Market Segmentation Survey of U.S. Exporters-Serv Export

Survey Instrument – Service Exporters
Introduction: Hello, my name is __________ and I’m calling from Pacific Market Research on behalf of the United States Department of Commerce’s U.S. Commercial Service.    May I please speak with Mr./Ms.____________________?  Or “Can you tell me the name of the person who manages or leads your company’s international business?” (Could be a director, vice president of international sales or president/CEO. If you don’t have someone responsible for international, could you direct me to an executive that is responsible for a significant portion of your international accounts?)   WHEN YOU HAVE THE CORRECT CONTACT PERSON ON THE PHONE:   Hello Mr./Ms.____________________, my name is __________ and I’m calling from Pacific Market Research on behalf of the United States Department of Commerce’s U.S. Commercial Service. The Commercial Service assists U.S. companies to export their products and services around the world.   We are speaking with U.S. companies that have exported services in the past 12 months and would like to include your perspective in the research. This research will provide the U.S. Commercial Service with information that will assist them in improving their services for U.S. exporters. This is your opportunity to provide input, describe your experiences, and make recommendations for change, so that the U.S. Commercial Service can help U.S. companies to grow globally. Your name and company will remain confidential from the U.S. Commercial Service. This survey will take approximately 30 minutes to complete. We recognize your time is valuable and the government appreciates your participation. When would be a convenient time to participate in this research? ________________________
I. Information from Database – List
Company Name: Contact: Address: Sector: education, financial services, insurance, telecom, computer/IT services, management and consulting, R&D/testing, etc. SIC/NAICS: Employment:
II. Company Information – Screening
Before we get started, let me confirm some information with you.
Exporter?	Have you sold any services to customers outside the U.S. in the past 12 months? Yes No (thank and terminate call)
U.S.-based?	Is your firm majority U.S.-owned? Yes No (thank and terminate call)
Title/Role	Which one of the following best describes your title or role within the company? President, CEO or Owner VP/Director or Manager – International Sales VP/Director or Manager – Sales and Marketing or Business Development Other VP/Director or Manager Other: _________________ (If not executive or management, find another contact at executive/management level. Avoid shipping department or export operations managers.)
Size/Employment	How many employees do you have company-wide? ________ Employees (Record actual number)
International Sales	In the past 12 months, approximately what percentage of your annual revenue was from countries outside the U.S.? ___________% (Record actual number) If 0%, thank and terminate call. Interviewer: If unsure, suggest: Is it less than 5%? Over 10%? If they are still unsure, thank and terminate call. Roughly, what percentage of this international revenue was from services delivered by U.S. personnel as opposed to foreign personnel, subcontractors or partners? Let me clarify that U.S. personnel may deliver services in foreign countries, but they are based in the U.S. Foreign personnel may be staff at your own foreign offices or at foreign subcontractors or partners. ________ Record actual number (If 100%, thank and terminate call)
International Growth	What was your company’s growth rate in international sales for 2008 (or most recent fiscal year)? ­­­­­­­­­­­­­­­­__________% (Record actual number or enter “DK” for don’t know) What was your company’s growth rate in international sales for 2007 (or 2 years ago)? __________% (Record actual number or enter “DK” for don’t know)
III. Company Information – Background
What business are you in?	Which one of the following sectors do you categorize your business as falling into: Educational services Financial services Insurance Telecom Computer, information technology or software development Management or consulting services R&D / testing Other ________ (please specify)
Ownership	Which one of the following best describes the ownership of your company? Subsidiary of another company Family-owned and managed Management owned, but non-family Investor-owned company Sole proprietor
Revenue Growth	What was your company’s growth rate for total revenue in 2008 (or most recent fiscal year)? ­­­­­­­­­­­­­­­­__________% (Record actual number or enter “DK” for don’t know) What was your company’s growth rate for total revenue in 2007 (or two years ago)? __________% (Record actual number or enter “DK” for don’t know)
IV. Export/International Business – Overview
Regions	I am going to read a list of world regions. Please tell me which ones you sell to: (Check all that apply) Canada and/or Mexico (NAFTA countries) Brazil Other Countries in Latin America and the Caribbean, beyond Mexico, Brazil Western Europe Eastern Europe, excluding Russia Russia China India Other Asia, beyond China, India Middle East Africa Australia and New Zealand Of the regions you mentioned, which is your top market in terms of revenue? (Select one)
# Countries	How many countries do you currently sell to? (Choose one) 1-2 3-4 5-10 10-20 More than 20
Years Exporting	How many years ago did you start selling internationally? _________ Years (Record actual number or enter “DK” for don’t know)
Time ‘til Expansion	ASK ONLY OF COMPANIES ANSWERING 3 OR MORE IN NUMBER OF COUNTRIES CURRENTLY EXPORTING TO After you started exporting, how many years did it take for you to reach the point where you were selling to 3-4 markets or more? ______ Years (Record actual number or enter “DK” for don’t know)
V. Export/International Business - Attitude
Planning	Do you have international revenue targets? (Y/N) Have you identified specific target countries and markets for expansion? (Y/N)
International Growth Orientation	Which one of the following statements best characterize your approach to international sales? We would like to aggressively grow international sales We would like to modestly grow international sales We would like to maintain current international sales We do not actively solicit international sales and primarily respond to foreign customer inquiries
Path from Moderate to Successful	ASK ONLY OF COMPANIES DEFINED AS “SUCCESSFUL” IN SECTION II What are the key factors that drive your success in global markets? I will read a list of factors. For each one, please let me know whether it is a key driver of your success in international markets – yes or no. Quality of your service Rapid growth of your market Low price of your services versus competitors’ solutions Unique process or patented technology Better service than competitors Aggressiveness in selling and marketing internationally What caused you to become more aggressive in pursuing international sales? Again, I will read a list of factors. For each one, please tell me if it explains why you became more aggressive internationally – yes or no. Arrival of new top management at our company Arrival of an experienced international sales manager Gradual shift in mindset as we gained international experience Serving overseas locations of U.S. customers jump-started our international business (and made us more aggressive) Strong demand from foreign customers Government information and assistance programs
VI. Export Business Practices
Dedicated Employees	How many employees do you have, if any, who are dedicated to international business? ________ Employees (Record actual number) (Include all dedicated employees, not FTEs. Those handling both domestic and international are not dedicated)
Sales Channels/ Go-To-Market	Who primarily handles sales in foreign markets? (Choose one only) Foreign reps or agents Direct sales – U.S. based sales people or executives Foreign sales offices (company-owned) U.S.-based broker or agent Joint venture partners Other (No need to specify)
VII. Top Priority Assistance Areas
Top priority Assistance Areas	Now we want to zero in on those aspects of the export business where you face your greatest challenges. I am going to read a list. Please assess your effectiveness in managing each of these areas on a scale of 1-5, where 5 is “extremely effective” and 1 is “ineffective” or “face major difficulties.” 1 2 3 4 5 Ineffective Extremely Effective Developing an international business plan or strategy Conducting market research or identifying the most attractive foreign markets Finding, or conducting due diligence on, foreign representatives and partners Obtaining visas and complying with immigration laws Marketing and selling internationally (e.g. tradeshows, sales-calls, marketing materials) Managing payment and financing Ensuring sufficient service delivery capacity to support exports Protecting intellectual property Determining price, factoring in taxes and other foreign market costs Ensuring compliance with U.S. or foreign laws, regulations and standards
Interviewer: Follow up on the 2 areas that ranked as least effective (Programming to select 2 lowest ranked areas may exclude low priority service areas and may also require some random selections)
Planning/Strategy	One challenging area you identified was “international planning/strategy.” Let me ask you some follow-up questions in this area. I am going to read a list of topics. Please select the one aspect of international planning which your company finds the most challenging. Developing a written plan with clear objectives and strategies Identifying key sources of growth – countries, sales channels Defining marketing efforts Determining pricing Developing a budget and/or pro forma P&L
Market Research/ Attractive Markets	One challenging area you identified was “market research and identifying attractive markets.” Let me ask you some follow-up questions in this area. I am going to read a list of market information or analysis you might want about foreign markets. Please select the one type of information that is the most difficult for your company to obtain. Intelligence on competitor services Lists of specific customers or prospects Customer needs/wants in foreign markets Pricing levels Market demand, size or growth Country business climate
Partners	One of the challenges you identified was “finding and conducting due diligence on foreign reps and partners.” Let me ask you some follow-up questions in this area. Which aspect of dealing with partners does your company find the most challenging? Please select one of the following: Finding distributors or reps that can sell or deliver your service Conducting due diligence and credit/financial checks Managing partner relationships Handling legal and contractual issues
Visa / Immigration Law	One of the challenges you identified was “obtaining visas and complying with immigration laws.” Let me ask you some follow-up questions in this area. Which aspect of visa/immigration rules do you find most challenging? Please select one of the following: Obtaining business visas for travel to certain countries Understanding visa/immigration rules that cover U.S. staff deployed in foreign markets Obtaining U.S. visas for foreign workers (such as H1B and others)
Marketing and Selling	One of the challenges you identified was “marketing and selling internationally.” Let me ask you some follow-up questions in this area. Which of the following marketing methods do you employ in foreign markets? I will read the list, and as I go, please say “yes we use this method” or “no we don’t.” Tradeshows Trade missions Advertising Marketing materials adapted or translated for foreign markets Website – your own or a distributor/rep/partner’s Direct sales calls by U.S. salespeople or executives Sales calls by distributors, reps or partners Seminars or other customer events Gold Key or other government matchmaking program Word of mouth or referrals from existing customers Which of these is your top source of new business (in terms of revenue)? (Choose one)
Payment & Financing	One of challenges you identified was “payment and financing.” Let me ask you some follow-up questions in this area. For new customers, how do you generally get paid? (Choose one) Advanced payment, or partial advance payment Open account/invoice Letter of credit Other Once a customer is established and has a track record, how do you generally get paid? (Choose one) Advanced payment, or partial advance payment Open account/invoice Letter of credit Other Do you purchase credit insurance under the Export-Import Bank Program? (Y/N) In a more typical credit environment, is cash flow or working capital an issue when taking international orders? (Y/N) Do you currently have a line of credit from a bank to provide working capital for your international business? (Y/N) Have you used Export-Import Bank’s or SBA’s Working Capital programs? (Y/N) In a more typical credit environment, do your foreign customers have difficulty getting their purchases financed? (Y/N)
Service Delivery Capacity	One of the challenges you identified was “ensuring sufficient service delivery capacity.” Let me ask you follow-up questions in this area. Do you currently have sufficient capacity to support foreign sales for the next 2 years? (Y/N) To support foreign sales, are you planning to expand? (Y/N) Are you experiencing shortages of specific skills you need to serve international customers? (Y/N) If yes, which skills? (Check all that apply) Language Local cultural knowledge Technical knowledge Knowledge of foreign markets
Protecting IP	One of the challenges you identified was “protecting intellectual property.” Let me ask you some follow-up questions in this area. I will read a list of topics related to protecting intellectual property. Please select the one area that your company needs to better understand. How and when to file for patent protection in foreign markets How to employ other legal mechanisms, such as designs and trade secrets How and when to file for trademark protection Building IP protection into legal agreements and contracts
Compliance – US & Foreign (combined)	One of the challenges you identified was “compliance with U.S. and foreign laws.” Let me ask you some follow-up questions in this area. Which one of the following aspects of compliance does your company find the most challenging? Complying with U.S. export controls and regulations, administered by the Departments of State, Commerce, and other agencies Complying with foreign market laws, regulations and certification requirements
VIII. Use of Outside Services and Purchasing Behavior
Use of Outside Services	I am going to read another list of areas within international sales. As I read them, please tell me whether you have obtained outside assistance or expertise in each area during the last 3 years. (Y/N) Developing an international business plan or strategy Conducting market research or identifying the most attractive foreign markets Finding, or conducting due diligence on, foreign reps and partners Obtaining visas and complying with immigration laws Marketing and selling internationally (e.g. tradeshows, sales-calls, marketing materials) Managing payment and financing Ensuring sufficient service delivery capacity to support exports Protecting intellectual property Determining price, factoring in taxes and other foreign market costs Ensuring compliance with U.S. or foreign laws, regulations and standards For those areas where you received outside assistance, can you tell me what organization provided the assistance? (Open-ended short answer, to be coded)
Purchasing Decision-Making	Of the organizations you mentioned above, which was the one most valuable export assistance provider you worked with? (open-ended, to be coded) What type of organization is this? (Choose one) Consultant Trade Association Bank Non-profit Federal government agency or program State government Which one of the following statements best describes why you selected this organization versus other export/international assistance organizations? They had the best qualifications, expertise, and reputation They were low cost compared to the value of services provided We were not aware of other organizations that provided this type of service They understood our industry or market We had a personal connection, or previous experience with this organization How did this organization reach you, or how did you find out about them? Tell me which one of the following statements best applies: We found them on the Web We found them by asking around, getting recommendations/referrals We saw them mentioned in a publication – article or advertising We met them at a seminar, conference or tradeshow We already knew them They found us through a cold call, direct mail or networking Other or can’t remember What publications do you regularly read to keep on top of international markets and how to do business globally? (Open-ended, to be coded)
Awareness and Positioning	Have you worked with the U.S. Department of Commerce, which includes the Commercial Service, U.S. Export Assistance Centers and commercial officers in foreign embassies or consulates? (Y/N) If yes, which one of the following statements best describes your decision to work with them? (Select the one most important factor) Their qualifications and expertise were impressive They had specific services we needed, such as matchmaking or market research Their services were low or no cost They understood our industry or market They were recommended by a trusted source or another company We had a personal connection or previous experience with them If no, which one of the following statements best describes your decision to not work with them? (Select the one most important factor) We were unaware of the U.S. Commercial Service We didn’t understand how they could help us We don’t need outside assistance in international sales They don’t understand our business or industry They are too bureaucratic or unresponsive They don’t have the required expertise Their Web site was not helpful
Need for Outside Services	What is the most important area where you need outside help to grow your international business? (Open ended, answers to be coded)