Final Flashcards
(21 cards)
“Waste Spotters Guide to Exporting” identifies seven waste triggers for SME’s when internationalizing:
1) Waiting
2) Untapped human potential
3) Making mistakes
4) Transportation
5) Overproduction
6) Unnecessary inventory
7) Inappropriate processing
Waiting
anticipating without acting on presented opportunities in the new market. This results in lost opportunities in gaining new clients abroad.
Untapped human potential
treating the overseas operations as a side experiment, rather than a greatest asset.
Making mistakes
Making unnecessary mistakes is a result of rushed decisions when choosing international distributors, venture partners or even customers.
Transportation
entails an inflation of costly overseas meetings and trips that would have resulted from previous mistakes when entering the new market.
Inappropriate processing
potentially could burden the company’s budget and put it at risk. This category mainly revolves around excessive product support and training.
Managed Strategies who?
an international sales and market entry consultancy.
Lean exporting - six steps that will allow a company to experiment with offshore operations without significant effort and/or risk:
1) Select Your Market,
2) Create a List of Targeted Sales Channels,
3) Validate the List of Targeted Sales Channels,
4) Solicit & Identify Interest,
5) Identify Export Price & Calculate Landed Price,
6) Close the Sale.
Select your market - 3 ways
1) Past inquiries
2) Indirect exporting
3) Basic research
Sales channels
1) Direct - hands on
2) Indirect - hands off
Direct sales channel pro’s and con’s
- Pro’s
- Bypassing markups and margins
- Higher adaptability to the needs of the customer
- Con
- Micromanagement
Indirect sales channel pro’s and con’s
- Pro
- Intermediaries - save time and avoid desultory dealing
- Con
- Potential conflict of interest
Hybrid model for sales channel
Contracting a sales representative in charge of monitoring and continuing the relationship with the distributor, buyers, retailer, etc. is the would be the preferable value for money and risk-averse strategy.
Validating list of sales channels - smoke tests
1) Phone call
2) Google AdWords campaign
3) Landing page
Landing page smoke test what?
Before actually building the web service, it is quite easy to set up a website that describes the service as though it actually exists. Once potential customers elect to sign up, they are taken to a website that displays a message like “Product arriving shortly. Would you like to receive an email when our product is ready?” Otherwise, the product or service is delivered through a blog-around solution.
The benefits of a landing page
A landing page smoke test can be a good way for you to test the basic assumptions of your own business model. Are people interested in your value proposition? Are you targeting the right customer segment? These and other questions can be answered by a landing page smoke test.
Solicit and Identify Interests - the “fishing email”
1) Simple structure , briefly describing the company and the products.
2) Identify interest
3) Provide key data about the company
4) 2-3 weeks should be sufficient to determine whether this customer is the right lead.
Landed price definition
“the total expense of sending the goods into the foreign market and then factoring in the margins to the distributor and/or retailer”.
Landed price components
1) Taxes & import requirements
2) Costs associated with the sales channel
3) Reference pricing
Close the sale
1) Provide a sample version of product
2) Visit the market to meet the customer.
Winning Pitch
Entrepreneurial coaching business in the UK
