Analyzing Market Differences: Understanding Unique Regional Characteristics for Effective Strategies

1. What’s the “same” Customer focus Need for an environmental analysis Need for sufficient, accurate, & timely information What’s “different” Each region / country is unique Differing market institutions Marketing Research

2. Overarching Issues • What are the unique characteristics of the intended market? • What characteristics are in common with a currently penetrated market? • Can multiple markets be clustered together for operating and or planning purposes? • What dimensions should be used to cluster markets? • Adapt to market or standardize?

3. Information Categories • Market characteristics • Size of market: rate of growth • Stage of development • Stage of product life cycle; saturation levels • Buyer behavior characteristics • Social / cultural factors • Physical environment

4. Information Categories • Marketing institutions • Distribution systems • Communication media • Marketing services (advertising & research)

5. Information Categories • Marketing institutions • Distribution systems • Communication media • Marketing services (adv. & research) • Industry conditions • Competition size & practices • Technical development

6. Information Categories • Legal environment • Laws, regulations, codes, tariffs, taxes

7. Information Categories • Legal environment • Laws, regulations, codes, tariffs, taxes • Resources • Personal (availability, skill, potential & cost) • Money (availability & cost)

8. Information Categories • Political environment • Current government policies and attitudes • Long-range political environment

9. Market Research • Primary or secondary data? • Cost effective? • Relevant? • Accurate? • Timely?

10. Obstacles to collecting International Secondary Data • Comparability • Comparing data from one country / region to another (differences & errors) • Lack of current data • Frequency of surveys & data collection varies • Cost • Especially when privatized

11. Obstacles to collecting International Primary Data • Language • Translation / back-translation • Requires re-testing survey tool

12. Obstacles to collecting International Primary Data • Language • Translation / back-translation • Requires re-testing survey tool • Infrastructure • May dictate different techniques (e.g. poor phone system or poor postal syst.)

13. Obstacles to collecting International Primary Data • Language • Translation / back-translation • Requires re-testing survey tool • Infrastructure • May dictate different techniques (e.g. poor phone system or poor postal syst.) • Cultural • Differing attitudes towards research; from avoidance to fabrication

14. Resolving data challenges • Segment the research task • Utilize resources • USDOC offers primary data collection service • Conducted by commerce dept. employees based in U.S. foreign offices • All local, state, and federal resources • ITA, World Trade Centers, Industry associations

15. Dealing with data problems • Complementary product or industry substitution • “Bad” indicator / classification code • National statistics substitution • Correlate demographic and consumption statistics • Ratio comparisons • Use data for known areas to predict • Timeline comparison • Level of consumption to development

16. Data needs & sources • Economic & demographic data • STAT-USA <http://domino.stat-usa.gov/>Most Local and State trade assistance centers and Federal Depository Libraries offer free access • National Trade Data Bank (NTDB) • Global Business Opportunities GLOBUS • State of the Nation

17. Data needs & sources • Economic & demographic data • Country Commercial Guides (CCG) • Available for most countries • Updated annually • CIA World Factbook • Greater detail than the CCGs • Geography, resources, population demographics, government, infrastructure, military and economic indicators • Department of State Background Notes

18. Data needs & sources • Economic & demographic data • US Foreign Commercial Service • Country Market Profiles (CMP) • Single country, multi-industry reports • Country Trade Statistics (CTS) • Single country over a 5 year period • Foreign Economic Trends (FET) • Current business & economic developments • International Market Information (IMI • Unique market situations

19. Data needs & sources • Economic & demographic data • U.S. Agency for International Development (USAID) • Congressional Presentations • Trade & Development Program, Dept. of State • Congressional Presentation • DUN’s Marketing Service • Exporter’s Encyclopedia (800) 526-0651

20. Data needs & sources • Economic & demographic data • Center for International Research • World Population (demographic data) • ITA - USDOC • International Economic Indicators • International Monetary Fund (IMF) • International Financial Statistics • World Bank • World Bank Atlas • World Development Report

21. Data needs & sources • Fax retrieval systems / web sites • USDOC Trade Information Center • (800) USA-Trade (872-8723) • www.ita.doc.gov • USDOC Country desk officer • Each assigned to one or more countries or markets • Get listing from TIC or Export Asst. Cntr. • Private resources • Ernst & Young

22. Industry / Product specific Data • STAT-USA • Industry Sector Analysis (ISA) • Include local competitors, export / import statistics • International Market Insights (IMI) • More current (limited time duration) • Best Market Reports (BMR) • Groups markets by product classifications • US Exports of Merchandise • Uses harmonized code

23. Industry / Product specific Data • U.S. and Foreign Commercial Service • (202) 377-2432 • Export Statistics Profiles (ESP) • Available for 35 industries, $70 ea. • Custom Statistical Service • For products not in ESP ($50 - $1000) • International Market Research • Single industry, one country ($50 - $200) • Country Market Surveys (CMS) ($10) • 8 - 12 page summaries of IMR by indust.

24. Industry / Product specific Data • U.S. and Foreign Commercial Service • (202) 377-2432 • Annual Worldwide Industry Reviews • 9-20 countries per volume ($200 / volume) • Product Market Profiles (PMP) • Single product, multicountry ($300 - $500) • USDOC Competitive Assessments • Over 20 industries (202) 377-4944

25. Industry / Product specific Data • U.S. Govt. Printing Office • Foreign Trade Report (FT410) $100/yr • U.S. Comercial Officers • Comparison shopping service • Specific product, single country • National Technical Info. Service • Market Share Reports ($6.50 ea)

26. Industry / Product specific Data • U.S. Small Business Administration • Export Information System Data Reports (XIS) • Information Clearinghouse • FINDEX: Directory of Market Research Reports, Studies and Surveys • Over 10,000 listings ($245) • (212) 354-2424

27. Industry / Product specific Data • USDOC Industry desk officers • “Relationship” based • Trade associations • Especially in international standards issues • Publications, journals, periodicals • Foreign phone books • <www.europages.com> • Networking • Suppliers / non-competing companies

28. Competitive Position • Competitive intelligence issues • Where are they selling? • To whom are they selling • How are they selling • How much are they selling, at what price? • What is there international strategic plan?

29. Key Sources of Competitive Info. • Databases • U.S. Exports by Commodity • Monthly compilation (harmonized code) • Port Import Export Reporting Service (PIERS) (expensive) • More detailed than Commodity report • Directory of U.S. Exporters • Compilation of PIERS reports • United Nations International Trade Statistics Yearbook • Less detailed than Commodity (Intntl.)

30. Key Sources of Competitive Info. • Company information • Company literature (and web sites) • Company advertising • Industry associations (pooled data) • Public information • Industry press • Newspapers

31. Key Sources of Competitive Info. • Interviews - direct contact • Press and advertising • Government • Foreign customers / distributors • Employees from competitors • Service / fraternal organizations