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Accelerating Cross-Border transaction of SME

Networking
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Network

Selection of Target Market

The most important step for sustainability of companies is sales and sales policies. Producing before sale means converting raw material being kept in warehouse into final product. 


Sale constitutes backbone of trade. Factory, raw material, product, logistic and similar products / services will not be profitable in absence of customer.


Sale is very important in terms of domestic and international market. Sales actualized in international markets are more important as it provides foreign currency inflow. 

Active sale network must be established for efficient sales

Proper target market(s) must be determined for establishing effective sale network. Proper market selection constitute fast and sustainable sales. 



Attending to Fairs/Exhibitions

Company must establish sale network to make its goods move in international platform. 


International fairs are a must of foreign trade. Fairs have been become meeting point of real and most recent demands and supply. Attendance into an international fair is a must of foreign trade even if it is inconvenient as it is costly and required long time period to do


Costs of fairs are minimized through government encouragement policy. Ministry of Economy in Turkey encourages national fair attendance by 50% - 70% 

Fair Attendance is important in terms of company prestige as well. Fairs are one and most important way of giving a good account of a company. 

Companies at level and over small and medium sized enterprises attend fairs to give good account of company even they have already established their sale network.

Fairs usually become the first address where companies show up by their new products produced through new technology, R&D and innovation techniques.  Those kind of products are exhibited in fairs to avoid being imitated by other companies. 

These kind of activities make companies acquire competition ability. 

Finding Customer(s)/ Suppliers

Developing communication techniques  make distances closer and provides communication as fast as possible in shortest time period.   


Network may be established as;

Finding customer

Granting or acquire a franchise

Granting or acquire distributorship

Social networks, company directories and web sites issue bill of lading are used for those methods.


Almost 30 countries issue their bill of lading online. Bill of lading which is considered as valuable document, is issued to make competition pure all over the world. 


Companies follow web pages which are the most developed and widespread method issue bill of lading, to reach final customers. 

Determining target markets and “spot-on” customer selection is necessary to reach final customers. 

Customers are categorized as  “Customer”, “Branch” or “Distributor”
there are channels which are called as “customer” who makes one time purchase only and “Outlet” who makes purchases for an area determined and time period and “Distributor” who are authorized for granting franchise and for sales in all territory determined by agreement. 

“Customer” is called as consumers who makes one time purchase, as outlet who commercializes company products and as “distributor” who represents company, granting franchise and sells goods in all over territory determined by agreement between producer and distributor. 
 
Social media, as it has crucial role for advertisement of company, is becoming the most effective tool for advertisement, finding customers and communicating with customers. 

Tools for finding suppliers / Customers

  • Web pages issue bill of lading
  • Tradeinfo365.com, uktradeinfo.com, panjiva.com, infodriveindia.com
  • Company directories
  • Kompass.com, gulfind.com, fita.org
  • B2B web pages
  • Alibaba.com, tradekey.com, turkishexporter.com, europages.com
  • C2C web pages (B2B or C2C must be used according to sales policy of company)
  • Ebay.com, amazon.com
  • Commerical Attache
  • Chamber of Commerce
  • Barter trade systems
  • Social Media
  • Fairs

Online Tools
Widespread internet using in our today’s world makes our life easier day by day. Many information issued by internet makes international trade easier. Finding and communicating with customers or suppliers through existence of virtual platforms like B2B and company directories are some of advantages. 

The last point of commercial intelligent is using of web pages issue bill of ladings. 
Bill of Lading; is an document, issued by transportation company as soon as documentation is done and container is loaded into ship, considered as valuable document and license of goods and dispatching into third parties is prohibited. Thus, finding bill of lading is vitally important in foreign trade sector. 

B2B web pages may be used to reach customers directly or making customers reach into company directly. 

Customers all over the world are provided to reach into company according impact area of B2B web pages. 

B2B web pages are being used as advertisement tool. Publishing of goods and company profile may be done as becoming member of B2B web pages.  

Advertisement activities for International markets must be done according to culture, socio-economic situation and demographic structures of companies

Each country has company directories. One of them is kompass.com which is the biggest company directory in the world. Kompass.com is used all over the world commonly due to it has agencies in almost all countries. 

There are other web pages work domestically in their own countries. For example, company name or product may be searched in middle east countries by www.gulfind.com in case of target market is middle east countries. 

Desk-based research is the first step for establishing sale network. Thus, countries are determined and customers are selected in targeted countries. 

Sources where bill of lading is issued, B2B web pages, company directories are tools being used commonly. In case of those kind of sources are not available in a country then chamber of commerce in that country even in city must be contacted and company information must be demanded. 

In this scope, There is a platform on web page of Ministry of Economy where we may contact with commercial attaches in other countries. Potential customers may be determined as contacting with commercial attaches. 


Logistic

Another important factor for establishing international sale network is logistic. Logistic which is one of the most important criteria to be used, is effective for selection proper target market. 


Geographic position of targeted country effects transportation of goods, unit prices, delivery time and trade potential directly. In case of high transportation cost for unit price make importers to decrease import amount or to stop importation totally. 


Alternative logistic factors are also crucial as well as geographic distances. Number of transportation companies in targeted country, alternative transportation methods and ways provide low-cost, comfortable and fast transportation. 


Objectives/goals

Network
Selection of Target Market
Attending to Fairs/Exhibitions
Finding Customer(s)/ Suppliers
Logistic

Description

The most important step for sustainability of companies is sales and sales policies. Producing before sale means converting raw material being kept in warehouse into final product. Sale constitutes backbone of trade. Factory, raw material, product, logistic and similar products / services will not be profitable in absence of customer.

Bibliography