Alexander G.

Vasallo Jr
BAMM 3B

1. Export Market Research

International market research is a key piece of successful export planning. It is important
to critically review and assess if the potential export destination is suitable for your product or
service. You need to determine if there is a market, if your product is competitive after
determining the landed cost, and then the most cost-effective and time-efficient export strategy.

Research Process
An active exporter considering a new export market, or re-assessing a current market, it is
equally important to conduct this market research as conditions frequently change. For example,
there could be different shipping costs, tariffs, and regulations affecting your business. The goal
of market research is to learn about.
 The largest markets and/or fastest-growing markets for your product.
 The market trends and outlook for your industry in that country.
 The competitive landscape for your industry/product in that country, and potentially in
region.
 The costs associated with getting your product from your facility to customers in another
country, i.e. the landed cost.
 Any required product changes (and associated costs) to comply with the destination
country’s regulations and standards.
Research Question
 How large are your potential markets?
 What countries/markets are currently buying products like yours?
 Who are your competitors, from which countries do they come, and how large are they?
 What are the required standards, testing, and certifications?
 Do your products (or their labeling or packaging) need to be modified for one or more
markets?
 What duties, taxes, and other costs apply? What are the shipping costs and partner
margins? What is the landed cost, or total export price?
 Is your price point appealing within the market? If not, what can you do to make it more
appealing?
 What distribution channels are available?
2. Elements of Export Market Research

 Market Selection- Identifying potential export markets, assessing market size and
demand, Understanding consumer behavior and preferences

 Economic and Political Environment- GDP growth, inflation, and economic

stability, Trade policies, tariffs, and import regulations, Political stability and
government support for trade

 Industry and Competition Analysis- Market trends and growth potential, Key
competitors and their market share, Competitive pricing and product differentiation

 Legal and Regulatory Framework- Import/export laws and licensing requirements.

Intellectual property protection, Product standards and compliance regulations

 Distribution and Logistics- Identifying potential distribution channels, evaluating

shipping and logistics costs, Assessing local infrastructure and supply chain
efficiency

 Cultural and Social Factors- Language, customs, and business etiquette, Consumer
attitudes and preferences, Branding and marketing localization

 Pricing Strategy- Cost structures and profitability analysis, Exchange rate

fluctuations, Competitive pricing strategies.

 Market Entry Strategies- Direct exporting vs. indirect exporting, Joint ventures,
licensing, or franchising, Setting up a local presence (subsidiary, branch office)
 3. Philippine Trade Regulations

 Import and Export Controls

Prohibited and Restricted Imports: Certain items are either banned or require special
permits for importation. For instance, substances like dangerous drugs and specific chemicals
necessitate clearances from agencies such as the Philippine Drug Enforcement Agency (PDEA).
Regulated Goods: Items like wildlife, live animals, plants, and products containing
hazardous materials require permits from relevant authorities before importation or exportation.

 Trade Barriers
The Philippines has transitioned from quantitative restrictions to tariffs for certain
agricultural products. For example, the Agricultural Tariffication Act replaced rice import quotas
with tariffs to comply with World Trade Organization (WTO) commitments.

 Standards and Compliance

The Bureau of Philippine Standards (BPS), under the Department of Trade and Industry
(DTI), develops and implements standards to ensure product quality and safety. Compliance with
these standards is mandatory for both domestic and imported goods.

 Free Trade Agreements (FTAs)

The Philippines engages in several FTAs to promote international trade. Notably, the
ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) facilitates trade between
member countries by reducing tariffs and other barriers.

4. Export requirements

 Business Registration
 Exporter Accreditation
 Product-Specific Permits and Clearances
 Export Documentation
 Compliance with International Standards
 Payment of Duties and Taxes
 Partnering with Licensed Customs Brokers
 5. Standard Marketing Practices

Elements to Consider in Marketing Practices

 Market Research

o Understanding customer needs, preferences, and behaviors

o Analyzing competitors and industry trends
o Identifying market gaps and opportunities

 Target Audience Identification

o Defining demographic, geographic, and psychographic segments

o Understanding buyer personas and their purchasing behavior

 Product Positioning

o Differentiating the product from competitors

o Communicating unique selling points (USPs)
o Establishing a brand identity

 Pricing Strategy

o Determining the optimal price based on market demand and competition

o Applying pricing models (e.g., cost-based, value-based, penetration pricing)

 Promotional Strategies

o Selecting effective advertising channels (digital, print, TV, radio)

o Implementing sales promotions, discounts, and loyalty programs
o Engaging in public relations and brand storytelling

 Distribution Channels

o Choosing the best way to deliver products to customers (retail, e-commerce,

wholesalers)
o Managing logistics and supply chain efficiency

 Customer Relationship Management (CRM)

o Providing excellent customer service and support

o Building long-term relationships through personalized marketing
o Using customer feedback to improve products and services
Standard Marketing Practices

 Digital Marketing
o Social media marketing (Facebook, Instagram, LinkedIn)
o Content marketing (blogs, videos, infographics)
o Search engine optimization (SEO) and pay-per-click (PPC) advertising
 Branding and Identity
o Developing a strong brand message, logo, and tagline
o Maintaining brand consistency across all platforms
 Traditional Marketing
o Print advertising (magazines, newspapers, brochures)
o TV and radio commercials
o Event sponsorships and trade shows
 Personalized and Data-Driven Marketing
o Using customer data for targeted marketing campaigns
o Implementing email marketing automation and retargeting
 Sustainability and Ethical Marketing
o Promoting eco-friendly and socially responsible practices
o Ensuring transparency and authenticity in brand messaging

6. Modes of Venturing into The Export Business

 Direct Exporting
o The company sells its products directly to foreign buyers or distributors.
o It requires market research, logistics management, and compliance with foreign
regulations.
o Example: A Philippine food manufacturer exporting dried mangoes to a
supermarket in Japan.
 Indirect Exporting
o The company sells to intermediaries (such as trading companies, export
management firms, or domestic buyers who export).
o Lower risk and investment, as the intermediary handles international sales.
o Example: A local furniture maker selling to a Philippine-based exporter who then
sells to European markets.
 Joint Ventures
o A partnership between a local company and a foreign firm to share resources,
risks, and profits.
o Provides market knowledge, shared investment, and operational support.
o Example: A Philippine seafood company partnering with a Japanese distributor to
expand its market reach.
 Franchising
 o The business grants a foreign entity the right to operate under its brand name and
business model.
o Allows rapid expansion with minimal investment.
o Example: A popular Philippine fast-food chain granting a franchise in the Middle
East.
 Licensing
o A company grants a foreign firm the right to use its brand, technology, or product
in exchange for royalties.
o Low-cost expansion method but with less control over branding and operations.
o Example: A Philippine cosmetics brand licensing its formula to a beauty company
in South Korea.
 Contract Manufacturing
o The business partners with a foreign manufacturer to produce goods that will be
sold under the company's brand.
o Reduces production costs but requires quality control measures.
o Example: A Philippine shoe brand outsourcing manufacturing to a factory in
Vietnam to reduce costs.
 Foreign Direct Investment (FDI) or Subsidiary Establishment
o Setting up a physical presence, such as a branch office, production facility, or
subsidiary, in a foreign market.
o Requires a significant investment but provides full control over operations.
o Example: A Philippine IT company establishing an office in Singapore to serve
international clients.
 Piggybacking
o A company partners with a larger, established exporter to distribute its products in
foreign markets.
o Low risk and cost-effective but offers limited control.
o Example: A small Philippine chocolate brand partnering with a global food
exporter to sell in Europe.