The globalization of today’s market place has been subject to great attention. Whether or not a company participates directly in international business, hardly anyone can claim not to be involved in any way in the global market place. In fact, due to saturation tendencies in the domestic market, the dependency on international customers as well as the ever increasing pace of global competition, nearly all companies of any size and business level are faced with the impacts of the world market. Their performance, however, differs significantly. Especially for SMEs foreign expansion is the main challenge; minor foreign market knowledge, inexperienced staff and the dependency on day-to-day operations limit the possibilities for a systematic approach to foreign markets.
In the literature of international marketing and management there is a variety of theoretical approaches concerning the process of internationalisation respectively the entry into foreign markets as well as market development. However, in many cases especially Small and Medium Sized Enterprises (SMEs) fail to interpret the theoretical approaches according to their needs and thus are confronted with a considerable gap between theory and their business reality.
Being employed in a SME myself missing strategic planning and emotional decision-making has indeed been a part of my work experience during my cooperative studies. In my company I am now responsible as Area Sales Manager for the Scandinavian region, Austria and the United Kingdom and it will be my task to correlate the indications of theory with the necessities of the specific internal reality of my job assignment. As the company has started to re-organise export activities, the development of the British extraction technology market is a given task and at the same time the subject of my dissertation.
At a glance
- Grade: 1.5 (1.0 is the best grade)
- Application/product matrix linking extraction equipment to industrial uses
- Weighted distributor-screening example for evaluating prospective sales partners
- 21 sources in the bibliography
- 9 figures
Contents
1 Introduction
1.1 Problem Definition
1.2 Objective
1.3 Methodical Approach
1.4 Definitions & Explanations
2 Theoretical Framework
2.1 Basics
2.2 Fundamental Elements
2.3 Integrated Strategic Planning – An Illustration
3 The Market Development Process
3.1 Targets
3.2 The British Market - Macro Surroundings
3.2.1 Market Characteristics
3.2.2 Politics
3.2.3 Regulations & Standards
3.2.4 Industry
3.3 The Extraction Technology Branch – Micro Surroundings
3.3.1 Market Size & Demand
3.3.2 Authorities Affecting Demand
3.3.3 Competitive Surroundings
3.3.4 Existing Distribution Standards
3.4 ESTA – A Characterisation
3.4.1 Company Profile
3.4.2 Products
3.4.3 Current Activities within the UK Market
3.5 SWOT Profile – An Interim Conclusion
3.6 Strategy Selection – Theory and Classification
3.6.1 Corporate Level
3.6.2 Business Unit Level
3.6.2.1 Generic Business Strategies
3.6.2.2 ESTA’s Business Strategy – Domestic and Abroad
3.6.3 Functional Level
3.6.3.1 Basic Marketing Strategy
3.6.3.2 The Marketing Strategy Path For ESTA
3.7 Marketing Planning – Basic Considerations for Implementation
3.7.1 Identifying Market Segments and Target Customers
3.7.2 Formulating a Product Strategy
3.7.3 Setting A Price Range
3.7.4 Establishing Distribution
3.7.4.1 Finding & Selecting Potential Sales Partners
3.7.4.2 Establishing a Relationship
3.7.5 Promoting the Development
3.7.6 Short – Term Schedule & Budget Estimation
4 Conclusion
Objectives and Themes
This dissertation develops a practical strategic approach for ESTA’s expansion in the British extraction technology market. It asks how an assessment of the external market and the company’s internal circumstances can inform a suitable strategy and marketing plan for establishing a stronger market presence.
- Strategic planning and foreign market development
- British economic conditions, industrial demand and regulation
- Competition and distribution in extraction technology
- ESTA’s resources, products and existing UK activities
- SWOT analysis and competitive positioning
- Market segmentation, sales partnerships and marketing implementation
Excerpt from the Book
3.7.1 Identifying Market Segments and Target Customers
In general, segmenting is the process by which groups of consumers with similar wants and needs are identified. In following, targeting is then the act of evaluating and comparing the identified groups and selecting target customers with the highest potential. In contrast to the general indications of market segmentation theory that segments markets based on demographic, psychographical and behaviour aspects the extraction technology business requires a different approach. Here, the main segmentation force is the existing or required application for extraction. In other words, how and in which process is an industrial air pollution occurring and which method would be most suitable for extraction. In addition, the type of branch and its geographic location build up the segmentation. Thus, ESTA needs to develop a profound understanding of those aspects. In Appendix II the major existing applications are defined and related to ESTA’s product range.
As the automotive sector is regarded as a driving force in the industry, it may be a reasonable object for segmentation in order to explore possible applications and sales potential. The sector by nature reveals several production processes such as metal and plastics processing involving grinding or welding applications. The main task is therefore to identify the main geographical areas of car manufacturers and its suppliers, to differentiate them by production processes and the correlating applications. Thus, the particular market segment can be specified and allows for screening potential target customers within the segment. This calls for identifying all the potential buyers in each selected segment and estimating their potential purchases based on their specific needs.
As the example of the automotive industry was chosen, if there is a knowledge about the existing applications in a specific area it will now be possible to select addresses and gather specific company information. This procedure can then be extended to other potential industry sectors. When applications and sales potential are identified ESTA can eventually select the most suitable products from its portfolio respectively, it is able to define the necessary product adaptations. As indicated, the British extraction technology market is mainly based on filters for dust and fumes. Accordingly, ESTA can distinguish between those divisions and segment them separately, based on the above suggestions. This will then support an even more focused approach to potential customers and its specific preferences.
Chapter Summaries
1 Introduction: The opening chapter sets out ESTA’s market-development challenge, the dissertation’s objective and approach, and the principal terms used throughout the work.
2 Theoretical Framework: This chapter introduces strategic planning, its fundamental stages and an integrated model connecting market analysis, strategy and implementation.
3 The Market Development Process: The main chapter examines the British market and ESTA’s capabilities, develops a SWOT profile and considers strategic choices. It then addresses segmentation, products, pricing, distribution, promotion, scheduling and costs.
4 Conclusion: The final chapter reflects on the relationship between practical marketing decisions and higher-level corporate and business strategies.
Keywords
British market, extraction technology, market development, international marketing, strategic planning, SWOT analysis, industrial air pollution, competitive strategy, market segmentation, distribution partners, product adaptation, COSHH regulations, marketing mix, export strategy
Frequently Asked Questions
What is this dissertation about?
It develops a strategic approach for expanding ESTA’s presence in the British extraction technology market.
What are its central themes?
The main themes are international market development, external and internal analysis, competitive strategy, distribution and marketing planning.
What is the primary objective?
The objective is to translate strategic planning into practical steps suited to ESTA’s circumstances and the British market.
What method does the author use?
The author combines a strategic planning framework with an analysis of market and company conditions, a SWOT profile and an applied assessment of strategic and marketing options.
What does the main chapter cover?
It covers market conditions, regulation, competitors, ESTA’s products and capabilities, strategic choices and the marketing activities needed to develop the market.
Which keywords characterise the work?
Key terms include market development, extraction technology, strategic planning, SWOT analysis, market segmentation and distribution partnerships.
How does the dissertation approach potential UK sales partners?
It considers partner requirements, methods for finding candidates, weighted screening and the establishment of a working relationship.
Why are COSHH regulations relevant to the analysis?
The work discusses how requirements concerning hazardous substances affect the use of dust and particulate extraction equipment and may influence market demand.
How is the automotive sector used in the marketing discussion?
It serves as an example for segmenting the market by location, production process and extraction application, and for identifying potential customers.
- Quote paper
- Thomas Drabner (Author), 2003, Developing The British Extraction Technology Market - Strategic Analysis and Concept for ESTA, Munich, GRIN Verlag, https://www.grin.com/document/53652
