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IF THE HOMEWORK YOU DID FOR THE LAST chapter shows you have a marketable and profitable product that will sell in sufficient volumes, you now are ready to commit resources (time and money) to the project. But before you do, make sure you address the next six commonalities of the import/export transaction: • Develop a market plan. • Prepare for negotiations. • Understand the tips and traps of culture. • Consider intellectual property rights. • Learn about communications. • Get ready to travel. 64 THE MARKET PLAN You have determined that your project is viable. Now write a long-range market plan, then execute it. A market plan is simply a process recorded on paper that allows you to think through the many logical ways to reach buyers and convince them to say yes to a sale. It is important to integrate the international market plan with the firm's overall strategic business plan. (See Chapter 6 for details about how to write a business plan.) Use the following logical, step-by-step process to write your market plan: 1. Objectives Examples: • Sales of $XXX,XXX by the end of the second year. • Expansion into countries A and B by the end of the third year. 2. Specific tactics Examples: • Radio advertising in two cities. • Three direct mailings to each company or person on a specific list. • An Internet Web site that advertises the address. 3. Schedule of activities or action plan Examples: • A list of trade shows indicating which you will attend, including dates and duration of trips to visit overseas distributors, with their names, addresses, and phone numbers. • Specific assignments of responsibility (an essential feature of an action plan). 4. Budget for accomplishing the action plan A list of every conceivable cost associated with marketing the product. Don't scrimp on the budget, because this is where most startup firms underestimate. Initial marketing costs will be high. Segmenting the Market Marketing segmentation enables an import/export organization to choose its customers and 65 fashion its marketing strategy on the basis of (1) identified customer wants and requirements and (2) the response to the firm's specific desires and needs. You should visualize segmentation on both a macrolevel and a microlevel. Macro: From the Greek makros, long. It is a combining form meaning large. Micro: From the Greek mikros, small. It is a combining form meaning little, small, microscopic. Macro segmentation. Macro segmentation divides a market by such broad characteristics as industry shipments, location, and firm size. An import macrosegment might be the dividing of a city into marketing segments. On a larger scale, it might involve dividing the United States into regions, prioritizing those regions, then developing a microplan for each region. Export macrosegments might include prioritizing continents or countries within a continent; better yet, export macrosegments might sort by language, purchasing power, or cult ...

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Executive Summary Leaving your domestic comfort zone to operate in another country or even continent requires careful planning. Expanding into new geographical markets is very exciting, but also very nerve-wracking. Any firm considering entering into international business transactions must understand that doing business abroad is not a simple task. It is stimulating and potentially profitable in the long-term but requires much preparation and research prior to the first transaction. Europe is probably the most heterogeneous continent on our globe, making understanding market potential more challenging than in more homogeneous markets. Because of the European Union, it’s tempting to view Europe as a single market. In reality, you must consider each country as a market, because each country has a different mix of history, culture, language and business etiquette. This How-To Guide will describe the steps required to successfully expand into the European market. Read this 7-page guide to understand the following: Understand market potential Identify product-market comibinations Identify a local partner Launch and start selling Demand Metric's How-To Guides are designed to provide practical, on-the-job training and education and provide context for using our premium tools & templates. If there is a topic that you would like to see covered, please contact us at info@demandmetric.com (link sends e-mail) to make a content request.

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Leigh Lasley