International Stratégies pour le Développement du Marché et des Affaires: International Strategies for Market and Business Development Comme l'intitule l'indique, vous avez dans cette présentation professionnelle, les ficelles du métier et les rouages de la mécanique qui permettent de mettre en place des stratégies de pénétration et de positionnement pour les compagnies voulant ou cherchant des débouchés sur le marché international. As it is indicated by the title, you have in this professional presentation all the nuts and bolts and the mechanical gears that enable the creation and the application of strategies oriented toward the opening and the localisation for companies seeking or looking for international outlets.

1. Presented By Said Cherkaoui, Ph.D.
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THE EAST BAY CENTER FOR
INTERNATIONAL TRADE DEVELOPMENT
American Import Agent and
Distribution Channel
Presented by Said Cherkaoui, Ph.D.

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Today’s Agenda
1. Marketing Planning Process
2. Situational Analysis
3. Marketing Mix
AFTER BREAK’S AGENDA
1. Methods of Research
2. Market Planning
3. Pricing
4. Identifying Export Sales Representatives
5. Agency & Distributor Agreements
6. How To Conduct Business In Foreign Countries?
7. Make Your Website International

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Marketing Planning Process
1. Identifying a country market with export
potential. (See handout)
2. Establishing export objectives.
3. Planning the individual elements of the
marketing program (The 4 P’s of marketing)

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Ways of Entering New Markets
• Direct Exporting
• Indirect Exporting – Middleman
• Commissioned Agent
• Export Management Company or Export Trading
Company
• Sales Rep
• Licensing
• Franchising
• Joint Venture
• Off-Shore Production
• Establishing an office overseas

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Establishing Export Objectives
• An annual export sales volume forecast
• Profit/loss expectations (one year)
• Financing upcoming export transactions
• The number and type of channel partnership
agreements to be signed
• Planned trade show participations
• Frequency of market visits

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Planning the individual elements of
the marketing program
• The Marketing Mix Variables (4Ps)
Once target market is chosen, how these variables are mixed
determines the success of marketing.
A. Product
B. Pricing
C. Place (Distribution)
D. Promotion

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I - Situational Analysis
A. Demand Analysis
1. Buyer behavior and characteristics:
a. What do they buy?
b. Who buys?
c. Where do they buy?
d. Why do they buy?
e. How do they buy?
f. When do they buy?
g. How much do they buy?
h. How will buyer behavior and characteristics change in the
future?

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I - Situational Analysis
A. Demand Analysis (Con’t)
2. Market Characteristics
a. Market size potential
b. Segments
c. Selective demand
d. Future market demands

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I - Situational Analysis
B. Competition
1. Who are competitors?
2. Competitor characteristics
a. Marketing Programs
b. Competitive behavior
c. Resources
3. Major strengths and weaknesses
4. Future competitive environment

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I - Situational Analysis
C. General Environment
1. Economic conditions and trends
2. Government regulation and trends
3. Pollution, safety, consumerism concerns
4. Technological trends
5. Political climate

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I - Situational Analysis
D. Internal Environment
1. Marketing resources/skills
2. Production resources/skills
3. Financial resources/skills
4. Technological resources/skills
5. Future trends in internal environment

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II – Marketing Mix
A. Product
1. What product attributes/benefits are important?
2. How should the product be differentiated?
3. What segments will be attracted?
4. How important is service, warranty, and so on?
5. Is there a need for product variation/product line?
6. How important is packaging?
7. How is the product perceived relative to competitive
offerings?

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II – Marketing Mix
B. Place
1. What types of distributors should handle the product?
2. What are the channel attributes and motivations for
handling the product?
3. What intensity of wholesale/retail coverage is
needed?
4. What margins are appropriate?
5. What forms of physical distribution are needed?

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II – Marketing Mix
C. Price
1. What is the elasticity of demand?
2. What pricing policies are appropriate?
3. How should the product line be priced?
4. How do we establish price variations for a
product?
5. How should we react to a competitive price
threat?
6. How important is price to the buyer?

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II – Marketing Mix
D. Promotion
1. What is the optimal promotional budget?
2. How important is sales promotion, advertising,
personal selling in stimulating demand?
3. What is the proper promotion mix?
4. How do you measure the effectiveness of the
promotion tools?
5. What copy is most effective?
6. What media are most effective?

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Some Common Promotion
Tools
Advertising
Sales Promotion
Publicity
Personal Selling

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After Break’s Agenda
1. Marketing Planning Process
2. Situational Analysis
3. Marketing Mix
AFTER BREAK’S AGENDA
1. Methods of Research
2. Market Planning
3. Pricing
4. Identifying Export Sales Representatives
5. Agency & Distributor Agreements
6. How To Conduct Business In Foreign Countries?
7. Make Your Website International

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METHODS OF RESEARCH
• Keeping abreast of world events that
influence the int’l marketplace
• Analyzing trade and economic statistics
• Obtaining the advice of experts

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A THREE PHASED
APPROACH TO MARKET
RESEARCH
1. Screen Potential Markets
2. Assess Targeted Markets
3. Draw Conclusions and Make Contacts

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• What is your objective?
• What are the characteristics of your products?
• How large is the export market?
• What is the competitive situation?
• Do you have the necessary production capacity?
• Can you develop an effective marketing program?
• How large will your financial commitment be?
Factors to Consider When
Entering a Foreign Market

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Market Planning
• How do I prepare my product for export?
• How do I get it to my customers?
• How do I promote it?
• How do I price it?
• How do I provide after-sale service?
• How do I protect it?

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PRICING POLICIES AND
CONSIDERATIONS-I
A. Pricing Policies
• Basic Considerations
Achieving Objections
What the traffic will bear without alienation
• Fixed International Price List
Based upon a percent increase over U.S. Price List
Based upon a percent increase over foreign competition
prices
Complex formula
• Variable International Price List
Different prices for each type of country
Foreign customer needs
Sliding Rep commissions
Other factors (Inflation, exchange rates,interest rates,etc)

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PRICING POLICIES AND
CONSIDERATIONS-II
B. Extra Cost to Manufacturer
• Financial and Administration
Legal and Contract Administration
Delays (start, ship, payment)
Traditional Discounts
Payola
• Technical
Metric vs. English
Utilities (50 Hz vs. 60 Hz)
Manuals (language translation)
Testing & Safety
• Transportation and Communications
Vacuum/Cargo Container Packaging
Documentation
Telex, Telephone, Fax, Postage, Carrier Service, Email, Website.
Customer Support
Installation and Training
Equipment Servicing
Warranty (1 Year=2000 hours)

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Seven Pricing Strategies for
Entering New Foreign Markets
1. Exploiting the Market
2. High Quality Pricing
3. Life-Cycle Pricing
4. Sharing the Market
5. Matching Competitive Prices
6. Developing the Market
7. Buying the Market

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Identifying Potential Export
Sales Representatives
• Commissioned Export Sales Agent
• Export Management Company
• Export Trading Company
• Full Stocking Distributor

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Factors to Determine the Type of
Export Sales Representatives
• What financial risks are you willing to take?
• What degree of control do you want to retain over
your exporting activities?
• Do you want your export sales representatives to
take physical possession and title to your
products?

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Locating Potential Export Sales
Representatives
• Trade Shows
• Agent Distributor Service (ADS)
• Commercial News USA (CNUSA)
• Trade Opportunities Program (TOP)
• TradeBank Online: www.exportweb.com
• www.fita.org (Federation of International Trade
Associations)

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Evaluating Potential Export
Sales Representatives
• Organizational Structure
• Products Handled
• Sales/Marketing Capabilities
• Customer Service
• Business Reputation
• Financial Stability

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Agency and Distributor
Agreements - Considerations
• Identification of the Parties
• Effective Date of Agreement
• Termination of Agreement
• Sales Territory, Products, and Related Restrictions
• Identification of Products
• Types of Sales Excluded from Agreement
• Pricing of Products
• Payment Terms

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Agency and Distributor
Agreements – Considerations (Con’t)
• Inventory Stocking Requirements
• Warranty Agreement
• Promotional Responsibilities
• Other Considerations for Inclusion in
Agreements
• Training Programs for Sales
Representatives
• Information to be Provided by Both Parties

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Sources for Finding Reps,
Distributors and Retailers
 List of attendees from trade shows which would be
applicable to the product you are handling
 Trade associations, publications or journals
 Your bank
 Agency Sales Magazine, published by MANA
 The local telephone directory
 The International Union of Commercial Agents&Brokers
 Blytmann International’s Directories
 U.S. and State trade centers

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How to Conduct Business in
Foreign Countries
• Foreign Customs and Business Practices
- Punctuality
- Body Language
- Names and Titles
- Gift Giving
- Business Cards
- Negotiating
• Interpreter Services

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Make Your Website
International
• List any foreign subsidiaries, offices, etc.
• Localize content including graphics
• Offer free downloads
• Offer a feedback or comment system
• Detailed site map
• Offer local language where applicable
• Feature a privacy statement if applicable

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HOW TO CONTACT US
Dr. Said Cherkaoui
E-mail: ebcitd@usa.com
E-mail: glocentra@usa.com

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Thank you.
Any Question?
http://www.eastbaycitd.org
http://www.glocentra.com
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