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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.

ExpertCentral.com


 
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.

   PDF Icon   GMD Program Overview  –  28 pages (8.5x11 page format) 169k

   PDF Icon   GMD Program Overview  –  28 pages (A4 page format) 169.5k
 

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