Marketing, sales and logistics

You've done your research and have found a foreign market to go after. Now all you need are customers. Learn about strategies that can help you market your company and land sales in another country, and get an understanding of the logistics behind delivering your products or services abroad.

Export Marketing Strategies

Planning your marketing strategy will go a long way in helping you reach clients in international markets. Because of factors like cultural and language differences, you may need to make adjustments to your current marketing approach.

Learn more about international marketing in Chapter 5 of the Step-by-Step Guide to Exporting.

• Marketing basics
  Brush up on key marketing concepts, learn how to develop a marketing plan, and assess strategic marketing options for your company.
• Export marketing: Where to begin
  
  http://www.bdc.ca/en/my_project/Projects/articles/exporting_marketing.htm
  Discover key principles that can help your marketing strategy, as you prepare to go after international markets.
• Step-by-Step Guide to Exporting
  
  http://www.tradecommissioner.gc.ca/eng/guide-exporting.jsp
  This guide covers what you need to know about exporting, including international market research, export planning, marketing, finances, logistics and legal aspects.
• Canadian Trade Commissioner Service
  
  http://www.canadabusiness.ca/eng/summary/1504/
  Applies to: All of Canada
  Get help selling your products or services to foreign markets.
• BDC Consulting
  
  http://www.canadabusiness.ca/eng/summary/2125/
  Applies to: All of Canada
  Find out how BDC's customized consulting services can help your business at all stages of development.

Market Entry Strategies

A market entry strategy maps out how to sell, deliver and distribute your products in another country. When you’re exporting a service, the strategy defines ways of obtaining contracts and delivering them in that country.

How to Enter an Export Market

The three principal methods of selling to foreign markets are the following:

Direct Exports

Direct exports are when you market, sell and deliver your products directly to the client. In the case of services, you negotiate, contract and work directly with the client. By avoiding a middleman, you get a higher return on your investment, set lower prices and become more competitive. Furthermore, you have a direct relationship with your customers.

Indirect Exports

You could choose to export indirectly through an intermediary, such as a trading house, an agent, a representative or foreign distributor. Depending on the arrangement, they can do some of the leg work for you, but at a cost. For many new exporters, an intermediary may be the best way to enter a market.

Partnerships and Alliances

Choosing to form an alliance or partnership with a domestic or foreign company is another way to enter a foreign market. Partnering with a foreign company can provide the expertise, technology, capital or market access that you might not be able to afford on your own. Allying yourself with a Canadian company whose products or services complement your own can reduce costs through joint marketing efforts or the sharing of distribution channels.

International trade includes a number of other market-entry mechanisms, such as investments, joint ventures and licensing agreements. For guidance on these, contact the Trade Commissioner Service in Canada.

To learn more about entering a target market, contact the Trade Commissioner Service or see chapter 6 of the Step by Step Guide to Exporting.

Types of Export Intermediaries

Choosing to sell in foreign markets through an intermediary could save you time and money. They come in several types:

Agents and Representatives

An agent secures orders from foreign customers in exchange for a commission. A representative is a specialized agent who operates within a specific geographic area and who sells related lines of goods or services.

Both agents and representatives may be authorized to enter into contractual sales agreements with foreign customers on your behalf. Normally, you pay them a commission only when they sell your product or service.

Trading Houses

Trading houses are domestic intermediaries that market your goods or services abroad. A full-service trading house can handle many aspects of exporting, such as market research, transportation, appointing distributors or agents, exhibiting at trade fairs, advertising and preparing documentation.

Foreign Distributors

Unlike agents, distributors actually purchase your product or service and resell it to local customers. Often, they set the selling price, provide buyer financing and look after warranty and service needs. They also usually provide after-sales service in the foreign market.

For more information on intermediaries, including tips on how to choose one, see chapter 6 of the Step by Step Guide to Exporting.

• Step-by-Step Guide to Exporting
  
  http://www.tradecommissioner.gc.ca/eng/guide-exporting.jsp
  This guide covers what you need to know about exporting, including international market research, export planning, marketing, finances, logistics and legal aspects.
• Canadian Trade Commissioner Service
  
  http://www.canadabusiness.ca/eng/summary/1504/
  Applies to: All of Canada
  Get help selling your products or services to foreign markets.
• BDC Consulting
  
  http://www.canadabusiness.ca/eng/summary/2125/
  Applies to: All of Canada
  Find out how BDC's customized consulting services can help your business at all stages of development.
• Association des maisons de commerce extérieur du Québec (only available in French)
  
  http://www.amceq.org/fr/amceq/mission.asp
  This organization represents Quebec trading houses and can help you find information on the import/export services they offer.

Getting your Goods or Services to International Markets

Whether you are trading in goods or services, the logistics of getting them to your export market can be a complex undertaking with many considerations.

Delivering Goods

If you are selling goods to another country, you will need to consider a number of factors.

Shipping Options

Choosing a shipping method may depend on the type of goods, their destination, the cost and how fast you need to get them to your customer. There are four basic methods of transportation and you may end up using a combination of these:

• Road: Popular for shipping within North America or for getting the products to another mode of transportation.

• Rail: Common when shipping to the United States or when shipping to and from seaports.

• Air: Shipping by air is more expensive, but the cost may be offset by faster delivery, lower insurance costs, cheaper warehousing and better inventory control.

• Sea: An economical option for large items, bulk commodities and goods that do not require fast delivery.

Shipping Documents

Shipping documents are prepared by you or your freight forwarder. They allow the shipment to pass through customs, to be loaded onto a carrier and transported to the destination. Key shipping documents include:

• a commercial invoice
• a special packing or marking list
• a certificate of origin
• a certificate of insurance
• a bill of lading

Packing, Marking and Labelling your Goods

Help your products arrive on time and in good condition by paying attention to the packing, marking and labelling. Failing to do so could get them stalled at the border. Consider the following:

• Pack goods so they survive rough cargo handlers and bumpy roads.
• Use appropriate temperature controls or other protective measures.
• Use the proper type of packing for the mode of transportation.
• Lower the risk of theft during transit with the right packaging.

Marking distinguishes your goods from those of other shippers. The required markings may include some or all of the following:

• the buyer's name or some other form of agreed identification
• the point/port of entry into the importing country
• the gross and net weight of the product in kilograms and pounds
• identification of the country of origin, for example, "Made in Canada"
• the number of packages
• appropriate warning or cautionary markings
• a packing list, plus one copy in each container, itemizing the contents

Follow labelling, packaging or advertising regulations that apply to your goods in the importing country.

Transportation Insurance

Cargo insurance is highly recommended for international transportation because:

• carriers assume only limited liability for your goods when shipping by air or sea
• you are often responsible for the goods up to the point of delivery to your foreign buyer

Incoterms

To provide a common terminology for international shipping and minimize misunderstandings, a set of terms known as Incoterms was developed by the International Chamber of Commerce. It is available in 31 different languages and is used to describe key terms that are used in international shipping.

Freight Forwarders

These companies specialize in getting your goods from point A to point B. They can handle all of your logistical requirements or simply help negotiate shipping rates with shipping lines, airlines, trucking companies, customs brokers and insurance firms.

Many of them specialize in arranging shipments to certain countries, while others concentrate on particular types of products. If you are arranging financing through letters of credit, a good freight forwarder can help you clarify the conditions of the transaction.

Customs Brokers

These service providers can help you clear goods through customs, prepare customs documentation and remit duties owing on exported goods. They are also good sources of information on recent tariff changes and other customs-related developments.

For More Information

Learn more about delivering your goods abroad in Chapter 7 of the Step-by-Step Guide to Exporting. See also the other documents listed below.

• Step-by-Step Guide to Exporting
  
  http://www.tradecommissioner.gc.ca/eng/guide-exporting.jsp
  This guide covers what you need to know about exporting, including international market research, export planning, marketing, finances, logistics and legal aspects.
• Canadian International Freight Forwarders Association (CIFFA)
  
  http://www.ciffa.com
  Freight forwarders take care of the logistics of transporting internationally-traded goods, including negotiating rates with transportation providers and ensuring that all documentation is compliant with regulations.
• Canadian Society of Customs Brokers (CSCB)
  
  http://www.cscb.ca
  Customs brokers can help you clear shipments of imported goods by preparing the required customs documentation and interacting with the Canada Border Services Agency on your behalf. Courses are also available.
• Exporting Goods Regulations There are numerous opportunities for Canadian companies in global markets, but you need to be aware of certain laws and regulations when exporting your goods.

Exporting a Service

When delivering a service, you will need to know about any requirements for entering or staying in the country, such as passports, entry visas or work permits.

Find out if there are professional certification requirements.

You will want to inquire further about local telecommunication systems, electricity requirements, meeting facilities, business support systems, travel and accommodation, and anything else upon

which you count on to deliver your service.

Service Delivery Methods

Exported services tend to be delivered using one or a combination of the following methods:

• visiting the client
• client visits you (tourism is an example)
• opening an office abroad
• franchising or licensing
• electronic delivery, such as e-business

• Step-by-Step Guide to Exporting
  
  http://www.tradecommissioner.gc.ca/eng/guide-exporting.jsp
  This guide covers what you need to know about exporting, including international market research, export planning, marketing, finances, logistics and legal aspects.
• Foreign Representatives in Canada
  
  http://www.international.gc.ca/protocol-protocole/foreign_reps.aspx?menu_id=2&menu=R
  Helps you find information on representatives from foreign countries and international organizations located in Canada that may provide you with information or lead you to the right contacts.
• Canadian Trade Commissioner Service
  
  http://www.canadabusiness.ca/eng/summary/1504/
  Applies to: All of Canada
  Get help selling your products or services to foreign markets.