Export Basics
Getting Started: What You Should Know

              Pete Healy
           Crowbar Marketing
       Innovati...
Our “Concorde” Agenda
          First Of All: Why Export?
          Are You Export-Ready?
          Basic Market Research
...
Why Export?
      Quantitative:
       Sales opportunities!
                The 95/5 reality
          Offset domestic vol...
Why Export?
      Qualitative:
       Brand awareness & reputation
                Even bigger in digital media age
      ...
Why Export?
      End Result:


                 A competitive edge!




Crowbar Marketing
www.CrowbarMarketing.com
www.Th...
Our “Concorde” Agenda
          First Of All: Why Export?
          Are You Export-Ready?
          Basic Market Research
...
Are You Export-ready?
      The essentials:
       Senior management commitment
       Knowing your product
       Cash fl...
Are You Export-ready?
      The essentials:
       Senior management commitment
                What payback periods: Capi...
Are You Export-ready?
      The essentials:
       Knowing your product
                Why do customers need your
       ...
Are You Export-ready?
      Your turn –
          Cash flow & room for investment
          Production capacity & ability ...
Our “Concorde” Agenda
          First Of All: Why Export?
          Are You Export-Ready?
          Basic Market Research
...
Basic Market Research
      Does it even matter if “they” come to you?
      Yes! Get the jump on competition:
          C...
Basic Market Research




Crowbar Marketing
www.CrowbarMarketing.com
www.TheInnovationists.com
Basic Market Research




Crowbar Marketing
www.CrowbarMarketing.com
www.TheInnovationists.com
Basic Market Research




Crowbar Marketing
www.CrowbarMarketing.com
www.TheInnovationists.com
Basic Market Research
      Management questions:
       Stable political system?
       Stable economy, exchange rate?
  ...
Basic Market Research
      Marketing questions:
       Already a market there for your
       product? What price range?
...
Our “Concorde” Agenda
          First Of All: Why Export?
          Are You Export-Ready?
          Basic Market Research
...
Common Export Terminology
          “Cost” vs. “Price”
          Terms of Sale
          Terms of Delivery
          Terms...
Our “Concorde” Agenda
          First Of All: Why Export?
          Are You Export-Ready?
          Basic Market Research
...
Recommended Resources
      NKU International Business Center
        http://www.nku.edu/~cob/institutes/ibc/index.php
   ...
Pete Healy
    •   Pete Healy introduced wine coolers to Japan in the early 1980s, and has been involved in
        intern...
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Export Basics - NKU Intl Business Ctr

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Overview of basic business considerations for U.S. companies new to exporting, prepared for seminars at the Northern Kentucky University International Business Center.

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Export Basics - NKU Intl Business Ctr

  1. 1. Export Basics Getting Started: What You Should Know Pete Healy Crowbar Marketing Innovationists International Northern Kentucky University International Business Center December 2009
  2. 2. Our “Concorde” Agenda First Of All: Why Export? Are You Export-Ready? Basic Market Research Common Export Terminology Recommended Resources Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  3. 3. Why Export? Quantitative: Sales opportunities! The 95/5 reality Offset domestic volatility Don’t forget seasonality Raise operating efficiencies, reduce costs Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  4. 4. Why Export? Qualitative: Brand awareness & reputation Even bigger in digital media age Expanded business partnerships Distribution, manufacturing Expertise Straight-line growth or expansion into licensing, etc. Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  5. 5. Why Export? End Result: A competitive edge! Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  6. 6. Our “Concorde” Agenda First Of All: Why Export? Are You Export-Ready? Basic Market Research Common Export Terminology Recommended Resources Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  7. 7. Are You Export-ready? The essentials: Senior management commitment Knowing your product Cash flow & room for investment Production capacity & ability to produce international products Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  8. 8. Are You Export-ready? The essentials: Senior management commitment What payback periods: Capital expenditures, marketing spend? How to allocate resources & overhead? (staffing, materials) Comfort level: Risk vs. reward? Export strategy Business goals Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  9. 9. Are You Export-ready? The essentials: Knowing your product Why do customers need your product? Your competitive advantage: Brand image, quality, features, price?... Your distribution channels? Export strategy Business goals Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  10. 10. Are You Export-ready? Your turn – Cash flow & room for investment Production capacity & ability to produce international products Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  11. 11. Our “Concorde” Agenda First Of All: Why Export? Are You Export-Ready? Basic Market Research Common Export Terminology Recommended Resources Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  12. 12. Basic Market Research Does it even matter if “they” come to you? Yes! Get the jump on competition: Central Intelligence Agency https://www.cia.gov/library/publications/the-world- factbook/geos/ee.html US Dept of Commerce / Int’l Trade Administration http://www.trade.gov/cs/index.asp US Dept of Agriculture / Foreign Agricultural Service http://www.fas.usda.gov/markettradedata.asp Produce Marketing Association http://www.pma.com/cig/intl/internationalMarkets.cfm Other trade/industry associations Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  13. 13. Basic Market Research Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  14. 14. Basic Market Research Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  15. 15. Basic Market Research Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  16. 16. Basic Market Research Management questions: Stable political system? Stable economy, exchange rate? Intellectual Property protections? Anti-American sentiment? US Commercial Attaches available? Tariffs or NTTBs on imports? Licenses, regulatory requirements? Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  17. 17. Basic Market Research Marketing questions: Already a market there for your product? What price range? Annual sales volume? Largest market-share holders? Channels of distribution, Channel member expectations? Advertising: Types, spend, restrictions? Branding: Positioning of top brands? Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  18. 18. Our “Concorde” Agenda First Of All: Why Export? Are You Export-Ready? Basic Market Research Common Export Terminology Recommended Resources Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  19. 19. Common Export Terminology “Cost” vs. “Price” Terms of Sale Terms of Delivery Terms of Payment Letters of Credit Documentary Collections Freight forwarders/Carriers Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  20. 20. Our “Concorde” Agenda First Of All: Why Export? Are You Export-Ready? Basic Market Research Common Export Terminology Recommended Resources Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  21. 21. Recommended Resources NKU International Business Center http://www.nku.edu/~cob/institutes/ibc/index.php NKITA (NKY International Trade Association) http://www.nkychamber.com/cwt/external/WCPages/busine ss/international.aspx Kentucky World Trade Center http://www.kwtc.org/ US Dept of Commerce (International Trade Administration) http://www.trade.gov/cs/index.asp http://www.export.gov/ US Dept of Agriculture (Foreign Agricultural Service) http://www.fas.usda.gov/ Central Intelligence Agency https://www.cia.gov/library/publications/the-world- factbook/geos/ee.html UNZ & Company http://www.unzco.com/index.htm Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
  22. 22. Pete Healy • Pete Healy introduced wine coolers to Japan in the early 1980s, and has been involved in international business every since. Widely regarded for his work in international, strategic, and digital marketing, Pete’s work includes: • International launch or expansion of client brands such as Lindsay Olives, Wente Wines and Phillips Farms; • Development of Jelly Belly® jelly beans as an international brand with distribution around the world; • Advising to Perfetti Van Melle marketing managers in The Netherlands, India, and other countries on Mentos® marketing strategies in the US; • Workshops and classes on international sales and marketing strategies for the US Department of Commerce, the Foreign Agricultural Service of the USDA, University of California Berkeley, and the National Confectioners Association; • Seminars on international payment methods, logistics, and export licensing for UNZ & Company, the Small Business Administration, and others; • Consulting to Silicon Valley manufacturers on export licensing and international logistics. • Pete is currently Director of Crowbar Marketing (www.CrowbarMarketing.com) and a founding partner of Innovationists International (www.TheInnovationists.com). He is president-elect of the Cincinnati chapter of the American Marketing Association for 2009- 2010, and can be found at www.LinkedIn.com/in/PeteHealyKY. Formerly a resident of Sapporo, Japan, and the San Francisco Bay Area, Pete now lives in Northern Kentucky. Crowbar Marketing www.CrowbarMarketing.com www.TheInnovationists.com
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