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International Marketing - Interview August 2006 | |
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| Tell us about your company and its services. Do you consult with companies
in the U.S.A. ?.
PrintMediaPartners has been serving the North American printing
manufacturer / distributor channel community since 1993. Our work to date
has involved creating distribution channels for them in the European market and
more recently in global markets. We specialize in enabling the smaller
manufacturer to create new markets and the distributor to develop and widen their product portfolio. There are 247 unique countries in the world, all
of which are potential markets for US manufacturers and sources of supply for US distributors. Our unique 'Virtually Global' international marketing
support concept enables every manufacturer to discover, plan and implement a global marketing strategy at minimal cost in terms of time, effort and
expenditure and every distributor to confidently access new products and services from around the world for domestic distribution.
What are some of the reasons that distributors (and manufacturers) today
should consider international opportunities? Please explain.
The commonly acknowledged 'triggers' or reasons why companies look at
international market development are classified as emanating from one or other
of: 1) reactive or 2) proactive causes. Those that are termed reactive
are the firm's own reaction to changing domestic market conditions and a
passive none-committal 'wait and see' attitude to international growth
opportunities (push factors). Those that are termed proactive are based
on positive objectified behaviour to pursue international opportunities, a 'go and
get them' attitude (push factors).
To expand in these explanatory terms, there is a further distinction between
internal and external forces, in addition to reactive and proactive attitudes.
Proactive 'Internal', are perceived but untried a competitive advantage, a clear core competency, definable technological leadership, a managerial orientation towards international expansion, a prospective strategic alliance, an effective in-house multicultural operational support base and a positive management attitude
Proactive 'External', are identified and sustainable international opportunities, the
discovery of tax benefits / incentives, quantifiable economies of scale,
notification of inward investment assistance, ease of physical logistics,
a strategic fit with the distribution channel, the capacity and opportunity to reduce inventory by overseas expansion
Reactive 'Internal', are actual or anticipated declining domestic sales,
revenue or market share, excess unsold or inventoried production, the issues associated with overcoming borders as barriers and a cautious management attitude.
Reactive 'External', are competitive pressures in the home market,
saturated domestic markets, the lowering of margins from existing activities, limitations and constraints in existing markets and objections or the placing of hurdles against further expansion overseas.
Fortunately, the opportunities for companies of all sizes are increasing with the
advent and increasing pervasiveness of useable e-business platforms, a one-world mentality, effective logistic networks, the homogenization of markets, business cultures and the growth in global demand for all forms of products and services.
To serve these markets and support these opportunities manufacturers
requires a strong customer focus and a dedication to providing value throughout the 'extended supply value chain'.
(Hill 1995) considers that 1% of SMEs are global players (in that they
operate in several countries across several continents) but that they
contribute over 25% of world manufactured exports. SMEs therefore already make a significant contribution to global trade
if I am a small or a medium-sized distributor (or manufacturer), how can I assess that I am ready and capable of selling to the international
marketplace? (Keeping in mind I have limited financial resources and
manpower.)
It is common for a first foray into international marketing to be into an area with a comfortable physic distance, i.e. where the marketer feels more comfortable personally and which is perhaps geographically nearer. This first step provides both advantages in terms of an easy step but disadvantages as it is normally associated with minimal research and planning, any results therefore could prove
incompatible with further 'explorations' and misleading in the long term.
Every company should pursue a planned and formal international marketing appraisal. We provide this service via our 'Are you ready to go Global'
program; this program includes an individual SWOT and PEST analysis
(details below).
All firms (of whatever size) should concentrate on three areas of it's business when it prepares for international expansion, namely 1) The characteristics of the firm. 2) The characteristics of it's commercial environment. 3) The characteristics and the orientation of the management.
1)Check the firms' attitude, willingness, capability and ability to manage international expansion. It's inherent orientation towards growth, expansion and development. The strength, depth and robustness of it's technology abilities, core competences, competitive advantages, product uniqueness and management expertise.
2) Check the commercial and business environment in the markets that they may chose to develop. Domestic and export market conditions (including social, political, economic and technological), market barriers, legislation, the 'reality' of growth opportunities and the nature of the indigenous industry/market structure and infrastructure. Assess the speed, form, pattern and mode of entry into new markets and the capacity of the firm to support and manage a geographical spread of it's activities
3) Check the managements' global orientation in terms of it's desire and stamina to stay the course in international markets. The decision-making processes, the age, level of education, knowledge of overseas markets, language competence, and positive mindset of the 'involved' and 'supporting' management team.
The world is moving from being a 'marketplace' for physical goods and services where recognised methods of marketing and distribution existed towards a 'marketespace' where both conventional but also electronic means of
marketing and distribution will be the order of the day. Fortunately, this new world is much more commercially democratic than the old and is equally available and manageable for both the large and the smaller company.
What are some of the international markets (which countries) that in your
opinion present good opportunities for distributors and manufacturers?
The countries which form both the top ten importers as well as exporters
to and from the USA are Canada, Mexico, Japan, China, Germany, United
Kingdom, Korea (South) France, Taiwan & Brazil.
These could be referred to as the primary or 'first stage' markets for US
manufacturers looking for new markets for their products and for
distributors looking for new products for their portfolios.
However, there are 237 other 'countries', which are potential new markets for
manufacturer's products and new sources for distribution portfolios. It is
worth noting just for an example that Iraq currently has the fastest
growing GDP, that Norway has the highest educated population and that China has the largest population in the world. Information which can be gleaned form published sources will greatly assist the international marketer determine 'where' their own opportunities lie.
Economic trend analysis suggests that the 'developed' world is slowing down in terms of overall growth. That the developing world is currently growing at the fastest pace and that the under developed world has the greatest future growth potential.
Danny Moloney MBA written August 2006 ( full content available on request ).
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| Description | International Marketing - Interview August 2006 |
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