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Sources of International Sources of International

Marketing DataMarketing Data

World Trade PracticesWorld Trade PracticesChapter 6Chapter 6

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Primary vs. SecondaryPrimary vs. Secondary

Direct interaction with the marketDirect interaction with the marketAlways worth investment of time and resourcesAlways worth investment of time and resources

Must be efficientMust be efficientRealize some countries do not have Realize some countries do not have accurate or easily accessible dataaccurate or easily accessible dataData is crucial for international strategyData is crucial for international strategyComplete preComplete pre--travel researchtravel researchReduces costsReduces costsReduces frustrationReduces frustration

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Secondary DataSecondary Data

First course of researchFirst course of researchPitfallsPitfallsComparabilityComparability•• Differences in data collectionDifferences in data collection

OutdatedOutdated•• May be several years oldMay be several years old•• For example, data from the Soviet period on the now For example, data from the Soviet period on the now independent statesindependent states

CostCost•• Finding a method or company to collect the Finding a method or company to collect the informationinformation

•• May not be easy to access from outside countryMay not be easy to access from outside country

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International Primary DataInternational Primary DataOvercomes pitfalls of secondary dataOvercomes pitfalls of secondary data

ChallengesChallengesLanguageLanguage

InfrastructureInfrastructure•• Lack of mail or phone servicesLack of mail or phone services

CulturalCultural

Payment for information?

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Resolving ChallengesResolving Challenges

Segment Research task/define budgetSegment Research task/define budgetTo easy to overspendTo easy to overspend

Utilize resourcesUtilize resourcesU.S. has best international resourcesU.S. has best international resources

Some agencies have services for primary Some agencies have services for primary data collectiondata collection•• CMA (Custom Market Analysis) CMA (Custom Market Analysis) ––Dept. CommerceDept. Commerce

•• Embassies and consulatesEmbassies and consulates

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Data ProblemsData ProblemsExpensive to fill in secondary data with Expensive to fill in secondary data with primary researchprimary researchHelpful shortcuts:Helpful shortcuts:Look at complementary product of industry Look at complementary product of industry substitutionsubstitutionNational statistics substitutionNational statistics substitution•• DemographicDemographic•• Consumption ratesConsumption rates

Ratio comparisonsRatio comparisons•• Between home country and another with similar statsBetween home country and another with similar stats•• Project information for target countryProject information for target country

Timeline comparisons (chart)Timeline comparisons (chart)

These are just helpful tricks, not as accurate as focused dataThese are just helpful tricks, not as accurate as focused data

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Country Market DataCountry Market Data

STATSTAT--USA USA www.export.govwww.export.govEconomics and Statistics Administration Economics and Statistics Administration of U.S. Department of Commerceof U.S. Department of Commerce

Large constituency contributing Large constituency contributing informationinformation

National Trade Data BankNational Trade Data Bank

GLOBUS (Global Business Opportunities)GLOBUS (Global Business Opportunities)

See Figures 6.1 & 6.2See Figures 6.1 & 6.2

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Country Commercial GuidesCountry Commercial Guides

U.S. Department of U.S. Department of CommerceCommerce

Provide a wide range Provide a wide range of information in of information in easy to follow formateasy to follow format

Excellent starting Excellent starting point for selfpoint for self--education on a education on a country marketcountry market

Figure 6.3 in text

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Other Good SourcesOther Good Sources

Country Desk Officers Country Desk Officers (DOC)(DOC)

Department of State Department of State background notesbackground notes

CIA World FactbookCIA World Factbookwww.www.ciacia.gov/.gov/ciacia/publications//publications/factbookfactbook

Commercial or Private Commercial or Private researchresearch

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Industry DataIndustry Datawww.export.govwww.export.govISA ISA –– Industry Sector Analysis (6.5)Industry Sector Analysis (6.5)IMI IMI –– International Market InsightsInternational Market InsightsBMR BMR –– Best Markets ReportsBest Markets ReportsMerchandise Exports (6.7) Merchandise Exports (6.7) •• Use Harmonized codes or Schedule B to determine Use Harmonized codes or Schedule B to determine flow of products to various marketsflow of products to various markets

Industry Desk OfficersIndustry Desk OfficersTrade AssociationsTrade AssociationsPublications, Industry Journals, PeriodicalsPublications, Industry Journals, PeriodicalsForeign Phone Books (Export Yellow Pages)Foreign Phone Books (Export Yellow Pages)NetworkingNetworking

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Competitive InformationCompetitive Information

Determine company positionDetermine company position

NO ELIXIR for successNO ELIXIR for success

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International Competitive International Competitive

Research InformationResearch InformationGoal of researchGoal of researchFind marketsFind markets

Customer baseCustomer base

Distribution channelDistribution channel

Volume and priceVolume and price

Strategic planStrategic plan

Key SourcesKey SourcesDatabases (6.6)Databases (6.6)•• PublicPublic•• PrivatePrivate

Company informationCompany informationPublic informationPublic informationInterviewsInterviews-- direct direct contactcontactNews releasesNews releases-- media media coveragecoverage

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U. S. Exports by CommodityU. S. Exports by Commodity

Carefully analyze:Carefully analyze:Ranking Ranking

GrowthGrowth

Problems with DataProblems with Data•• Does it really make sense? How accurate or reliable?Does it really make sense? How accurate or reliable?

•• SEDs (Shipper’s Export Declaration) SEDs (Shipper’s Export Declaration)

Statistically significantStatistically significant

TransshipmentsTransshipments•• Competitors shipping back and forth (net increase)Competitors shipping back and forth (net increase)

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PIERSPIERS

Advantage:Advantage:Very specific Very specific detailsdetails

Disadvantages:Disadvantages:Only waterborne Only waterborne shipmentsshipments

Cost of serviceCost of service

Port Import Export Reporting ServicePort Import Export Reporting Service

Data tracked listed in Figure 6.8Data tracked listed in Figure 6.8

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Other OptionsOther OptionsDirectory of U.S. ExportersDirectory of U.S. ExportersJournal of CommerceJournal of Commerce•• CompanyCompany

•• Name, address, phone, and faxName, address, phone, and fax

•• Number of employeesNumber of employees•• Year established, bank, SICYear established, bank, SIC

•• Modes of transportModes of transport

•• Contact namesContact names

•• Commodity code/product descriptionsCommodity code/product descriptions

•• Companies exporting toCompanies exporting to

•• Annual tonnage of exports (TEUs) Annual tonnage of exports (TEUs)

•• Annual number of shipmentsAnnual number of shipments•• Company’s PIERS ID numbersCompany’s PIERS ID numbers

UN ComtradeUN ComtradeUN commodity UN commodity trade statistics trade statistics databasedatabase

SITCSITC-- 5 digit 5 digit commodity codecommodity code

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Company InformationCompany Information

Company LiteratureCompany Literature

Company WebsitesCompany Websites

Company International AdvertisingCompany International AdvertisingPlaced by manufacturerPlaced by manufacturer

Placed by distributorPlaced by distributor

Industry AssociationsIndustry Associations

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Public SourcesPublic Sources

Industry PressIndustry Press

NewspapersNewspapers

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Interviews and Direct ContactInterviews and Direct Contact

Industry ContactsIndustry ContactsPressPress

AdvertisingAdvertising

Government ContactsGovernment Contacts

Foreign Customers and DistributorsForeign Customers and DistributorsTraining for seeking pertinent informationTraining for seeking pertinent information

Employees from CompetitorsEmployees from Competitors