The Circadian Rhythms of the FX Market

1
The Four Ps and Export Strategies

• Place / Foreign Market Intelligence
• Locating markets
• Trade restrictions
• Foreign competition
• Product
• What?
• What product (or product lines) where?
• Which product, how? Or issues of packaging
• Servicing
• Parts availability
• Repair services
• Technical advice
• Warehousing

2
The Four Ps

• Promotion
• Advertising
• Sales effort
• Marketing information
• Price
• Export pricing influenced by
• Exchange rates
• Transportation costs
• Duties
• Multiple channels
• Insurance costs
• Banking costs

3
Market Size Analysis Failures

• Gap Analysis
• Traditional
• Usage
• Limited product lines
• Company doesnt deliver all product variations
• Distribution
• Company misses geographic or intensity coverage
• Competition
• New
• Cultural fit
• Shifts in meaning lead to recontextualizations
  with positive or negative
  consequences

4
Market Size Analysis

• Broad Scanning Techniques
• Limit detailed analysis to the most promising
  possibilities
• Good for LDCs, where precise data are less
  available
• Market Potential
• Existing consumption patterns
• Demographics
• Numbers, discretionary income, and other related
  measures
• Data on other countries
• Assumes one country is representative of another
• Time-series data
• Past to predict the future
• Income elasticity
• Depends on type of product
• Regression
• Demand related to various indicators

5
Product

• Various product orientations
• Production
• If we (can) make it they will come
• Sales
• Standardization lowers cost(?)
• Other ways of reducing costs.
• Customer orientation
• Quality
• Culture
• Takes geographic areas as a given
• Strategic marketing
• Adaptions in products over time
• Societal marketing

6
Product Alterations

• Legal factors
• Related to safety or health protection
• Economic
• Personal incomes and infrastructure affect demand
• Cultural
• Focus groups may advise no-braineradaptations
• More sophisticated, deeply embedded cultural
  differences that affect sensemaking around
  product use, image, etc.

7
Branding

• Language Factors
• Acquisitions
• Country-of-Origin Images
• Images of products are affected by where they are
  made
• Generic and Near-Generic Names
• If a brand name is used for a class of product,
  the company may lose the trademark

8
Promotion

• The Push-Pull Mix
• Push is more likely when
• Self-service is not predominant
• Product price is a high portion of income
• Advertising is restricted
• Standardization of Advertising Programs
• Advantages of standardized advertising include
• Some cost savings
• Better quality at local level
• Rapid entry to different countries
• Challenges
• Translation
• Legality
• Message Needs
• Communication styles

9
Other Export-Related Problems

• Logistics
• Arranging transportation
• Determining transport costs
• Handling documentation
• Obtaining financial information
• Coordinating distribution
• Packaging
• Obtaining insurance

• Legal Procedures
• Governmental red tape
• Product liability
• Licensing agreement
• Customs duty procedure