Language
is a set
the most important part of culture. Visual language
influence the way of thinking and the way of thinking of different peoples. Even one language used in two different markets has different meanings, such as British English and American English. For example, when Americans say
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“Table the report” means to put the matter aside and not discuss it further.
The British understood that the issue needed to be discussed without delay. “A
“billion” is understood by Americans as one billion, while the British understand it as one thousand billion. This difference in meaning and number, if not understood and distinguished, will cause great damage in business.
Marketers must pay special attention to language issues when translating product labels. For example, Pepsi translates into Chinese as “bai shi ke le” (everything is fun) and as a result, Pepsi sells more
than Coca-Cola in the Chinese market. Or the car brand "Nova" of
General Motor when translated into Spanish means "can't run".
Beyond language
speech also has language
negotiation, language
gift
Gifts and non-verbal communication (silent language) in international transactions that marketing practitioners must study in depth to have appropriate responses for each culture. For example, silence in negotiations with the Japanese is normal, Americans should know this art of negotiation and should not quickly make a concession. The straightforward style and clear viewpoint of Americans are sometimes disadvantageous in negotiations. Gift culture also differs between countries. The Japanese consider purple to be noble and elegant, while Mexicans and Brazilians consider it to be unlucky and unfavorable. Therefore, purple packaging should not be used to export goods to these countries.
Export marketing activities take place in a specific culture, so marketing plans are only effective and appropriate when they are appropriate to that culture. “When in Rome, do as the Romans do” is an indispensable principle in a company’s marketing strategy when entering a new market.
In addition, businesses should also research the demographic environment, technological environment, geographical and climatic environment, competitive environment... Researching and understanding international marketing environmental factors is a necessary and mandatory condition for a business that wants to penetrate foreign markets and succeed in the international market.
2. Assess the ability of the business to decide to participate in exporting
2.1 Strengths, weaknesses, opportunities and threats (SWOT) analysis
SWOT analysis aims to highlight the competitive advantages that the company has as well as the ability and prospects of sales and profits that can be obtained, based on data, assumptions, and information gathered from market research. Evaluating the strengths and weaknesses of the company helps the company to position its competitiveness in the market. The evaluation focuses on the following aspects:
- Production capacity and technology level that the company is applying.
- Product design, model, brand.
- Product quality, product quality management.
- The perfection of the industry.
- Customer service.
- Ability to supply raw materials.
- Price, cost and distribution structure.
The company's strengths are also reflected in its financial resources, human resources and management organization, customer loyalty, company reputation, and effective forms of support and export promotion.
The company's weaknesses include the weakness of the industry, new products that are not yet familiar to consumers and widely consumed in foreign markets, the weakness in the skill level of workers and export staff, and high and expensive market penetration costs.
Mechanical research
May focus on aspects such as
develop
speed of target market, weakness of competitors, cost
for the distribution channels reduced, the strength of the coriander team doing export work
exports, and more importantly, changes in regulations and policies that are favorable to exports.
The dangers may be that consumer tastes have shifted to other products, new competitors have emerged, and the biggest danger is an economic downturn in the importing country. Researching the opportunities and
danger
from the outside environment will
supplement and complete the work
Research the company's strengths and weaknesses.
2.2 Assessing the company's ability to decide to participate in exporting
Through SWOT analysis, the company self-evaluates its business capabilities. Based on the results of market research, environmental research,
international marketing field, based on preliminary assessments
set about
product,
see if the company's products meet market demand, can compete with competitors' products in the market, can make a profit from export business... If all the factors considered give good results, the company decides to participate in exporting.
3. Planning export marketing strategy
The two most important parts of an export marketing strategy are
target market selection and product policy. A strategy
Effective export marketing needs to reflect the totality of activities.
Marketing to bring products to market companies need to answer the following questions:
school. When building a strategy
- Should the company enter that market on a large scale?
- Is discounting the way to success?
- Does product differentiation play a major role in competition?
- Is a large-scale export promotion campaign necessary?
Export marketing strategy needs to provide the most effective measures to overcome weaknesses, avoid risks, take advantage of and exploit the company's strengths as well as the opportunities that the market brings. SWOT analysis and the formation of marketing strategy are closely related.
In fact, when building an export marketing strategy, it is necessary to consider the following factors: (1) Selecting export markets; (2) Assessing export potential to the market; (3) Product policy.
3.1 Selecting target export markets
The purpose of selecting export markets is to determine the number of
number of prospective markets for the company to focus its capabilities and
Identify the characteristics of each marketing niche effectively.
school to
apply policies
When selecting target export markets, managers
Export marketing needs to pay attention to the following three issues:
- Do not focus on individual products or individual markets. Consider the role of each product or market in the company's overall export plan.
- In addition to traditional measures focused on market segmentation, the market selection process also needs to focus on broader strategic measures used in marketing planning.
strategic. These measures should reflect the level of
general market direction and the company's competitive position in that market.
- Administrators
Export marketing must play a leading role.
religion
in the process of developing an export strategy, because in the process of building
Marketing strategy must apply many marketing concepts.
In the process of market selection, it is necessary to assess whether the company is able to meet the needs of the market or not, and whether it is able to change the needs of the market or not. Market selection cannot be
It depends not only on theory but also on ability and goals.
of the company set out in the company's overall strategy.
When deciding on market selection, the company must also decide
the development direction of the export market. Should the company continue to develop, maintain or abandon its position in the old market, or expand,
penetrate the market
new school. Decide on market development direction
school
inseparable from the overall market selection decision in export marketing.
school. These are the issues.
Market selection method
There are two methods of finding and selecting markets.
main school
weak in
Export marketing is an active and passive method.
In the passive market selection method, the exporter plays a passive role in market selection by receiving spontaneous orders, or waiting for the initiative from the buyer or agent.
agent or representative
from abroad to order or select the market
school for
Or exporters can advertise or list their names in the directory of exporters or can participate in domestic and foreign trade fairs. This method is not systematic, not active, and depends on the buyer, leading to a situation where export marketing activities are not effective.
irregular import. This method is mainly used by enterprises.
Small and medium sized businesses use it. Sometimes some large companies also use it. The main goals of this method are short term profits and low costs.
In contrast to the passive market selection method, in the method
market selection
main school
main exporter
market search
market screening, customer segmentation... This method requires the exporter to be good at organization and have experience in
international business, able to access and grasp updated information
To update the world market, it is necessary to conduct systematic market research. In addition, it is also possible to select the market through discussions with friends and relatives who have experience in a specific market.
Depending on the circumstances, the company chooses the appropriate method. Many companies apply both methods, the active method is applied to the main market, the target market, and the passive method is for the secondary market, the small market.
Market selection method
Main method
market selection
history school
two-way
method: expansion method and contraction method.
- Expansive method
This method takes the market
domestic market or market
main school now
action as a starting point, based on environmental similarities
political, social, economic and cultural. Neighboring countries often have
economic, political, social, cultural similarities lead to similarities
In terms of marketing policy, the first markets to be selected are: Selecting
select market
This field does not require
improve or modify the product to
adapting to new markets or even insignificantly. Countries with similar trade policies are those that belong to free trade areas or common markets, for example those in the EU, AFTA. Exporters often seek markets within the same bloc before expanding.
- Contractible method
This method screens the market.
school systematically
equal
the practice of dividing a market into regional groups on the basis of economic, political, linguistic, and other criteria. The purpose is to gradually eliminate markets that are
no growth prospects, focus on growth prospects. The screening process consists of three steps:
school has development
Step one : Preliminary screening , resulting in a list of possible countries .
Step two:
Determine the mechanical properties
version of the water used
use to
evaluate market opportunities, weighting each characteristic. The four variables considered are operational risks, market potential, costs, and domestic and foreign competition.
Step three: Rank the countries according to the score achieved. Select a few countries from the results and continue to analyze the market in more depth .
Figure 1.2 below describes the process of selecting export markets using the contraction method:
Market screening process
Geographic segmentation
General market report
Market report by product
Features of the product that are prohibited
Characteristics of the restricted market
Market potential assessment
Market segmentation by economic and social factors
Demand model
Salary report
Quality assurance
Arc model
Distribution Competition
Mass media
∙
Profitability Assessment
∙ Market/market segment ranking Final market selection
Strategic planning
Assess sales potential
∙ Market
∙ Market segment
Figure 1.2: Export market selection / Revenue collection method [23]
3.2 Assessing export potential to the market
Concept of export potential to the market
Gerald Albaum defines: “export potential to the market”
school is
volume of goods that the market
that school can
consume
in a period
unspecified time under optimal market development conditions”.