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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:

  1. Specifically who are potential buyers?
  2. What trade shows are the most effective?
  3. 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 202-377-2505.

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 an 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 bas of the market or company criteria specified by the exporter. The information is available either as cheshire or gummed mailing labels o 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 t 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 ar telexed daily to the computer center in Washington, D.C., reviewed, an 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 lea 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. Othe 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 prospect that have examined the U.S. firm's product literature and have express 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 application 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 throu an illustrated catalog-magazine and electronic bulletin boards. The catalog-magazine is distributed through U.S. embassies and consulates 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 yea 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 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 to three separate listings per issue, each focusing on a single produc 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 an are address coded to allow for tracking and program evaluation. Interested firms should contact the nearest Commerce district office f 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 perso 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 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

  1. Choosing the proper fair out of the hundreds that are held every year.
  2. Obtaining space at the fair, along with designing and constructing the exhibit.
  3. Shipping products to the show, along with unpacking and setup.
  4. Providing proper hospitality (refreshments and so on), along with maintaining the exhibit.
  5. 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 generall 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.

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 receiv certification, the organization must demonstrate that (1) the fair is 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 ha the facilities and services of the Department of Commerce available to them. Commerce can also

  1. assign a Washington contact person to coordinate Commerce assistance;
  2. 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;
  3. help contact buyers, agents, distributors, and other business leads and provide marketing assistance; and
  4. 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 selecte 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.

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 202-377-0481.

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 t 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 mission 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 achieve maximum results in expanding exports of U.S.-produced goods an services. They are usually composed of fewer than 12 but more than 5 U.S. business executives.

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 a up to 10 U.S. embassies and consulates or in conjunction with trade shows in a region. Commercial staff provide each participant with sale leads and a visitors list of all foreign buyers attending the event.

Because it requires the exporter to make a much smaller investment tha 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 202-377-3973.

OTHER DEPARTMENT OF COMMERCE PROGRAMS

Export Development Offices (EDOs)

EDOs in seven cities overseas provide a variety of programs and service 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:

  1. It conducts or assists in market research in the country, helping to identify specific marketing opportunities and to determine whi products have the greatest sales potential.
  2. It conducts export promotion events in its region that have been organized on the basis of market research findings.
  3. It helps organize participation of specific U.S. exporters in the events.

Located in Tokyo, Sydney, Seoul, Milan, London, Mexico City, and Sao Paulo, these offices organize and coordinate a range of export promoti programs, including on-site trade shows, U.S. pavilions in internation 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 firm or associations. Facilities can be used for sales promotions, seminars and sales meetings. For a nominal fee, EDOs and some commercial office 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 clien 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 202-377-5225.

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:

  1. 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.
  2. Provides vehicles such as sponsoring trade fairs and trade mission to improve exposure for U.S. textile and apparel firms and products in foreign markets.
  3. Provides information on overseas markets and counseling on method 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.

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.

  1. Dairy, Livestock, and Poultry Division, 202-447-8031.
  2. Grain and Feed Division, 202-447-6219.
  3. Horticultural and Tropical Products Division, 202-447-6590.
  4. Oilseed and Oilseed Products Division, 202-447-7037.
  5. Tobacco, Cotton, and Seed Division, 202-382-9516.
  6. Forest Products Division, 202-382-8138.

High-Value Product Services Division

The High-Value Product Services Division's purpose is to expand overse markets for U.S. agricultural and food commodities and products throug 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:

  1. 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:
    1. 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 an directions on how to poll the Trade Leads Fax Service units by faxing AgExport Connections at 202-472-4374.
    2. 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 Connection Room 4939, South Building, Foreign Agricultural Service U.S. Department of Agriculture, Washington, DC 20250-1000; telephone 202-447-7103, fax 202-472-4374.
    3. Electronic trade leads. With a computer, a modem, and communications software, exporters can receive trade leads electronically. Information on the different type 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.
    4. Journal of Commerce. Selected trade leads received by USDA a published several times each week in the "Agricultural Trade Leads" columns of the Journal of Commerce. For subscription information telephone 800-221-3777.
  2. 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.
  3. 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 nam 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;

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 environment assessment. Opportunities to export commodities are available through the commodity import programs that AID operates in selected 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 a 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.

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.

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:

  1. Specific trade leads with foreign buyers.
  2. Assistance for trade missions, such as itinerary planning, appointment scheduling, travel, and accommodations.
  3. Promotional service for goods or services, including representing the state at trade shows.
  4. 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.

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 a 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. 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 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 tha handle overseas accounts.