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Market Research and Export Promotion Export Marketing Plan The marking plan is the basis on which all the overseas promotion is formulated. To devise the marketing plan involves reconciling the export strategies and objectives of the manufacturer into marketing terms.The marketing plan embraces many elements including market research project, promotion/advertising details, products involved and their quantity available, distribution arrangements and total volume/value of goods Where relevant, various costing information should be included, particularly the research and advertising budget. Overall; the plan must be realistic and should have a clear sense of purpose and direction Export Market Research Before making goods for a new overseas market, as in the home trade, it is necessary to discover first of all if the goods can be sold profitably in that market. To answer that question is one of the objects of market research. Export market research, in particular, is a study of a given market abroad to determine the needs of that market and the methods by which the products; can best be supplied. It may be carried out to determine: 1. If a new product likely to find a market. 2. Whether an established product is likely to meet with a good demand in a new market. 3.Why sales of a product have declined, either generally or in a certain area Here, in this chapter is laid on the first point: Market research is vital to success in overseas Markets To look for a suitable market an exporter must consider, for example: 1.Political and Economic Conditions Countries with different political and economic systems take different attitudes toward foreign trade business.Their policies and regulations concerning import and export，foreign exchange control，customs, duties and other tariffs will greatly affect the suitability for a new market. 2.Physical and Climatic Conditions The suitability of his products: heavy clothing is not worn in hot climates; mountaineering equipment would not be in demand in a flat country. 3. Social Conditions If there is a low standard．of living with poor wage levels, there nay be no market for television sets or cars or luxury products. It may be desirable, even necessary,for price lists and sales promotion literature to be translated into a local language,with local units of measurement 5 and of the survey questionnaire and in the interviewing process. Surveys may be very expensive, and they are time--consuming: Another key weakness is that respondents often cannot or will not give true answers. The interviewing in the survey may be done by the researcher in person, by telephone, or by mail. 1.Personal Interviews Personal interviews are more flexible than the other two types because interviews can alter the questions to fit-the situation as they see it: They are able to probe snore deeply if an answer is not satisfactory. Ordinarily, it is possible to obtain more information by personal interview .than by telephone: or mail. Also, the interview can by observation; obtain data regarding the respondents'socioeconomic status-their home ,neighborhood, and apparent standard of living. The major limitations of this method of interviewing are its relative high cost, the length of time needed to conduct the survey, and the chance of introducing ,errors during the interviewing. 2. Telephone Survey In a telephone survey, the respondent, is approached by telephone, and interview is completed at that time. Telephone surveys can usually be conducted more rapidly and at less cost than either personal or mail surveys. Tele: phone surveys are lees flexible than personal Interviews, but more flexible than mail survey. Another significant advantage is that a telephone. survey -may be timely. For instance, people may be asked whether they are watching television at the moment and; if so, the name of the program and the sponsor. One limitation of the telephone survey is that interviews must be short: Lengthy interviews cannot be conducted satisfactorily over the phone. 3.Interviewing by Mail Interviewing by mail involves mailing a questionnaire to potential respondents and having them return the completed form by mail. Mailed questionnaires ape more economical than personal interviews and are particularly useful in national surveys,Also, if the respondents remain anonymous, they are more likely to give true answers because they do not feel the need to impress the interviewer. A major problem with mail' questionnaires is the Compilation of a good mailing list, especially for a broad-scale survey. If the sample can be drawn from a limited list, such as property taxpayers in certain counties or subscribers to a magazine, the list presents no problem.Another significant limitation concerns the reliability of the questionnaire returns, Particularly when the returns are-anonymous. If the respondents have characteristics that 6 differentiate them from nonrespondents, the survey results will be invalid. Further,the questionnaire must be reasonably shorted the questions very simple; there is no to explain in a puzzling question. Ideally :Yes.'' or“No" or prechoice type of :produces the best results. Here is an example: Questionnaire for Market＿Research on Smoking A. Do you smoke cigarettes? Yes/No (If No,terminate) B How. many do you smoke a day? C. What size of cigarette do you smoke ? Mini ,Standard ,Large D. Do you smoke filter tips.? Yes/No E. Do you smoke menthol cigarettes?一Yes/No Observational Method In the observational method, the data are collected by observing some action of the respondent: No interviews are involved, although an interview may be used as a follow-up to-get additional information. For instance,if customers are observed buying beer in cans instead of bottles; they may be asked; why they prefer that one form of packaging to the other. Information may be gathered by personal or mechanical observation. In one form of personal observation the researcher poses as a customer in a store. This technique is useful in getting information about the caliber of the -sales people，or in determining what brands they push. Mechanical observation is illustrated by an electric cord stretched across a high way to count the number一of cars that pass during a certain time period The observation method has several merits. It can be highly accurate．Often it removes a11 doubt about what the customer does in: a given, situation. The consumers are unaware that they are being observed; so presumably they action theft usual fashion. The observation technique reduces interviewer bias. However, the possibility of bias is not- completely eliminated as long as people are used as :observers. Another disadvantage is that the technique is limited in its application. Observation tells what happened; but it cannot tell why. It cannot delve into motives, attitudes,or opinions. Experimental Method The experimental method of gathering primary data involves the establishment of a controlled experiment that stimulates the real market situation as much as possible. The theory is that' the small-scale experiment will furnish valuable information f tar designing a large scale marketing program. 7 The experimental method may be used in several different ways. In one instance, a firm may manufacture a few units of a product and give them to employees or consumers to try out: Probably the major application of the experimental method has been in market testing. This technique consist establishing a control market, in which all factors remain constant and one or more test markets,in which one factor is varied. A firm may be trying to determine whether to change the color of its package.In city A, the product is marketed in its traditional color. In each of cities B, C, and D, a different color is used. All other factor are kept constant. By measuring sales in the four market over a period of time;．the manufacturer, hopes to determine which color is most effective. The outstanding merit of the experimental method is it realism. It is the only one of the three methods of gathering primary data that stimulate an actual maket situation. The problem is that it is expensive.It requires long periods of careful planning and administration. Analyze the Data and Prepare a Report The final steps in market research project are to analyze the data and interpret the findings. Information gathered from market research is a guide to the invention，production and sales of the products for which there is a market. Today sophisticated electronic data processing equipment enables a researcher to tabulate and analyze masses of data quickly, and inexpensively. The end product of the investigation is the researcher's conclusion and recommendations, submitted, in written form on which the company's policy and proceedings concerning export promotion are based. Export Promotion-Advertising After deciding there are good prospects, for his goods abroad through the study of the market research investigation, the maker or the exporter will, of course; take measures to promote, exporting of the goods to that market. A most important measure in this respect is to advertise; the aid to trade that deals with the problem of giving information about the goods and 0helps to put buyers and sellers in touch with one another. By means of advertisements a supplier, tells people what goods he has for sale and emphasizes their good points in the hope that people will buy them. Advertising can, be undertaken by the company's sales or publicity department; or an advertising agcy is to be．engaged as an adviser. Purpose of Advertising 1.To Inform 8 Advertising can be used to place facts before public. An advertisement for a car may include some technical details, so that part of the advertisement is informative. Another advertisement may be .entirely informative,such as the announcement of the opening of a new shop.2 To Persuade although the advertisement for the car may give some facts, its over-all objective is to persuade people to buy the car. To do this various subtle methods may be used. The illustration, for instance; may give an exaggerated impression of the car's power The wording and the lay-out may be designed to appeal to the emotion rather than the mind: If you study some advertisement for practical products, you will find that they contain little or no technical information. One would not expect to find a .scientific analysis in an' advertisement for a cake of toilet soap, of course, but an examination of advertisement for. medicinal goods will show that the appeal is mainly to the emotions.3: To Remind Some advertisements aim merely to keep the name of :the product before the public. A newspaper advertisement may consist of only a picture of a packet of cigarettes; a bus may carry,the name of an insurance company; a poster may display a well-known advertising phrase. They say nothing but serve a useful. purpose in constantly reminding the public of, the, name of the product Advertising Media The term "media" means the forms used 'to carry advertisement. The choice of media depends upon the product and the audience the advertisement is aimed at For example, very few people are interested in coins. A coin dealer would want to appeal to that small number of people and to no one else. He would therefore advertise in a magazine which most coin enthusiasts read. The cost of advertising in newspapers large depends upon the circulation of each newspaper.If a newspaper sells a million copies, it is possible (although not probable) that a million people will read an advertisement in it. Some pages in a newspaper are more expensive to advertise in than are others, because most people will read the general news pages but only some will the pages devoted to sport, fashion, the arts; etc. Different一types of people read different newspapers, so an advertiser will use those papers whose readers are likely to be possible buyers of his products. For example, an art gallery would not advertise in a "popular" news paper because few of its readers would be likely to be visitors to art galleries. 2 Magazines The same principles about which media to use also apply to magazines. There are magazines which men read, those which women read and those which both read. Within each 9 group there is specialization, so that one magazine will be read by one "social group" and not by another. 3. Radio and Television These are the most、expensive of advertising media. A broadcast at a "peak time"will be heard or seen by millions of people: If only a tiny fraction of them respond, the huge cost twill have been justified. One reason for the success of such advertising is that it is difficult to ignore. A broadcast will be heard: or seen by everyone using a radio or television set; even if only subconsciously, it will make an impression. On the other hand, when you read a newspaper or a magazine you will not even notice most of the advertisements A radio or television advertisement must make an instant appeal. There may be only 30 seconds to get the message across; so its impacts must be immediate. 4 Outdoor Advertising This includes posters, advertisements on vans and buses and in trains. The message must be simple and short, perhaps with an immediately recognizable illustration. Selection of Customers-Credit information Once the overseas' market has been found, the next step is to look for suitable customers with whom the maker or exporter expects to establish good business relationships. Undoubtedly, he wishes to deal with those customers of high credit standing, and that is one of the chief factors to consider at the tune of setting up new business connections.The information about the credit or financial standing of an overseas trader can be obtained from various sources. They are chiefly banks, trade associations professional credit information services, and consulates abroad. Upon application for or on receipt of letters asking for the credit standing of the foreign trader in question these organizations are willing to provide, without any responsibility on their part,a credit or financial report on the trader, which is usually considered as private and confidential. The report is based on the relative references, files, and records they have kept or on the result of an investigation made accordingly. In view of the financial or credit status stated or recommended in the report alongside of other factors the maker .or manufacturer may freely consider the intended customer acceptable or not.