1. Global Marketing
Class Three

2. Industry Codes
• Standard Industry Classification (SIC)
• North American Industrial Classification
System (NAICS)
• Harmonized Schedule (HS)
• Schedule B—U.S. Export Code (3CE database)
• Harmonized Tariff Schedule (HTS)—U.S.
Import Code

3. Product Classification
Car vs. Spare Parts? Ukrainians cut cars in
half to reduce import tax at customs
Source: Today I Learned Something New, August 3, 2011
http://todayilearned.co.uk/2011/08/03/ukrainians‐cut‐cars‐in‐half‐to‐reduce‐import‐tax‐at‐customs/

4. Product Life Cycle
• Stage 1: Introduction
• Stage 2: Growth
• Stage 3: Maturity
• Stage 4: Decline
Can be as short as 90‐days (ex: Electronics)

5. Research Types
• Primary Research (tailored and direct)
• Secondary Research (second‐hand)

6. Business Databases
Business Information Industry Information

7. Entry Modes
• Indirect
– EMC, ETC, Piggyback
• Direct
– Benefits: Direct control, feedback, sales
– Drawbacks: Higher investment, longer time to
market, higher risk
• Licensing (technology, IP)

8. The Marketing Mix
• Product
• Promotion
• Price
• Place

9. Marketing Types
• Vertical Marketing
• Horizontal Marketing

10. Marketing Strategies
• Push Strategies (direct selling)
– Taking the product to the customer
• Pull Strategies (marketing)
– Getting the customer to come to you

11. Distribution Strategy
• Acquisition
• Sales
Representative/Agent
• Distributor (wholesale)
• Piggyback Marketing
• Franchise
• Technology
Exchange/Licensing
Agreement
• Joint
Venture/Strategic
Alliance
• Subsidiary/Foreign
Office (FDI)
• Trading House
• Sell Direct to End
User

12. Promotion Types
• Broadcast Promotion
• Targeted Promotion
Support your overseas representatives,
distributors, offices, ventures

13. International Promotion
• Electronic: Website, Social Media, e‐Advertisement (Featured
U.S. Exporter), Exporters Yellow‐Pages
• Direct Mail: Buy industry lists from respective industry chamber
or industry magazines;
• Media Advertisements: Commercial News USA
(www.thinkglobal.us), Industry Magazines, Local TV,
• Newspapers, Yellow‐pages
• Governmental Services: International Partner Search, Gold Key,
Trade Leads

14. USG Export Promotion Services
• Foreign market research (secondary—Country Commercial
Guides and Industry Insight Reports)
• Customized market research (primary)
• Due diligence reports on potential overseas business
partners
• Gold Key matching service
• Customized market and industry briefings
• Appointments with prospective trade partners
• Post‐meeting debriefing and assistance in
developing appropriate follow‐up strategies
• Travel, accommodations, interpreter, and clerical support

15. Distributor Checklist
• Sales force
• Sales performance
• Territorial coverage
• Companies and products represented
• Customer profile
• Facilities and equipment
• Localization capabilities
• Market development capabilities
• Industry knowledge – supply chains, distribution channels

16. International Credit Report
Providers (sampling)
• Dun & Bradstreet Information Services
• Coface North America
• Graydon Credit Management Services
• Kreller Group International
• Credit Risk Monitor
• Owens OnLine, Inc.
• Standard and Poor’s Compustat

17. The Vienna Convention
International Sale of Goods (CISG)
• Only applies to international sales
• Excludes:
– Consumer sales, sales of ships, aircraft, electricity,
securities transactions, services
• Does not cover:
– Incoterms, passing of title
• Parties may contract out any of the provisions

18. International Marketing Events
• Virtual show
• Catalog show
• Trade Show
– General (horizontal)
– Industry‐specific (vertical)
• Trade Mission (In‐ and Out‐bound)