Chapter 7: MAKING CONTACTS
After a company has identified its most promising markets and devised
strategies to enter those markets, the next step is to actually locate
a buyer. If that buyer is the end user of a company's product or
service, a relatively simple transaction may result. In many cases,
however, U.S. exporters need an in-country presence through a
representative or distributor to reach the eventual buyer.
Alternatively, the firm may identify customers through attendance at
trade shows, trade missions, direct mail campaigns, and advertising.
Regardless of how the exporter makes contacts and develops sales leads,
the exporter faces many questions:
- Specifically who are potential buyers?
- What trade shows are the most effective?
- Which marketing techniques are most successful?
In this chapter U.S. exporters will find the means to answer these
questions. The marketing techniques described are by no means
exhaustive. However, the chapter describes sources of assistance in
locating buyers, evaluating trade missions and shows, and conducting
other programs designed to make contacts.
DEPARTMENT OF COMMERCE CONTACT PROGRAMS
The U.S. Department of Commerce can help exporters identify and qualify
direct leads for potential buyers, distributors, joint venture partners,
and licensees from both private and public sources. Along with its
various product, country, and program experts, the Department of
Commerce has an extensive network of commercial officers posted in
countries that represent 95 percent of the market for U.S. products.
Services and publications available through the Department of Commerce
are listed in this section. Exporters should contact the nearest
Commerce district office (see appendix III) for more information or
contact Export Promotion Services, U.S. Department of Commerce, 14th
Street and Constitution Avenue, N.W., Washington, DC 20230; telephone
202-482-2505.
Export Contact List Service
The ECLS provides mailing lists of prospective overseas customers from
Commerce's automated worldwide file of foreign firms. It identifies
manufacturers, distributors, retailers, service firms, and government
agencies. A summary of the information on the company includes name and
address, cable and telephone numbers, name and title of a key official,
product and service interests, year established, and additional data.
The lists are drawn from an on-line search of Commerce data on the basis
of the market or company criteria specified by the exporter. The
information is available either as cheshire or gummed mailing labels or
as a summary printout of company data. Cost is 25 cents per name, with
a minimum order of $10.
Trade Opportunities Program (TOP)
This service provides timely sales leads from overseas firms seeking to
buy or represent U.S. products and services. U.S. commercial officers
worldwide gather leads through local channels. Lead details such as
specifications, quantities, end use, and delivery and bid deadlines are
telexed daily to the computer center in Washington, D.C., reviewed, and
then immediately posted on Commerce's EBB. Users can retrieve the TOP
files (and all other files) from the EBB each day through a personal
computer and modem. Subscribers may use, edit, or redistribute the leads
in any way they wish. A subscription for all files on the EBB is $35 per
year.
TOP leads are also published each day in the Journal of Commerce. Other
trade information services such as TradeNet, Intellibanc, Commodity
Developers Trade Group, state trade development agencies, and world
trade centers also distribute TOP leads and leads obtained from their
own services.
Agent/Distributor Service (ADS)
The ADS is used to locate foreign import agents and distributors. It
provides a custom search overseas for interested and qualified foreign
representatives on behalf of a U.S. exporter. Officers abroad conduct
the search and prepare a report identifying up to six foreign prospects
that have examined the U.S. firm's product literature and have expressed
interest in representing the U.S. firm's products.
The U.S. company is given the names and addresses of the foreign firms,
names and titles of persons to contact, telephone numbers, cable
addresses and telex numbers, and brief comments about the agent or
distributor and its stated interest in the proposal. A fee of $125 is
charged for this service.
ADS application forms may be obtained from Commerce district offices.
Trade specialists at these offices can help with preparing applications
and can provide guidance if there are any factors barring the desired
relationship.
World Traders Data Reports
The WTDR service provides a background report on a specific foreign
firm, prepared by commercial officers overseas. WTDRs give such
information as the type of organization, year established, relative
size, number of employees, general reputation, territory covered,
language preferred, product lines handled, principal owners, financial
references, and trade references. Each WTDR also contains a general
narrative report by the U.S. commercial officer who conducted the
investigation concerning the reliability of the foreign firm. A fee of
$100 is charged per report. Further information on this service is
available from any Commerce district office.
Commercial News USA (CNUSA)
CNUSA provides worldwide exposure for U.S. products and services through
an illustrated catalog-magazine and electronic bulletin boards. The
catalog-magazine is distributed through U.S. embassies and consulates to
business readers in 140 countries. Copies are also made available to
international visitors at trade events around the world. Current
hard-copy distribution averages 110,000 copies, with 10 issues per year.
Information in CNUSA is further disseminated by US&FCS posts or local
organizations that reprint all or part of the publication. CNUSA's
electronic distribution in key overseas markets reaches an additional
130,000 business readers. It operates through private sector and
government electronic business bulletin boards in 15 countries.
Listings in CNUSA describe the major features of an export product or
service. The name, address, and telephone and fax numbers of the U.S.
manufacturer or distributor are included along with a photo or
illustration. Several size formats are available. A standard one-sixth
page lists an average of 40 to 60 words and costs $250; larger formats
may contain longer descriptions. The electronic versions of CNUSA
transmit the complete text of the magazine listings, without
illustrations, to EBB subscribers.
The CNUSA program covers more than 30 industry categories and focuses on
products that have been on the U.S. market no longer than three years.
Companies may also market services and trade and technical literature
through CNUSA. Only pharmaceuticals, raw materials, agricultural
commodities, and items on the Federal Register Munitions List are
excluded from CNUSA. All products in CNUSA must be at least 51 percent
U.S. parts and 51 percent U.S. labor.
CNUSA also profiles up to three industries per issue with high export
potential. In these special industry sections, U.S. firms may promote
established products as well as new models. Participants may purchase up
to three separate listings per issue, each focusing on a single product
model. A new product may be listed four times per year. CNUSA does not
feature descriptions of entire product lines or accept camera-ready
advertisements.
The trade leads generated by CNUSA help U.S. firms identify potential
export markets and make contacts leading to representation,
distributorships, joint venture or licensing agreements, or direct
sales. Overseas inquiries come directly to participating U.S. firms and
are address coded to allow for tracking and program evaluation.
Interested firms should contact the nearest Commerce district office for
information.
DEPARTMENT OF COMMERCE TRADE EVENT PROGRAMS
Some products, because of their very nature, are difficult to sell
unless the potential buyer has an opportunity to examine them in person.
Sales letters and printed literature can be helpful, but they are
certainly no substitute for an actual presentation of products in the
export market. One way for a company to actually present its products to
an overseas market is by participating in trade events such as trade
shows, fairs, trade missions, matchmaker delegations, and catalog
exhibitions.
In today's international market, trade fairs are "shop windows" where
thousands of firms from many countries display their wares. They are
marketplaces where buyer and seller can meet with mutual convenience.
Some fairs, especially in Europe, have a history that goes back
centuries.
Attending trade fairs involves a great deal of planning. The potential
exhibitor must take into account the following logistic considerations:
-
Choosing the proper fair out of the hundreds that are held every
year.
-
Obtaining space at the fair, along with designing and constructing
the exhibit.
-
Shipping products to the show, along with unpacking and setup.
-
Providing proper hospitality (refreshments and so on), along with
maintaining the exhibit.
-
Breaking down and packing the exhibit, and return shipping.
There are many excellent international trade fairs, both privately run
and government sponsored. A trade magazine or association can generally
provide information on major shows. Because of the many considerations
facing exhibitors, a company may wish to attend a Department of
Commerce-organized U.S. pavilion overseas. For additional guidance,
contact the local Commerce district office (see appendix III) or US&FCS
International Operations regional director (see appendix II).
Certified Trade Fair Program
The Department of Commerce Certified Trade Fair Program is designed to
encourage private organizations to recruit new-to-market and
new-to-export U.S. firms to exhibit in trade fairs overseas. To receive
certification, the organization must demonstrate that (1) the fair is a
leading international trade event for an industry and (2) the fair
organizer is capable of recruiting U.S. exhibitors and assisting them
with freight forwarding, customs clearance, exhibit design and setup,
public relations, and overall show promotion. The fair organizer must
agree to assist new-to-export exhibitors as well as small businesses
interested in exporting.
In addition to the services the organizer provides, U.S. exhibitors have
the facilities and services of the Department of Commerce available to
them. Commerce can also
- assign a Washington contact person to coordinate Commerce
assistance;
-
operate a business information office, which can provide meeting
space, translators, hospitality, and assistance from US&FCS
personnel to U.S. exhibitors and foreign customers;
-
help contact buyers, agents, distributors, and other business leads
and provide marketing assistance; and
-
authorize use of the certification logo and provide a press release
on certification.
Foreign Buyer Program
The Department of Commerce encourages foreign buyers to attend selected
U.S. trade shows. US&FCS selects leading U.S. trade shows in industries
with high export potential. U.S. firms are assisted in fulfilling their
international business objectives through their participation in
selected U.S. trade shows where they can meet foreign buyers,
distributors, potential licensees or joint venture partners.
Each show selected for the Foreign Buyer Program receives special
promotion through overseas mailings, U.S. embassy and regional
commercial newsletters, CNUSA, Business America, foreign trade
association and chambers of commerce journals, and trade journals
overseas. US&FCS works with U.S. companies exhibiting at these shows by
helping U.S. firms match their products, marketing objectives, and
geographic targets with the needs of the international business
visitors.
Through the Commerce district offices, international trade specialists
are ready to take exhibiting U.S. firms through the exporting process
and provide counseling to them before the trade show. In addition, an
international trade specialist is available at each show to provide
on-the-spot export counseling. The Foreign Buyer Program is also an
excellent means for experienced exporters to penetrate new markets.
For additional information contact a local Commerce district office or
U.S. and Foreign Commercial Service, Export Promotion Services, Room
2118, Washington, DC 20230. For an application and additional
information telephone the Foreign Buyer Program manager at
202-482-0481.
Matchmaker Trade Delegations
Matchmaker trade delegations, organized and led by Commerce personnel,
enable new-to-export and new-to-market firms to meet prescreened
prospects who are interested in their products or services in overseas
markets. Matchmaker delegations usually target major markets in two
countries and limit trips to a week or less. In this way, U.S. firms can
interview a maximum number of prospective business partners with a
minimum of time away from the office. Participants also take advantage
of group-rate hotels and airfare as well as on-the-spot U.S. embassy
support. Thorough briefings on market requirements and business
practices and interpreters' services are also provided. Delegation
members pay their own expenses and a share of the operating costs of the
event.
Trade Missions
Department of Commerce trade missions are planned visits to potential
buyers or clients overseas. Missions can be undertaken by firms
individually or in an organized group. Like trade shows, trade missions
require careful planning and attention to scheduling. Much of the
planning and coordination is done for participants.
Commerce-sponsored trade missions are carefully organized and planned to
achieve maximum results in expanding exports of U.S.-produced goods and
services. They are usually composed of fewer than 12 but more than 5
U.S. business executives. Markets to be visited and products to be
promoted are carefully selected on the basis of relevant market research
and consultations with US&FCS officers abroad. The primary objectives of
Commerce-sponsored trade missions are to introduce U.S. firms to
appropriate foreign buyers and to establish representation, joint
ventures, and licensing agreements.
Several types of trade missions have been developed to help U.S.
exporters penetrate overseas markets:
- U.S. specialized trade missions. U.S. specialized trade missions
are planned around the specific needs of each participating firm.
Commerce personnel carefully select a product line and an itinerary
that appear to offer the best potential for export sales. They then
provide detailed marketing information and arrange advance
programming and publicity. Commercial officers make hour-by-hour
individual appointments for participants, inviting key foreign
government officials in purchasing and policy-making positions to
meet with the mission. Mission members pay their own expenses and
a share of the operating costs of the mission.
- State- or industry-organized, government-approved (S/IOGA) trade
missions. S/IOGA trade missions are planned and organized by state
development agencies, trade associations, chambers of commerce, and
other export-oriented groups. To qualify for U.S. government
sponsorship, organizers of this type of trade mission must agree to
follow Commerce criteria in planning and recruiting the mission.
Commerce offers guidance and assistance from the planning stages to
the completion of the mission and coordinates the support of all
relevant offices and the assistance of the US&FCS officers in each
city on the itinerary. The overseas operations of S/IOGA trade
missions are substantially the same as those of specialized
missions. Mission members pay their own travel and hotel expenses
and the organizers are responsible for all overseas costs incurred
on the mission's behalf. For more information on S/IOGA missions,
contact Cooperative Events Division, Room 2114, Export Promotion
Services, US&FCS, U.S. Department of Commerce, Washington, DC
20230; telephone 202-482-4908.
- Multistate trade missions. Delegates of the trade promotion
departments of several state economic development agencies
participate on each of these missions. Each delegate represents an
average of 25 companies of his or her state that want to open
markets in the countries visited. The US&FCS in the host countries
lines up qualified foreign sales representatives, distributors, and
end users to meet with the delegates. The delegates provide
information on the companies they represent and bring back the
leads to the companies for follow-up.
- U.S. seminar missions. Like trade missions, seminar missions
promote the sale of U.S. goods and services abroad and help to
establish agents and other foreign representation for U.S.
exporters. Unlike specialized trade missions, they are especially
designed to facilitate the sale of particularly sophisticated
products and technology and concentrate on concepts and systems. A
U.S. seminar team consisting of representatives of a
high-technology industry gives presentations and leads discussions
on technological subjects. The team also addresses pertinent
developmental or industrial problems of the host country. The
seminar is followed by individual, private, sales-oriented
appointments that are scheduled by the US&FCS posts.
These missions are also published in the Export Promotion Calendar,
available at local Commerce district offices (see appendix III).
Catalog Exhibitions
U.S. firms may test foreign markets, develop sales leads, and locate
agents or distributors through catalog exhibitions sponsored by US&FCS,
in some instances in conjunction with the Department of State's foreign
service posts. These exhibitions feature displays of a large number of
U.S. product catalogs, sales brochures, and other graphic sales aids at
up to 10 U.S. embassies and consulates or in conjunction with trade
shows in a region. Commercial staff provide each participant with sales
leads and a visitors list of all foreign buyers attending the event.
Because it requires the exporter to make a much smaller investment than
a trade mission or other personal visits, this program is particularly
well suited for use in developing markets. For more information contact
a local Commerce district office or the Marketing Programs Division,
Room 2119, Export Promotion Services, U.S. Department of Commerce,
Washington, DC 20230; telephone
202-482-3973.
OTHER DEPARTMENT OF COMMERCE PROGRAMS
Export Development Offices (EDOs)
EDOs in seven cities overseas provide a variety of programs and services
to U.S. exporters. Staffed by US&FCS commercial officers, the EDOs are
the principal U.S. export promotion facilities overseas.
The primary role played by the EDO (in conjunction with the US&FCS in
the local U.S. embassy or consulate) is threefold:
-
It conducts or assists in market research in the country, helping
to identify specific marketing opportunities and to determine which
products have the greatest sales potential.
-
It conducts export promotion events in its region that have been
organized on the basis of market research findings.
-
It helps organize participation of specific U.S. exporters in these
events.
Located in Tokyo, Sydney, Seoul, Milan, London, Mexico City, and Sao
Paulo, these offices organize and coordinate a range of export promotion
programs, including on-site trade shows, U.S. pavilions in international
trade fairs, solo U.S. exhibitions, trade seminars, trade missions,
catalog exhibitions, video and catalog exhibitions, and special
promotions. Each EDO performs these functions only in the country in
which it is located.
When not being used to stage trade exhibitions, EDOs with exhibit and
conference facilities frequently are made available to individual firms
or associations. Facilities can be used for sales promotions, seminars,
and sales meetings. For a nominal fee, EDOs and some commercial offices
overseas also provide use of limited office space for traveling U.S.
business representatives as well as local telephone use, a market
briefing, use of audiovisual equipment, and assistance in making
appointments.
Major Projects Program
This program helps U.S. firms win contracts for planning, engineering,
and constructing large foreign infrastructure and industrial systems
projects, including equipment and turnkey installations. Assistance is
provided when requested by a U.S. embassy, a prospective foreign client,
or a U.S. firm, either to encourage U.S. companies to bid on a
particular project or to help them pursue overseas contracts.
Speed and flexibility in developing a strategy for each case are
essential elements in the assistance given U.S. firms. As circumstances
warrant, the Office of International Major Projects mobilizes and
coordinates appropriate support from other U.S. government agencies,
including foreign service posts abroad. For further information, contact
Office of International Major Projects, Room 2015B, Trade Development,
International Trade Administration, U.S. Department of Commerce,
Washington, DC 20230; telephone 202-482-5225.
Textile and Apparel Export Expansion Program
In recognition of the increasing importance of textile and apparel
exports, Commerce has created this program to encourage and assist U.S.
manufacturers in initiating or expanding export sales, and to improve
foreign market access for these products. To achieve these goals, the
program does the following:
- Undertakes policy efforts to identify and negotiate away foreign
trade barriers and to examine other methods by which the
environment for U.S. textile and apparel exports can be improved.
- Provides vehicles such as sponsoring trade fairs and trade missions
to improve exposure for U.S. textile and apparel firms and products
in foreign markets.
- Provides information on overseas markets and counseling on methods
of entering those markets, and facilitates the exchange of
information between industry and government relevant to improving
exports of U.S. textile and apparel products.
The program is administered by the Market Expansion Division, Office of
Textiles and Apparel; telephone 202-482-5153.
DEPARTMENT OF AGRICULTURE FORIEGN AGRICULTURAL SERVICE
Through a network of counselors, attaches, trade officers, commodity
analysts, and marketing specialists, USDA's FAS can help arrange
contacts overseas and provide promotional assistance. The programs and
services offered are described in this section.
Commodity and Marketing Programs
The Commodity and Marketing area of FAS handles inquiries for specific
commodity-related information. Each division provides support for
analysis of consumption, trade, stocks, and so on, and marketing
information. The six divisions and their telephone numbers are as
follows.
- Dairy, Livestock, and Poultry Division, 202-447-8031.
- Grain and Feed Division, 202-447-6219.
- Horticultural and Tropical Products Division, 202-447-6590.
- Oilseed and Oilseed Products Division, 202-447-7037.
- Tobacco, Cotton, and Seed Division, 202-382-9516.
- Forest Products Division, 202-382-8138.
High-Value Product Services Division
The High-Value Product Services Division's purpose is to expand overseas
markets for U.S. agricultural and food commodities and products through
a wide range of services, which are described in this section.
AgExport Connections
AgExport Connections provides information services to help expand and
promote agricultural exports. It offers the AgExport Action Kit, which
describes services available from USDA to help U.S. food and
agricultural exporters. Other AgExport Connections services are as
follows:
- Trade leads. These inquiries from overseas buyers looking for U.S.
products are sent daily to USDA. From 2,500 to 4,000 trade leads are
disseminated domestically each year. Trade leads may be obtained in four
ways:
- Trade Leads Fax Service. Exporters can receive categorized
trade leads by polling the AgExport fax machines each
week. The faxed information is free, but the company
seeking the information must pay the cost of the call.
Interested companies may obtain an information sheet and
directions on how to poll the Trade Leads Fax Service
units by faxing AgExport Connections at 202-472-4374.
- AgExport Trade Leads. All trade leads are published in this
weekly bulletin, which also highlights upcoming trade
shows and foreign trade developments throughout the
world. The 1991 subscription fee is $75. To subscribe,
send a check payable to USDA-FAS to AgExport Connections,
Room 4939, South Building, Foreign Agricultural Service,
U.S. Department of Agriculture, Washington, DC
20250-1000; telephone 202-447-7103, fax 202-472-4374.
- Electronic trade leads. With a computer, a modem, and
communications software, exporters can receive trade
leads electronically. Information on the different types
of services and prices is available from Computer
Information Delivery Systems, Office of Public Affairs,
U.S. Department of Agriculture, Room 536-A,
Administration Building, Washington, DC 20250-1000;
telephone 202-447-5505, fax 202-475-5396.
- Journal of Commerce. Selected trade leads received by USDA are
published several times each week in the "Agricultural
Trade Leads" columns of the Journal of Commerce. For
subscription information telephone 800-221-3777.
- Buyer Alert. This weekly newsletter and free advertising service
for exporters can help introduce U.S. food and agricultural
products to foreign buyers. Buyer Alert reaches more than 9,000
buyers overseas. Only agricultural products (no equipment or
services) may be announced in Buyer Alert. Each announcement
features a product description, an optional indicator price, and
specific firm information. To take advantage of the service,
contact AgExport Connections, Room 4939, South Building, Foreign
Agricultural Service, U.S. Department of Agriculture, Washington,
DC 20250-1000; telephone 202-447-7103, fax 202-472-4374.
- Foreign Buyer Lists. The AgExport Connection staff maintains a data
base of approximately 17,000 foreign firms from more than 70
countries. These foreign firms have expressed interest in importing
specific U.S. food and agricultural products. U.S. firms may obtain
these lists to match their products with prospective foreign
buyers. The Foreign Buyer Lists provide company name; contact name;
address; and telephone, fax, and telex numbers. The lists may be
ordered for a specific commodity for the entire world or by country
for all commodities. In addition, Foreign Buyer Lists may be
processed on cheshire or gummed labels. For more information or to
order, contact AgExport Connections, Room 4939, South Building,
Foreign Agricultural Service, U.S. Department of Agriculture,
Washington, DC 20250-1000; telephone 202-447-7103, fax
202-472-4374.
Trade Shows
The High-Value Product Services Division also organizes U.S. pavilions
at major international trade shows and exhibitions. These events provide
a cost-effective way of testing a market, checking the competition,
meeting foreign buyers and consumers, and establishing new contacts. The
Trade Show Coordinators Office can assist U.S. exhibitors with obtaining
a booth, advance publicity, product shipment, and customs clearance.
Trade Assistance and Planning Office (TAPO)
The USDA's TAPO provides a single point of contact in the FAS for
agricultural exporters who need foreign market information, as well as
for those who believe they have been injured by unfair trade practices.
TAPO can help U.S. agricultural exporters contact the appropriate
offices of federal agencies that administer trade remedy laws, and it
may be able to provide supporting data and information. The office
prepares several annual reports that may be of interest to U.S.
agricultural exporters. Contact Trade Assistance and Planning Office,
Foreign Agricultural Service, U.S. Department of Agriculture, 3101 Park
Center Drive, Suite 1103, Alexandria, VA 22302; telephone 703-756-6001.
AGENCY FOR INTERNATIONAL DEVELOPMENT
AID administers most of the U.S. foreign economic assistance programs.
These programs offer export opportunities for U.S. suppliers of
professional technical assistance services and commodities (goods,
products, equipment, and material). Professional technical assistance
services generally offer opportunities for consultant and expert
capabilities in agriculture, nutrition, and rural development; education
and human resources; health and population; and energy and environmental
assessment. Opportunities to export commodities are available through
the commodity import programs that AID operates in select AID recipient
countries, and through AID's direct procurement of commodities. In
addition, AID funds may be available to finance developmentally sound
projects in certain recipient countries involving U.S. capital goods and
services. U.S. exporters are best positioned to obtain orders by making
the local purchasing agencies aware of their products at an early stage.
For information on available funds, projects under consideration, and
contacts, exporters traveling to developing countries where an AID
program is in place may wish to visit the AID mission in the U.S.
embassy.
For the most part, AID advertises export opportunities for both
professional technical assistance and commodities in the Commerce
Business Daily, available through paid subscription from the
Superintendent of Documents, U.S. Government Printing Office,
Washington, DC 20402-9371. Notices of intended procurement of
AID-financed commodities are also advertised in the AID Procurement
Information Bulletin, available through free subscription from AID's
Office of Small and Disadvantaged Business Utilization/Minority Resource
Center (OSDBU/MRC), Washington, DC 20523-1414; telephone 703-875-1498.
TRADE AND DEVELOPMENT PROGRAM
TDP is an independent U.S. government agency that funds feasibility
studies, consultancies, training programs, and other project-planning
services in middle-income and developing countries and in Eastern
Europe. Contracts funded by TDP grants must be awarded to U.S.
companies, thus helping position potential U.S. suppliers of goods and
services for follow-on contracts when these projects are implemented.
Most TDP funding is granted for feasibility studies in sectors that are
of high priority to host governments: agribusiness, educational
technology, electronics, energy, minerals development,
telecommunications, transportation, and waste management. To ensure a
satisfactory and useful study, the host governments play an active role
in awarding and managing the contract. This cooperation also engenders
a cooperative relationship between the host country, TDP, and the
business community.
In addition, opportunities for technical consultants also arise in
connection with definitional missions to investigate the scope of a
project, develop a scope of work for a feasibility study, draw up a
budget estimate, and make a recommendation concerning TDP support for
the study. TDP selects qualified consultants through use of a
consultants data base, for which U.S. small businesses are encouraged to
register.
TDP-funded activities have generated approximately $3 billion of U.S.
exports through fiscal year 1990, with an additional $20 billion in
direct U.S. exports projected over the next decade. More than 400
companies in 40 states and the District of Columbia have benefited from
activities supported by TDP, both through direct exports and through
long-term enhancement of their market position.
TDP's programs are carried out by a Washington-based staff in close
coordination with the Department of Commerce, AID, and other government
agencies. TDP also maintains close contact with multilateral and
regional development lending institutions to ensure an ongoing exchange
of important project information and to keep TDP apprised of critical
opportunities for U.S. companies.
Projects evaluated for TDP funding must meet the following selection
criteria:
- Development priority. Projects must be developmental priorities of
the host country and likely to be implemented. TDP must receive a
formal request from the host government, and the U.S. embassy must
endorse TDP's involvement in the proposed project.
- U.S. export potential. Projects must present an opportunity for
substantial sales of U.S. goods and services.
- Untied financing availability. There must be assurances that untied
financing for project implementation will be available and that
procurement will be open to U.S. firms.
For more information on TDP contact U.S. Trade and Development Program,
SA-16, Room 309, Washington, DC 20523-1602; telephone 703-875-4357.
STATE AND LOCAL GOVERNMENT ASDSISTANCE
Most states can provide an array of services to exporters. Many states
maintain international offices in major markets; the most common
locations are in Western Europe and Japan. Working closely with the
commercial sections of U.S. embassies in these countries, they can
provide assistance in making contacts in foreign markets, providing such
services as the following:
-
Specific trade leads with foreign buyers.
-
Assistance for trade missions, such as itinerary planning,
appointment scheduling, travel, and accommodations.
-
Promotional service for goods or services, including representing
the state at trade shows.
-
Help in qualifying potential buyers, agents, or distributors.
In addition, some international offices of state development
organizations help organize and promote foreign-buyer missions to
the United States, which can be effective avenues of exporting with
little effort. Attracting foreign investment and developing tourism
are also very important activities of state foreign offices.
Increasingly, many cities and counties are providing these same
services. Appendix III lists contacts at both the state and city levels.
BUSINESS AND SERVICE ORGANIZATION CONTACTS
Contacts made through business colleagues and associations can often
prove invaluable to U.S. exporters. A colleague with firsthand
experience in an international market may give a personal recommendation
for an agent, distributor, or potential buyer. Conversely, the
recommendation against the use of a representative for credit or
reliability reasons may save the firm a number of problems. Attending
export seminars and industry trade shows is an excellent method of
networking with business people who have international experience. In
addition, trade associations can provide a valuable source of contacts
with individuals who may wish to share their experience of identifying
and selling to buyers and representatives in foreign markets.
Banks can be another source of assistance in locating overseas
representation. The international departments, branches, or
correspondent banks of U.S. banks may help locate reputable firms that
are qualified and willing to represent U.S. exporters. In addition,
freight forwarders, freight carriers, airlines, port authorities, and
American chambers of commerce maintain offices throughout the world.
These service firms often have contacts with qualified representatives
and can make recommendations to the U.S. firm. Foreign embassy and
consulate commercial offices may also be able to provide directories and
assistance.
PROMOTION IN PUBLICATIONS AND OTHER MEDIA
A large and varied assortment of magazines covering international
markets is available to exporters through U.S. publishers. They range
from specialized international magazines relating to individual
industries such as construction, beverages, and textiles, to worldwide
industrial magazines covering many industries. Many consumer
publications produced by U.S.-based publishers are also available.
Several are produced in national-language editions (Spanish for Latin
America, and so on) and also offer "regional buys" for specific export
markets of the world. In addition, several business directories
published in the United States list foreign representatives
geographically or by industry specialization.
Publishers frequently supply potential exporters with helpful market
information, make specific recommendations for selling in the markets
they cover, help advertisers locate sales representation, and render
other services to aid international advertisers. For an extensive list
of these international publications see the International Section of
Business Publication Rates and Data, a book published by Standard Rate
and Data Service, 5201 Old Orchard Road, Skokie, IL 60077. Another
publication, The Gale Directory, contains an even more complete list of
foreign periodicals, but it provides less detailed information on
circulation and rates. These directories may be available at libraries;
Commerce district offices; or in the Department of Commerce's Reference
Room, Room 7046, Washington, D.C. State departments of commerce, trade
associations, business libraries, and major universities may also
provide these publications.
Television, radio, and specially produced motion pictures may also be
used by a U.S. business for promoting products or services, depending on
the country. In areas where programs may be seen and heard in public
places, television and radio promotions offer one of the few means of
bringing an advertising message to great numbers of people. In many
countries, particularly in Latin America, various forms of outdoor
advertising (billboards, posters, electric signs, and streetcar and bus
cards) are widely used to reach the mass audience.
Because of the specialized knowledge required to advertise and promote
successfully in foreign markets, U.S. firms may find useful the services
of a U.S. advertising agency with offices or correspondents abroad. Some
U.S. agencies handle nothing but foreign advertising, and some marketing
consultants specialize in the problems peculiar to selling in foreign
markets. The International Advertising Association, Inc., 475 Fifth
Avenue, New York, NY 10017, can provide names of domestic agencies that
handle overseas accounts.
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