Have you ever dreamed of offering your product/service
abroad, but were unsure of how to make this dream a reality? The "Pennsylvania International Trade Guide" has readily available resources to help your business reach new customers and begin making global sales. These resources include "expert tutorials" in subjects such as:
• Export Basics
• Culture
• Finance
• Legal
• Logistics
• Marketing
This series of videos provides expert advice and informs on best practices for companies seeking to expand abroad.
The tutorial I found most appealing is called Developing a Marketing Plan, which can be found in the marketing section. During my senior year in college, my international business coursework required that I research a specific product, identify an under-served market segment, and propose an international market expansion plan. Completing this assignment taught me the complex nature of international expansion. Looking back, I wish I would have viewed these "expert tutorials" when I was completing my assignment.
The lessons that took me months to comprehend are condensed within these practical videos. The four sections within the market development section include:
• Developing a Marketing Strategy
• Researching Markets through Government Agencies
• Researching Global Markets
• Export Opportunities via Development Agencies
Developing a Marketing Strategy advises the viewer of key differences between domestic markets and international markets. Further, it conveys the immediate and long-term benefits of enacting an international strategy. The most important take-away from this section is the fact that despite domestic economic slowdown, international markets may grow. For more information on the tutorials and for additional resources, visit the website.
Researching Global Markets is an important factor in international market development. This ensures that your product will be offered in an area where consumers want to purchase your product or service. Such research will give an indication as to how competitive your product will be when compared to similar products in the foreign market. Price, product attributes, and warranties will each have an impact on the international competitiveness of your product.
Many countries have technical standards that imported goods must comply with. Detailed research will allow a company to determine if their product is in accordance with these measures. Action steps your company may have to take to comply could be converting components or acquiring foreign certification. Examples of component changes include converting hardware from standard to metric or altering power plug voltage.
Certifications vary by country. In Europe, a CE certification indicates that the good complies with the European Union legislation pertaining to said product. In China, the CCC mark is required for many goods and represents that the good is in accordance with the China Compulsory Certificate.
Foreign customers will likely require labels that are translated and adapted to fit cultural norms. Labeling laws for food products are often more complex, as ingredients and nutritional information requirements vary for each country.
The cost of exporting your product will also play a deciding role in whether or not a proposed target market is viable. Landed cost calculations are the sum of import taxes, transportation costs, and insurance fees associated with international shipment. These costs may either promote or deter a company from offering their good in a specific country. Barriers to entry, beside import duties, foreign standards, and costs of shipment may also include governmental content restrictions and “buy national” policies. Content restrictions bar goods that contain prohibited substances (i.e. chemicals) from being imported into the country. “Buy national” policies are efforts to support retention of domestic jobs and efforts to minimize a country’s power distance index. These factors pose a threat to make exporting a product difficult or costly and must be considered as an element of market research.
Every foreign market is different; each of the above components of research should be applied for individual countries. The most effective method for researching global markets is to start with a number of possible countries. Then as criteria are either met or not fulfilled, countries should be eliminated from your search. This process should continue until you are left with a few, viable options of which to explore.
The following topics should be addressed during the international research phase:
Economic Research:
• Market Size
• Import and Export Percentage of Total Economy
• Per Capita Consumption of Products of Foreign Origin
• Projected Growth of Market
• Disposable Income and Expenditure Patterns
Country Data:
• Per Capita GDP
• Business Environment
• Economy, Finance, and Trade
• Industry and Infrastructure
• Age Distribution
• Regional and Local Transportation Facilities
Cultural Aspects:
• Language Barriers
• Literacy Rate, Educational Level
• Geert Hofstede Dimensions - Common Areas of Cultural Differences: Domestic vs. Abroad
• Religious Restrictions
• Lifestyles and Trends
Political Environment:
• System of Government
• Government Involvement in Business
• Attitudes toward Foreign Business Trade
• Political Stability
• Fair/Free Trade Mindset
• National Trade Development Priorities
Product Potential:
• Customer Wants and Desires
• Local Production, Imports, and Consumption
• Competitive Cost in Local Currency
• Adequate Distribution Network
• Documentation and Import Regulation
• Patent, Trademark, or Copyright Protection
• Tax Rates and Laws
The best way to get started is with an export counselor at local, state, or federal levels. In Pennsylvania, local organizations work with the state to form a Regional Export Network. If you are within the eight counties of southcentral Pennsylvania (Adams, Berks, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, and York), your first point of contact is World Trade Center Harrisburg. The World Trade Center Harrisburg is your local connection to all of the State of Pennsylvania's free counseling services.
Your Regional Export Network will provide:
• Export Counseling
• Market Research
• Market Entry Strategy Development
• Foreign Company Background Checks
• Product Review
• Certification/Regulation Requirements
• Customized Searches for Qualified Buyers, Agents, Distributors, and Partners
• Trade Missions and Low-Cost Exhibition Opportunities at Prominent International Trade Shows
• On-the-Ground, In-Country Support to Schedule Appointments or to Arrange your Travel Logistics
• Access to the State's Network of Overseas Trade Offices
• Provide Information about Grants and Financing Plans
At the federal level, the US Export Assistance Center, under the US Department of Commerce (USDOC) will help you reach international markets. Locally, the closest US Export Assistance Center to our region is in Philadelphia. They offer international sales and marketing assistance, logistics insight, and financing recommendations. Their website contains a wealth of information on foreign markets and technical aspects of global trade. • Export Basics
• Culture
• Finance
• Legal
• Logistics
• Marketing
This series of videos provides expert advice and informs on best practices for companies seeking to expand abroad.
The tutorial I found most appealing is called Developing a Marketing Plan, which can be found in the marketing section. During my senior year in college, my international business coursework required that I research a specific product, identify an under-served market segment, and propose an international market expansion plan. Completing this assignment taught me the complex nature of international expansion. Looking back, I wish I would have viewed these "expert tutorials" when I was completing my assignment.
The lessons that took me months to comprehend are condensed within these practical videos. The four sections within the market development section include:
• Developing a Marketing Strategy
• Researching Markets through Government Agencies
• Researching Global Markets
• Export Opportunities via Development Agencies
Developing a Marketing Strategy advises the viewer of key differences between domestic markets and international markets. Further, it conveys the immediate and long-term benefits of enacting an international strategy. The most important take-away from this section is the fact that despite domestic economic slowdown, international markets may grow. For more information on the tutorials and for additional resources, visit the website.
Researching Global Markets is an important factor in international market development. This ensures that your product will be offered in an area where consumers want to purchase your product or service. Such research will give an indication as to how competitive your product will be when compared to similar products in the foreign market. Price, product attributes, and warranties will each have an impact on the international competitiveness of your product.
Many countries have technical standards that imported goods must comply with. Detailed research will allow a company to determine if their product is in accordance with these measures. Action steps your company may have to take to comply could be converting components or acquiring foreign certification. Examples of component changes include converting hardware from standard to metric or altering power plug voltage.
Certifications vary by country. In Europe, a CE certification indicates that the good complies with the European Union legislation pertaining to said product. In China, the CCC mark is required for many goods and represents that the good is in accordance with the China Compulsory Certificate.
Foreign customers will likely require labels that are translated and adapted to fit cultural norms. Labeling laws for food products are often more complex, as ingredients and nutritional information requirements vary for each country.
The cost of exporting your product will also play a deciding role in whether or not a proposed target market is viable. Landed cost calculations are the sum of import taxes, transportation costs, and insurance fees associated with international shipment. These costs may either promote or deter a company from offering their good in a specific country. Barriers to entry, beside import duties, foreign standards, and costs of shipment may also include governmental content restrictions and “buy national” policies. Content restrictions bar goods that contain prohibited substances (i.e. chemicals) from being imported into the country. “Buy national” policies are efforts to support retention of domestic jobs and efforts to minimize a country’s power distance index. These factors pose a threat to make exporting a product difficult or costly and must be considered as an element of market research.
Every foreign market is different; each of the above components of research should be applied for individual countries. The most effective method for researching global markets is to start with a number of possible countries. Then as criteria are either met or not fulfilled, countries should be eliminated from your search. This process should continue until you are left with a few, viable options of which to explore.
The following topics should be addressed during the international research phase:
Economic Research:
• Market Size
• Import and Export Percentage of Total Economy
• Per Capita Consumption of Products of Foreign Origin
• Projected Growth of Market
• Disposable Income and Expenditure Patterns
Country Data:
• Per Capita GDP
• Business Environment
• Economy, Finance, and Trade
• Industry and Infrastructure
• Age Distribution
• Regional and Local Transportation Facilities
Cultural Aspects:
• Language Barriers
• Literacy Rate, Educational Level
• Geert Hofstede Dimensions - Common Areas of Cultural Differences: Domestic vs. Abroad
• Religious Restrictions
• Lifestyles and Trends
Political Environment:
• System of Government
• Government Involvement in Business
• Attitudes toward Foreign Business Trade
• Political Stability
• Fair/Free Trade Mindset
• National Trade Development Priorities
Product Potential:
• Customer Wants and Desires
• Local Production, Imports, and Consumption
• Competitive Cost in Local Currency
• Adequate Distribution Network
• Documentation and Import Regulation
• Patent, Trademark, or Copyright Protection
• Tax Rates and Laws
The best way to get started is with an export counselor at local, state, or federal levels. In Pennsylvania, local organizations work with the state to form a Regional Export Network. If you are within the eight counties of southcentral Pennsylvania (Adams, Berks, Cumberland, Dauphin, Franklin, Lancaster, Lebanon, and York), your first point of contact is World Trade Center Harrisburg. The World Trade Center Harrisburg is your local connection to all of the State of Pennsylvania's free counseling services.
Your Regional Export Network will provide:
• Export Counseling
• Market Research
• Market Entry Strategy Development
• Foreign Company Background Checks
• Product Review
• Certification/Regulation Requirements
• Customized Searches for Qualified Buyers, Agents, Distributors, and Partners
• Trade Missions and Low-Cost Exhibition Opportunities at Prominent International Trade Shows
• On-the-Ground, In-Country Support to Schedule Appointments or to Arrange your Travel Logistics
• Access to the State's Network of Overseas Trade Offices
• Provide Information about Grants and Financing Plans
For a fee, your company can also receive market intelligence services which include:
• Customized Research
• Background Reports
• Trade Data and Analysis
• Commercial Diplomacy
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