THE
GLOBAL MARKET
DEVELOPMENT PROGRAM
is best perceived
as a custom designed window of opportunity through which a panorama of
international commerce relevant to your company (opportunities measured in billions of dollars each year for most industry sectors) can be analyzed, accessed and exploited. The GMD program provides a rarefied perspective based on the consolidation of levels of market intelligence unparalleled through traditional methodologies, both those applied within domestic markets and those accessed by the vast majority of trade specialists. Factor in awareness of elements as varied as the world's topography, climates and peoples with temporal advantages extending well beyond the potential as markets for counter-seasonal goods e.g., the coordinated efforts of work groups strategically located around the world can be applied to gain additional hours out of each workday it is then feasible for program participants to determine the most viable course of action for furthering their international marketing goals. Participation in the GMD program will secure for your company a position from which the direction, integration and coordination of international marketing efforts (those both domestic and foreign based) can be more effectively implemented and applied to secure the greatest possible strategic competitive edge.
Market insight does not have to be profound
or complex to be exploitable; fundamental examples that can be applied
by a wide spectrum of businesses not currently exporting include the fact
that northern hemisphere seasons are 180 degrees out of phase with those
in the southern hemisphere.
Consider Japan, while representing:
-
the world's second largest economy (having
a 1999 GDP of $4,348.95 billion, which represents 14.2% of global output
on a market exchange rate valuation basis);
-
the world's third largest import market and
third largest US export market (accounting for $57.48 billion in US merchandise
exports in 1999);
-
a 1999 GDP per capita of $34,402;
-
and a midyear 2000 population projected at
126,549,976;
yet, with a total area of 145,883 sq. mi. (377,835 sq. km.), it's smaller than the state of California (158,869 sq. mi. or 411,470 sq. km.) and experiences about
1,500 seismic events each year due to volcanic activity!
These are the most simplistic examples, yet
reveal significant market potential for a wide range of companies.
Other strategies are capable of providing access to
trade opportunities two to three months earlier than US businesses are
typically made aware of them in addition to providing major advantages
in responding to trade opportunities.
The Global Market Development program was
developed to assure greater profits, a more visible market posture, more
detailed and accurate market intelligence, and a more progressive and anticipatory
awareness of market opportunities.
Is Exposure on a Global Medium Enough?
Many companies consider
a presence on the Internet, a global medium, sufficient to support expansion
into international markets; however, although considerable overlap exists,
the two are distinctly different arenas. They involve different players
and to an extent different dynamics; as such, it's possible for a high
profile in one to mean very little in the other.
This can perhaps
be best illustrated through a resource readily available to US exporters
(and non-US importers). THE
U.S. EXPORTERS' YELLOW PAGES™ features over 20 thousand US companies
involved in international business. The directory is produced annually
by Global Publishers in cooperation with the International Trade Administration's
Office of Export Trading Company Affairs. Registration is free, and
can be accomplished online via the U.S.
Department of Commerce Registration Form.
Is this then, the
ultimate resource? There is no ultimate resource, only a basic strategy that demands continually striving to do as many things more right than the competition as possible; but it is indicative of the fact that relatively few companies recognize the distinctions between the global marketing arena and domestic commerce yet another reason such enormous commercial potential remains obscured from the view of most.
The Dynamics of US Economic Growth
Who could argue the importance of understanding market dynamics relative to plans for expansion into a new market?
The Gross Product Originating by industry (1987 SIC basis) share of the $8,110,897 million Gross Domestic Product in 1997 provides the following breakout: Manufacturing $1,378,869 million; Wholesale $562,755 million; and Retail $712,890 million. These figures reveal that the $3,929,407 million manufacturing industry shipments made in 1997, in terms of their cascading effect through the wholesale and retail sectors, accounted for $2,654,514 million, or 32.73%, of the US GDP. Gaining detailed insight into this market activity
provides domestic companies a reliable benchmark reference for their industry and foreign companies a powerful market assessment they should not be without. To that end, the table U.S. Manufacturing Industry Shipments: 1997, represents a detailed analysis of US manufacturing output.
A Pareto Perspective of the IT Edge
Although the State of the Internet 2000 report published by the United States Internet Council and ITTA Inc. has estimated that only 51.3% of those online are native English speakers, 78% of all Internet websites and 96% of eCommerce websites are in the English language
 
There are 90
markets in which English is either an official language, associate
language, or is widely spoken throughout governmental/educational institutions,
or in business and commercial communications. Those markets accounted
for 45.3% of the Gross World Product in 1997, 51.0% of world imports in
1997 (51.5% of US exports in 1998), and are projected to represent 43.3%
of the world population as of July 1999. Based on 1999
projections, those markets represent an aggregate Gross Domestic Product
of $19.76 trillion, $3.67 trillion in global imports, and a midyear population
of 2.596 billion.
It should be noted
that the correlation between markets ranking highest on the Information
Society Index and those considered English appropriate is more than
coincidental, and validates the assertions put forward on the power of
the English language relative to international commerce.
Although this perspective
of the English language is intended to establish its potential relative
to global marketing, and not define its limits in 1995, there were an
estimated 322 million first language speakers and 148 million second language
English speakers throughout the world. It's vital to recognize that
real world in-market product promotion is best conducted in the language(s)
most appropriate to the indigenous population of a given market.
However, there are enough English speakers involved in international commerce
to establish market entry contacts, buyers and distribution networks throughout
the world based on an English only Internet presence. Effectively
exploiting this fact is a strategy that will not only outperform more conventional
Internet marketing, but one having to be neither capital nor labor intensive!
While the marketability
of English in the international arena is presented to establish the magnitude
of its commercial potential; its value in demonstrating that the majority
of experts involved in international trade remain oblivious to such
obvious potential is equally important. The GMD program was conceived
to assure that no substantial relevant market activity remains obscured
to participating companies even if that means more effectively exploiting
the obvious.
For
the record
This is not intended
to be a unilateral declaration of English as the lingua franca of commerce;
but rather to herald a means of securing access to the greatest potential
for furthering future marketing goals an opportunity available to a wide
spectrum of businesses in all markets of the world. As Information
Technology is more widely accepted as a tool available to all businesses,
and globalization becomes increasingly synonymous with online marketing;
the extent to which English is used in conducting international commerce
will increase in proportion to Internet expansion. While this process
is currently in its infancy, the earlier and more effectively this
factor can be integrated into a company's marketing strategies, the greater
advantage it will provide over all competitors even those in English
speaking markets!
What
about localization?
Conceived to facilitate
Internet market expansion through the development of global business-to-business
sales and distribution networks, the methodologies of the GMD program are
not applicable to direct marketing (online or real world). However,
they enable a company to incorporate into its marketing processes far more
expansive views of localization than those implemented by most competitors.
An accurate cultural perspective of a market is best derived from a basic
understanding of social, political and economic ideologies and stratification,
historical development, religious affiliations, regional traditions, and
ethnicity (which is perhaps most effectively defined by understanding which
of the world's 6,703
languages are used in a given market).
Related, but of more
obvious value, is initiating an effort to instill an awareness of (and
respect for) a region's personal, business and social etiquette into all
market expansion efforts from developing brand awareness to in-market
product promotion and customer service.
An expanded view
of localization could include the need to recognize that products themselves
must often be adapted for new markets. While it's estimated that
780,000 national standards exist in the world (about 43 percent are identical
to, technically equivalent to, or based on international standards of
course, in practical terms, having only 444,600 national standards
to negotiate is hardly a less problematic regulatory obstacle!); even so,
they are only part of the story. Success in international markets
often depends on awareness, consideration of, and effectively addressing
the aesthetic preferences of populations indigenous to a given market.
Some advantages
available through the GMD program:
-
The power of IT accessible
through English can provide access to relevant global commerce measurable,
for the smallest of industries in tens of billions of US dollars far
more than opportunities accessible in any domestic market or those able
to be effectively targeted through conventional online marketing efforts.
-
Being made aware of
relevant international marketing opportunities 2 to 3 months before
competitors gain access to the information; this, in addition to
significant advantages in responding to such opportunities.
-
There's one major advantage
exclusive to Small and Mid-Cap public companies; a well considered PR campaign can parlay
the advantages secured through the GMD program into an autonomous strategy
for significantly increasing company stock value and investment capitalization.
There's much more
to represent that I've effectively captured the full spectrum of global
opportunity in such broad strokes would be ludicrous; however, to believe
that the limits of the GMD program could be defined in such a limited (and
generic) presentation would be an equally gross underestimation of its
potential. The purpose is to present a cohesive vision of enormous
unrecognized and untapped potential; and the viability of how accessible,
through the implementation of innovative strategies, that potential can
be. And that's just the beginning
Trade Intermediaries
There are a wide variety of trade intermediaries
available to assist companies planning to expand into international
markets, Export Management and Export Trading Companies (EMCs and ETCs)
are generally the best prepared and offer an extensive range of services.
The Federation of International Trade Associations recently published,
HOW TO FIND
and USE an EXPORT MANAGEMENT COMPANY, on its web site.
Though intermediaries are able to fill
the knowledge and experience gaps in many companies seeking international
market expansion, there are inherent problems in the nature of the manufacturer-trade
intermediary business relationship. While a manufacturer must accept
that its interests are best served by relying on
the existing network of a trade intermediary; the trading company's position
is less tenable. To compensate, they routinely employ protective
measures: non circumvention contracts to keep from subsequently being excluded
from trade agreements; or back-to-back Letters of Credit in an effort to
keep the buyer's identity hidden from the manufacturer. In all, practices
that do not bode well for nurturing a business relationship based on respect
and mutual trust essential elements of any mutually beneficial long-term
business relationship. In fact, any US trade intermediary attempting
to hide the identity of buyers from client companies is revealing far more
incompetence than professionalism.
US companies planning to export should
be aware that the transfer of ownership of any merchandise to a trade intermediary
during the export process surrenders significant advantages to that
intermediary among them, at least two able to increase export profits.
In summary, trade intermediaries reduce
company profits on exported merchandise, decrease competitiveness in foreign
markets (their commissions translate into higher prices), and usurp strategic
advantages available to an exporting company. If those issues are
insufficient to raise concern, why allow elements of mistrust be a major
factor in a business association of such importance?
There Must be a Better
Way
Although the GMD program was conceived
to support the exploitation of international marketing opportunities to
an unprecedented degree, the role of existing trade intermediaries (EMCs
and ETCs) provided a basis from which to determine ways the process could
be improved; the resulting program offers a superior alternative
to what is in many ways a fundamentally flawed concept.
Let's examine what is presumably the most
important benefit of an association with a trade intermediary gaining
access to its existing trade network. To begin with, the vast
majority of trade intermediaries specialize within a few select markets
or a global region (like the European Union); while not being totally dismissive
of their resources, few, if any, trade intermediaries have developed exclusive
and/or extensive trade networks that cannot be equaled or bettered with
the proper awareness and creative strategies rest assured that such resources
(buyers) cannot be hidden. As to exclusivity, though an exporter
will sometimes grant (through contract) exclusive rights to a specific
market or region to an importer; with the exception of a subsidiary, agent,
or international buyer acting on behalf of a foreign importer (in which
case an association with the importer would be openly declared), there's
little need for concern that any importer would grant exclusive export
rights for a foreign market to a trade intermediary in that market.
Exclusivity, in this context, is a euphemism for
we
know how to do it, and you do not.
A superior alternative offered through
the GMD program, is having your company guided in developing its own trade
network through a greater awareness of existing trade resources than that
possessed by most trade intermediaries. In fact, being able to establish
that network in nearly all markets of the world, and gaining access to a preexisting
support network in scores of markets that account for approximately 66.8%
of the Gross World Product, over 98.2 percent of US merchandise
exports (in 1999) and a 2000 midyear population projected
at 4,908,714,112 (representing 80.7% of the total world population) the advantage
being that your company becomes an active participant in shaping its destiny,
and then, being able to do it far better than they can!
Basing remuneration on sales commissions
is another flaw in a trade intermediary agreement. While such arrangements
are intended to provide incentive and assure that payment is commensurate
with sales volumes; because intermediaries increase product prices while
simultaneously diminishing competitiveness in foreign markets, their efforts
are incongruous with a client's best interests, making any viable alternative
a valuable option. There are far more productive ways to equitably
accomplish the same goals.
The Global Market
Development program is available to companies in all markets of the world
provided they are not prohibited by US trade regulations or policies from
conducting business with companies in the United States. Such
prohibitions include companies, entities or individuals that are located
in an embargoed
country, on the Entity
List, Denied
Persons List, List
of Specially Designated Nationals and Blocked Persons or Parties
Debarred under the Arms Export Control Act.
In the Most Explicitly
Generic Terms
What's presented on this web site is an analysis, in the most generic terms, of global opportunity via the most powerful business paradigm universally applicable to a wide range of businesses in all parts of the world. However, the GMD program was conceived and developed to provide degrees of specificity on international market activity far beyond what is conventionally known to be available or even considered
possible by most and while distinctly different, far exceeding what typically
drives the marketing efforts of most companies within their domestic markets.
The power inherent in the aggregate data made available through the GMD
program will prove an invincible ally in securing new opportunities in
foreign markets and strengthening, within its domestic market, the posture
of any participating company.
Describing elements able to provide access
to relevant market activity measurable in hundreds of billions of dollars
as data is an insipid description of what is best viewed as powerful market potential. Despite the tremendous effort that went into harnessing that power, until
it is applied by a company able to exploit it, it remains only potential;
however, once set into motion, it's kinetic energy will establish a momentum
capable of securing a new future for any beneficiary of that potential.
The Global Market Development
program is original and based on a singular vision; while that is a bold
assertion, it's one that can be substantiated by providing evidence of
one of the earliest attempts to articulate its conceptualization on a public Internet
forum while it was being formulated into a cohesive strategy.
On March 11, 1997, The Ultimate Market Potential
of the Internet was published on the Internet
Sales Discussion List (Digest # 411); subsequent to that a slightly expanded
version was published in eCommerce Weekly (Issue 69) it has proven far more accurate than any contemporary assessment of Internet potential.
GMD: the Source?
What inspired the
Global Market Development program? While there's no simple answer
to this question, I spent from 1983 to 1987 managing computer maintenance
in a US intelligence unit in the circumvallated city of West Berlin a
time when the Cold War had an icy grip on world events, though to the present
we struggle against its specters. Subsequent to the collapse
of the Soviet Union in November 1989 (while assigned
to another intelligence unit in West Germany), the insight gained
during time spent in Berlin enabled me to recognize that the erosion of
communism was based as much on economic failure as military might (of
course the economic burden associated with maintaining the military posture
of a superpower was a significant factor) this was not gleaned from an
editorial opinion in Time magazine or the theoretical abstractions
of a leading economist interviewed on 60 Minutes; but, an extension
of my personal reconciliation of events leading to the collapse based on
observations and experiences.
In the war of ideology between communism
and democracy, it was the market dynamics of socialism versus capitalism
that ultimately declared the victor. Coming
to terms with those events and the profound awareness that what had transpired
was based on economic power made an indelible impression that inspired
me to accept that more things than one normally considers, are possible.
Since awakening to the power of economics on a global scale, I've worked to incorporate a cultivated awareness of extraordinary possibility into the most powerful business paradigm ever developed. The GMD program is an extension and manifestation of that awareness one harnessing a synergism beyond what would ordinarily be considered to exist within the realm of possibility for most companies. It does
The GMD program integrates extraordinary resources, including many that are highly obscure, into an intricate mosaic able to demistify the macrocosm of commerce transforming that macrocosm into a resource that is both manageable and exploitable. The resulting panorama of commerce potential can be applied to secure microcosmic perspectives, integrating both domestic and international market assessments, at the regional, country, industry sector or even more explicit level of detail.
In the final analysis, relative to such vital strategies many companies may be reticent to rely on outsourced effort. However, it is important to recognize that nearly all innovation, regardless of scale, originates from and is driven by a singular vision; which when capable of presenting a clear, concise, coherent and comprehensive view of market opportunity that is demonstrably more definitive in both scope and magnitude relative to the full spectrum of industry-specific assessments held by marketing directors throughout the world, is representative of a capacity assuring phenomenal strategic advantage that power can be harnessed
To broadening horizons
Thomas J. Judge Jr.
A more complete overview of the Global
Market Development program can be downloaded below; the data presented
on this web site is intended to complement that contained in the PDF document.
GMD Program Overview 28 pages (8.5x11
page format) 169k
GMD Program Overview 28 pages (A4 page format) 169.5k
The above files are in the Portable Document File format and
require an Adobe Acrobat Reader to be
viewed and/or printed.
© 1996 - 2000 Thomas J. Judge Jr. All rights reserved.Voice Mail / Fax: +1 360 - 252 - 8994

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