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Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
Intl biz lesson4
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Intl biz lesson4

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International business course at ESEC BCN. Bachelor 3. …

International business course at ESEC BCN. Bachelor 3.
Lesson 4: Market information

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  • 1. International BusinessMarket informationProfessor: Marc Arza marza@rjce.net
  • 2. 1. Intl business: Sourcing informationMarket research encompasses all methods that a company can use to determine whichforeign markets have the best potential for its products. Results of this research informthe firm of: the largest markets for its product, the fastest growing markets, market trendsand outlook, market conditions and practices, and competitive firms and products.A firm may research a market by using either primary or secondary data resources. Inconducting primary market research, a company collects data directly from the foreignmarketplace through interviews, surveys, and other direct contact with representativesand potential buyers. Primary market research has the advantage of being tailored to thecompanys needs and provides answers to specific questions, but the collection of suchdata is time-consuming and expensive.When conducting secondary market research, a company collects data from varioussources, such as trade statistics for a country or a product. Working with secondarysources is less expensive and helps the company focus its marketing efforts. Althoughsecondary data sources are critical to market research, they do have limitations. Themost recent statistics for some countries may be more than two years old. Moreover, thedata may be too broad to be of much value to a company. Statistics may also be distortedby incomplete data-gathering techniques. Finally, statistics for services are oftenunavailable. Yet, even with these limitations, secondary research is a valuable andrelatively easy first step for a company to take
  • 3. 1. Intl business: Sourcing informationBecause of the expense of primary market research, most firms rely on secondary datasources. The three following recommendations will help you obtain useful secondaryinformation:1) Keep abreast of world events that influence the international marketplace, watch for announcements of specific projects, or simply visiting likely markets. For example, a thawing of political hostilities often leads to the opening of economic channels between countries.2) Analyze trade and economic statistics. Trade statistics are generally compiled by product category and by country. These statistics provide the U.S. firm with information concerning shipments of products over specified periods of time. Demographic and general economic statistics, such as population size and makeup, per capita income, and production levels by industry can be important indicators of the market potential for a companys products.3) Obtain advice from experts. There are several ways of obtaining this advice: - Contact experts at the national export promotion agency. - Attend seminars, workshops, and international trade shows. - Hire an international trade and marketing consultant. - Talk with successful exporters of similar products. - Contact trade and industry association staff.
  • 4. 1. Intl business: Sourcing information - Keep an eye open! - Beware, analysis can cause paralysis! - Info is always inaccurate, trends are not! - Never pay, just browse five more minutes! - Information comes to those informed!Sources and areas: - Macroeconomic info - Government agencies - Industry info - Tariffs - Business directories
  • 5. 2. Step-by-step to market informationA. Screen Potential MarketsStep 1. Obtain export statistics that indicate product exports to various countries.Step 2. Identify five to ten large and fast-growing markets for the firms product. Look atthem over the past three to five years. Has market growth been consistent year to year?Did import growth occur even during periods of economic recession? If not, did growthresume with economic recovery?Step 3. Identify some smaller but fast-emerging markets that may provide ground-flooropportunities. If the market is just beginning to open up, there may be fewer competitorsthan in established markets. Growth rates should be substantially higher in thesecountries to qualify as up-and-coming markets, given the lower starting point.Step 4. Target three to five of the most statistically promising markets.
  • 6. 2. Step-by-step to market informationB. Assess Targeted MarketsStep 1. Examine trends for company products as well as related products, that couldinfluence demand. Calculate overall consumption of the product and the amountaccounted for by imports. Country Guides and other reports that give economicbackgrounds and market trends for each country. Demographic information (such aspopulation and age) can be obtained from World Population (Census) and StatisticalYearbook (United Nations).Step 2. Ascertain the sources of competition, including the extent of domestic industryproduction and the major foreign countries the firm is competing against in each targetedmarket by using ISAs and competitive assessments.Step 3. Analyze factors affecting marketing and use of the product in each market, suchas end-user sectors, channels of distribution, cultural idiosyncrasies, and businesspractices.Step 4. Identify any foreign barriers (tariff or nontariff) for the product being imported intothe country. Identify any barriers (such as export controls) that affect exports to thecountry.Step 5. Identify any government incentives that promote exporting of your particularproduct or service.C. DRAW CONCLUSIONS!!!
  • 7. 3. Economic and social informationBasic economic indicators: - GDP / GNP - Per capita GDP (ppp) - GINI index - GDP structureOther economic & social indicators: - Literacy rate - Doctors per capita - Ave. education att. - Tv sets per capita - Ave. household size - Road km. per capita - Demography (piramid) - Internet acces (%) - Urban population (%) - Cellphones per capita - Population density - Others (by industry) ...
  • 8. 3. Economic and social information (sources)International InformationUN Statistical Yearbook. Published by the United Nations (UN), this yearbook is one ofthe most complete statistical reference books available. It provides international tradeinformation on products, including information on importing countries useful in assessingimport competition. The yearbook contains data for 220 countries and territories oneconomic and social subjects, including population, agriculture, manufacturing,commodity, export-import trade, and many other areas.World Bank Atlas. The World Bank Atlas provides demographics, gross domestic product,and average growth rates for every country.World Factbook. Produced annually by the CIA, this publication provides country-by-country data on demographics, economy, communications, and defense.International Financial Statistics (IFS). Published by the International Monetary Fund, IFSpresents statistics on exchange rates, money and banking, production, governmentfinance, interest rates, and other subjects.
  • 9. 3. Economic and social information (sources)World Population Profile. This valuable resource is produced by the Bureau of the Censusof the U.S. Department of Commerce. Census collects and analyzes worldwidedemographic data that can help exporters identify potential markets for their products.Information on each country - total population, fertility, mortality, urban population, growthrate, and life expectancy - is updated every two years. The document also containsdetailed demographic profiles of individual countries, including analysis of labor forcestructure, and infant mortality.Organization for Economic Cooperation and Development (OECD) Surveys. Theseeconomic development surveys cover each of the 29-member OECD countriesindividually. Each survey presents a detailed analysis of recent developments in marketdemand, production, employment, and prices and wages. Short-term forecasts andanalyses of medium-term problems relevant to economic policies are provided.OECD Publications. The chartered mission of OECD is to promote its member countriespolicies designed to support high economic growth, employment, and standard of living,and to contribute to sound economic expansion in development and in trade. OECDpublications focus on a broad range of social and economic issues, concerns, anddevelopments, including reports on international market information country by country,such as import data useful in assessing import competition.
  • 10. 4. Government agencies (sources)Most countries around the world have export promotion agencies with plenty ofinformation about: - Export procedures - Market research studies - Market opportunities - Net of available intl offices - Tariffs & barriers - Agents/distr./partnersInvestment promotion agencies are also a good tool to learn about: - Investment opp. - Subsidies & partnersMain information sources: - United State: www.export.gov - Ontario : www.ontarioexports.com - France: www.exporter.gouv.fr - ICEX: www.icex.es - WAIPA: www.waipa.org
  • 11. 5. Tariffs and protectionist barriersThe hs code: - Harmonized Commodity Description & Coding System - Developed by the World Customs Organization - Six digit nomenclature - HS code locator: http://madb.europa.eu/mkaccdb2/indexPubli.htm
  • 12. 6. Business directoriesWhen looking for companies: - Kompass (and others): www.kompass.com - Google (what else ...): www.google.com - Yellow pages (around the world)When looking for products: - Ali Baba: www.alibaba.com
  • 13. 7. Intl business: Project You work for a Priorat winery exporting quality red wine: - Select a southern american market following macroeconomic and specific indicators - Find a market report for that country wine market or any other significant source with local wine market information. - Find the appliable hs code and tariff (bottled red wine) - Find two potential distributors (market access) - Find two local competitors (local wine producers or local distributors of imported quality red wine) Report: - Length: Maximum 5 pages - Letter: Arial 12 - Spaces: 1,5 - Web references of the found market reports, distributors and competitors are needed. Due: - Wednesday, September the 21st (10:00 AM). Via e-mail or Campus.

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