including dates and duration of trips to visit overseas
distributors, with their names, addresses, and phone numbers
• Specific assignments of responsibility (an essential feature of an
action plan)
4. Budget for accomplishing the action plan:
• Include every conceivable cost associated with marketing the
product. This is where most start-up firms underestimate.
Initial marketing costs will be high.
38 Import/Export
Macro.From the Greek word makrosmeaning long. It is a combining
form meaning large.
Micro.From the Greek word mikrosmeaning small. A combining term
meaning little, small, microscopic.
Segmenting the Market
Marketing segmentation enables an import /export organization to
choose its customers and fashion its marketing strategy based both on
identified customer wants and requirements, and on response to the
startup’s specific desires and needs. You should visualize segmentation
on both a macro and a micro level.
Macro Segmentation
Macro segmentation divides a market by such broad characteristics
as industry shipments, location, firm size, and the like. An import
macro segment might be dividing a city into marketing segments. On
a larger scale, it might involve dividing the United States into regions,
prioritizing those regions, and then developing a micro plan for each
region.
Export macro segments might include prioritizing of continents or
of countries within a continent; better yet, export macro segments
might sort by language, purchasing power, or cultural preference.
Micro Segmentation
Micro segmentation finds the homogeneous customer groups within
macro segments and, therefore, attempts to find out who makes the
decisions for each homogeneous group. Micro segmentation pinpoints
where (by address) and who (by name) can say yes to a buying decision.
From this analysis, a promotional strategy can be designed to target the
decision-making units (DMUs).
PLANNING AND NEGOTIATING TO WIN 39
An import micro segmentation might take the data from your market
research effort and identify where the wholesalers are located. If you
list and prioritize these decision makers by name and address, you would
have a logical and specific plan of attack for your marketing effort.
Your market plan and schedule should cover a three- to five-year
period, depending on the kind of product(s) you market, your competitor(s), and your target market(s). Be sure to write this plan no matter
how small the import /export project. Only when it is in writing will it
receive proper attention and adequate allocation of funds.
Executing the Market Plan
Next comes the fun—putting the planinto action and actively marketing the product through trade shows, advertisements, television
promotions, and direct mail, all in accordance with your budgeted
plan. Remember that nothing happens in a business until something
is sold.
Personal Sales
The two basic approaches to selling internationally for both imports
and exports are direct and indirect sales. Using the direct sales method, a
domestic manufacturing firm has its own marketing department that
sells to a foreign distributor or retailing firm and is responsible for shipping the goods overseas. The indirect sales method uses a middleman,
who usually assumes the responsibility for moving the goods. This is
where your import /export business fits into the picture. You may sell
directly to retailers or to distributors/wholesalers. Regardless of where
your targeted DMU is in the market channel, keep in mind that international sales are just like domestic sales: someone makes personal
contact and presents a portfolio, brochure, price list, and/or sample to
decision makers (potential buyers) who can say yes.
40 Import/Export
HOT TIP
M
aking sales requires persistence and determination. Follow up, and
then follow up again.
Trade Shows (Fairs)
If you’re attending a trade fair or show for the first time, consider using
it as the keystone of your sales trip. Allow time afterward to visit
companies you meet at the fair.
The international trader attends trade shows for five basic reasons:
1. To make contacts
2. To identify products for import or export
3. To evaluate the competition (often done without exhibiting)
4. To find customers and distributors for import or export
5. To build sales for existing distributors
HOT TIPS: TRADE FAIRS
•If you are exhibiting to sell, don’t over commit. You may get more business than you can handle reasonably.
•If you are searching for products to import, don’t buy until you have
done your homework!
•Take more business cards to the trade show than you think you will
need. Have your fax number, Web site, and e-mail address on your card.
•Obtain language translation/interpreter help from a local university or
college.
•If you are exhibiting to sell, consider prior advertising to let potential
customers know that you will be there.
PLANNING AND NEGOTIATING TO WIN 41
Trade Missions
Trade missions are trips made for the express purpose of promoting and
participating in international trade. State, province, and local governments organize several kinds of trade missions for exporters.
Special Missions
These are organized and led by government officials with itineraries
designed to bring you into contact with potential buyers and agents.
You pay your own expenses and a share of the costs of the mission.
Seminar Missions
Similar to the specialized trade mission, seminar missions add several
one- or two-day technical presentations to the trip by a team of industry representatives.
Industry-Organized, Government-App
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