RESEARCHING AND SELECTING

EXPORT MARKET
S U B J E C T I V I T Y I N E X P O RT M A R K E T S C R E E N I N G S TA G E I N S E L E C T I N G
RESEARCH E X P O RT M A R K E T I N G

E FF ECTI V E MA RK ET RE S E A RCH DIRECT EXPORTING

DIRECT COMPANY PRESENCE INDIRECT EXPORT

D E C I S I O N FA C TO R O F F O R I E G N
M A R K E T E N T RY
SUBJECTIVITY IN EXPORT MARKET
RESEARCH
 MARKET RESEARCH

• is vital to sustainable export success in

international markets. It is a process that can help
you avoid costly expansion mistakes and identify
extraordinary business opportunities, allowing you
to minimize risk before you enter a foreign market
through proactive data collection.
 WHAT IS THE FOCUS OF
EXPORT MARKETING?

• Export marketing focuses on marketing your

product in other countries instead of your own.
Although it applies strategies that are similar to
domestic marketing, export marketing tends to be
more challenging, since you must appeal to
different cultures, ideals and tastes.
WHY IS RESEARCHING AND SELECTING
IMPORTANT IN EXPORT MARKET?

• Researching your competitors will help you

understand if there's enough demand for your
product or service in a market. It will also
uncover your competitors' strengths and
weaknesses, helping you offer something they
can't. You can then create a strategy that gives your
product or service an advantage.
3 FUNDAMENTALS FOR EXPORT
MARKET RESEARCH
 1. STRATEGIC PLANNING

• A basic starting point for Filipino exporters is to

develop an export plan or strategy that identifies
where there is already demand for your product.
From there, your research team needs to dig deeper
to determine the size of the potential market, and
what the competitive landscape looks like.
 2. SECONDARY RESEARCH

• Initial market assessments usually can be accomplished

with secondary market research, which is sometimes is
available at little or no cost. For example, market
demographics and industry data are often available from
government or trade association sources. But that data is
not always up-to-date enough to provide a detailed and
timely picture of current market conditions. Moreover,
some products have specific applications or end-users.
 3. PRIMARY RESEARCH

• While secondary research sources can be helpful in

conducting an initial market assessment, most
exporters should conduct some level of primary
research before making a big investment in a new
market.
 A KEY FACTOR BEFORE MAKING A FINAL
DECISION ON A NEW EXPORT MARKET IS A CLEAR
UNDERSTANDING OF THE COMPETITIVE
LANDSCAPE IN YOUR INDUSTRY. PRODUCT
PRICING, FOREIGN EXCHANGE AND CREDIT RISK
ARE OTHER IMPORTANT CONSIDERATIONS.
EFFECTIVE MARKET RESEARCH
 IMPORTANCE OF EFFECTIVE
MARKET RESEARCH

• Effective market research is essential for

businesses to make informed decisions
about their products, services, and
marketing strategies. Here are some of
the key reasons why effective market
research is important:
 1. IDENTIFYING CUSTOMER NEEDS

• Market research helps businesses to

understand their customers' needs,
preferences, and behaviors. By conducting
market research, businesses can gather data
on consumer trends, buying habits, and
opinions, which can help them to develop
products and services that meet their
customers' needs.
 2. EVALUATING COMPETITION

• Market research helps businesses to stay

informed about their competitors, their
products, and their strategies. This
information can be used to identify areas
where the business can improve and
differentiate itself from the competition.
 3. TESTING NEW PRODUCTS

• Market research can help businesses to test

new products and services before launching
them to the market. By conducting surveys or
focus groups, businesses can gather
feedback on product features, packaging,
and pricing, which can help them to make
informed decisions about the launch.
4. DEVELOPING EFFECTIVE MARKET STRATEGIES

• Market research can help businesses to

identify the most effective marketing
channels and messages for their target
audience. By understanding their customers'
preferences and behaviors, businesses can
create marketing campaigns that resonate
with their audience and drive sales.
 5. MITIGATING RISK

• Market research can help businesses to

mitigate risks associated with new product
launches, market expansions, or changes in
the business environment. By conducting
market research, businesses can gather data
and insights that help them to make informed
decisions and minimize the impact of risks.
 IN CONCLUSION, EFFECTIVE MARKET RESEARCH IS
CRITICAL FOR BUSINESSES TO STAY COMPETITIVE,
MEET CUSTOMER NEEDS, AND MAKE INFORMED
DECISIONS ABOUT THEIR PRODUCTS, SERVICES, AND
MARKETING STRATEGIES.
SCREENING STAGE IN SELECTING
EXPORT MARKETING
 SCREENING STAGE IN SELECTING
EXPORT MARKETING

• The screening stage in selecting export marketing is

an incredibly important step in the process of
international business. It is the stage where
companies decide which markets they should target
and which markets they should avoid. During this
stage, companies must consider a variety of factors,
such as the potential size of the market, the
regulations in the market, the competitive
environment, and the cost of doing business.
 SCREENING STAGE IN SELECTING
EXPORT MARKETING

• The first step of the screening stage is to

determine the target market.
 SCREENING STAGE IN SELECTING
EXPORT MARKETING

• The next step is to analyze the target market.

 SCREENING STAGE IN SELECTING
EXPORT MARKETING

• The third step of the screening stage is to

develop a marketing plan.
SCREENING STAGE IN SELECTING
EXPORT MARKETING

• Finally, companies must monitor the

performance of their export marketing
efforts.
 SCREENING STAGE IN SELECTING
EXPORT MARKETING

• The screening stage in selecting export

marketing is essential for any company
looking to enter the international market.
Companies must carefully consider the target
market, analyze the environment, and develop
a marketing plan. They must also monitor
their performance in the target market to
ensure that their efforts are successful.
DIRECT EXPORTING
 WHAT IS DIRECT EXPORTING?

• Direct exporting is a business strategy that

involves selling products directly to
customers in other countries, rather than
using intermediaries such as wholesalers or
distributors.
WHAT IS THE IMPORTANCE OF DIRECT
EXPORTING?

• Direct exporting is an important strategy for

businesses to expand their reach and
increase their profits. It involves selling
goods or services directly to customers in
another country, without relying on
intermediaries.
 STEPS INVOLVED IN DIRECT
EXPORTING

• Researching the target market

• Finding reliable distributors

• Setting up a payment system

 ADVANTAGES OF DIRECT EXPORTING

• Ability to reach a large number of customers

• The potential for increased profits

• Ability to create global brand

 DIS-ADVANTAGES OF DIRECT
EXPORTING

• Costs associated with setting up an international presence

• Cost of establishing a physical presence in the target

market

• The risk associated with foreign exchange rate

fluctuations.
 POTENTIAL DRAWBACKS OF DIRECT
EXPORTING

• Exporting directly can be a great way to

expand a business's reach and increase
profits, but there are some potential
drawbacks that businesses should consider
before taking the plunge
INDIRECT EXPORT
 INDIRECT EXPORT

• Indirect exporting involves an organization

selling to an intermediary in its own country.
This intermediary then sells the goods to the
international market and takes on the
responsibilities.
 INDIRECT EXPORT

• These responsibilities include organizing

paperwork and permits, organizing shipping
and arranging marketing.
 WHAT IS THE MAIN PROBLEM OF
INDIRECT EXPORTING?

• The main drawbacks of indirect exporting is too

much dependence of the exporter producer on
the middlemen operating in the channel. The
development of the overseas market depends a
lot on middlemen and not on the company that
produces the goods that are exported.
DIRECT COMPANY PRESENCE
 DIRECT COMPANY PRESENCE

• Direct company presence is an increasingly

popular way for businesses to engage with their
customers and build relationships. Companies
are increasingly taking advantage of this strategy
to increase brand awareness and loyalty, and to
gain valuable insights into their customers.
 DIRECT COMPANY PRESENCE

• Direct company presence involves a company interacting

with its customers directly, through a variety of channels
such as social media, email, phone, and in person. By
engaging with customers directly, companies can gain
valuable insights into their customers’ needs and
preferences. This helps them to better understand their
customers and create products and services that meet their
needs.
 DIRECT COMPANY PRESENCE

• Finally, direct company presence can help

companies to quickly respond to customer
feedback and complaints. By engaging with
customers directly, companies can address
customer concerns quickly and effectively, which
can help to improve customer satisfaction and
loyalty.
 DIRECT COMPANY PRESENCE

• Overall, direct company presence is an effective way for

businesses to engage with their customers and build
relationships. Companies can use direct company presence
to gain valuable insights into their customers’ needs and
preferences, build relationships with customers, and
quickly respond to customer feedback and complaints. By
taking advantage of this strategy, companies can increase
brand awareness, loyalty, and customer satisfaction.
DECISION FACTOR OF FORIEGN
MARKET ENTRY
 DECISION FACTOR OF FORIEGN
MARKET ENTRY

• The decision factor of foreign market entry is

determined by a variety of factors, which can be
classified into three categories:
• Ownership advantages of a firm
• Location advantages of a market
• Internalization advantages of integrating transactions.
OWNERSHIP ADVANTAGES OF A FIRM

• Ownership advantages include the resources

and capabilities that a firm has to offer in
order to gain an advantage in the foreign
market.
 LOCATION ADVANTAGES OF A
MARKET

• Location advantages refer to the

attractiveness of the target market for
potential investors.
 INTERNALIZATION ADVANTAGES OF
INTEGRATING TRANSACTIONS.

• Internalization advantages refer to the

benefits that can be gained from integrating
transactions within the firm rather than
outsourcing them.
 DECISION FACTOR OF FORIEGN
MARKET ENTRY

• Other factors that influence entry mode choice

include:
• Competitive pressures
• Domestic market conditions
• Company objectives
• International experience
 COMPETITIVE PRESSURES

• Competitive pressures may lead firms to

enter foreign markets in order to maintain
their competitive edge.
 DOMESTIC MARKET CONDITIONS

• Domestic market conditions may also

influence entry mode choice as firms with
limited aspirations may enter foreign
markets as a result of reactive approach to
international marketing opportunities.
 COMPANY OBJECTIVES

• Company objectives are also important as

they determine how much risk and
investment a firm is willing to take on when
entering a foreign market.
 INTERNATIONAL EXPERIENCE

• Finally, international experience is another

factor that influences entry mode choice as
firms with more experience in international
markets are better equipped to make
informed decisions about their entry
strategies.
ARIGATHANKS FROM GROUP 3