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ASSOCIATIONS OVERVIEW
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Associations can play a very important role in supporting
service exporters by lobbying governments and by creating a
profile abroad for members' capabilities. Here are some tools to
help your service industry association support its exporting
members:
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Examples of services coalitions
During the 1980s, a number of countries developed a Coalition of
Service Industries to ensure that the concerns of service firms were
well represented in the Uruguay Round discussions. The earliest such
organisation was the U.S. Coalition of Service Industries, comprised
of major international firms such as American Express and Citibank.
Other active organisations include:
The Coalitions have sponsored regular international conferences to
discuss trade policy issues with the international services trade
officials/negotiators and also share best practices with each other.
The Coalitions network can serve two purposes for associations from
developing countries. First, it can provide another mechanism for
members to meet potential partners. Second, it can become a vehicle
for technical assistance from one association to another.
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Publicising the capabilities of your members
For service firms in many developing countries, the single
greatest barrier to exporting is not being taken seriously in the
global marketplace. It is vitally important you determine what your
service industry's areas of strength are, focusing on aspects that
matter to potential customers. Here are some possible types of
strengths:
- Lower per diem rates for equally skilled work
- Strong project management skills for keeping projects on-time
and within budget
- Innovative technical approaches, adapted to cultural factors
- Ability to address the needs of multiple cultural groups
- High professional and ethical standards
To help your association members gain credibility abroad, you will
want to develop few core messages about key competitive strengths.
Those messages can be featured in a glossy promotional piece for the
industry as a whole that members can include in their promotional
kits, which includes:
- Most competitive feature of the industry
- Illustrations of the key benefits the industry provides
- Examples of unique types of services offered and well-known
customers
- Export success stories
- Internationally-known customers/clients
- Statistics on the industry
One way of bringing alive what your industry has to offer is
through success stories. These stories can be disseminated as part of
political speeches, promotional articles about your country, features
in your national airlines' in-flight magazine, postings on your
nation's or association's Website, leads in your association's
newsletter, articles in trade publications, and so on. You can also
offer to provide quotes for politicians' speeches that include
successful examples from your industry.
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Establishing an export committee
It is common for industry associations to focus on domestic regulatory
issues and ignore export markets, especially in service industries.
Members interested in exporting may therefore turn to cross-sectoral
trade associations to have their export interests addressed, but those
associations may not be attuned to the specific challenges faced by
firms in particular service industries. In order to justify setting up
a (Services) Export Committee, the benefits to association members
have to be clear.
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Benefits to Service Industry Association Members:
- Provides a focus for all export-related
activities within the association.
- Provides a
consultation mechanism with government in order to:
- comment on trade priorities and
proposed export initiatives
- influence the priority placed on your service industry
- lobby for the reduction of non-tariff barriers to trade that
affects your industry
- lobby for positive trade benefits for your members from trade
liberalisation under the GATS and regional
trade agreements
- ensure that market information and intelligence gathered
abroad include items of relevance to your members
- Identify sister associations abroad in markets of interest to
your members.
- Build an international profile for members by hosting
national, regional, or international export events.
- Facilitate partnering among exporting members.
- Track export market priorities and successes within your
membership.
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Benefits to Trade Association Members:
- Provides clear value to members who are
service exporters and so attract more members.
- Ensures
that government consultation:
- covers trade priorities of relevance to
service firms
- results in trade benefits for your services members from
trade liberalisation under the GATS and regional trade
agreements -
Provides for the collection of market information and
intelligence abroad of relevance to your services members. ^
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Facilitates partnering among exporting members from different
sectors, including services, for one-stop solutions.
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Tracks and reports on export market priorities and successes
within your services membership.
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Forming friendship agreements with sister associations
Service firms often enter new markets most successfully through partnering with
local firms there. One of the ways therefore to support market entry, and help
locate partners, is to establish association-to-association linkages. The
material below can help you determine whether or not a friendship agreement
would be appropriate and how to go about establishing one.
The idea behind a friendship agreement is to create a framework allowing members
of one association to be members of the other. There are at least three possible
benefits to be gained from negotiating a friendship agreement:
- Enhanced access for your members in that foreign market.
- Additional membership dues revenues from members of that
sister association.
- Greater networking opportunities.
You
are likely to find that the association in a foreign market is an
appropriate candidate for a friendship agreement if:
- The foreign market is a priority in your association's Export
Development Plan.
- The foreign association is fiscally sound and
respected in its domestic market.
- The foreign association has a paid,
professional administrative staff.
- The foreign association is
interested in being proactive in building trade links for its members with
your market and recognises the value of partnering arrangements.
- The
foreign association's administrative staff and members have a language
capability that matches that of your members (e.g., English).
- The
benefits will outweigh the expenses incurred in developing and administering
the friendship agreement.
You may wish to contact service industry associations or other
trade-related organisations in developing/transitional economies for
several reasons, for example:
- As the head of an association, you may want help from a sister
association
- As a service exporter, you may want to make connections with
association members
- As a service exporter, you may want to join the association to
help you with market entry
- You may want information on the trade environment from
government officials
- You may want help with inward investment
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Creating awards programs
Since one of the issues for service firms abroad is establishing
credibility in the marketplace, being able to win awards that
recognise their excellent work is a big help. Awards programs can be
resource-intensive to administer, but they can also be of great
marketing value to your members by:
- Increasing public recognition of the capabilities of your industry
members
- Creating a higher public profile for your industry and industry
association
- Helping your members create market profile
- Helping your members convince potential customers that the purchase
risk is minimal because they are buying from "a winner"
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Tips for a Successful Awards Program
- Give the awards names that would be
meaningful in both domestic and international markets (e.g., "Innovative
Exporting Award" rather than "Gerald Obutu Award").
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Make sure that awards do not have to be awarded — i.e., they
will only be given if there is a suitable candidate.
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Arrange for nominations to come from the firm itself, other
firms, or clients.
- Use the awards categories and
criteria to reinforce the type of behaviour that will build the
credibility of the industry abroad.
- Consider having a
category for a foreign firm who is a member of a sister
association abroad.
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Staging partnering events
There are several different types of benefits that your association
can gain from developing and sponsoring partnering events between your
members and firms from targeted foreign markets:
- Help your members meet foreign service firms with whom they might
partner successfully.
- Reduce the market entry time and costs for your service firms by
helping them find a local partner.
- Help your professional service firms circumvent professional licensing
requirements in the foreign market
- through partnering with qualified local professionals.
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Tips for Staging Successful Partnering Events
- Co-ordinate with a sister industry
association(s) in the foreign market(s) you are targeting to
create credibility with foreign firms and help with recruiting
and matching.
- Limit the number of participants from
each market to 5-20 (to reduce complexities), and keep a ratio
of 2-3 foreign firms to every one of your members who is
participating.
- Recruit 2-3 times the final number of
participants you want.
- The recruitment contact should
be at VP-Business Development or higher to get commitment to
the concept.
- Secure a prior commitment from foreign
participants to make a brief presentation on their capabilities
in order to help ensure that they will actually attend.
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Remind participants to focus on their own and others'
partnering needs rather than on their own capabilities.
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Link the partnering program to another event (e.g., a
professional conference or trade show) that the firms can also
attend, and get the co-operation of the association running the
event.
- Note that foreign trade associations with
declining attendance can be well-motivated allies.
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Select a venue where "break-out" facilities can be arranged for
one-on-one meetings between firms in addition to a central
networking area.
- Include some kind of mixer networking
event with potential partners.
- Have name badges that
include country flags and possibly a sub-speciality code (to
identify country of origin and facilitate networking).
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