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Market A
Market B
Market C
6. Support for Market-Entry Strategies
• industry associations
• trade events in target market
• other networking options
• trade media
• research facilities
• market research sources
7. Cultural Considerations
• greetings
• forms of address
• do’s and don’ts
• cultural differences
• attitude toward Canadians
• general tips
8. Canadian Trade Commissioner Service abroad
• market prospect: help to assess your potential 
in your target market
• key contact search: lists of qualified contacts
• market reports for some sectors
9. Travel Tips
• visa or other requirements
• work permits
• business support services 
• hotels
• telecommunications
• tipping
• voltage
• religious holidays
Source: Adapted with permission from Industry Canada, 
Take A World View...Export Your Services (Strategis).
19
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Types of Research
There are many ways to begin studying a market.
Some companies simply rely on a “gut feeling,”
while others use sophisticated
techniques such as formal
statistical modelling of market
trends and saturation points.
The more detailed the research,
the less chance there is of
overlooking something
important. Essentially, however,
there are two main types of market research:
secondary and primary.
Your secondary research begins here in Canada,
and consists primarily of using data from other
sources, such as periodicals, studies, market
reports, books, surveys and statistical analyses.
Many of these are available through Team Canada
Inc, as well as through chambers of commerce,
economic development organizations, industry
and trade associations, and Canadian companies
that are already doing business in your target
market.
Once you’ve completed your secondary research,
move on to the primary researchphase. This
involves collecting market information through
direct contact with potential customers or other
sources. The Canadian trade commissioners at
embassies and consulates can help you assess your
potential in your target market and provide lists of
qualified contacts.
Unlike secondary research, primary research
requires a considerable amount of personal
involvement through interviews and consultations.
When asking for information from foreign or
domestic contacts, communicate your company’s
objectives at the outset, and present your
questions clearly and concisely.
The following suggestions will help you avoid
confusion when requesting such information:
Company Description:Give a brief two- or three-
paragraph description of your company, its
history, industries/markets served, professional
affiliations (if any), and your product or service.
Objectives:Briefly list or describe one or more
objectives for your planned export product or
service, based on your secondary market research.
Product or Service: Clearly describe the product
or service you want to export.
Questions: Base your questions on your secondary
research, and be as specific as possible. Contacts
are more likely to take the time to answer your
questions if it’s clear that you have already
researched the subject matter.
On-line Resources
ExportSource is one of the best on-line
sources for this type of information. It links 
to all major Canadian market information 
web sites, and provides information on
government and private sector services,
market and sector information, and
everything from trade statistics, to trade 
leads, to potential partners.
exportsource.gc.ca
20
“The internet has
become the global
trader’s most valuable
research tool.”
Exporter, 
Service Industry 
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21
A Step-by-step Approach to Market Research
Step 1 – Screen Potential Markets
Collect statistics that show product or service exports specific to your sector to various countries.
Identify five to ten large and fast-growing markets for your product or service. Look at them over the
past three to five years. Has market growth been consistent year to year? Did import growth occur even
during periods of economic recession? If not, did growth resume with economic recovery?
Select some smaller emerging markets that may hold ground-floor opportunities for your product or
service. If the market is just beginning to open up, there may be fewer competitors than in more
established markets.
Target three to five of the most promising markets for further study.
Step 2 – Assess Target Markets
Examine trends that could influence demand for your product or service. Calculate the overall
consumption and the amount imported.
Study the competition, including the extent of domestic production and the major foreign countries you
will be competing against in each target market. Also look at each competitor’s Canadian market share.
Analyse the factors affecting marketing and the use of the product or service in each market, such as
channels of distribution, cultural differences and business practices.
Identify any foreign barriers (tariff or non-tariff) for the product or service being imported into the
country, as well as any Canadian barriers (such as export controls) affecting exports to the country.
Search for Canadian or foreign government incentives to promote the export of the product or service.
Step 3 – Draw Conclusions
After analysing the data, you may decide that your marketing resources would be more effectively 
used in a few countries. In general, new-to-exporting companies should concentrate on fewer than 
ten markets; one or two countries are usually enough to start with.
Source: Adapted with permission from Western Economic Diversification Canada, READY FOR EXPORT: Building A Foundation
For A Successful Export Program.
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Y
our international customers may have
different tastes and needs than your domestic
customers. Creating a marketing plan based on
these specific needs will help you to become a
market-driven global organization. 
A good marketing plan should answer the
following questions:
• What are the characteristics of your target
market?
• What is your competitor’s approach to 
the market?
• What is the best promotional strategy to use?
• How do you need to modify your existing
marketing materials, or even your product 
or service?
What is Marketing?
Marketing should not be confused with
advertising, sales or promotion. In fact, marketing
is the strategy that drives all of these processes to
effectively communicate your message to the
target audience.
The Four “P’s” of Marketing, commonly referred
to as the marketing formula, include:
• Product:What is your product or service and
must it be adapted to the market?
• Price: What pricing strategy will you use? 
• Promotion: How will you make your
customers aware of your product or service?
• Place: How and where will you deliver or
distribute your product or service?
In international trade, several other factors should
be examined and included in your marketing
formula, resulting in the 13 P’s of International
Marketing. Those factors are:
• Payment: How complex are international
transactions?
• Personnel: Do staff have the necessary skills?
• Planning: Have you planned your business,
market, account, and sales calls?
• Paperwork: Have you completed all of the
required documentation?
• Practices: Have you considered differences in
cultural and business practices?
• Partnerships: Have you selected a partner to
create a stronger market presence?
• Policies: What are your current and planned
policies?
• Positioning: How will you be perceived in
the market?
• Protection: Have you assessed the risks and
taken steps to protect your company and its
intellectual property?
Source: Forum for International Trade Training, Going
Global
MARKETING YOUR
PRODUCT OR SERVICE
22
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Building your Marketing Plan
Because marketing is an ongoing activity, your
marketing plan is a work in progress – it must be
continuously revisited, revised and modified.
Consider the following questions when building
your marketing plan:
• What is the nature of your industry?
• Who are your target customers?
• What is your company’s marketing strategy?
• What products or services do you plan 
to market? 
• How will you price your products and services?
• Which segment of the market will you focus on?
• Does your marketing material accurately
convey the quality of your products or services
and the professionalism of your company?
• Where are your potential clients? 
A good marketing plan should contain the
following elements:
Executive Overview:State the purpose of your
marketing plan. Provide an overview of your
objectives, and how the plan will be used in your
exporting strategy.
Product or Service Analysis:Give a clear
description of your export product or service, 
its unique selling points and how marketable 
it might be internationally. In other words,
demonstrate that your core competency is 
world-class.
Market Analysis:Describe your target market in
terms of size and trends. Include key economic,
social, political and cultural considerations, a
profile of your target customer, buying patterns
and factors influencing purchasing decisions.
Competitive Analysis:Analyse the competitiveness
of your product or service. This will help you to
effectively position it in your target market, and
to decide on pricing and marketing options.
Goals: State your objectives in terms of market
share, revenue and profit expectations. Indicate
the position you would like to occupy in the
target market, and explain how you will go about
achieving it.
Marketing Strategy:Describe
your marketing strategy,
including information on 
specific product or service 
pricing recommendations, 
mode of delivery, and proposed
promotional methods.
Implementation:List the
activities you’ll undertake to
implement your marketing 
plan, indicating target dates 
and who will perform the
activities. Prepare a detailed
marketing budget. 
Evaluation:Design a method of
evaluating your marketing plan at various
intervals to determine if your goals are being
achieved and what, if any, modifications may 
be needed.
Summary:Include a half-page summary of your
marketing plan’s goals, describing how they fit
into your overall export plan.
23
“Treat all markets
differently. Don’t
assume that because
you’re successful in one,
you’ll be successful in
another. There are
cultural differences 
out there that you 
need to respect.”
1998 Canada Export
Award Winner,
Information
Technology Products
and Services
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Determining your Price
Strategic pricing is key to successful marketing.
As in domestic markets, the price of your product
or service determines your 
profit margin. Take into account
all of the variables that may
affect price.
In setting a realistic export price,
examine production and delivery
costs, as well as factors in your
target market. Proper pricing
takes into account costs, market
demand and competition.
Determining the real cost of
producing a product or
providing a service, then bringing it to market, is
probably the most important factor in assessing
the financial viability of your export venture.
In addition to the costs of production, overhead
and research and development, other specific
export related expenses must be taken into
account, such as: 
• market research and credit checks
• business travel
• international postage, cable and telephone
rates
• translation
• commissions, training charges, and other
costs involving foreign representatives
• consultants and freight forwarders
• product or service modification and special
packaging.
Goods and Services Marketing Comparison
The following table outlines some of the basic differences between marketing techniques for exporting
services versus exporting goods.
GOODS
SERVICES
FACTOR
Demonstrations
Sample product
Presentation of capabilities
Initial marketing by
Sales representatives
Firm’s principals
Stages of marketing
Marketing your product
Marketing your firm AND your service
Local market presence
Sales/distribution facility
Office or virtual office in target market
INFORMATION NEEDS
Cultural factors
Product design and packaging
Interpersonal dynamics
Local associations
Distributors, marketers
Service industry
Local events
Trade shows
Conferences (as speaker)
Media
Product advertising
Press coverage 
Local partners
Production/distribution firms
Other service firms
Government procurement
Goods acquisition
Services contracts
24
“In the beginning, trade
commissioners helped us
with distributors. Now
that we are established,
we lean on their shoulders
for advice… Posts really
help us to understand
the country and how to
do business there.”
Exporter
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M
ARKET
D
EMAND
As in domestic markets, demand in foreign
markets can affect your price. In other words,
what will the market bear?
For most consumer goods, per-capita income is a
fairly good way to gauge a market’s ability to pay.
Per-capita income for most industrialized nations
is similar to that of the United States, while it is
much lower for the rest of the world. Some
products/services may create such a strong
demand that even low per-capita income will not
affect their selling price. Generally, however,
simplifying the products or services to reduce the
selling price may be the best option in these types
of markets.
Also keep in mind that currency valuations alter
the affordability of goods. Your pricing should try
to accommodate currency fluctuations and the
comparative value of the Canadian dollar.
C
OMPETITION
In domestic markets, few companies are free to
set prices without considering their competitors’
pricing policies. This is also true in exporting.
If a foreign market is serviced by many
competitors, you may have little choice but to
match the going price, or go below it, to win a
share of the market. If your product or service is
new to a market, you may, however, be able to set
a higher price.
P
RICING
S
TRATEGIES
How will each market affect your pricing?
Product or service modifications, shipping,
insurance, exchange rate fluctuations and border
tariffs need to be factored into your price. And
you can’t ignore your competitors’ pricing
strategies.
Include your market objectives
when setting your price. Are you
attempting to penetrate a new
market? Looking for long-term
market growth? Pursuing an
outlet for surplus production
products? Needing to price 
your first service contract
competitively in order to
establish credibility?
You may have to tailor your
marketing and pricing objectives
to certain markets. For example,
pricing strategies for developing
nations, where per-capita income
may be low, will likely differ from
your objectives for high per-
capita markets such as Europe or
the United States.
Several pricing strategies are available:
• Static Pricing:charging the same price to all
customers.
• Flexible Pricing:adjusting prices for different
types of customers.
• Full Cost-Based Pricing:covering both fixed
and variable costs of the export sale.
25
“Start by networking 
in Canada. Talk to or 
meet with experienced
exporters that do
business in your target
country. Their
knowledge and experience
can help you avoid
common pitfalls or costly
ventures. They can 
give you a feel for how
business is done in that
country and explain the
cultural nuances that
you must be aware of.”
Exporter,
Communications
Industry
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26
A Guide to Export Costing
The following guide will help you determine your costs and develop your pricing strategy:
Category
Detailed Items
Costs
Timing
Marketing and
• agent/distributor fees
Promotion
• advertising, media relations
• travel
• communications
• materials (brochures, business cards)
• trade fairs and exhibitions
Production
• unit cost of manufacture
• product or service modification
Preparation
• labelling
• packaging
• packing
• marking
Documentation
• inspection
• certification
• document preparation
• cargo insurance
• freight forwarder’s fees
Transportation
• lading and related charges
• carriage
• warehousing and storage
• insurance
Customs
• customs and others duties at 
port of entry
• customs brokerage fees
Financing
• Costs of financing
• interest charges
• exchange rate fluctuations
• export credit insurance
Source: Forum for International Trade Training, Going Global
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• Marginal Cost:covering only the variable
costs of production and exporting, while
overhead and other fixed costs are paid out 
of domestic sales.
• Penetration Pricing:keeping your price low
to attract more customers, discourage
competitors and gain quick market share.
• Market Skimming:pricing the product high
to make optimum profit, among high-end
consumers, while there is little competition.
After determining your costs and selecting 
an appropriate pricing strategy, establish a
competitive price for your product or service 
that gives you an acceptable profit margin.
Promotion
Promotion refers to all of the communications
toolsused to let consumers know about your
product or service, and to convince them to buy
it. This is your most visible marketing activity. 
In fact, well-planned promotional strategies 
can make or break your chances of success. 
You should know the distinct characteristics of
each market.
Be careful with your name or corporate image.
Stories abound of large and small companies alike
launching products in other countries only to
discover that their brand name, logo or marketing
materials convey negative or inappropriate
connotations in the local language or culture. 
So do your best to ensure that materials are
sensitive to local tastes and consumer preferences.
Advertising:Carefully select the media –
television, radio, newspapers and magazines –
that have a good circulation within your target
audience. For example, advertising on television
may not be a good idea in a country like India,
where televisions are scarce, but where radio 
is very popular. Identify local or international
publications or TV/radio stations that have 
a good circulation or audience with your target
customers.
Promotional Materials:An eye-catching,
professionally designed brochure
can be extremely effective, and
can be used almost anywhere.
You may need to redesign your
marketing materials, being
careful to use simple and clear
language, and avoiding North
American fads that foreign buyers
may not understand. Pictures or
graphics, for example, can often
tell a story much better than
words can.Package design itself
may also be an issue – certain
colours, pictures or symbols used
in Canada may be inappropriate
or offensive to some cultures. 
Your promotional materials
should be translated into the
market’s language. In many parts
of the world, however, English is common in
business, even when it’s not the native language.
If translation is required, hire a professional
translator with experience in commercial 
and business materials. It’s also a good idea 
to have a native of the country review your
translated materials.
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“In 1995, we earned 
65per cent of our
revenues from one
United States-based
customer. This was a
high-risk situation so 
we started building a
local and regional
presence to target export
opportunities. We 
did this with the 
help of a number of 
well-positioned 
strategic partners.”
1998 Canada Export
Award Winner,
Information Technology
Industry
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1
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Marketing Tools
Your promotional materials reflect your company’s professionalism. In many countries, first impressions are
often lasting impressions.
The following table will help you make the most of your marketing tools:
Marketing tool
Desired impression
Yours should be...
Business cards
High quality and professional
• easy to read
• in the appropriate language
• consistent throughout your firm
• distinctive and informative
• up-to-date and complete, including
area codes, country, telephone and
fax numbers, postal code, e-mail
and web site addresses
Brochures
Creative and appealing
• easy to read and informative,
highlighting your uniqueness
• professionally designed and printed
• visually pleasing
Customer testimonials
Your company is highly recommended
• representing your best customers
• from top executives
• included in your brochure
News articles
Your company is a recognized leader
• quoted in your brochure
• reproduced on your letterhead
• displayed in your office
• sent to potential clients
Videos
Sophisticated and interesting
• professionally produced
• oriented to the quality and
benefits of your product or service
• clear and concise
• easily available
Web site
Comprehensive and informative
• professionally designed
• informative
• visually pleasing
• up to date 
• equipped with e-mail response
• offering on-line purchasing 
(if appropriate)
Source: Adapted with permission from Industry Canada, Take A World View...Export Your Services (Strategis).
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