Knowledge Base
1. Decisions and Mistakes in the Global Market
Global marketing refers to cross-border access and opportunities. The right marketing strategy (planning and measures) can lead to growth in its sector, a change in the balance among competitors, international recognition of brand value and profit, while the wrong technique can cause the company to experience time spent and serious financial losses.
The process of managing the global market; each product to be marketed from the beginning to the end is classified according to its own characteristics and all items such as (logistics cost, insurance, country tariff and quota practices, tax, etc. sanctions), especially the global factors specific to that product, are examined and the right strategy is determined with analytical methods and the planning and marketing processes are initiated.
All these issues in trade determine the rings that affect the cost of sales. No matter how good a product is, if the expense items are not paid attention to in the competitive market, it has a negative impact on the unit price of the product and if the sales price of the relevant country does not hold, this causes a negative impact on the marketing process, that is, exports.
Our aim is to take place in the global market and to ensure that our customers reach their products to the final consumer by increasing the brand value of our customers by applying the right strategy appropriate price policy by preventing all the mistakes made or all the points that remain undecided.
2. Alternative Ways in the Foreign Market Research Process
A research process starts with these 4 golden rules, which cover the correct and complete handling, understanding, cost evaluation and analysis of a product or a service that is the subject of marketing. In today's economy, cost expenses have started to play such an important role that a budget for every process we plan and implement has come into question. When the efficiency rates of these processes are compared with their costs, many issues are canceled from the beginning or suspended after the first attempt. The biggest danger here is uninformed sales techniques without research. With knowledge and experience, the search for more appropriate alternative ways has emerged over time.
Alternative ways in marketing; In fact, if we divide this process into 2, we can call it desk research and field research. In short, it is a 50% research and 50% application process. The desk collects data and acts accordingly, the field researcher either collects data in the field or performs the marketing process by acting according to the desk data. Our aim is to make this issue safer and more economical. In our market research processes, our methods represent an integrity and work in a "multi-system logic".
Research and Implementation Process
50% Research Process: These are the processes of gathering, analyzing and commenting on all global data about the product on the desk. Potential geographical regions and countries related to them, economic and political factors, supply and demand of the product in the relevant country, economic sanction controls applied to the product and determination of potential companies, etc. It includes controls.
50% Application Process: These are communication processes, introduction and product promotion marketing processes. The research methods we have implemented address all of these. Our priority based on these issues is to collect the correct data and create a roadmap by analytical interpretation and start the communication process.
As important as identifying new markets for a process to reach its goal, identifying influential competitors and market share distributions are just as important. Understanding customer needs, seeing possible problems and taking precautions are the safety belts of our sales and marketing process.
3. Active Service Models in Marketing: B2B and B2C Sales Planning
Companies in global markets divide their fields of activity according to the service classes they provide. Although marketing models generally show similarities, there are fundamental strategic differences. Here, we determine sales categories such as B2B or B2C according to the sector group based on all the models we have in multi-system logic. If we briefly explain these models, what they mean and why they should be used in the business world, it is necessary to explain this first.
B2B (Business to Business): It is a commercial sales marketing method that businesses do among themselves. In short, it covers products and services in production and industrialization. It is one of the most common sales models. B2B activities are generally a preferred method to accelerate the supply chain and production stages and to make similar cycles easier.
B2C (Business to Consumer): It is the process of businesses selling directly to customers. It is the delivery of the product in question directly to the consumer through the business. Here, the product is marketed with internet or field marketing methods. In addition, international sales platforms also act in accordance with this sales model. At the same time, a global platform can use b2b and b2c sales models by turning the business and consumer into a buyer. In these business activities, it is necessary to focus on the needs and expectations of the end user. Products/services are sold by companies to the end consumer. Many businesses can use both b2b and b2c business models at the same time.
Using B2B and B2C business models well brings many marketing advantages. The biggest advantage is that it globalizes a business and allows it to reach every buyer in the world. We carry out all these processes in an understandable method chain. Our company also does not provide consultancy services in the C2C (Consumer to Consumer) marketing sales method, i.e. "from customer to customer".
4. National and Regional Legislation Problems
In global marketing, trade regimes are guided by the principles, namely sanctions, determined by the WTO, which is a 4/3 member worldwide. Turkey is also included in this organization with 164 members, and this organization provides trust, transparency, stability and balance in trade with bilateral agreements with developed countries, the European Community, developing countries, other countries and some countries. Here, the mechanism works with the G.T.i.P customs code (H.S. Code) used as the product identification number. It contains general information about the product in each code mix. These determine the import stages such as tariff quotas, exemptions, tax reductions or restrictions such as quotas, sanctions, dumping, additional tax, additional value and permits to be obtained, etc. and are applied within this scope.
In order for a trade to be done correctly, it is a correct approach to market the final product by researching the regime principles to be applied when it enters another country. These research topics are the cornerstones of a sales and marketing roadmap. Our service examines this service with its expert staff in the field of customs and foreign trade and directs the export process with accurate data.
5. Difficulties in Export Rules and Sales Methods
Export: It is defined as “the removal of a product outside the Turkish customs area or to free zones in accordance with the current export legislation and customs legislation or other exits and transactions that will be accepted as export by the ministry”. (Export Regulation, Art. 4/1-d)
Export Regime: In short, it applies the country decisions taken. It is a regime in which the provisions regarding the exit of the product that will be taken outside the Turkish Customs Area for export purposes are applied. This regime applies the prohibition and restriction provisions included in the Presidential Decrees, international or bilateral agreements, laws, regulations, and statutes, without prejudice.
Export Rules: It covers the regime conditions (permission-prohibition), sales methods; payment and delivery methods. Here, first of all, before marketing a product, it is necessary to check whether it is suitable according to the regime principles (prohibition-quota-restriction-measure) and also whether it is subject to the necessary permissions by the institution. The next process takes shape according to the demands such as the payment method of the product (cash-term and similar) and delivery method (from factory-port-destination port and similar).
Products produced domestically and intended to be exported are separated according to the product customs codes (G.T.İ.P) Customs Tariff Statistics Position, such as those subject to permission, those not subject to permission, those subject to quota and those prohibited according to the export regime principles.
The issues we have mentioned above are a part of our operation and we provide service focused on measures.
A. Export process carried out without considering permission, restrictions or other measures for export products;
Export products in the domestic market are divided into two groups according to the legislation. They are the product group subject to permission or the product group that is not subject to permission. The export transactions of products that are not subject to permission are carried out abroad without any problems in the Customs administrations 24/7, and the export goods subject to permission must first apply to the institution that requires permission, obtain permission and then send the goods abroad by performing the export procedures.
In businesses that have just started export operations, that directly market the products they produce without any knowledge, without consulting (without checking whether permission will be obtained from an institution) and send them to the customs administration, unfortunately, they cannot ship their products within the export period because they do not take precautions and therefore face extra financial losses at customs ports (port storage - ship hijacking, container demurrage, etc.) or they are penalized due to not being able to ship within the export shipment period as a result of the protocols they have made with the Buyer and product sales are canceled.
Our company pays attention to these issues first and provides information by analyzing in order to prevent such negativities during the export process.
B. Damages due to using an incorrect delivery method in an export transaction
First, let's look at what the delivery method, or incoterms, means.
Incoterms: It is a set of internationally accepted rules published by the International Chamber of Commerce (ICC) that clearly states where a product will be delivered in international trade, who will cover or how the relevant costs will be shared, whether insurance and transportation contracts will be made, and in short, the obligations of the buyer and seller.
Product marketing in the international market is determined according to delivery methods. A sale made with an incorrect delivery method causes damage to the exporter and importer. Therefore, when marketing a product, its price must be clearly understood. In order to understand whether the product carries a cost in the sales unit price, the most commonly used in incoterms rules is the sales price given by specifying the delivery method, which means exw, meaning ex-factory, from the exporter's warehouse. In trade made in this way, the buyer declares his own request and the possible extra costs are added to the sales price, ensuring that the trade is done correctly.
A wrong delivery method used in export goods can bring extra costs to the business or the buyer in terms of logistics, tax, insurance and customs, and can cause serious negativity in purchase or sales profit margins or disrupt trade, causing customer loss.
We manage every stage of this process in a planned manner with our expert staff, and take protective measures with our system and procedures.
C. Using an incorrect payment method in an export transaction and its damages
In sales transactions in international trade, the payment method for the price of the goods depends on the degree of trust between the importer and the exporter and the risks assumed by both parties. In this context, the manufacturer or the buyer acts according to the risk assumed or according to different payment types.
The most commonly used payment methods in trade are; advance payment, payment against goods, payment against documents, acceptance credit and letter of credit payment methods. When we look at the payment method usage rates, first comes advance payment, then letter of credit payment methods, and then documented and sales methods against goods.
An incorrect payment method in a product marketing can suddenly cause a serious commercial risk or loss for a company. For example, a transaction with advance payment, which is exported on a deferred basis, may cause serious financial loss to the company and administrative penal sanctions based on the export circular, since it cannot be done within the export price acceptance document (İBKB) period that must be reported to the tax office.
There is a possibility of correction of these errors within the application period. Errors that meet the conditions of Article 241 of the Customs Law can be corrected. However, the buyer may claim the rules of the sales contract that were prepared by mistake in his own trade and may not accept the correction request.
"Each instrument subject to export in international trade is a set of rules developed and accepted to protect the buyer and seller."
We provide this service to prevent these errors from occurring, to prevent losses and to prevent correct trade and customer losses.
6. Not Allocating Enough Time to the Export Process Due to Workload
The biggest factors in today's trade are economy, time, cost and employment processes. In this trade cycle, the market is divided into two. Businesses working in the domestic market and businesses serving both the domestic and foreign markets. A business that is closed to the outside world in itself, retains all of the working procedure conditions and control process as a structure. For this reason, it does not play a role in the international marketing process of the product it produces and remains in the supply process to the domestic market.
Business models that do not want to be affected by economic events such as market fluctuations and contractions also attach importance to visibility in the foreign market and sales and marketing processes. Export is a door opening to the world. It is the 2nd Way to Growth. It is very important to evaluate and manage this well. When we examine the companies where we see a serious increase in value in annual turnover and growth figures, we see that they add international markets to their sales markets with the right strategy and grow by exporting.
In this global trade cycle, which is seen as the formula for growth and where trillions of dollars are circulating, there are many companies that cannot spare time, postpone or have hesitations due to workload or various reasons.
In this process, we handle the entire foreign trade process and manage the marketing, sales and organization of the process from the producer to the business or the consumer.
7. Benefits of Foreign Trade, Negatives of Lack of Knowledge and Experience
What is Foreign Trade?
According to some, export, and according to others, import, is a name given to the commercial process of international purchase and sale of goods or services. It is also called international trade.
In short; It is the name given to the purchase or sale of products or services between countries.
What are the Benefits of Foreign Trade?
In fact, its most important basic effect is to grow a business economically. The system is established with this logic. The aim is to reach the specified goals with solid steps in the long term and to have a say in the sector by growing.
Other positive benefits are; brand value grows in the global market, the market diversifies, export revenues increase, technological investments increase, global business partnerships and competition increase. It experiences other positive effects like these. In short, we can call these the benefits of foreign trade.
Lack of Knowledge and Experience in Foreign Trade
Foreign trade has 2 main branches. Import and export. These two areas are completely guided by the regime, law and related legislation of the country. The production or service sector determines its trade according to this set of laws and legislation. The factors of trade come into play here. If the basic factors are not taken into consideration in the purchase or export of a product, it brings with it many negativities, especially the company image.
Foreign trade is a group of research, knowledge, accumulation and experiences. The most common issues we encounter in this regard are lack of trained personnel and language problems, impulsive actions, not taking time due to workload, customer relations and reporting errors, correspondence and organization errors, export and import control processes, skipping of legislation controls, etc.
Our service provides direction in the management of these processes with our experts who have worked in many areas of trade for many years in the fields of customs, logistics, legislation, standardization, marketing and education.
8. How to Export?
We can briefly list the steps to start exporting in 5 golden items:
- Market and Product Analysis: Identify target markets and research whether your product will be in demand in that market. Analyze your competitors, prices and import conditions.
- Legal and Technical Preparation: Complete legal requirements such as tax number, membership in exporter associations. Obtain the necessary international certificates (CE, ISO etc.) for your products.
- Finding Potential Customers: Identify potential buyers in target markets. You can benefit from B2B platforms, trade fairs and trade attachés.
- Logistics and Customs Processes: Make logistics planning to ship your products with the appropriate transportation method. Learn customs clearance processes and prepare the right documents.
- Marketing and Sales: Introduce your product in accordance with the culture of the target market. Start your export process with offers, samples and commercial negotiations.
In this process, you can accelerate and secure your export process by receiving professional consultancy from our company.
9. Why Export is Important for a Company
- Increase in Sales and Income: You can expand your customer base and earn higher income by opening up to foreign markets.
- Gaining Competitiveness: Being present in the global market takes your company to a stronger and more innovative position.
- Market Diversity: Exporting reduces your risk of being affected by fluctuations in the domestic market and makes your business more sustainable.
- Brand Value and Prestige: Operating in the international market increases the reputation of your brand and provides wider recognition.
- Contribution to the National Economy: You support the economic growth of both your company and your country by earning foreign exchange.
10. What are the Most Common Mistakes in Exporting?
- Lack of Market Research: Starting export without properly analyzing the needs, culture and legal requirements of the target market.
- Incorrect Pricing: Not determining the product price in accordance with the purchasing power and competitive conditions of the target market.
- Insufficient Logistics and Customs Knowledge: Making mistakes in transportation, delivery terms and customs procedures can disrupt delivery processes.
- Failure to Comply with Legal and Technical Requirements: Not obtaining the product's international certificates (CE, ISO, etc.) or preparing customs documents incompletely.
- Poor Communication with the Customer: Not establishing sufficient trust with potential buyers and losing commercial opportunities due to lack of communication.
- Moving Without a Plan Without Determining a Goal: Attempting to export to random markets without developing a long-term strategy.
- In order to prevent these mistakes, it is important to get professional consultancy and plan the processes in detail.