Essay/Term paper: Advanced export marketing

Essay, term paper, research paper:  Economics

Advanced Export Marketing


ADVANCED EXPORT MARKETING
MAJOR ASSIGNMENT

There are already many federal programs that assist exporters in various
ways including Progam for Export Market Development (P.E.M.D.), Canadian
International Development Association (C.I.D.A.) and Canadian Commercial
Corporations (C.C.C.). These programs help exporters secure and enhance access
for Canadian goods and services in world markets. They also strengthen Canada's
international marketing effectiveness and help promote awareness of export
markets and opportunities. These exporting programs also promote Canada's
economic, political, security and other interests, both bilaterally and through
international institutions. They advise the government on international
developments and on the international implications on the domestic policies.

There is alot of help out there for exporters but new programs should be
introduced and old programs should be updated. I will introduce a new program
where anybody can apply for help in exporting which will be called " A FOOT
AHEAD "(A.F.A.). A.F.A. will be fully examined and explained in the following
report and Iwill also show some very interesting improvements to the existing
government exporting program called P.E.M.D.

A FOOT AHEAD (A.F.A)

There are many problems facing Canadian companies in gaining export
competiveness. A.F.A. wants to reduce these problems and make it much easier
for the exporters to crack the foreign markets. These problems consist of:
1) Lack of market analysis
2) Lack of market strategy
3) Pricing problems - Labour
- Transportation cost
- Economics of scale
- Outdated manufacturing facilities
4) Distance from market (serviceability aspects)
5) Lack of management initiative
(no long range plans - lack of know how)
6) Subsidiary relations
(affects marketing and research and development)
7) Risk takers - lack of - (companies and banks)

A.F.A. knows these problems exist and wants to take care of them for the
exporter who may be to confused and/or unsure of themself to become involved in
foreign investment.

A.F.A. consists of 7 graduates from the Sir Sanford Fleming College
International Trade Program. Each of its staff are fully capable of helping any
exporter in the above problems. With the quality of education learned from the
profs at Fleming no solution is unatainable.

For each of the above problems, people will be assigned to fully understand
the exporters situation and apply there capabilities in helping them out. The
first employee, we will refer to him as Das Fut, will be responsible for finding
business's that look as though they are capable of creating a profit from
exporting there service or good that don't already do so. So instead of
companies coming to us, we will go looking for them to export. Das Fut will
obtain documents (balnce sheets and company profiles) and statistics on domestic
markets and if they look promissing he will then suggest back to headquarters
that these companies should export. Advantages of export include:

1) Increased sales
2) Higher profits
3) Lower unit costs of production
4) Greater utilization of plant capacity
5) Offset cycllical downturn. (economical and
seasonal)
6) Market dependence avoidance
7) Extended life of your products
8) New knowledge and experience

Our people at A.F.A. will assess the information given to us about the
company in question. If we all agree that the business will be successful in
exporting, the next step will be taken. Someone will be sent to foreign well
populated markets where people have money to spend to find out if there product
or service will sell. But before this step is taken the company will be
contacted. We will explain to them why we think there company will be
successful and how we can help them in exporting.

Since many powerful people know how successful S.S.F.C. International Trade
graduates usually become, we have had no problems in finding investors in A.F.A.
Our expensives may be a little out of hand but the return will be tremendous.

Our people will scour the world looking to find places to sell these
business's products. They will complete preliminary surveys and find out the
potential markets. Our people are aware of all foreiegn cultures and communicate
in a number of languages. Success is a given.

Once our field placement consultants send us the information necessary for
A.F.A. on the most successful country to export to we will continue to our next
step. Footing the bill. This is where the big bucks are made for A.F.A. and
the companies. A.F.A. tends to look at the business's that have great domestic
shares of the market but cannot penetrate foreign markets because of capital
problems. These business's may or may not know that they could be successful in
other markets but don't bother with it because they don't have enough cash or
are afraid to get a bank loan.

A.F.A. will support the investment needed to export to other countries.
This is not a loan but more like a partnership. A.F.A. is so confident in its
employees that they are willing to foot all of the exporting costs with no risk
to the company. This is when negotiations will take place with the companies
and A.F.A. to come to an understanding on how profits will be divided. Both
will benefit but A.F.A. will stop investing money when the company is able to do
there own marketing, administration and shipping. But in the negotiations there
will always be a clause saying that A.F.A. will receive a percentage of monies
after our help is no longer needed.

This is why A.F.A. will always be finacially stable. A.F.A. is willing to
do all the work in finding a company that should be exporting but can't, doing
the preliminary surveys, finding the potential markets and investing all the
money in the project. In return there will be huge capital gains for both the
business's and for that ingenious program " A Foot Ahead "

IMPROVEMENTS TO P.E.M.D.

It is understood that P.E.M.D. is to increase Canadian prosperity and
competiveness in the international marketplace but not all business's are able
to apply for it. I believe some moderate changes should be made to the program
so that it will be easier for more companies to enjoy their benefits. Canada has
hundreds of thousands of companies out there and all should be aware of the
P.E.M.D. program. P.E.M.D. has helped 25,000 Canadian businesses in marketing
their products and services abroad and has supported activities that exceeds
11.5 billion dollars but there is always room for improvement.

P.E.M.D. annual contribution per application is a minimum of five thousand
dollars and a maximum of fifty thousand dollars which I agree with but the
company elgibility is what I disagree with. It says in P.E.M.D. that elgible
companies that have sales annually greater than 250,000 dollars and less than 10
million dollars, and or less than 100 employees for a firm in the manufacturing
sector and 50 in the service industry will be given preference.

I believe that annual sales of 50 thousand dollars should be able to get
P.E.M.D. assistance. These smaller companies deserve the same treatment as the
rest. If say a company of annual sales of 50,000 dollars can't export because
of inaccess of funds for a new venture they could be losing money. They may
know that their product or service will sell abroad but are unable to take a
shot. With the help from P.E.M.D. this smaller company may one day turn into a
multinational enterprise.

One other way I believe P.E.M.D. could change to help out exporters even
more so is to advertise. Of all the businesses in Canada that we have I'm sure
only a minimal amount of them know P.E.M.D. exists. The Canadian government
should either send out pamplets, or create a web site, or advertise on
television; some how they have to let every Canadian company know about this
beneficial program.

The Canadian government has only so many resources to work with and money
really isn't one of them. The financial assistant programs for exporters do
truly help. I believe that we as the Canadian public should stand behind these
programs because the return will be beneficial to us and the rest of the world.

We help out Canadians trying to sell their products or service to different
parts of the world. In return different countries are able to buy and use and
enjoy our products and services for thier benefits. Therefore money spent on our
products in foreign countries brings money into our country creating higher
employment and more life satisfation.