SUMMATIVE 2 | PACE

Produce a written report outlining how a business can meet the current and emerging needs of targeted international
markets.

Gather, collate and document market intelligence relevant to a particular international market and to a product or
service that could find a foothold in that market.

Give details relating to the:

 international market
 the organisation intending to operate in the international market you selected - its core activities, customer base,
business values and current and intended business direction
 products or services that would be offered
 data and information sources that you accessed to gather market intelligence
 advantages or disadvantages of using commercial market intelligence providers
 Identify and track the products/ services currently offered to international markets by the organisation in order to
assess performance and determine the effectiveness of the organisation’s market/ competitive positioning and the
efficacy of its marketing activities. To do this you will need to collect and analyse data relating to internal and
external conditions that impact on the organisation and its current performance.

Consider and document:

 threats, opportunities, the organisation’s strengths, capabilities, capacity and weaknesses plus the strengths of
competitors; you may use charts and graphs to illustrate the results of your analyses
 any changes or forecast changes in international markets that link positively to the organisation’s strengths or
capabilities

Describe:

 the procedures to be followed if you identify any underperforming products or services in relation to your
organisation or to competitors or any evidence of either your organisation or its competitors under-servicing the
market
 activities that the organisation might undertake to penetrate new international markets or to promote new
products and services for existing markets
 any trends, developments or emerging markets that will affect your organisation’s marketing focus, and the
information sources used to identify these
 the ethical and legal constraints that might affect the organisation’s marketing efforts

Explain how this information assists with the development of forecasts that are relevant to the organisation’s business
needs.
GATHERING AND DOCUMENTING MARKET INTELLIGENCE

Market intelligence (which comes from a range of sources including company’s acitivities and information needed by all
businesses) will enable decision-makers to estimate whether it would be beneficial to them to introduce new products,
it would be profitable enough to expand into overseas markets, their intended actions are appropriate, and such. It
would help companies to identify changing market conditions, growth opportunities, ways to make use of their
competitive advantage, strengths and weaknesses of the company and prioritize investments.

In order to have a secure position in the market, companies can consider gathering and document data and information
with the use of attending and participating in network activities, expos, trade fairs, seminars and conferences. Through
that, they can have a conversation with a number of different people from different places with different backgrounds.
And with the use of that, they can provide valuable and interesting insights and information about international market
that will help the organization to know and understand things further.

INTERNATIONAL MARKET

A market can be defined by either simple or complex. In the simplest terms, a market is a structure of
organization/foundation, requirement and processes relating to the trading of products between persons or
organizations. Markets, on the other hand, can be defined in different ways, including by geography, customer, product
or even the behavioral characteristics of consumers. However, an international market is defined geographically as a
market outside the international borders of a company's country of citizenship. A company, to the extent that it is a
legally distinct entity from its owners like a corporation, is usually a citizen of the country where it is organized.

THE ORGANISATION INTENDING TO OPERATE IN THE INTERNATIONAL MARKET YOU SELECTED - ITS CORE ACTIVITIES,
CUSTOMER BASE, BUSINESS VALUES AND CURRENT AND INTENDED BUSINESS DIRECTION

Organizations/companies that are planning to operate in the international market must first need to confirm their core
activities that drive and support the business – their current business performance and capability. By confirming what
the organization currently does well the organization can be flexible and will be more able to develop strategies for
moving in new directions while still supporting its valuable customer base and core activities.

Core activities include customer service, marketing, product design and development, operations, etc. They describe the
primary area/s or activity/ies on which a company was founded and on which it focuses its business intentions. A
business will examine its various products offerings to determine the one that complement each other in terms of
capital needs, structure, customer base, revenue streams, and manufacturing. If they can sustain core functions they can
start considering ways of exploiting new international business opportunities.

Business values, vision and mission are important for determining how the business should be run and the direction in
which it should go. They impact on the way the organization is currently run, sales and marketing ethics, legislative
compliance, and relationships with suppliers, staff, customers/consumers.

SOURCES TO GATHER MARKET INTELLIGENCE

Market intelligence uses multiple sources of information about company’s existing market, customers, problems,
competition, and its growth potential for new products or new markets. Data and information that will contribute to the
development of useful market intelligence include:

 Market research and market intelligence service organizations

 Customers/consumers and prospects
 Joint venture partners
 Industry publications and industry associations/peak industry bodies
 Social media
 Competitors/competitors analyses
 World industry reports
 International government
 Foreign embassies and trade missions

Market intelligence will be used to help an organization enter a new market, or expand its presence in a market, obtain
first mover advantage, help develop and maintain competitive advantage, identify and manoeuvre their positioning, and
many more.

COMMERCIAL MARKET INTELLIGENCE PROVIDERS

For organizations not prepared to collect their own data, and use or hire an in-house analyst, a third-party specialist
could help with the development of appropriate and useful market intelligence. Although a lot of information can be
found through a variety of sources, particularly on line, much valuable information cannot be found on line. General
information is often freely available but the collection of competitor information that is specific, reliable, and validated
can require skills of a specialist market intelligence provider. A specialist analyst can develop a nuanced picture of the
market by communicating with manufacturers, distributors, clients/customers/consumers, and others involved in the
creation and distribution of the company’s products/services. Companies need to know what each analyst will and can
do and provide. They have to consider if the analyst can provide important information such as competitor profiles,
pricing research, result of searches, international market data, etc., and if they will access company’s potential buyers,
distributors, agents, and other intermediaries, competitors, industry experts, and published information. However, there
are some of the downside of using a commercial agents, such as contract/agreement, understanding and knowledge of
an agent to fully understand the information, sales methods, and control.

ASSESSING ORGANIZATIONS’ PERFORMANCE AND DETERMINE THE EFFECTIVENESS OF THEIR MARKET/ COMPETITIVE
POSITIONING AND THE EFFICACY OF ITS MARKETING ACTIVITIES.

The key operational variables for evaluations relating to past and current performance are sales and profitability.
Considerations when identifying current international marketing performance and the effectiveness of past international
marketing or positioning are:

 whether the planned and predicted sales volume was achieved

 whether there are differences between past and current performance
 how effective different positioning, pricing and marketing strategies have been
 how any changes in sales volume compare with changes to the sales of competitors

By identifying current international marketing performance and the effectiveness of past international marketing or
positioning in international markets the organization might decide that it is necessary to:

 adapt to specific market changes

 move to another level or in a new direction
 change resource acquisition procedures
 business plans need to be up-dated
 develop and implement new method of measuring success; etc.

THREATS, OPPORTUNITIES, THE ORGANISATION’S STRENGTHS, CAPABILITIES, CAPACITY AND WEAKNESSES, AND THE
STRENGTHS OF COMPETITORS

A capability and resources assessment might involve evaluating situational factors, operating hours, transport and
distribution channels, supply and demand, communication channels and efficiencies, etc. A capability assessment will
enable measurement of the organization’s strength, weaknesses, ability to access and apply the resources they need,
and their market understanding.

These capabilities – the collective skills, abilities, and expertise of an organization – are the outcome of investments in
staffing, training, compensation, communication, and other human resources areas.

Capabilities relate directly to competitive position. When considering capabilities it is also necessary to identify any
issues related to competitive position and to assess individual products and services being offered to the market.

The assessment can be used to identify the resources that are currently available to provide client centric services,
identify potential new products, services or markets, identify new areas for exploitation within international markets,
determine the degree to which the organization will be able to meet the needs of customers, and identify areas for
improvement.

Competition must also be considered in the context of performance, function, communication with customer, cultural
fit, technical improvements or their ability to penetrate new markets. Analysis of competitors’ market performance,
products and services can provide information that will help the business expand, overtake, undercut or outflank a
competitor. Organizations that are not aware of competitor performance and the ability of competitors to penetrate
international markets could be taken by surprise when competitors launch a new product or open up a new market.
They must regularly scan and analyze the market so they can spot the gaps they can enter – preferably before a
competitor does. Understanding what their competitors are doing helps organizations understand their own position in
the market.

CHANGES IN INTERNATIONAL MARKETS THAT LINK POSITIVELY TO THE ORGANISATION’S STRENGTHS OR

CAPABILITIES

Changes in the market are the source of both new opportunities and new threats. Moving with changes and trends, and
not against them, can lead to organizational profits. Missing or not pursuing a trend can lead to loss of market position.
Studying market trends and sales growth in complementary products can provide information that enables forecasts of
market growth rate and turning points. Business organizations that are well prepared can exploit any positive impacts
and minimize the damage of negative impacts, or even change the focus of the business if necessary. Armed with this
information an organization could take steps to expand into this demographic. Businesses should be constantly scanning
the market and collecting data that will enable identification of conditions that offer opportunities and contribute to
business performance reviews.
UNDERPERFORMING PRODUCTS OR SERVICES

When considering capabilities it is also necessary to identify any issues related to competitive position and to assess
individual products and services being offered to the market. The organization must identify under-performing products
or services. These must be assessed in terms of market suitability, viability/ongoing viability, possible viability in other
contexts, fit with customer needs, cultural fit, the need for adaptations or adjustments, and the need for withdrawal
from the market.

Any products or services that are not providing a suitable ROI need to be closely examined in order to determine what
actions to take. Persevering with products and services that are not performing adequately means that the organization
will lose money and possibly credibility and the marketplace.

ETHICAL AND LEGAL CONSTRAINTS THAT MIGHT AFFECT THE ORGANISATION’S MARKETING EFFORTS

Starting a new business is a complicated process that requires more than simply planning on how to produce, advertise
and distribute a certain product or service. Businesses are subject to numerous laws and regulations that place
limitations on the types of products and services they offer and how they operate. Businesses must work within the legal
constrains that govern them to avoid potentially costly legal violations. Legislation exists to protect
customers/consumer, the community, suppliers, the environment and intellectual property. These laws are intended to
promote fair trading and to encourage competition. They also outline the rights of businesses and business owners
when conflicts arise.

 TAXATION HERE AND ABROAD

 IMPORT/EXPORT MATTERS
Businesses must be aware of laws of government regulation. They must know what imports are acceptable and
exporters need to know the risks associated with exporting.
 INTERNATIONAL LEGISLATION
Legislation in other countries will determine what can be marketed, how it can be marketed and how business are
allowed to operate in their jurisdiction.
 ETHICS
This relates to ethics and to the values and norms held by the society within the business is marketing. Marketing
that is linked to social causes can lead to an opportunity for growth and differentiation.
 WORK CONDITIONS
Businesses need to make a determination on how they will operate and determine what human rights policies they
can apply.
 HUMAN RIGHTS
These relate to work standards, wages and conditions, performance and quality standards, workplace diversity and
equal opportunity, religion and its impact on business practices and social customers, and complying with the host
country’s rules and regulations
 THE ENVIRONMENT
Most countries are concerned about the environment but legislation and expectations will differ in each country.
 BRIBERY AND CORRUPTION
Countries that are unable to make such payments have an ethical dilemma and might feel it is necessary to resort to
other means to garner appropriate advantages.
 BUSINESS PRACTICES
 INTELLECTUAL PROPERTY
 RELIGION
 POLITICAL AND LEGAL ISSUES
 FOREIGN GOVERNMENTS
Understanding cultural differences can make the difference between success and failure in a global market. Each nation
has its own distinct customs, history, traditions and code of ethics.