Portfolio H4
An export plan consists of the following aspects:
Marketing – The Export Plan
1. Market definition
Model Abell & Hammond:
- Who? (customer, target groups)
- What? (needs/demands)
- How? (technologies)
2. Internal analysis
Main question: is the company capable of exporting?
Strength – Weakness analysis
Research elements:
1. The organization
- Innovation
- Production
- Organization
- Marketing and market position
2. Export potential
- Product characteristics
- Perceived quality
- Customer needs
3. Management
- Export marketing
- Logistics
- Language
- Management
4. Financial aspects
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- Financial resources
- Budget for education
5. Export culture
- International orientation
- Values and standards
3. Export country selection (Lessons International Economics)
4. Customer analysis (ABCD)
(afnemer)
STP-model
- Segmentation
Various criteria:
1. Geographic
2. Demographic
3. Socio-economic
4. Psychographic
5. Use of product
Customer profiles: 5W model
1. Who are (potential customers?)
2. What is the value proposition
3. Where is the product sold?
4. When is it sold?
5. Why is it (not) sold?
Multi-attribution attitude model
What are the main product characteristics
(attributes) and how do they compare
with the competitors
Conditions:
1. Homogeneity within the group
2. Heterogeneity between groups
3. Measurable and identifiable
4. Sufficient size
5. Sufficient accessibility
6. Sufficient targetability
- Targeting
1. Undifferentiated (mass) -> all segments identical
2. Differentiated (segment) -> various segments
3. Concentrated (niche) -> one segment
4. Individual (micro) -> everyone individually
- Positioning
Positioning grid
5. Industry analysis (ABCD)
(bedrijfstak)
Macro analysis
DESTEP
Meso analysis
Porter’s 5-forces model
6. Competitor analysis (ABCD)
(concurrentie)
Types of competition
1. Product type/form (identical segment)
2. Product category (similar characteristics)
3. Generic (similar needs)
4. Budget (customer spending in general)
7. Distribution analysis (ABCD)
(distributie)
Main types of market entry
1. Direct export
- Own sales force
- Own sales office
- Third party shared office
2. Indirect export
- Agent
- First phase internationalization
- Knowledge market and culture
- For own account and at own risk
- Fee income
- Importing trading agent
- Also known as wholesale
- For own account and at own risk
- 4 types:
- Simple trading contract
- Exclusive trading contract
- Exclusive purchase contract
- Selective distribution contract
3. Production abroad
8. Confrontation matrix
Step I + II
1. Strenghts + opportunities ; if a company is in this particular area of the SWOT analyse, it Is
best for them to try to keep on growing
2. Weaknesses + opportunies; strengthen the weaknesses
3. Strenght and threats; try to consolidate the threats
4. Weaknesses + Threats; if a company is in this area of the SWOT analyse it is best for them
to withdraw from the market if the future isn’t bright.
Step III
Combine;
Suitable; is it suitable (within a strategic plan)?
Feasible; is it feasible? (financially, organisationally, economically, technologically, socially,
legally, ecologically)
Acceptable; will it be accepted? Behaviour internal and external.
Step IV
9. Export marketing plan 8 p’s
- Product
- Price
- Place
- Promotion
- Presentation / packaging
- Physical distribution
- Politics
- Personnel
Price; price to be charged to importer per unit of weight; consumer price
Export costs such as transport, sales, marketing, insurance, duties, management
Pricing methods
1. Cost orientation
2. Competition orientation
3. Demand orientation
Physical distribution; the right product at the right moment through the right channel to the
right client. Choice of transportation depends on type of product, destination, speed, safety
etc.
10. FINANCIAL FEASIBILITY
Payment methods;
1. Blank payment
2. Documentary collection -> delivery upon payment
3. Documentary credit -> payment prior to delivery
It’s best to use documentary credit because in this way you have a certainty that you will be
paid before you’’ll deliver your goods to a foreign customer